BETHESDA, MD-First Potomac Realty Trust has wrapped up the acquisition of a 14-property mixed-use portfolio located predominantly in Suburban Maryland. The REIT closed the $123-million deal just days ago, walking away with possession of 1.4 million sf of flex, industrial, office and retail space to add to its existing collection of mostly industrial and flex buildings. About $45 million in cash from a recent follow-on offering contributed to the funding of the purchase from Butera Properties, with the remainder of the financing coming from First Potomac’s assumption of a $78-million first mortgage loan on the portfolio.

The newest members of First Potomac’s rapidly growing portfolio are located in Maryland’s I-270 Corridor–which spans Rockville, North Rockville, Gaithersburg, Germantown, Clarksburg and Frederick–with the exception of the one retail property in West Virginia. Accounting for half the newly acquired portfolio are seven flex facilities totaling 700,000 sf, while three industrial properties bring the total take up by an additional 370,000 sf. A three-structure site accounts for 130,000 sf of office space, and the one 200,000-sf retail destination brings the portfolio’s tally up to the 1.4-million-sf mark.

“The closing of this transaction establishes First Potomac as a leading owner and acquirer of flex and industrial properties in our markets,” First Potomac CEO Douglas J. Donatelli says. “This transaction will significantly increase our funds from operations and is tremendously accretive to our earnings. We believe we will see continued improvement in the operating results of these properties through our aggressive leasing and management approach.”

While the US government is the leading tenant among First Potomac’s properties, it does not have a large presence in the newly acquired, 94% occupied Suburban Maryland portfolio. But that is not seen as a drawback to the REIT. “We view that as an opportunity for us–getting more government tenants in this portfolio,” First Potomac’s Barry Bass tells

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.