BETHESDA, MD. — Bethesda-based Finmarc Management Inc. has purchased a 26-building portfolio from First Potomac Realty Trust (NYSE: FPO) for $96 million. The portfolio spans 950,000 square feet of office, flex and warehouse space in Northern Virginia.
The properties purchased include Enterprise Center in Chantilly; Gateway Centre Manassas, Linden Business Center and Windsor at Battlefield in Manassas; Herndon Corporate Center and Van Buren Office Park in Herndon; Prosperity Business Center in Merrifield; and Reston Business Campus in Reston.
The portfolio is approximately 78 percent leased to more than 70 tenants, including the General Services Administration, Fairfax County, McLean Bible Church, American Public University System, Lenox Industries and U.S. Home Corp.
“The sale of the northern Virginia non-core portfolio represents continued execution of our plan to dispose of $350 million of assets,” says Robert Milkovich, CEO of First Potomac Realty Trust. “The proceeds will be utilized to redeem a portion of our outstanding preferred shares, as we work to strengthen our balance sheet and improve our liquidity.”
James Meisel and Bruce Strasburg of HFF represented First Potomac in the transaction. Joseph Hoffman and Aaron Rosenfeld of the law firm Kelley Drye & Warren LLP represented Finmarc.
First Potomac Realty Trust is a self-administered, self-managed REIT that focuses on owning, operating, developing and redeveloping office and business park properties in the greater Washington, D.C., region. The company’s stock price closed Thursday, March 24 at $8.65 per share, down from $12.22 a year ago.
Finmarc Management is a commercial real estate company that focuses on the real estate investment, management, leasing and development of retail, industrial/flex projects, and office buildings throughout the mid-Atlantic region.
—Nellie Day