WASHINGTON, DC–Douglas Donatelli and Nicholas Smith, the former CEO and CIO of First Potomac Realty Trust, have announced they have formed a commercial real estate company called DSC Partners LLC. They have also announced they have acquired an empty office building at 77 Upper Rock, in Rockville, Md., via a joint venture with an investment fund. The building traded for $19.5 million from The JBG Cos.
DSC Partners will focus on value-add opportunities across multiple asset types in the Washington DC area and region. 77 Upper Rock is an ideal property to showcase what the company will be seeking out, Smith says in a prepared statement. Improving this “well-positioned property”, he said, will attract prospective tenants in the Maryland market and generate strong demand.
77 Upper Rock is an 8-story Class-A LEED Silver office building, totaling 232,282 square feet. The building, which was developed in 2005, is located in the new Upper Rock district, surrounded by such soon-to-be delivered retail amenities, as CAVA and Mom's Organic Market. DSC Partners is planning to add fitness facilities, conference rooms, tenant common areas, green space and amenities.
Newmark Knight Frank's Jud Ryan and James Cassidy represented the seller in the transaction. Transwestern will lease and manage the building.
Donatelli and Smith abruptly resigned from their management roles at First Potomac in 2015, following a period of share value erosion of the REIT.
Last month Government Properties Income Trust announced it was acquiring First Potomac in a transaction that is valued at $1.4 billion including the assumption of debt.
Read Government Properties to Acquire First Potomac for $1.4B
“We continue to have high confidence in the greater Washington region and foresee long-term value with solid growth,” Donatelli says in a prepared statement.
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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.
