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First Potomac's NoMa Site is Trading for $55M

WASHINGTON, DC—The buyer is a partnership between Perseus Realty, an affiliate of Four Points and Greencourt Capital.

By Erika Morphy | erikamorphy | | Updated on June 01, 2016
Storey Park rendering Storey Park rendering
WASHINGTON, DC—First Potomac Realty Trust announced that it is selling Storey Park, a development site in NoMa, for $54.5 million to a partnership with the site’s partial owner, locally-based Perseus Realty and other investors. The site went under contract in the beginning of the year for $47 million, subject to a study period.  Then, at some point, the contract fell through, as CEO Robert Milkovich told shareholders during the REIT’s first quarter earnings call, held at the end of April.  He said (per Fair Disclosure):
While the property is no longer under contract, we are continuing to negotiate with the previous purchaser to amend the contract, while we market the property to sale to alternative buyers. We now expect the closing of Storey Park to occur later in 2016. We believe the sale to the previous purchaser is the best outcome, which is why we’re willing to take a bit more time to execute this transaction.

First Potomac and Perseus Realty acquired the site, which used to house a Greyhound Bus Terminal at 1005 First St., NE, in August 2011. First Potomac held a 97% stake in that JV. Other investors in the buyer partnership are an affiliate of Four Points and Greencourt Capital. The site can accommodate more than 700,000-square feet of mixed-use development. First Potomac held a formal marketing process for Storey Park, according to CEO Robert Milkovich. The sale is expected to close by the end of July 2016, subject to customary closing conditions. First Potomac will use its portion of the proceeds to fund the redemption of its remaining $15 million of 7.75% Series A preferred shares as well as possibly retire some debt. First Potomac has been steadily selling off its non-core debt in order to de-risk its portfolio and de-leverage its portfolio.

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