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Finmarc Closes on First Potomac's NoVa Portfolio for $96M

BETHESDA, MD—The portfolio consists of 26 buildings stretching over 950,000 square feet.

By Erika Morphy | erikamorphy | | Updated on March 28, 2016
Linden Business Center Linden Business Center
BETHESDA, MD—Locally-based Finmarc Management has closed on First Potomac Realty Trust’s 950,000-square foot Northern Virginia portfolio, which the REIT told investors last month had gone under contract . Finmarc said it acquired the 26-building, 950,000 square foot office and industrial portfolio for $96 million.  Last month, during its earnings call, First Potomac said it expects to receive net proceeds of $90.6 million from the sale. The portfolio, which is 76% leased in total, is located throughout Reston, Herndon, Manassas, Merrifield and Chantilly. There are more than 70 tenants in the portfolio, including General Services Administration, Fairfax County, McLean Bible Church, American Public University System, Lennox Industries and US Home Corporation. First Potomac began marketing the portfolio, which originally consisted of 1.2-million square feet in September 2015. In December, one of the assets — the Newington Business Park Center in Lorton, VA, — traded for $32.5 million, leaving eight developments on the market. The properties that are trading are:
  • Enterprise Center, a 188,933-square-foot office property in Chantilly;
  • Gateway Center Manassas, a 102,446-square-foot business park in Manassas;
  • Herndon Corporate Center, a 128,359-square-foot office property in Herndon;
  • Linden Business Center, a 109,809-square-foot business park in Manassas;
  • Prosperity Business Center, a 71,373-square-foot business park in Merrifield;
  • Reston Business Campus, an 82,378-square-foot office property in Reston;
  • Van Buren Office Park, a 106,683-square-foot office property in Herndon; and
  • Windsor at Battlefield, a 155,511-square-foot office property in Manassas.

Finmarc to Begin Marketing the Vacant Space ASAP The acquisition brings Finmarc’s holdings to more than 5.7 million square feet of space. Finmarc Principal Neil Markus said that the portfolio was acquired significantly below replacement cost. It also is a value-add play for the company, as there is 250,000 square feet of available space. Finmarc plans to start marketing the available space immediately, he says. Joseph Hoffman and Aaron Rosenfeld of the law firm Kelley Drye & Warren, LLP represented Finmarc Management in this transaction. James Meisel and Bruce Strasburg of HFF represented First Potomac Realty Trust.      

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