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STERLING, VA-A deal totaling approximately $30.9 million has left First Potomac Realty Trust in possession of Sterling Park Business Center, a two-building flex/office property accounting for 127,800 sf. Relying on a $50-million loan from Key Bank NA, First Potomac purchased the buildings--known as Sterling Park One and Sterling Park Two--from Lerner Enterprises. Also included in the deal was a 42.5-acre developable parcel of land.

Sterling Park sits near Washington Dulles International Airport and the 1.4-million-sf Dulles Town Center regional mall. It is adjacent to a two-structure, 197,000-sf flex/industrial portfolio First Potomac acquired from Velsor Properties LLC last October for $16 million. Both single-story structures, Sterling Park One is located at 22560 Glenn Dr. and consists of 73,000 sf of gross space, while Sterling Park Two carries the address of 22455 Davis Dr. and features 57,000 sf of space. The buildings were both developed in 1988 and together, are 61% leased.

As for the accompanying developable land--which is subdivided into seven parcels and zoned for light industrial and office use--First Potomac plans to begin developing the property within the next 12 to 18 months. The company already has development projects in the works in the area. "This unique investment is very attractive to us because of the value-added opportunity to lease up the two existing buildings, as well as the ability to add buildings to meet market demand," says First Potomac chief investment officer Nicholas R. Smith. "The Dulles Corridor market has been steadily improving over the last few years, and we feel this acquisition will allow us to take advantage of the underserved small-bay, flex/office market."