2008-06-05 23:44:28 -
www.first-potomac.com - First Potomac Realty Trust Barry Bass, Chief Financial Officer, 301-986-9200 or Corporate Communications, Inc. Tripp Sullivan, 615-254-3376 First Potomac Realty Trust (NYSE: FPO) announced it has completed the sale of Alexandria Corporate Park in Alexandria, Virginia to a tenant in common ownership group, for $52.5 million, or approximately $193 per square foot, in cash. The purchase price equates to a cap rate of approximately 7.25% on in-place net operating income, and First Potomac will realize an unleveraged IRR on its investment of 14%. The Company expects to report a cash gain on sale of approximately $10 million, or $0.40 per diluted share, in the second quarter ending June 30, 2008. The proceeds from the sale will be used
to pay down corporate debt.
Alexandria Corporate Park is a 271,688-square-foot, multi-tenanted industrial property located at 6315 Bren Mar Drive. First Potomac acquired the property in December 2003, shortly after the Company's initial public offering. At acquisition the property was 68% leased. The property is now 96% leased.
Douglas J. Donatelli, First Potomac's chairman and chief executive officer, stated, "We are very pleased that we were able to complete this transaction and bring this asset full circle despite the current environment. We bought this property well and were willing to take the lease-up risk given our knowledge of the local market. Alexandria Corporate Park is a good asset, but we felt we had maximized its value. It is another example of how our value-add and capital recycling strategies are working."
About First Potomac Realty Trust
First Potomac Realty Trust is a self-administered, self-managed real estate investment trust that focuses on owning and operating industrial properties and business parks in the Washington, D.C. metropolitan area and other major markets in Virginia and Maryland. The Company's portfolio totals approximately 11.4 million square feet. The Company's largest tenant is the U.S. Government.
For more information, please visit us at www.first-potomac.com.
Forward Looking Statements
The forward-looking statements contained in this press release 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; 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.
Achieves Unleveraged Internal Rate of Return of 14%
