WASHINGTON, DC-First Potomac Realty Trust has closed the books on Storey Park, a development site in the NoMa submarket that it put on the market as part of a larger plan to shore up its financial position. Its $54.5 million sale to a partnership between Perseus Realty, an affiliate of Four Points and Greencourt Capital has been finalized, the REIT announced this week.
The site went under contract in the beginning of the year for $47 million, subject to a study period. Then, at some point, the contract fell through and the 1005 First LLC -- the Perseus Realty et al group of companies -- stepped up.
Perseus Realty has been involved with the site since at least 2011 when it and First Potomac acquired it through a joint venture in which First Potomac had a 97% economic interest.
The sale generated net proceeds of $52.7 million, which are being applied to the $22 million land loan and First Potomac's outstanding borrowings on its unsecured revolving credit facility.
The sale is an important milestone in First Potomac's larger strategic plan to de-risk its portfolio and sell off non-core assets, according to CEO Robert Milkovich. The REIT hopes to make $350 million in dispositions; with the Storey Park sale it has made more than $200 million.
WASHINGTON, DC-First Potomac Realty Trust has closed the books on Storey Park, a development site in the NoMa submarket that it put on the market as part of a larger plan to shore up its financial position. Its $54.5 million sale to a partnership between Perseus Realty, an affiliate of Four Points and Greencourt Capital has been finalized, the REIT announced this week.
The site went under contract in the beginning of the year for $47 million, subject to a study period. Then, at some point, the contract fell through and the 1005 First LLC -- the Perseus Realty et al group of companies -- stepped up.
Perseus Realty has been involved with the site since at least 2011 when it and First Potomac acquired it through a joint venture in which First Potomac had a 97% economic interest.
The sale generated net proceeds of $52.7 million, which are being applied to the $22 million land loan and First Potomac's outstanding borrowings on its unsecured revolving credit facility.
The sale is an important milestone in First Potomac's larger strategic plan to de-risk its portfolio and sell off non-core assets, according to CEO Robert Milkovich. The REIT hopes to make $350 million in dispositions; with the Storey Park sale it has made more than $200 million.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
