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.
First Potomac has a concentration of assets in the Greenbrier/Crossways submarket; according to Smith it is one of the company's best performing submarkets. These two acquisitions bring its total in Greenbrier/Crossways to 1.5 million sf and 3.3 million sf in greater Norfolk. The company now owns 3.7% of the market's flex and industrial assets.
The last acquisition First Potomac announced was in November, when it completed three separate trades of office/flex assets in Maryland and Virginia, for a total of $42 million as reported by GlobeSt.com.
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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.
