Citicorp is occupying office space in the two-story building, Timothy Zulick, senior vice president with First Potomac, tells GlobeSt.com, adding that the deal was quickly put together to accommodate Citicorp's schedule. "They wanted to close to deal quickly and we were able to put it to bed within 30 days," he says.
[IMGCAP(2)]Citicorp will occupy part of the second floor in the third quarter of 2008 with a lease term of 10 years. A 127,625-sf property, Norfolk Commerce Center II consists of two buildings that were built in 1990. It sits on 8.9 acres and includes four load docks. The asking rate for the space, before it became fully occupied, was $17 per sf.
Velocity has been fairly good in the Norfolk market, Zulick reports. "We have been happy with our acquisitions there and the tenants we have in those buildings." First Potomac also owns Gateway II, a 42,429-sf flex building on 2550 Ellsmere Ave. here, and the Norfolk Business Center, a 90,000-sf flex on 2551 Eltham Ave.
First Potomac does not have concrete plans to make any additional acquisitions in the market, Zulick says, although it is constantly vetting prospective properties. "We actively review two or three properties a week," he says. In fact the company has not acquired any new product since 2007. "The capital markets have been in disarray and pricing is out of whack," he says. Zulick is hopeful that the second half of 2008 will present better buying opportunities.
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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.
