First Potomac Strikes Again
Leasing may be slow in DC, but that hasn't deterred huge waves of capital seeking to buy into the District. (You can't scare capital that easily.) The latest: First Potomac, which yesterday acquired a prime Dupont Circle asset for $89M. This morning, First Potomac CEO Doug Donatelli (right, with brother Chris earlier this year) told us his firm's just-announced purchase of 11 Dupont Circle represents the trend of well-capitalized firms buying into not only strong assets, but the long-term potential of DC. Despite sluggish leasing, which is even worse in the 'burbs, "our region is a great place to be," thanks to the presence of the government, law firms, associations, and a burgeoning tech scene.
It doesn't hurt to have assets that are fully leased, like 11 Dupont. Doug says the average lease among the building's 15 tenants is in place for six more years, and that First Potomac will perform improvements over time to improve value. But there's already a lot of value in place with the leases in place and live-work-play vibe of Dupont. And it's a bit of a homecoming for Doug: he tells us he once lived three blocks north of the building. Cassidy Turley repped the seller in the deal.