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BETHESDA, MD—First Potomac Realty Trust continues to lease up Sterling Park Business Center, a 127,814-sf, two-building office/flex property in the Dulles Corridor that it acquired in February. DIRAK Inc. signed a 10-year lease for 25,338 sf in the building, bringing occupancy in the building up to 81%, from 61% in February.

“When we acquired Sterling Park Business Center in February, we recognized the property’s potential to address an underserved niche in the rapidly growing Sterling market,” James H. “Skip” Dawson, First Potomac’s chief operating officer, says. “By vigorously working the market immediately after the acquisition, we were able to secure an attractive, long-term tenant and quickly lease up over half the vacancy.”

First Potomac acquired a significant stake in the Sterling office/flex submarket. Along with Sterling Park One and Two, it also acquired 42.5 acres of developable land next to the properties, which is zoned for light industrial and office use. Construction is expected to begin within the next year to 18 months. The company also purchased 403/405 Glenn Drive, a flex/industrial property close to Sterling Park Business Center in October 2005.

First Potomac Realty Trust acquired Sterling Park Business Center for $30.87 million in cash. It received a $50 million loan from Key Bank, N.A., with a term of up to five years at LIBOR plus 1.45%. Excess proceeds from the loan were used to pay down the balance on the company’s unsecured revolving credit facility.

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