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First Potomac Makes Two-Asset Grab for Nearly $30M

WASHINGTON, DC-First Potomac's portfolio reaches 10 million sf with the addition of these two properties.

By Erika Morphy | Updated on August 29, 2006

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WASHINGTON, DC-First Potomac Realty Trust has added two properties to its portfolio, bringing its holdings to 10 million sf. The acquisitions–two separate transactions that totaled $28.9 million–were both off-market, value-add deals with local investors in the DC market, Nicholas R. Smith, First Potomac’s chief investment officer, tells GlobeSt.com. “They are both well located and their long-term prospects are very good.”

One, Indian Creek Court, is a four-building, 186,691-sf flex property in Beltsville, MD that is 84% leased to seven tenants. The purchase was funded with $10.7 million in cash and the assumption of a $12.8-million loan that matures in 2011 and bears interest at a fixed rate of 7.8%. The property is expected to generate a first-year unleveraged return of approximately 8% on a cash basis and approximately 8.1% on an accrual basis.

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