14-Property Portfolio To Get Snapped Up for $123M

According to First Potomac, the majority of the portfolio is in suburban Maryland's I-270 Corridor, a 30-mile stretch along the interstate that spans the cities of Rockville, North Rockville, Gaithersburg, Germantown, Clarksburg and Frederick. Seven of the properties are flex facilities totaling nearly 700,000 sf, and three other properties are industrial sites that account for 370,000 sf. The package also includes about 130,000 sf of office space spread out among three structures, and one 200,000-sf retail site. First Potomac officials did not respond to inquiries regarding specifics on the properties and the seller by deadline.

"This transaction provides a unique opportunity for us to acquire a portfolio of flex and industrial properties in our target markets at an attractive price," First Potomac CEO Douglas J. Donatelli says in a prepared statement. "Our financing strategy, which enables us to acquire properties encumbered by existing debt, and our position as a public company focused on flex and industrial properties in the southern Mid-Atlantic, positioned us well to compete for this acquisition." While the seller obviously desired to dispose of the properties in a package deal, First Potomac is not attached to the idea of holding all the sites in one bunch. "While the portfolio includes some assets that do not fit our strategy," Donatelli adds, "we intend to sell those assets when practicable given the constraints of the existing financing."