COPT Acquires Two Offices on DC Riverfront for $119M

WASHINGTON, DC-Corporate Office Properties Trust has acquired two class A office buildings on the Capitol Riverfront for a total of $119 million. COPT is assuming a $70.1-million mortgage loan with the 362,000-square-foot buildings, called Maritime Plaza I and II. The loan matures in March 2014 and has a fixed rate of 5.35%.

The two buildings, built in 2001 and 2003, are subject to 99-year ground leases with Washington Gas Light Co. that expires August 2099 and November 2100. Meanwhile, the five- and four-story office buildings are fully leased, with more than half of the space occupied by investment grade tenants, such as Computer Sciences Corporation, General Dynamics and SAIC.

They are located at 1201 M St. SE and 1220 12th St. SE, adjacent to the Washington Navy Yard. The office buildings are part of a planned fivebuilding mixed-use project called Maritime Plaza, which -- thanks to its proximity to the Washington Navy Yard -- is expected to be a beneficiary of BRAC growth.

For example, the Navy recently said it intended to hire another 1,000 employees by 2011 with an additional 2,400 employees by 2015. The deal is COPT’s first acquisition in a DC submarket, according to a statement by Randall M. Griffin, CEO of COPT. It also fits in the REIT’s “Super Core” strategy of developing and acquiring properties leased to the US government, defense IT and data sector tenants as well as locating next to government demand drivers, he said. COPT did not return a call to GlobeSt.com in time for publication.

COPT is also expanding its presence in the data center space -- another new strategy for the REIT -- as its recent $115-million acquisition of Power Loft @ Innovation illustrates.