COPT, which counts as its bread and butter the development of suburban office properties in the Mid-Atlantic region, has specific plans in store for the $79.5 million it is getting out of the arrangement. "We're fortunate in that we are in an area of the country that has a lot of opportunities," COPT president and COO Randall M. Griffin says to GlobeSt.com. "We have a plan for acquiring at least $140 million in assets."

At the top of that plan is the acquisition of a 405,000-sf office building in Herndon, VA for $71 million. Commonly known as Waterview I, the building is fully occupied by VeriSign Inc., which inked an 11-year lease on the space in 2001. "Initially, we're paying for it in equity," Griffin notes. "But we'll get a $40 million loan on the property, so we'll get that equity back for other acquisitions and development projects."

COPT lists as its primary acquisition strategy the realization of high cash flow yields over a long-term period. The company acquired $107 million in properties in 2002, and has already shelled out $18 million this year for a 155,000-sf office complex that is 100% leased to USInternetworking Inc., which uses the property as its headquarters and operations center. The Anne Arundel County, MD-based building at 2500 Riva Rd. marked the company's debut in the Baltimore/Washington Corridor submarket of Annapolis.