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SOURCE First Potomac Realty Trust
BETHESDA, Md., Oct. 7, 2013 /PRNewswire/ -- First Potomac Realty Trust (NYSE: FPO) today announced the acquisition of Redland I, the third building at Redland Corporate Center for $30 million. Located in Rockville, Maryland, the 133,895 square foot, Class A office building is currently 100% leased to the Department of Health and Human Services (HHS) through early 2018.
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Redland Corporate Center is comprised of three multi-story, Class-A, office buildings totaling 483,000 square feet. The Company acquired Redland II and III in a joint venture with Perseus Realty, LLC in late 2010, which represented its first and largest value-add acquisition. In June, First Potomac announced that it brought Redland II from 0% leased at acquisition to 100% leased. The acquisition of the third and final building in the project, Redland I, completes First Potomac's control of the fully leased office park and provides the opportunity to expand current tenants in future years. Redland II and III are both LEED Gold Certified, and First Potomac is targeting either an Energy Star or LEED certification for the third building.
"The acquisition of the third building at Redland Corporate Center demonstrates our disciplined approach to growing the Company and illustrates our commitment to well-located, high-quality, multi-story office assets in vibrant submarkets where we have a competitive advantage," said Douglas J. Donatelli, Chairman and CEO of First Potomac Realty Trust. "Redland I further strengthens our portfolio with a stable, cash-flowing asset in a location where we already have operating efficiencies and have been successful in leasing up vacancy, and it gives us the opportunity to expand existing tenants in the future."
Chief Investment Officer, Nicholas R. Smith, added, "Redland I marks the first acquisition we have completed since late 2011, and it was compelling for a number of reasons. The building is fully leased to the GSA, it is located in a strong submarket where we already have a significant presence, and it is consistent with our plan to acquire additional high-quality, multi-story office assets in the Washington D.C. region."
Redland Corporate Center is conveniently located in the I-270 corridor of Montgomery County, Maryland. The property has a state of the art fitness center, onsite deli and shuttle service to the Shady Grove Metro station on the red line.
First Potomac utilized the 1031 exchange proceeds from the sale of its industrial portfolio in June 2013, as well as cash on hand, and the Company's line of credit to acquire Redland I.
About First Potomac Realty Trust
First Potomac Realty Trust is a self-administered, self-managed real estate investment trust that focuses on owning, operating, developing and redeveloping high quality office and business park properties in the greater Washington, D.C. region. As of June 30, 2013, the Company's consolidated portfolio totaled approximately 9 million square feet. Based on annualized cash basis rent, the Company's portfolio consists of 52% office properties and 48% business park and industrial properties. A key element of First Potomac's overarching strategy is its dedication to sustainability. Nearly one million square feet of First Potomac property is LEED Certified, with the potential for another one million square feet in future development projects. Approximately half of the portfolio's multi-story office square footage is LEED or Energy Star Certified and 81% of First Potomac's Washington, DC portfolio is Energy Star Certified. FPO common shares (NYSE: FPO) and preferred shares (NYSE: FPO-PA) are publicly traded on the New York Stock Exchange. For more information, please visit www.first-potomac.com.
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