First Potomac Realty Trust Purchases The Ammendale Commerce Center In Maryland For $10.2 Million In Cash
First Potomac Realty Trust (NYSE:FPO) today announced that it has acquired the Ammendale Commerce Center in Beltsville, Maryland, for $10.2 million in cash.
Ammendale Commerce Center, which is located near First Potomac’s Indian Creek Court property, consists of three flex/office buildings totaling 129,358 square feet. Two of the buildings totaling 53,611 square feet are 100% leased to three tenants. They are expected to generate an unleveraged return of approximately 8.1% on both a cash and accrual basis on the $5.5 million of the purchase price attributed to their acquisition. The third building totals 75,747 square feet and is currently vacant. Upon stabilization, that building is expected to generate an unleveraged cash return of 9% to 10% on total cost.
Commenting on the announcement, Nicholas R. Smith, First Potomac’s chief investment officer, stated, “This transaction allows us to expand our presence in the Beltsville market with a blend of income-producing buildings and releasing opportunities. With occupancy improving in the market and important roadway improvements underway nearby, including a new off-ramp at I-95, these properties are well positioned to meet anticipated future demand, especially given our ability to acquire them at well below replacement cost.”
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