OAKTON, VA-Another empty building with strong bones acquired at a value-add price point, another rapid lease up. First Potomac is working its magic again--this time at Three Flint Hill, a 181,400-square-foot building here that the company acquired in April 2010 for $13.6 million, completely vacant.
Over the course of Q3 2011, it has signed on about 50,000 square feet in leases, bringing its occupancy to 27%. One of the reasons for the influx of tenants is that the REIT is nearing completion of a $10 million renovation, which has been designed to meet LEED Gold specifications. “Brokers realize this will be a truly class A building,” Tim Zulick, senior vice president, Leasing for First Potomac, tells GlobeSt.com. At sub $30 per square foot, full service, the asking rates are attractive, and the building is well located at 3201 Jermantown Rd., which is off of 66, he says.
The three new tenants are CDM, which signed a 10-year lease for 31,353 square feet; Leap Frog Solutions, which signed a seven-year lease for 11,434 square feet; and the Susan Hicks Group PC, which signed a seven-year lease for 6,000 square feet.
First Potomac’s sweet spot is valu- add acquisition. It has a track record of acquiring vacant but otherwise strong properties at below market pricing and then ramping up the leasing efforts. Most recently, it brought another LEED Gold building--Atlantic Corporate Park--to a 26% occupancy rate.
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