Atlas, West End Buy Patrick Center

FREDERICK, MD—Atlas Real Estate Partners of New York City and the locally-based West End Capital Group have acquired their fourth building in the area with its purchase of the Patrick Center here. The 66,000-square foot building traded at an undisclosed price from First Potomac Realty Trust, which mentioned the pending deal in an earlier investor call with shareholders.

The four local properties the two buyers, which joined forces last year to focus on investment opportunities in the Mid-Atlantic, have acquired over the last six month total some $60 million in deal value.

Tenants in the JV's latest acquisition include Morgan Stanley, Merrill Lynch, and Miles & Stockbridge among others. The acquisition was financed with a 5-year fixed-rate loan through DC-based Eagle Bank.

The deal fits the JV's investment strategy of buying properties that generate strong cash-on-cash returns and trade at a significant discount to replacement cost, Arvind Chary, managing principal at Atlas, tells GlobeSt.com.

The plan is to take the asset from its current 75% occupancy rate to a mid-90% occupancy rate, while continuing to operate the building. "Another component of our business plan is to focus on value-add potential," he says.

Chary says the two companies are currently working on several acquisitions similar to the last four. "We are well on our way to hit our goal of $100 million for the Mid-Atlantic."

Besides the Patrick Center, the companies have acquired:

• 1663 Prince St., a 16,000-square foot office building in Old Town Alexandria, VA;

• Fort Davis Center, a 44,147-square foot, fully-leased office/retail center located in the District.

• Silver Hill Apartments, a 216-unit garden-style apartment community in Suitland, MD.