ALEXANDRIA, VA-First Potomac Realty Trust has sold Alexandria Corporate Park to a TIC group for $52.5 million, or approximately $193 per sf, in an all cash trade. The local 271,688-sf industrial asset traded at a cap rate of approximately 7.3% on in-place net operating income. First Potomac will realize an unleveraged 14% internal rate of return on its investment and expects to report a cash gain of approximately $10 million, or $0.40 per diluted share, on the sale in Q2. Proceeds from the sale will be used to pay down corporate debt. First Potomac did not return calls in time for deadline.

Located at 6315 Bren Mar Dr, Alexandria Corporate Park was a value-add play for the REIT, which has successfully raised the property’s occupancy nearly 30% since it acquired it in 2003. At that point, the property was 68% leased. Now, there is only a 4% vacancy rate there.

Alexandria Corporate Park’s trade is representative of the company’s value-add and capital recycling strategy, Douglas Donatelli, First Potomac’s chairman and CEO, says in a prepared statement. “We are very pleased that we were able to complete this transaction and bring this asset full circle despite the current environment. We bought this property well and were willing to take the lease-up risk given our knowledge of the local market.”

First Potomac has inked a number of large leases in recent weeks in other properties, bringing at least two to nearly 100% occupancy. Last month Siemens, USA inked a lease to occupy 76,000-sf–a full building–at the firm’s Ammendale Commerce Center property, located at 6435 Virginia Manor Rd. First Potomac acquired the three-building property last year for $10.2 million, when it was 40% occupied. The company also signed a 33,000-sf lease with Citicorp North America in May that put its Norfolk Commerce Center II, an office/flex facility, over the 100% occupied mark.

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