First Potomac Realty Trust sells industrial office park in Lorton for $32.5 million
First Potomac Realty Trust, an owner and operator of office and business park properties in the greater Washington D.C. region, has sold the Newington Business Park Center in Lorton for $32.5 million.
The buyer of the seven-building, 256,000-square-foot industrial property is an affiliate of Velsor Properties LLC.
First Potomac, a Bethesda, Md.-based real estate investment trust, said the Newington sale represents an important milestone in the REIT’s previously announced plan to de-risk the portfolio, strengthen its balance sheet and reduce corporate overhead through the accelerated sale of at least $200 million of assets.
In keeping with that strategy, the proceeds from the sale of Newington Business Park Center will be utilized to fund a portion of the 2.2 million preferred share redemption that the company announced on Dec. 18, with the sale scheduled to occur on Jan. 19, 2016.
“We are continuing to execute on phase one of our strategic plan and look forward to announcing the sale of additional assets in the weeks and months ahead. We are on track to dispose of at least $200 million of assets, and we remain confident that we are taking the right steps to improve performance and create substantial value for our shareholders,” Robert Milkovich, CEO of First Potomac Realty Trust, said in a statement.
HFF represented First Potomac in the sale of Newington Business Park Center.