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Mar. 3, 2014

Finmarc Management Sells Library of Congress-Occupied Property

By Adrian Maties, Associate Editor

Finmarc Management Inc. was very busy in the Washington, D.C., area in February. The Bethesda-based commercial real estate firm started the month with a more-than-$30 million acquisition and ended it with a more-than-$30 million sale.

On Feb. 3, Finmarc announced the acquisition of a nine-building portfolio in Gaithersburg. It consisted of three separate and distinct product categories, housed in Girard Place and the Girard Business Center on East Diamond Avenue, as well as the Gateway Center on Russell Avenue. Together, the properties total 342,000 square feet of flex/office, commercial office, retail and warehouse space. The portfolio was 82 percent occupied at the time of the sale. Finmarc purchased it from First Potomac Realty Trust for $33 million.

Marc Solomon, principal & managing director for Finmarc, said in a news release that the portfolio was attractive because it had “a strategic location in an economically vibrant business environment, a strong and well-maintained physical plant and the presence of a long-term and stable tenant base.” Finmarc purchased it as part of a 1031 tax-free exchange. To finance the acquisition, the Bethesda-based company used proceeds from the $35 million sale of the 58-acre Port Covington retail development in Baltimore. Finmarc sold the Baltimore property at the end of January.

On Feb. 20, Finmarc announced the sale of the GSA-leased Library of Congress Landover Center Annex, located at 1701 Brightseat Road in Landover. Charlotte, N.C.-based Salus Property Investments acquired the 216,000-square-foot property for $31.7 million. CBRE’s Marc Rampulla, Scott Frankel, Marcy Owens Test and Edward Welbourn represented Finmarc in the transaction.

The two-story structure was constructed in 1970 on 7.2 acres of land. It is equipped with six refrigerated Hercules cold vaults and currently functions as a temperature-controlled warehouse facility for the U.S. Library of Congress. A portion of the Library’s collection of documents, books, photographs, periodicals and archival records is stored there. The building has a lease through Jan. 31, 2022, with the GSA.

“Salus Property Investments acquired an excellently maintained and strategically located asset with a stable GSA lease,” Solomon said. “We intend to deploy the proceeds of this sale in our continuing program of identifying and acquiring assets that match our acquisition criteria. We are exploring retail, flex, industrial and office product situated within our core markets in Maryland, Northern Virginia, Washington, D.C., Delaware, New Jersey and Pennsylvania.”

Finmarc, along with its partners, has acquired or disposed of more than $350 million work of properties over the last 19 months.

Photo credits: Finmarc Management Inc.

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