First Potomac Realty Trust, AEW Sell Two Office Assets in Maryland for $59.5M
COLUMBIA AND GLEN BURNIE, MD. — First Potomac Realty Trust (NYSE: FPO) and an affiliate of AEW Capital Management have sold two office developments in Maryland for $59.5 million. An affiliate of Adler Kawa Real Estate Advisors purchased the two assets: Rivers Park I and II in Columbia and Aviation Business Park in Glen Burnie.
The sale of the 428,268-square-foot portfolio is part of First Potomac Realty Trust’s strategic plan, which includes the sale of $350 million of non-core assets. First Potomac owned a 25 percent interest in Rivers Park I and II and a 50 percent interest in Aviation Business Park.
“The sale of these joint-venture assets marks another meaningful step forward at FPO,” says Robert Milkovich, CEO of First Potomac Realty Trust. “In 2017, we have generated over $100 million of proceeds, at our share, providing capital to repay debt and fund our redevelopment program, and have now sold $311 million of assets. As we progress through 2017, we remain focused on completion of our strategic plan and driving long-term value for our shareholders.”
First Potomac’s share of the gross proceeds from the sales — approximately $19 million — was utilized to pay down its share of mortgage debt on the properties and for general corporate purposes.
Jon Carpenter, Nicole Keelty and Graham Savage of Cushman & Wakefield represented First Potomac in the transaction.
First Potomac Realty Trust is a REIT focused on owning, operating, developing and redeveloping office and business park properties in the greater Washington, D.C. region. As of year-end 2016, the company’s portfolio totaled 6.7 million square feet and comprised 66 percent office properties and 34 percent business park and industrial properties, based on annualized cash basis rent.
The REIT’s stock price closed on Wednesday, March 8 at $9.53 per share, up from $8.62 per share one year ago.
Founded in 1981, AEW Capital Management LP and its affiliates manage over $63 billion of property and securities in North America, Europe and Asia, as of year-end 2016. AEW and its affiliates have offices in Boston, Los Angeles, London, Paris, Düsseldorf, Singapore, Hong Kong and Sydney, as well as offices in seven additional European cities.
Adler Kawa Real Estate Advisors is a real estate investment firm based in Miami. The company manages a portfolio of investments in 11 major markets in the United States.
— John Nelson