First Potomac Realty Trust Sells Two Joint Venture Assets For $59.5 Million

Proceeds from the Sale Were Utilized to Pay Off Existing Debt

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Mar 09, 2017, 05:45 ET

BETHESDA, Md., March 9, 2017 /PRNewswire/ -- First Potomac Realty Trust (NYSE: FPO), a leader in the ownership, management, development and redevelopment of office and business park properties in the greater Washington D.C. region, today announced the sale of two properties (Rivers Park I and II and Aviation Business Park) located in Columbia and Glen Burnie, Maryland, to an affiliated company of Adler Kawa Real Estate Advisors for gross proceeds of $59.5 million. The two assets, which comprise 428,268 square feet, were owned in unconsolidated joint ventures with an affiliate of AEW Capital Management. The sale represents continued progress in the execution of the Company's previously announced Strategic Plan, which includes the sale of $350 million of non-core assets.

First Potomac owned a 25% interest in Rivers Park I and II, located in Columbia, Maryland, and a 50% interest in Aviation Business Park, located in Glen Burnie, Maryland. First Potomac's share of the gross proceeds from the sales ($18.975 million), were utilized to pay down its share of mortgage debt on the properties and for general corporate purposes.

"The sale of these Joint Venture assets represents continued execution of our strategic plan, and marks another meaningful step forward at FPO," said Robert Milkovich, Chief Executive Officer 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 towards our stated goal of $350 million. As we progress through 2017, we remain focused on completion of our strategic plan and driving long term value for our shareholders."

Jon Carpenter, Nicole Keelty, and Graham Savage of Cushman & Wakefield represented First Potomac in the sale of these Joint Venture Assets.

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. FPO common shares (NYSE: FPO) are publicly traded on the New York Stock Exchange. As of December 31, 2016, our consolidated portfolio totaled 6.7 million square feet. Based on annualized cash basis rent, our portfolio consists of 66% office properties and 34% 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 and over half of the portfolio's multi-story office square footage is LEED or Energy Star Certified.

About AEW

Founded in 1981, AEW Capital Management, L.P. (AEW) provides real estate investment management services to investors worldwide. One of the world's leading real estate investment advisors, AEW and its affiliates manage over $63 billion of property and securities in North America, Europe and Asia (as of December 31, 2016). Grounded in research and experienced in the complexities of the real estate and capital markets, AEW actively manages portfolios in both the public and private property markets and across the risk/return spectrum. 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. For more information please visit www.aew.com.