Columbia-based Corporate Office Properties Trust has sold all its facilities in Montgomery County while picking up a new building in Herndon as part of a larger effort to reposition its holdings. The real-estate investment trust specializes in office space for the military and its contractors, a sector bracing for spending cuts now that the wars overseas are winding down. In response, COPT established a plan to sell off certain properties it considers less valuable. As of last month, the company said it has sold 58 buildings of 3.2 million sq ft and adjacent land for US$394 million. COPT has also reduced by almost one-third the number of leases it manages.
COPT is also grappling with its Manassas-based Power Loft data center, which it bought in 2010 for US$115 million. The 233,000-sq ft, two-story facility is only 17% leased — nearly the same portion that was leased when it was purchased. “We made some missteps in our initial marketing of the asset, both in terms of not going after multiple channels and the way we priced the asset,” Waesche said.
Source: Washington Post