First Potomac Realty Trust Completes Sale Of Industrial Portfolio For $259 Million

  First Potomac Realty Trust Completes Sale Of Industrial Portfolio For $259
                                   Million

PR Newswire

BETHESDA, Md., June 18, 2013

BETHESDA, Md., June 18, 2013 /PRNewswire/ --First Potomac Realty Trust (NYSE:
FPO), a leading owner of office and business park properties in the greater
Washington, D.C. area, today announced that it has completed the previously
announced sale of the majority of the industrial portfolio to an affiliate of
Blackstone Real Estate Partners VII ("Blackstone") for $241.5 million.

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The portfolio sold to Blackstone consists of 23 institutional-quality
properties comprising approximately 4.0 million square feet. Sixteen of those
properties, representing approximately 2.6 million square feet, are located in
Southern Virginia and the remaining seven are located in the Baltimore,
Maryland and Washington, D.C. submarkets. The properties acquired by
Blackstone will be managed by IndCor Properties – Blackstone's national
industrial portfolio company.

As previously announced, First Potomac also sold I-66 Commerce Center, a
236,000 square foot property in Haymarket, Virginia, to Corporate Office
Properties Trust on May 7, 2013 for $17.5 million, which brings the aggregate
sales price of the industrial portfolio to $259 million. The property was
occupied by Engineering Solutions through March 31, 2013, and was vacant at
the time of the sale.

First Potomac announced the plan to sell the majority of its industrial
portfolio in late January 2013 as part of the Company's updated strategic and
capital plan. The completion of the sale provides capital to improve balance
sheet flexibility and support future growth initiatives. As a result of the
portfolio sale, First Potomac's portfolio is now comprised primarily of office
and business park properties in the greater Washington, D.C. market. The
Company also owns two industrial properties in the Northern Virginia market,
which were not included in the sale.

The Company intends to use the proceeds from the sale of its industrial
portfolio to repay outstanding debt, improve balance sheet flexibility and
take advantage of future opportunities to acquire high-quality office
properties in the Washington, D.C. region. For tax planning purposes, the
Company also plans to place a portion of the proceeds totaling approximately
$29 million with a qualified intermediary in order to facilitate a potential
1031 exchange in the event the Company identifies an acquisition opportunity.
The Company expects to update its full-year 2013 Core FFO Guidance to reflect
the completion of the industrial portfolio sale and the recently completed
public offering of 7,475,000 common shares, in conjunction with the release of
its second quarter 2013 earnings in late July.

"We are extremely pleased with the execution of the industrial portfolio sale,
which represents a very important step in our evolution as we continue to
focus on high-quality office properties in the region," said Douglas J.
Donatelli, Chairman and CEO of First Potomac Realty Trust. "We believe the
sale significantly strengthens our balance sheet, streamlines the Company's
focus, and provides capital to support continued growth in office properties
in the greater Washington D.C. office sector."

About First Potomac Realty Trust

First Potomac Realty Trust is a self-administered, self-managed real estate
investment trust that focuses on owning, operating, developing and
redeveloping office and business park properties in the greater Washington,
D.C. region. A key element of First Potomac's overarching strategy is its
dedication to sustainability. Nearly 1 million square feet of First Potomac
property is LEED Certified, with the potential for another 1 million square
feet in future development projects. Approximately half of the portfolio's
multi-story office square footage is LEED or Energy Star Certified and 81% of
First Potomac's Washington, DC portfolio is Energy Star Certified. FPO common
shares (NYSE:FPO) and preferred shares (NYSE:FPO-PA) are publicly traded on
the New York Stock Exchange. For more information, please visit
www.first-potomac.com.

Forward-Looking Statements

The forward-looking statements contained in this press release, including
statements regarding the benefits of the sale of the Company's industrial
properties, the use of the proceeds from such sale and future acquisition and
growth opportunities, are subject to various risks and uncertainties. Although
the Company believes the expectations reflected in such forward-looking
statements are based on reasonable assumptions, there can be no assurance that
its expectations will be achieved. Certain factors that could cause actual
results to differ materially from the Company's expectations include changes
in general or regional economic conditions; the Company's ability to timely
lease or re-lease space at current or anticipated rents; changes in interest
rates; changes in operating costs; the Company's ability to complete
acquisitions and, if applicable, dispositions, on acceptable terms; the
Company's ability to manage its current debt levels and repay or refinance its
indebtedness upon maturity or other required payment dates; the Company's
ability to maintain financial covenant compliance under its debt agreements;
the Company's ability to maintain effective internal controls over financial
reporting and disclosure controls and procedures; the impact of the recent
internal investigation, including any remedial actions and enhancement
measures implemented in response to the internal investigation; any impact of
the informal inquiry initiated by the U.S. Securities and Exchange Commission
(the "SEC"); the Company's ability to obtain debt and/or financing on
attractive terms, or at all; and other risks detailed in the Company's Annual
Report on Form 10-K and described from time to time in the Company's filings
with the SEC. Many of these factors are beyond the Company's ability to
control or predict. Forward-looking statements are not guarantees of
performance. For forward-looking statements herein, the Company claims the
protection of the safe harbor for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995. The Company assumes no
obligation to update or supplement forward-looking statements that become
untrue because of subsequent events.

Media Contact:
Vikki Kayne
301.986.9200
vkayne@first-potomac.com

SOURCE First Potomac Realty Trust

Website: http://www.first-potomac.com