First Potomac Realty Trust, a company that owns industrial and office assets in Washington DC area, declared that it has assumed ownership of the Greyhound Bus Terminal for around $46.75 million.
The 440 First Street, NW, property of First Potomac Realty Trust, Located in the Capitol Hill submarket and three blocks from the prestigious U.S. Capitol. Credit: First Potomac Realty Trust
First Potomac and its venture associate Perseus Realty are planning to construct Class A type of LEED certified office buildings over the 1.6 acre acquired site situated at 1005, First Street, N.E. in Washington DC. The site located in the rapidly growing NoMa (Northof Massachusetts Ave) submarket, can house a development of around 712,000 sq.ft.
FirstGroup, which owns and operates Greyhound will rent and keep utilizing the site as its bus terminal till it finishes the planned relocation of Greyhound to the Union Station. The company has taken the site on a triple net lease for a period of 10 years with an option to terminate the rights any time after the second year. The lease accord will produce a return of 6.5% on the purchase price to First Potomac Realty Trust.
The land purchase was financed by the partnership of First Potomac and Perseus Realty, in which First Potomac holds 97% shares and Perseus Realty holds the balance of 3%. For the purchase valued $46.75 million, the joint venture has paid $38.4 million at the close of the deal and the balance amount of $8.35 million will be paid off in August 2013. To invest in the deal First Potomac drew the money utilizing its revolving credit facility.
Source: http://www.first-potomac.com/