First Potomac Sells Cedar Hill I and III for $27.3M

Bethesda, MD-based First Potomac Realty Trust announced this week that it had sold two office buildings in Tyson's Corner, Virginia for gross proceeds of $27.3 million. Cedar Hill I and III were first acquired by First Potomac in 2011 from PNC Realty Investors, Inc. for $22.8 million; the company stated in a press release that proceeds from the sale will be utilized to fund the previously announced redemption of $2.2 million Series A preferred shares.

"As we continue to execute on phase one of our strategic plan to improve our portfolio and strengthen our balance sheet, the sale of Cedar Hill I and III, and the redemption of a portion of our preferred shares, reinforces our effort to create substantial value for our shareholders," said Robert Milkovich, CEO of First Potomac Realty Trust. Jones Lang LaSalle represented First Potomac in the sale of Cedar Hill I & III.

Cedar Hill I, located at 2222 Gallows Road, and Cedar Hill III, located at 2216 Gallows Road, are 100% leased primarily to the United States State Department's GSA through 2020 and 2019 respectively. The two three-story office buildings total 102,632 square feet and were constructed in the late 1980s. For more news and information visit Blumberg Partners.

First Potomac Drops Richmond Portfolio

First Potomac Realty Trust, a DC-based self-managed real estate investment trust that focuses on owning, operating, developing and redeveloping office and business park properties, announced this week that it had closed on the sale of it's Richmond, VA portfolio for $60.3 million. James Cassidy with DTZ represented First Potomac Realty Trust in the sale of the portfolio; terms of the sale or the buyer's identity were not disclosed. The sale is a continuation of First Potomac's capital recycling plan, which is focused on disposing of non-core properties and reinvesting in high quality, multi-story office buildings in the Washington, D.C. region. Since announcing the strategic and capital plan in January 2013, First Potomac has successfully disposed of 33 properties for aggregate gross proceeds of $433 million.

"With the sale of the Richmond portfolio we are continuing to execute on our strategic plan of disposing of non-core assets and redeploying capital," said Douglas Donatelli, Chief Executive Officer of First Potomac Realty Trust. "Our focus continues to be on growing the existing portfolio with well-located multi-story office buildings in the Washington, D.C. region."

The Richmond portfolio includes six business park properties — Chesterfield Business Center, Airpark Business Center and Pine Glen in Chesterfield County, Virginia and Park Central, Virginia Technology Center and Hanover Business Center in Henrico/Hanover Counties, Virginia — comprised of 19 single-story office, office/flex and industrial buildings totaling 827,925 square feet.

For more news and information visit Blumberg Capital Partners.

First Potomac Realty Buys Reston, VA Office Building

Normandy Real Estate Partners, the Morristown, New Jersey-based real estate investment and management firm, has sold 1775 Wiehle Avenue in Reston, Virginia to Bethesda-based First Potomac Realty Trust for $41 million. Terms of the deal were not disclosed, though it is known that Paul Collins, Bill Collins, James Cassidy, Drew Flood, and Jud Ryan of Cassidy Turley represented the seller in the transaction.

The five-story, 125,444-square-foot office building was built in 2001 and provides immediate access to the Reston Town Center, which offers 40 retail stores, a wide variety of eating establishments, multi-family residential, and a 517-room Hyatt Regency Hotel. 1775 Wiehle offers tenants 25,000 square foot floorplates with high ceilings, 30' x 30' column spacing, 15% multi-tenant core factor, 9' finished ceilings and virtually column-free workspace. The building is 100% leased with Odin, Feldman & Pittleman, P.C. as the largest tenant.

For more news and information visit Blumberg Capital Partners.

New JV for DC Development as First Potomac Sells Share

Akridge, a DC-based full service real estate firm, announced this week that it had entered into a new joint venture with Mitsui Fudosan America as First Potomac Realty Trust sold its ownership share in a development project in the central business district of Washington, DC for $43.7 million. Mitsui Fudosan America acquired the First Potomac Realty Trust ownership interest in the project on 1200 17th Street, where a building (formerly occupied by the National Restaurant Association) is currently under demolition and will be redeveloped as a 168,000 square foot trophy-class building.

According to a Washington Business Journal article, First Potomac originally bought its 95% stake in the project in a joint venture with Akridge in late 2011 for $37.6 million. Akridge will continue to own its share of the project and will remain the developer.

"This sale allows us to achieve our previously stated goals of monetizing an investment after we have added value, significantly strengthening our balance sheet, and decreasing risk in our portfolio," said Douglas J. Donatelli, Chairman and CEO of First Potomac Realty Trust. "While we know 1200 17th Street will be a very successful project, we could not pass up the opportunity to sell our position at a significant profit. We wish our friends at Akridge great success as they move forward with 1200 17th Street and we hope to have the opportunity to team up with them again in the future."

For more news and information visit Blumberg Capital Partners.

First Potomac Buys $90M Office Building in DC

First Potomac Realty Trust completed the acquisition of 840 First St. NE in Washington, DC for $90 million from the Stephen A. Goldberg Co. according to a Washington Business Journal article. The building was acquired at below replacement cost, said Nicholas R. Smith, Chief Investment Officer of First Potomac Realty Trust. The contract leaves room for an additional $10 million of consideration payable depending on the terms of any lease renewal by the existing tenant or re-tenanting of the property according to a GlobeSt.com report.

"This strategically located, fully leased office building is a very attractive investment opportunity for First Potomac," said Smith. "We were able to acquire 840 First Street in an off-market transaction at below replacement cost, once again demonstrating how our local market expertise and relationships allow us to execute on high-quality transactions that strengthen our portfolio and deliver long-term value to our shareholders."

The fully-leased Class A office building adjacent to Union Station boasts 248,576 square feet of space and was constructed in 2003. The property is leased to Group Hospitalization and Medical Services, Inc., an independent licensee of the Blue Cross and Blue Shield Association. The health care insurer is the building's original tenant and has sole access and control of the building's facilities, including its 222 underground parking spaces and cafeteria.

For more news and information visit Blumberg Capital Partners.

DC Office Building Sold for $49.5M

Harbor Group International sold 1211 Connecticut Avenue in Washington, D.C. this week for $49.5 million to First Potomac Realty Trust according to Citybizlist. The eight-story 137,754 square-foot office building was originally constructed in 1967 and underwent renovations in 1998 and 2008; First Potomac indicated that it plans to renovate the property's facade and lobby. With 125,119 rentable square feet, the property is currently 100% leased to 25 tenants.

"The acquisition of 1211 Connecticut Avenue adds another strong, stabilized asset to our portfolio of DC-area properties," said Douglas J. Donatelli, Chairman and CEO of First Potomac Realty Trust. "As our seventh office building acquisition this year, and the third acquisition in downtown Washington, D.C., this purchase is a reflection of our strategy to leverage our strong financial position and market expertise to execute deals that deliver long-term value to our shareholders."

For more news and information visit Blumberg Capital Partners.

First Potomac, AEW Acquire DC Office Building for $65M

First Potomac Realty Trust and AEW Capital Management entered into a 50/50 joint venture to acquire 1750 H Street, NW, in Washington, D.C. for $65 million. National Treasury Employee's Union sold the mult-story Class A office building in a deal that was contingent on the buyers assuming a $31.4 million loan from the seller.

"It fits well into our long-term business plan to grow our presence in the downtown D.C. market, increase the number of office buildings we own, and continue our focus on high-quality properties," said Douglas Donatelli, chairman and CEO of First Potomac in a Washington Business Journal article. 1750 H Street, NW is a 10-story 111,000-square-foot office building located approximately three blocks from the White House in Washington, D.C.'s central business district. The building is 100 percent leased to six tenants, including 46,900 square feet on the top four floors that is leased back to the seller, the National Treasury Employee's Union (NTEU) for a ten-year term.

For more news and information visit Blumberg Capital Partners.