BETHESDA, Md.--(BUSINESS WIRE)--First Potomac Realty Trust (NYSE: FPO), a leading owner of office and industrial properties in the greater Washington, D.C., region, today announced that it has acquired the Greyhound Bus Terminal site at 1005 First Street, NE in Washington, D.C. for approximately $46.75 million. The company and joint venture partner Perseus Realty, LLC, intend to develop Class A, LEED certified office buildings on the 1.6 acre site in the burgeoning NoMa (North of Massachusetts Avenue) submarket after Greyhound relocates its operations. The site can accommodate the development of up to approximately 712,000 square feet.
FirstGroup PLC, Greyhound’s parent company, will lease back the site and continue its use as a bus terminal until it completes Greyhound’s recently announced relocation to Union Station. The triple net lease, which is for a term of 10 years with termination rights after the second year, will generate an initial return on the purchase price of 6.5%.
“The Greyhound site is one of the few remaining development sites in NoMa and is an excellent opportunity to invest in a highly desired area of Washington, D.C.,” stated Nicholas Smith, Chief Investment Officer of First Potomac Realty Trust. “First Potomac’s strong financial position coupled with Perseus Realty’s development expertise will combine to bring the market an exciting development project that will continue the revitalization of this important D.C. submarket.”
The purchase was funded by the First Potomac and Perseus Realty joint venture, with First Potomac providing 97 percent of the equity and Perseus Realty contributing the remaining three percent. Of the $46.75 million purchase price, $38.4 million was paid at closing and the remaining $8.35 million will be paid in August 2013. First Potomac funded its share of the purchase price through a draw on its revolving line of credit facility.
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 industrial properties in the greater Washington, D.C. region. As of June 30, 2011, the Company's portfolio totaled over 14 million square feet. Its portfolio consists of 39% business parks, 38% office and office parks, and 23% industrial properties. FPO shares are publicly traded on the New York Stock Exchange (NYSE:FPO). For more information, please visit www.first-potomac.com.