First Potomac Acquires Third Office Building At Redland Corporate Center For
BETHESDA, Md., Oct. 7, 2013
BETHESDA, Md., Oct. 7, 2013 /PRNewswire/ --First Potomac Realty Trust (NYSE:
FPO) today announced the acquisition of Redland I, the third building at
Redland Corporate Center for $30 million. Located in Rockville, Maryland, the
133,895 square foot, Class A office building is currently 100% leased to the
Department of Health and Human Services (HHS) through early 2018.
(Logo: http://photos.prnewswire.com/prnh/20130604/MM26388LOGO )
Redland Corporate Center is comprised of three multi-story, Class-A, office
buildings totaling 483,000 square feet. The Company acquired Redland II and
III in a joint venture with Perseus Realty, LLC in late 2010, which
represented its first and largest value-add acquisition. In June, First
Potomac announced that it brought Redland II from 0% leased at acquisition to
100% leased. The acquisition of the third and final building in the project,
Redland I, completes First Potomac's control of the fully leased office park
and provides the opportunity to expand current tenants in future years.
Redland II and III are both LEED Gold Certified, and First Potomac is
targeting either an Energy Star or LEED certification for the third building.
"The acquisition of the third building at Redland Corporate Center
demonstrates our disciplined approach to growing the Company and illustrates
our commitment to well-located, high-quality, multi-story office assets in
vibrant submarkets where we have a competitive advantage," said Douglas J.
Donatelli, Chairman and CEO of First Potomac Realty Trust. "Redland I further
strengthens our portfolio with a stable, cash-flowing asset in a location
where we already have operating efficiencies and have been successful in
leasing up vacancy, and it gives us the opportunity to expand existing tenants
in the future."
Chief Investment Officer, Nicholas R. Smith, added, "Redland I marks the first
acquisition we have completed since late 2011, and it was compelling for a
number of reasons. The building is fully leased to the GSA, it is located in
a strong submarket where we already have a significant presence, and it is
consistent with our plan to acquire additional high-quality, multi-story
office assets in the Washington D.C. region."
Redland Corporate Center is conveniently located in the I-270 corridor of
Montgomery County, Maryland. The property has a state of the art fitness
center, onsite deli and shuttle service to the Shady Grove Metro station on
the red line.
First Potomac utilized the 1031 exchange proceeds from the sale of its
industrial portfolio in June 2013, as well as cash on hand, and the Company's
line of credit to acquire Redland I.
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 high quality office and business park properties in the
greaterWashington, D.C.region. As ofJune 30, 2013, the Company's
consolidated portfolio totaled approximately 9 million square feet. Based on
annualized cash basis rent, the Company's portfolio consists of 52% office
properties and 48% business park and industrial properties. A key element of
First Potomac's overarching strategy is its dedication to sustainability.
Nearly one million square feet of First Potomac property is LEED Certified,
with the potential for another one million square feet in future development
projects. Approximately half of theportfolio's multi-story office square
footage is LEED or Energy Star Certified and 81% of First
Potomac'sWashington, DCportfolio 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
SOURCE First Potomac Realty Trust
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