In sync with its strategy to strengthen balance sheet and enhance shareholders’ value, First Potomac Realty Trust FPO announced the divestiture of Cedar Hill I and III located in Tyson’s Corner, VA. The sale of the two office buildings, spanning 102,632 square feet, will likely fetch gross proceeds of $27.3 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. Notably, about a week ago, the company announced the divestiture of Lorton, VA-based Newington Business Park Center for gross proceeds of $32.5 million. The REIT intends to use the proceeds generated from both the above-mentioned divestitures for redemption of previously announced 2.2 million Series A preferred shares. In fact, these recent divestures are 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.
First Potomac currently carries a Zacks Rank #3 (Hold).
Investors interested in the REIT space may consider stocks like Getty Realty Corp. GTY, Mack-Cali Realty Corp. CLI and Arbor Realty Trust Inc. ABR. While both Getty Realty and Mack-Cali Realty sport a Zacks Rank #1 (Strong Buy), Arbor Realty Trust carries a Zacks Rank #2 (Buy).
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