Part of the transaction was funded by a $28 million firstmortgage loan from US Bank National Association that has an initialterm of three years with two one-year extension options and thathas an interest rate at a spread over Libor. The company enteredinto a swap agreement that effectively fixes the rate on the loanat 5.97% for its initial three-year term.


First Potomac also revealed that it acquired Triangle BusinessCenter, a four-building, 73,456-sf flex/office property inBaltimore, for $4.5 million in cash in late August, also fromaffiliates of General Growth Properties. That business park is 68%leased. In the aggregate, both properties are expected to generatea first-year unleveraged cash return of approximately 8% with aprojected stabilized yield of 9.1%, First Potomac said.


First Potomac is starting to buy again after sitting out themarket for the last 18 months or, CIO Nicholas Smith, says in aprepared statement. "These acquisitions represent the kinds ofopportunities that are becoming available for well-capitalizedcompanies like First Potomac. Our recent capital raise puts us inposition to take advantage of similar opportunities going forward,but we will continue to be highly selective." Last month, FirstPotomac priced a public offering of 2.5 million common shares at$16 per share--effectively reaping proceeds of $38.2 million.


Rivers Park I & II are located on Guilford Road less thanone mile from I-95 and Route 29; they are also very close to theNational Security Agency and Fort Meade, which are poised tobenefit an influx of some 20,000 new jobs over the next few years,due to the Base Realignment and Closure process.

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