RICHMOND, VA-First Potomac Realty Trust has increased its holdings in the Rivers Bend Center corporate park here. The $17.7 million transaction gives the REIT 500 and 600 HP Way, two distribution buildings, which total 302,400 sf; as well as a 102-acre development parcel.
First Potomac already owns four buildings in the class A corporate park for a total of 500,000 sf. The newly acquired facilities were built in 1997 and are about 92% occupied.
"We know this sub-market very well having purchased four buildings in Rivers Bend in early 2006," says CIO Nicholas Smith. "This off-market transaction adds two stable, well-performing properties to our portfolio in a tightening market." The properties, which were purchased for $13 million, are expected to create a first-year unleveraged return of 7.8% on a cash basis.
"The additional land provides us with substantial long-term development potential to meet the needs of industrial and flex users in the Richmond market," Smith says. "Over the next several years, we expect to have a number of build-to-suit opportunities as the market continues to improve."
First Potomac focus on owning and operating industrial properties in and around Washington DC, and has a portfolio that total 11.2 million sf.
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