First Potomac Sells 2 DC-Area Assets for $89M

By IvyLee Rosario

Washington—First Potomac Realty Trust announced the sale of Plaza 500 in Alexandria, Va., to Matan Cos. for gross proceeds of $75 million and of One Fair Oaks in Fairfax, Va., for gross proceeds of $13.7 million.

One Fair Oaks Plaza

Plaza 500, located at 6295 Edsall Road, is a 502,830-square-foot industrial asset that consists of two  2-story buildings on 34 acres of land. Built in 1973 and renovated in 1989, the buildings offer nine to 22-foot ceiling heights, dock and drive-in loading doors and free parking. The property was 90.5 percent leased and occupied as of September 2016.

One Fair Oaks, located at 4114 Legato Road, is a 12-story, 214,214-square-foot office asset that was fully occupied by CACI International through December 2016. Built in 1986 and renovated in 2005, the property offers 685 parking spaces and was previously sold to First Potomac for $60.3 million, according to Yardi Matrix.

With both sales completed, the company has sold $295 million of non-core assets towards its stated goal of $350 million. Sale proceeds will go towards repaying outstanding debt.

“The dispositions of Plaza 500 and One Fair Oaks move us significantly closer to accomplishing the first phase of our strategic plan,” said Robert Milkovich, CEO of First Potomac Realty Trust, in prepared remarks. “With almost $300 million of our stated $350 million goal of non-core dispositions completed and the majority of the proceeds from those sales utilized to retire our Series A Preferred Shares and repay additional debt, we have made great progress in de-risking our portfolio, de-levering our balance sheet and maximizing asset values.”

Image courtesy of Yardi Matrix