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First Potomac Grabs Gateway 270 for $40M

BETHESDA, MD-First Potomac taps the formidable cash and credit reserves it has built up to continue its acquisition spree.

By Erika Morphy | Updated on July 28, 2006

BETHESDA, MD-First Potomac Realty Trust continues to build out its portfolio, acquiring Gateway 270 West, a flex/office development in Clarksburg, Md., from Forsgate Industrial Partners for $39.5 million in cash. Gateway 270, a six-building complex totaling 254,625 sf, is currently 55% leased to 10 tenants. With this latest acquisition, First Potomac now owns approximately 1.5 million sf in Montgomery County’s rapidly growing I-270 Corridor.

Nicholas R. Smith, First Potomac’s chief investment officer, likes the valuations properties in this submarket offer. “We have been closely monitoring the increasing rental rates in the I-270 Corridor,” he said in a statement. “The market has improved dramatically and has tightened in recent months. We know the tenants in this market very well and expect that controlling a large share of the available space will enable us to lease the vacant space quickly at attractive rents.”

It comes as little surprise to anyone watching the company that First Potomac is still in acquisition mode. During Q2 First Potomac completed two acquisitions, worth $36.1 million. It also said it expected to close on four properties aggregating approximately $72 million during Q3, subject to final due diligence.

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