C — February 28 - March 13, 2014 — Commercial Office Spotlight — Mid Atlantic Real Estate Journal
www.marejournal.com
C ommercial O ffice S potlight Nine-building, 342,000 s/f from First Potomac Realty Trust
Finmarc Management acquires portfolio in Washington, D.C. suburb totaling $33 million B ethesda, MD — Fin- marc Management, Inc., a Bethesda, Mary-
a 1031 tax-free exchange, with Finmarc utilizing a portion of the proceeds generated from its sale last week of the 58-acre Port Covington retail develop- ment in Baltimore City for $35 million. Finmarc purchased the Port Covington project, which includes an operational 142,000 s/f Wal-Mart and a closed 130,000 s/f Sam’s Club, in 2005. The former First Potomac portfolio is comprised of three separate and distinct product categories. Girard Place con- sists of approximately 175,000
s/f of flex/office and warehouse space, situated at 602, 620, 630 and 640 East Diamond Ave. An additional 123,000 s/f of flex/of- fice and warehouse space is contained at Girard Business Center, located at 200 and 220 Girard Street and 504 E. Dia- mondAve. The final component is Gateway Center, a 45,000 s/f two-building office and retail project situated at 811 and 831 Russell Ave. Girard Place and Girard Business Center are adja- cent properties separated by Girard Street that are posi- tioned within close proximity to Interstate 270, MD Route 200 (Inter-County Connector), MD Route 355, and the Shady Grove Metro Station. Gateway Center offers direct access to Interstate 270 and is adjacent to Lakeforest Mall. According to research gener- ated by Cushman Wakefield, the Montgomery County flex/ office market stands at just over 11% vacant and has expe- rienced positive absorption over the past nine months. Rates in this category have steadily risen approximately 7% over the past two years. Significant tenants contained within the portfolio are Communication Supply Corporation, The Foun- dation Schools, Family Services and Quaker City Motor Parts. “We were attracted to this portfolio because it satisfied each criteria we utilize to evalu- ate acquisition opportunities,” said Marc Solomon, principal – managing director for Fin- marc. “These fundamentals include a strategic location in an economically-vibrant busi- ness environment, a strong and well-maintained physical plant and the presence of a long-term and stable tenant base. In addi- tion, we have an extremely high regard for the First Potomac Realty Trust asset manage- ment and operational team, and are confident we have ac- quired a properly-maintained portfolio that complements our suburban Maryland property footprint.” With the acquisition of this asset, over the last 18 months, Finmarc, along with its part- ners, has acquired or disposed of more than $312 million worth of properties. Eric Berkman, Steve Gich- ner and Gideon Gil of Cush- man Wakefield represent- ed the former owner in this transaction. n
land-based commercial real estate firm, has announced the acquisition of a nine-building, 342,000 s/f portfolio positioned in the City of Gaithersburg in Montgomery County, Mary- land, from First Potomac Re- alty Trust for $33 million. The group of buildings, which con- sist of a mixture of flex/office, commercial office, retail and warehouse space, is cumula- tively 82% leased. The acquisition was part of
Relationship Driven. Execution Focused. Only Meridian Capital Group’s powerful nancing relationships can consistently achieve the unparalleled results our clients require.
Meridian Capital Group, LLC WYV\KS`HK]PZLKVUÄUHUJPUNMVY[OL MVSSV^PUN[YHUZHJ[PVU! Market Street :X\HYL-VV[6ɉJL7YVWLY[` :HKKSL)YVVR;V^UZOPW51 $21,000,000 7LYTHULU[-PUHUJPUN This transaction was negotiated by: Israel Schubert, Managing Director
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MAREJ - Commercial Office Spotlight - $21MM - Market Street - I. Schubert.indd 1
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