First Potomac Realty Trust Acquires 11 Dupont Circle For $89 Million

BETHESDA, Md., Sept. 25, 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 11 Dupont Circle, NW in Washington, D.C. for $89 million. 

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11 Dupont Circle is a 155,713 square foot office building located in the heart of Dupont Circle, one of Washington, D.C.'s premier live-work-play environments. The nine-story building is 100% leased to 15 tenants, and includes 11,692 square feet of retail space located on the ground level.  The acquisition of 11 Dupont Circle brings First Potomac's ownership of high-quality office assets in the District to seven buildings representing over 1 million square feet.

"The acquisition of 11 Dupont Circle continues First Potomac's strategic initiative to acquire, own and operate high-quality office properties in the Washington, D.C. metropolitan area.  The property has a diverse tenant roster and excellent access to public transportation and amenities," said Nicholas R. Smith, Chief Investment Officer of First Potomac Realty Trust.  "We are thrilled to own an asset in one of the most dynamic and vibrant submarkets, which is home to a number of influential organizations, global institutions, and the prestigious Embassy Row."

11 Dupont Circle is one block from the Dupont Circle Metro station on the Red Line, and is surrounded by numerous restaurants, hotels, entertainment and transportation options.  The building boasts 16,000 square foot floor plates with excellent window lines, substantial natural light, park views and below-grade parking, which provides convenient access in a submarket lacking abundant parking options.

The unencumbered property was funded through a draw on the Company's revolving line of credit.

Consistent with its previously disclosed capital recycling strategy, the Company is marketing its Richmond, Virginia portfolio for sale, which includes Chesterfield Business Center, Hanover Business Center, Park Central, and Virginia Technology Center.  The sale is expected to close late in the fourth quarter of 2014 or early 2015.  However, we can provide no assurances regarding the timing or pricing of the sale of the Richmond portfolio, or that the sale will occur at all.

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 June 30, 2014, our consolidated portfolio totaled 8.7 million square feet.  Based on annualized cash basis rent, our portfolio consists of 57% office properties and 43% 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

The forward-looking statements in this press release, including statements regarding the potential sale of the Richmond portfolio, are subject to various risks and uncertainties. Although we believe the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurance that our expectations will be achieved. Certain factors that could cause actual results to differ materially from our expectations include changes in general or regional economic conditions; our ability to timely lease or re-lease space at current or anticipated rents; changes in interest rates; changes in operating costs; our ability to complete acquisitions and, if applicable, dispositions, on acceptable terms; our ability to manage our current debt levels and repay or refinance its indebtedness upon maturity or other required payment dates; our ability to maintain financial covenant compliance under our debt agreements; our 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"); our ability to obtain debt and/or financing on attractive terms, or at all; changes in the assumptions underlying our earnings and Core FFO guidance; and other risks detailed in our Annual Report on Form 10-K and described from time to time in our filings with the SEC. Many of these factors are beyond our ability to control or predict. Forward-looking statements are not guarantees of performance. For forward-looking statements herein, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We assume 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

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