In sync with its strategy to monetize certain assets and strengthen the balance sheet, First Potomac Realty Trust FPO announced the divestiture of Lorton, VA-based Newington Business Park Center. The sale of the 7-building, 256,000-square foot industrial property to an affiliate of Velsor Properties, LLC will likely fetch gross proceeds of $32.5 million for the Bethesda, MD-based real estate investment trust (“REIT”).
First Potomac is engaged in acquiring, operating and developing industrial and flex properties in Maryland, Virginia and the Washington, D.C. metropolitan area. The divestiture of Newington Business Park is consistent with First Potomac’s strategy of de-risking its portfolio, bolstering balance sheet and trimming its corporate overhead in the form of accelerated sale of assets worth at least $200 million. The proceeds from this sale will be used to partially fund the redemption of 2.2 million preferred shares.
First Potomac currently carries a Zacks Rank #3 (Hold).
Investors interested in the REIT space may consider stocks like Arbor Realty Trust Inc. ABR, Getty Realty Corp. GTY and Mack-Cali Realty Corp. CLI All three stocks sport a Zacks Rank #1 (Strong Buy).
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