WASHINGTON, DC-First Potomac Realty Trust and Akridge are partnering on an acquisition of District office asset--1200 17th St., NW--which the duo are purchasing for $39.6 million. They plan to redevelop the land parcel and 85,000-square-foot office building into a 170,000-square-foot office.
Construction is expected to begin in 2012, after the deal closes in October 2011. First Potomac, which will own 95% of the venture, is kicking in about $109 million.
The redevelopment is part of First Potomac’s multilayered strategy to build out its core assets in the District. Doug Donatelli, the REIT’s CEO, tells GlobeSt.com that development and redevelopment were options for the REIT along with its multiple acquisitions. Akridge did not return a call to GlobeSt.com in time for publication.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
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.
