Founder & CEO of First Potomac Realty Trust (FPO) resigned amid strategic initiatives to sell assets worth $200 million
- M. Cap: $642 million
- First Potomac Realty Trust is a self-administered, self-managed real estate investment trust that focuses on owning, operating, developing and redeveloping office and business park properties in the greater Washington, DC region.
- Internal appointment: On November 8, 2015, First Potomac Realty Trust appointed Robert Milkovich as President and CEO.
- SIGNIFICANT SITUATION AT THE TIME OF APPOINTMENT
- Price crash: In the last 2.5 years, the company’s share price crashed more than 27% (from $16.05 per share in April 2013 to $11.6 per share in November 2015).
- Exit of founder: Douglas J. Donatelli served as CEO of the company since 1997, resigned as CEO on November 8, 2015.
- Strategic initiatives to sell non-core assets worth at least $200 million: The Company initiated its plan to divest non-core assets to de-risk its portfolio, strengthen balance sheet, and reduce corporate overhead. Two months ago, the company placed nine of its Northern Virginia properties for sale. Suggested further reading: http://www.prnewswire.com/news-releases/first-potomac-realty-trust-provides-update-on-previously-announced-plan-to-sell-at-least-200-million-of-assets-300144299.html
- TRACK RECORD OF NEW CEO
- Served as president of Spaulding & Slye, which manages $1.6 billion in AUM. He headed the investment committee, developed the company’s investment portfolio strategies, oversaw investment management and sourced new business opportunities.
- Served as Regional Director of Archon Group, LP, an investment arm of the Merchant Banking Division of Goldman Sachs, where he spearheaded the asset management of $2 billion for their Merchant Banking Division, Special Situations Group and other parts of the firm, in addition to generating investment opportunities.
- BIO OF NEW CEO
Robert Milkovich joined First Potomac Realty Trust in June of 2014 as the Chief Operating Officer. Milkovich has more than 25 years of leadership in the greater Washington, DC region commercial real estate industry.
Prior to joining First Potomac Realty Trust, Milkovich served as President of Spaulding & Slye Investments, a comprehensive real estate services and investment company that is a wholly owned subsidiary of JLL. Milkovich managed Spaulding & Slye’s portfolio of assets, headed the investment committee, developed the company’s investment portfolio strategies, oversaw investment management and sourced new business opportunities.
Milkovich served as Regional Director of Archon Group, LP, an investment arm of the Merchant Banking Division of Goldman Sachs, where he spearheaded the asset management of $2 billion for their Merchant Banking Division, Special Situations Group and other parts of the firm, in addition to generating investment opportunities. Milkovich also previously served as a Market Managing Director for CarrAmerica Realty Corporation, a then publicly traded office REIT headquartered in Washington, DC, with primary responsibilities including overseeing asset management, development activities, portfolio investments and acquisition efforts.
Milkovich graduated with a BS in Business Administration from the University of Maryland. He currently serves as a Director and Investment Committee member for the University System of Maryland Foundation. Milkovich is on the Board of the Economic Club of Washington, DC. He is also a member of the Urban Land Institute’s Office Development Counsel and is a Past President of The Real Estate Group in Washington, DC.