US Government Building Fund Acquires One and Two Potomac Yard In Arlington, Virginia
October 4, 2010 – (RealEstateRama) — US Government Building Fund, LLC, a fund sponsored by USAA Real Estate Company, announces the recent purchase of One and Two Potomac Yard, a 621,774-square-foot, two-building office complex located in the Crystal City submarket of Arlington County. Seller Potomac Yard Holding Company, LLC, owned by JP Morgan Strategic Properties Fund, transferred the property for an undisclosed sum.
US Government Building Fund, LLC continues to assemble a geographically diverse portfolio of properties and provides attractive, risk adjusted returns generated by the acquisition and operation of buildings leased to federal and state governments. The Fund targets Class A core assets across the U.S. with the total size of the Fund expected to exceed $1 billion. US Government Building Fund is owned by affiliates of USAA Real Estate Company and other domestic and foreign pension plans and insurance companies.
One Potomac Yard, totaling 315,231 square feet, is occupied in full by The U.S. Environmental Protection Agency, which also leases 49% of Two Potomac Yard’s 306,543 square feet of multi-tenant space. Over 90% of the total square footage is leased to Federal Government agencies which include the U.S. Army Corps of Engineers and the U.S. Agency for International Development, along with private sector tenant Thales, an international aerospace, defense and security contractor.
One and Two Potomac was the first project to achieve LEED New Construction Gold recognition in the state of Virginia and remains the only LEED Gold certified and Energy Star rated property in Crystal City today. The buildings each feature 13 floors with penthouses, and incorporate sustainable design and environmental provisions developed by the EPA during construction of the property in 2006. Eco-friendly paint, desks and workstations composed of recycled natural fibers and carpets manufactured within a 500-mile radius are among “Best Practices” sustainability features integrated into the office complex. Environmental efficiencies that earned the project Energy Star certification include a Green Housekeeping Program, Integrated Pest Program, Recycling/Composting Programs and an Erosion and Sediment Control Plan. The buildings also include a state-of-the-art automated Energy Management System.
“The quality and stability of government tenancy make this an attractive investment opportunity for the US Government Building Fund,” says USAA Real Estate Company Chairman and CEO Pat Duncan. “In addition, the two buildings exemplify successful implementation of sustainable practice in major development projects.”
One and Two Potomac Yard are located in Crystal City, a short distance from the Pentagon, Downtown Washington, DC and Capitol Hill. In addition to the EPA, the area’s diverse public and private sector tenancy includes the U.S. Department of Defense, the U.S. Drug Enforcement Administration, The Boeing Company, Lockheed Martin Corporation, the National Guard Bureau and FEMA.
About USAA Real Estate Company:
USAA Real Estate Company, with approximately $6 billion assets under management, provides co-investment, acquisition, build-to-suit and development services for corporate and institutional investors. The USAA portfolio consists of office, industrial, retail and hotel properties as well as investments in real estate operating companies with annual volume transactions exceeding $3 billion. USAA Real Estate is a subsidiary of USAA, a leading financial services company, serving military families since 1922. For more information, visit www.usrealco.com.
