WASHINGTON, DC-The 1.6-acre Greyhound Bus Terminal site at 1005 First St., NE in NoMa has traded after three years on the market. It was acquired by local REIT First Potomac Realty Trust (NYSE: FPO) and its minority joint venture partner Perseus Realty, for $46.75 million. Ultimately, the site will be developed into an office project, First Potomac CIO Nick Smith tells GlobeSt.com. "NoMa is the next logical place for people who can’t afford the East End," he says. The Greyhound site, which can accommodate up to approximately 712,000 square feet of development, is the last available area for building in NoMa, he also notes.

How that development will unfold is still to be determined. FirstGroup PLC, Greyhound’s parent company, will lease back the site for at least two years until it relocates to nearby Union Station. Its ten-year triple net lease comes with termination rights after the second year. In the meanwhile, the lease is expected to generate an initial return on the purchase price of 6.5% for First Potomac. "We plan to watch the market to see what makes the most sense in terms of phased development," Smith said.

CB Richard Ellis' Mark Mallus represented Greyhound in the transaction.