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COLUMBIA, MD-First Potomac Realty Trust has acquired a 306,656-sf flex/office here for $42.3 million. It bought the six-building property, called Rivers Park I & II, from affiliates of General Growth Properties. The complex is fully leased, with the seller filling in some of the vacancy at closing.

Part of the transaction was funded by a $28 million first mortgage loan from US Bank National Association that has an initial term of three years with two one-year extension options and that has an interest rate at a spread over Libor. The company entered into a swap agreement that effectively fixes the rate on the loan at 5.97% for its initial three-year term.

First Potomac also revealed that it acquired Triangle Business Center, a four-building, 73,456-sf flex/office property in Baltimore, for $4.5 million in cash in late August, also from affiliates of General Growth Properties. That business park is 68% leased. In the aggregate, both properties are expected to generate a first-year unleveraged cash return of approximately 8% with a projected stabilized yield of 9.1%, First Potomac said.

First Potomac is starting to buy again after sitting out the market for the last 18 months or, CIO Nicholas Smith, says in a prepared statement. “These acquisitions represent the kinds of opportunities that are becoming available for well-capitalized companies like First Potomac. Our recent capital raise puts us in position to take advantage of similar opportunities going forward, but we will continue to be highly selective.” Last month, First Potomac priced a public offering of 2.5 million common shares at $16 per share–effectively reaping proceeds of $38.2 million.

Rivers Park I & II are located on Guilford Road less than one mile from I-95 and Route 29; they are also very close to the National Security Agency and Fort Meade, which are poised to benefit an influx of some 20,000 new jobs over the next few years, due to the Base Realignment and Closure process.

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