WASHINGTON, DC-First Potomac Realty Trust continues to expand its office assets with the acquisition of three buildings for $33.8 million: Cedar Hill I & III in Tyson’s Corner, VA and the Merrill Lynch Building in Columbia, MD for a total 240,309 square feet.
Cedar Hill I & III are three-story office buildings totaling 102,632 square feet. They were acquired for $22.8 million and are fully leased, primarily to the State Department. The REIT, led by Doug Dontatelli, expects these buildings to generate an initial un-leveraged return on the purchase price of 8.7% on a cash basis.
The Merrill Lynch Building is a 12-story, 137,677-square-foot office located next to the Mall in Columbia. It was purchased for $11 million and is currently 70% leased to more than 25 tenants, including Bank of America, Merrill Lynch, Tricerat Inc. and A2Z Inc.
First Potomac expects this property to generate an initial un-leveraged return on the purchase price of 8% on a cash basis. First Potomac Realty Trust financed the acquisitions by assuming an existing $30-million first-mortgage loan and drawing on its revolving credit facility.
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