First Potomac Nabs Two Chesapeake Assets for $36M

CHESAPEAKE,VA-First Potomac Realty Trust of Bethesda, MD, has acquired two properties here, paying a total of $36 million in cash for the flex/office assets. Greenbrier Circle Corporate Center, a two-building property, totals 229,163 sf and is currently 96% leased.

Greenbrier Technology Center I, which is located close to the REIT’s Greenbrier Technology Center II, is a one-story, 95,843-sf flex/office building that is 88% leased. Tenants in both properties are a mix of government contractors and local businesses.<p.In a statement, First Potomac says the properties should generate a combined first year unleveraged return on the purchase price of approximately 8.4% on both a cash and accrual basis.

“The properties provide an attractive going-in yield as well as the opportunity for value creation by continuing to improve the appearance and functionality of the properties through upgrading the building systems and enhancing the facades,” says Nicholas Smith, First Potomac’s chief investment officer.