First Potomac Realty is selling 3 million shares of common stock. Net proceeds are expected to be $83.4 million, according to an SEC filing. First Potomac also expects to grant the underwriters a 30-day option to purchase an additional 450,000 shares to cover over-allotments, if any. KeyBanc Capital Markets, a division of McDonald Investments Inc., is the sole book-running manager for the offering, with Wachovia Capital Markets, LLC acting as co-lead manager. Besides repaying a revolving credit line, First Potomac is also using the proceeds to fund acquisitions in the region, it said.
A few days earlier, Corporate Office Properties Trust priced 3 million preferred shares in a $75 million public offering. It, too, will use the proceeds to repay an unsecured revolving credit facility. Separately, on Monday COPT announced it is moving its headquarters to 6711 Columbia Gateway Dr., a building in the Columbia Gateway Business Park. COPT owns 26 buildings totaling more than 2.0 million sf in this development; the most recent being a $78 million acquisition this month of Renaissance, a 611,379 sf office/warehouse building. It funded the purchase through its credit line and a $38 million loan.
COPT will occupy the second and third floors of its 125,000 sf headquarters.
"We are delighted to have a new corporate headquarters for our employees and to be in one of our own office buildings," says Randall M. Griffin, president and CEO.
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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.
