Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-Two DC area REITs –Corporate Office Properties Trust and First Potomac–are accumulating funds through offerings of common stock that may be applied to additional acquisitions. COPT recently completed a follow-on offering of 3.7 million shares of its common stock–including 487,500 additional shares purchased by underwriters to cover over-allotments–at $39.00 per share, generating gross proceeds of $145.8 million, according to a research note by RW Baird. The company intends to use the proceeds to pay down their credit facility as well as for general corporate purposes, which may include property acquisitions. RW Baird did not return a call to GlobeSt.com in time for publication.

First Potomac, for its part, priced a public offering of 2.5 million common shares at $16 per share–reaping proceeds of $38.2 million–at least part of which were used to fund a recent acquisition, according to a prepared statement by the company’s CIO Nicholas Smith. Recently, First Potomac Realty Trust acquired a 306,656-sf flex/office in Columbia, MD for $42.3 million and a four-building, 73,456-sf flex/office property in Baltimore, for $4.5 million. After a hiatus from the acquisitions market, First Potomac is gearing up to make some more purchases, Smith says–and will be using its proceeds to fund some of these deals. “Our recent capital raise puts us in position to take advantage of similar opportunities going forward,” he says.

COPT, as well, appears to be gearing up for some acquisitions. Besides its $145.8 million capital pool, it just brought on a new executive to oversee its acquisition and disposition activities–John Norjen, who is the REIT’s new managing director of Investments. Randall Griffin, president and CEO of COPT alluded to potential buying opportunities in a prepared statement regarding Norjen’s arrival. “John’s extensive commercial real estate experience and knowledge will prove most valuable as new opportunities evolve for COPT as a result of the turbulent economic environment,” he says.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

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

  • Free unlimited access to GlobeSt.com'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 ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.