Corporate Office Properties Trust Acquires 362,000 Square Feet in Two Office Buildings for $119 Million

Corporate Office Properties Trust (COPT) OFC announced today that it has entered a new submarket with the acquisition of two Class A office buildings containing 362,000 square feet known as Maritime Plaza I and II in the Capitol Riverfront submarket of Washington, DC. The buildings were built in 2001 and 2003. The purchase price of $119 million included the assumption of a $70.1 million mortgage loan with a fixed interest rate of 5.35% that matures in March 2014. The two buildings are subject to 99 year ground leases with Washington Gas Light Company that expire August 2099 and November 2100. The five and four-story office buildings are 100% leased. Over 50% of the space is leased to investment grade tenants, of which most are Super Core tenants, such as Computer Sciences Corporation, General Dynamics and SAIC. Maritime Plaza I and II are located at 1201 M Street SE and 1220 12th Street SE and are adjacent to I-295 and the Washington Navy Yard, home to the Naval Sea Systems Command (NAVSEA). NAVSEA's 2008 budget was $25 billion. The office buildings are part of a planned five building mixed-use project known as Maritime Plaza. Maritime Plaza is well positioned to take advantage of future BRAC growth.