STERLING, VA-Following on the heels of First Potomac Realty Trust’s acquisition of 1211 Connecticut Ave. in the District, the REIT has acquired a building more reminiscent of its earlier investment strategy--Atlantic Corporate Park.
It acquired the $22.55-million office buildings in an off-market trade from DEXUS Property Group--the fourth such transaction since mid-2010.
Atlantic Corporate Park consists of two four-story, class A, LEED Gold-certified buildings totaling 219,980 square feet. They were delivered in 2008 and are currently vacant. This type of asset--a solid property located in the suburbs requiring some form of value-add and thus allowing the REIT to pick it up at below replacement cost--was First Potomac’s sweet spot for several years. Only recently has the company begun to pick up core assets within the District. The acquisition was funded by a draw on First Potomac’s line of credit and available cash.
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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.
