(To read more on the debt and equity markets, click here.)
WASHINGTON, DC-First Potomac Realty Trust has added twoproperties to its portfolio, bringing its holdings to 10 millionsf. The acquisitions--two separate transactions that totaled $28.9million--were both off-market, value-add deals with local investorsin the DC market, Nicholas R. Smith, First Potomac's chiefinvestment officer, tells GlobeSt.com. "They are both well locatedand their long-term prospects are very good."
One, Indian Creek Court, is a four-building, 186,691-sf flexproperty in Beltsville, MD that is 84% leased to seven tenants. Thepurchase was funded with $10.7 million in cash and the assumptionof a $12.8-million loan that matures in 2011 and bears interest ata fixed rate of 7.8%. The property is expected to generate afirst-year unleveraged return of approximately 8% on a cash basisand approximately 8.1% on an accrual basis.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
