First Potomac Realty Trust (NYSE: FPO), a leading owner of office and industrial properties in the greater Washington D.C. region, today announced the closing of a new secured financing.
The Company recently closed on a $68.4 million mortgage loan that is secured by Redland Corporate Center in Rockville, Maryland. The mortgage has a five year term, a fixed interest rate of 4.2%, and a 30 year amortization schedule. The net proceeds from the mortgage were used to repay a portion of the balance outstanding under the Company’s unsecured revolving credit facility.
“We are pleased with the progress we have made towards our stated balance sheet strategy,” said Douglas J. Donatelli, Chairman and Chief Executive Office of First Potomac Realty Trust, “This financing improves our liquidity profile and allows us to take advantage of the current interest rate environment. Redland was 40% occupied when we acquired it and we recently brought it to stabilization, which gave us the opportunity to put permanent financing in place. The rate and term fit well with our overall capital structure, and we plan to take additional steps to improve our liquidity in the near future.”
About First Potomac Realty TrustFirst 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, 2012, the Company's consolidated portfolio totaled approximately 14 million square feet. Based on annualized cash basis rent, the Company’s portfolio consists of 42% office properties, 36% business parks and 22% industrial properties. A key element of First Potomac's overarching strategy is its dedication to sustainability. Nearly 1 million square feet of First Potomac property is LEED Certified, with another 1 million square feet currently in development. Approximately half of the portfolio's total square footage of multi-story office property is either LEED or Energy Star Certified and 82% of First Potomac’s Washington, DC portfolio is Energy Star Certified. FPO common shares (NYSE:FPO) and preferred shares (NYSE:FPO-PA) are publicly traded on the New York Stock Exchange. For more information, please visit www.first-potomac.com.