WASHINGTON, DC-First Potomac Realty Trust isknown for its buy-and-hold approach to acquisitions. It made anexception, clearly, for 1200 17th St., NW, whichit acquired in October 2011 via a joint venture with Akridge. Not ayear later, the REIT has sold its 95% interest in the building for$43.7 million to an unknown buyer. It was acquiredfor $37.6 million from the National RestaurantAssociation.

The original plan for the building was to raze it and then builda trophy asset on the high-demand site. It is a good plan andAkridge, which is now the developer, will move forward with it,First Potomac CEO Doug Donatelli tellsGlobeSt.com. “We saw the opportunity to take a profit and wedecided that was what was best for our shareholders," he says."

The REIT has an active development pipeline and will use theproceeds from the sale for those activities. Its Redlands projectin Gaithersburg, MD, for instance, is near stabilization, Donatellisays. The REIT will also focus on stable income-producing assetsfor its next series of acquisitions. “We don’t have anything on thebooks but that is what we'll be concentrating on. We'll be puttingout feelers in the fourth quarter.”