Suburban Maryland Mixed-Use Portfolio Sells for $123M

BETHESDA, MD-First Potomac Realty Trust has wrapped up the acquisition of a 14-property mixed-use portfolio located predominantly in Suburban Maryland. The REIT closed the $123-million deal just days ago, walking away with possession of 1.4 million sf of flex, industrial, office and retail space to add to its existing collection of mostly industrial and flex buildings. About $45 million in cash from a recent follow-on offering contributed to the funding of the purchase from Butera Properties, with the remainder of the financing coming from First Potomac’s assumption of a $78-million first mortgage loan on the portfolio.

The newest members of First Potomac’s rapidly growing portfolio are located in Maryland’s I-270 Corridor–which spans Rockville, North Rockville, Gaithersburg, Germantown, Clarksburg and Frederick–with the exception of the one retail property in West Virginia. Accounting for half the newly acquired portfolio are seven flex facilities totaling 700,000 sf, while three industrial properties bring the total take up by an additional 370,000 sf. A three-structure site accounts for 130,000 sf of office space, and the one 200,000-sf retail destination brings the portfolio’s tally up to the 1.4-million-sf mark.