First Potomac Realty Trust Improves Portfolio Quality With Active Capital Recycling

BETHESDA, Md., June 26, 2014 /PRNewswire/ -- First Potomac Realty Trust (NYSE: FPO), a leading owner and operator of office and business park properties in the greater Washington, D.C. region, today announced the acquisition of 1775 Wiehle Avenue in Reston, Virginia for $41 million. 

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1775 Wiehle Avenue is a multi-tenanted Class-A office building totaling 130,048 square feet and is currently 100% leased. The five-story building is located in Reston, Virginia, two blocks from the Wiehle-Reston East Silver Line Metro station, which is expected to open in July 2014, and is conveniently located directly off the Dulles Toll Road.  The property was unencumbered at the time of acquisition.    

In addition, First Potomac sold Corporate Campus at Ashburn Center in Ashburn, Virginia for $41 million, which represents a significant return on investment for the Company.  Ashburn Center is a 194,184 square-foot, single-story business park located approximately five miles north of Dulles Airport.  First Potomac purchased the property in an off-market transaction in 2009 for approximately $14.7 million and invested an additional $5 million in the property.  At the time of acquisition, the property was 45% leased and it was 100% leased at the time of sale. 

"With this capital recycling transaction, we are trading from a single-story business park in a less desirable location to a high-quality office asset located near a Metro station," said Nicholas R. Smith, Chief Investment Officer of First Potomac Realty Trust. "The acquisition of 1775 Wiehle Avenue further strengthens our portfolio with a stable, cash-flowing asset in a strong submarket where we see future growth potential, and continues our strategic transformation into an office-focused company in the greater Washington region."

On a year-to-date basis, First Potomac has acquired approximately $99 million of high-quality office properties at a weighted average capitalization rate of approximately 6.4% while disposing of approximately $86 million of business parks at a weighted average capitalization rate of approximately 8.3%.

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 office and business park properties in the greater Washington, D.C. region.  As of March 31, 2014, the Company's consolidated portfolio totaled 8.7 million square feet.  Based on annualized cash basis rent, the Company's portfolio consists of 54% office properties and 46% business park and industrial properties.  A key element of First Potomac's overarching strategy is its dedication to sustainability.  Over one million square feet of First Potomac property is LEED Certified, with the potential for another 700,000 square feet in future development projects.  Approximately half of the portfolio's multi-story office square footage is LEED or Energy Star Certified.  FPO common shares (NYSE: FPO) and preferred shares (NYSE: FPO-PA) are publicly traded on the New York Stock Exchange.

Forward-Looking Statements

This press release may contain forward-looking statements, which are subject to various risks and uncertainties. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurance that its expectations will be achieved. Certain factors that could cause actual results to differ materially from the Company's expectations include changes in general or regional economic conditions; the Company's ability to timely lease or re-lease space at current or anticipated rents; changes in interest rates; changes in operating costs; the Company's ability to complete acquisitions on acceptable terms; the Company's ability to manage its current debt levels and repay or refinance its indebtedness upon maturity or other required payment dates; the Company's ability to maintain financial covenant compliance under its debt agreements; the Company's ability to maintain effective internal controls over financial reporting and disclosure controls and procedures; any impact of the informal inquiry initiated by the U.S. Securities and Exchange Commission (the "SEC"); the Company's ability to obtain debt and/or financing on attractive terms, or at all; changes in the assumptions underlying the Company's earnings and Core FFO guidance and other risks detailed in the Company's Annual Report on Form 10-K and described from time to time in the Company's filings with the SEC. Many of these factors are beyond the Company's ability to control or predict. Forward-looking statements are not guarantees of performance. For forward-looking statements herein, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Media Contact:
Vikki Kayne
301.986.9200
[email protected]

SOURCE First Potomac Realty Trust