steeplechase 95 international business park - transwestern · steeplechase 95 international...
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O f f e r i n g M e M O r a n d u M
S t e e p l e c h a S e 95 i n t e r n at i O n a l B u S i n e S S pa r k
1032, 1100 and 1101 Hampton park BoulevardCapitol HeigHts, maryland
I. Executive Summary Executive Overview ...............................................................4 Summary of Terms ................................................................7 II. Property Overview 1032 Hampton Park Blvd (Building F2) BuildingSpecifications .................................................10 Site Plan / Floor Plan ...................................................12 1100 Hampton Park Blvd (Building G) BuildingSpecifications .................................................14 Site Plan / Floor Plan ...................................................16 1101 Hampton Park Blvd (Building C) BuildingSpecifications .................................................18 Site Plan / Floor Plan ...................................................20
III. Tenancy Tenant Descriptions .............................................................22
IV. Financial Analysis Cash Flow Summary ...........................................................26 Lease Expiration Schedule..................................................26 Financial Assumptions ........................................................28 Rent Roll Summary .............................................................29 Comparable Lease Survey ..................................................30 Comparable Sale Survey ....................................................30
V. Appendix Exhibit A: Lease Abstracts ................................................ CD Exhibit B: Argus Model ..................................................... CD
DEAL CONTACTS
Gerald P. Trainor executive managing director 202.775.7091 gerry.trainor@transwestern.net
Mark Glagola senior vice president 443.285.7675 mark.glagola@transwestern.net
James M. Darby senior vice president 301.896.9134 jim.darby@transwestern.net
CAPITAL MARKETS
Patricia A. Earnest managing director 202.775.7055 patricia.earnest@transwestern.net
InSTITuTIOnAl COMMErCIAl GrOuP www.transwestern-iCg.net
Gerald P. Trainor 202.775.7091
James V. Cardellicchio 202.775.7094
robert J. Filley 202.775.7045
Patricia A. Earnest 202.775.7055
Paul H. Korns 202.775.7038
James M. Darby 301.896.9134
Matt Gannon 301.896.9029
OFFErInG
transwestern’s institutional Commercial group has been retained on an exclusive basis to sell 1032, 1100 and 1101 Hampton park Boulevard, a three building portfolio of Class “a” industrial buildings situated in the steeplechase 95 international Business park in Capitol Heights, maryland (the “property” or “properties”). the three buildings represent the best-in-class industrial product in the marketplace, are 100% leased with an average term remaining of 7 years.
SuMMAry
address: 1032 Hampton park Boulevard (a/k/a Building F2) 1100 Hampton park Boulevard (a/k/a Building g) 1101 Hampton park Boulevard (a/k/a Building C)
Built: 2008
stories: single-story
square Footage: 249,751
occupancy: 100%
year 1 noi (2011): $2,131,117
4 5
InVESTMEnT HIGHlIGHTS
100% leased and OccupiedProvides stable and secure cash flow• average remaining lease term of 7 years• average rental rate is $8.47 psf, nnn• strong tenant roster with both regional and national tenancy • represented
Submarket Is Strengtheningmost popular location due to proximity to Washington, dC • marketplacetenants are seeking Class “a” product in the market• the market’s existing Class “a” inventory is extremely limited; • primarily B and C quality
Property will be delivered Free & Clear of Debt
square
Footage
occupancy
tenancy
remaining
term
1032
Hampton
park
Blvd
60,766 sF
100%;
single-
tenant
restaurant
depot12 years
1100
Hampton
park
Blvd
56,843 sF
100%;
single-
tenant
service
source,
inc
5 years,
5 months
1101
Hampton
park
Blvd
132,142 sF
100%;
multi-
tenant
Five
tenants 1
5 years
(average)
1 Johnson Controls (29,383 SF); Goodman/Amana Distribution (29,740 SF); Gaylord Entertainment (40,448
SF); Sure Comfort/Rheem (14,005 SF); Pohanka Oldsmobile (18,566 SF).
1032 Hampton Park Blvd
1100 Hampton Park Blvd
1101 Hampton Park Blvd
1101 HamptonPark Blvd
1032
1100
1101
PrOPErTy HIGHlIGHTS
Best In Class Construction & Design
Class “a” industrial buildings constructed in 2008•
rear loaded with ample depth and truck court•
Functional floor plans that are not too deep•
First generation quality build-outs•
excellent visibility and store-frontage yields high image • space for tenants
nothing comparable in marketplace•
State of the Art Facilities
24’ to 28’ clear ceiling heights•
120’ to 145’ truck courts with 55’ concrete aprons•
40’ x 40’ columns spacing•
ESFR fire suppression system•
1.27 to 2.58 parking spaces / 1000 sF•
lOCATIOn HIGHlIGHTS
unparalleled location Along I-95/I-495
situated at exit# 13 (ritchie marlboro rd & • the Beltway (i-95/i-495)
unbeatable access to i-95 and Washington, dC • High visibility location with first class ancillary retail nearby
5 miles to the nation’s capital•
MASTEr PlAn
steeplechase 95 international Business park is a 110 acre Class “a” business park that will include industrial, retail and hotel uses (the “park”). the park is highlighted by its tremendous access to I-95/I-495 and represents the first new interchange developed from i-95/i-495 in over a decade. the new interchange, exit# 13 at ritchie marlboro road, is home to steeplechase 95 in the northwest quadrant and ritchie station in the southwest quadrant.
steeplechase 95 includes 8 retail pad sites and one 26,000 square foot multi-tenant retail building along ritchie marlboro road. ritchie station, located across from steeplechase 95 will be a new power center anchored by BJ’s Wholesale and the following proposed tenants: Best Buy, target, tJ-maxx, kohl’s and Bed, Bath & Beyond.
COnTInuED DEMAnD
the Washington, dC metropolitan area’s economic indicators lead the nation as the area continues to create jobs that fuel demand for goods and services. the area has the fourth largest economy in the country and is the only large economy to have added payroll jobs in the 12 months ending april 2010. Furthermore, the Washington, dC metropolitan area is creating more jobs than its historical average of 38,000 per year and is projected to create 40,000+ jobs per year for the next four years.
the region ranked number one in job growth across • the us.
Washington has the lowest unemployment rate at 5.9% • (9%+nationally)
the region is anticipated to outpace its long-term • average job growth of 38,000 jobs per year. it is anticipated to average 42,900 jobs per year over the next five years.
SuMMAry OF TErMS
interest offered Fee simpleasking price no asking priceBids due Friday, november 5, 2010deposit 3% of offer suggesteddue diligence 30 days suggested
1101 HamptonPark Blvd
1032 HamptonPark Blvd
1100 HamptonPark Blvd
Ham
pton
Par
k B
lvd
1032(BlDG F2)
1100(BlDG G)
1101(BlDG C)
Hotel Site
I-95 / I-495
(Capital Beltway)
Hampton Park Blvd
ritchieStation
ritchie Marlboro rd
Exit #13
reta
il Are
a
2009 2010 2011 2012 2013 2014 2015 J obs
50,000
40,000
30,000
20,000
W ashington dc M Sapayroll Job growth
l ong term average
dc & Md V a
NORTH
RETAIL SITES
PROPOSED
D
ECTI / Home Depot138,780 SF
F1
H
A1
A4
A5
A6
A2
A3
6
5
4
3
Chi
ck-F
il-A
1
Waw
a
Gas S
tatio
nCan
opy
Drug
Stor
e
GServiceSource
56,843 SF
F2RestaurantDepot60,766 SF
1032 HamptonPark Boulevard
CMulti-Tenant
132,142 SF
1101 Hampton
Park Boulevard
1100Hampton
Park Blvd
INTE
RS
TATE
I-95
/ I-4
95
I-95 EXIT RAMP
HAM
PTON
PARK BLVD
RITCHIE MARLBORO RD
RITCHIE MARLBORO RD
495
495
495
95
95
50
50
50
202
202
704
950
410
450
704
704
214
214
458
4
202
FORESTVILLE
LARGO
CHEVERLY
ARDWICKARDMORE
LANDOVER
FEDEX FIELDBOULEVARD AT THE
CAPITAL CENTER
WALKER MILLREGIONAL PARK
ANNAPOLIS RD
LANDOVER RD
LANDOVER RD
LANDOVER RD
ARDWICK ARDMORE RD
LOTTSFORD RD
JOHN HANSON HWY
MARTIN
LUTH
ER KIN
G JR H
WY
MAR
TIN
LUTH
ER K
ING
JR H
WY
SHERIFF RD
COLUMBIA PARK RD
SHERIFF RD
CENTRAL AVE
HILL RD
CENTRAL AVE
RITCHIE MARLBORO RD
SAN
SBU
RY R
DC
API
TAL
BELT
WA
Y
CA
PITAL BELTW
AY
DARCY RDMARLBORO PIKE
WALKER MILL RD
BROOKE RD
AD
DISO
N RD
S
RITCHIE MARLBORO RD
SHA
DY
GLE
N D
R
KIPLING PKWY
HA
MPT
ON
PA
RK B
LVD
SILV
ER H
ILL
RD
MARLBO
RO PIKE
RITC
HIE
RD
RITCH
IE RD
PENNSYLVANIA AVE
WHITE HOUSE RD
HA
RRY S TRUM
AN
DR
ARENA DR
CA
MPU
S W
AY
S
CENTRAL AVE
ADDISON
RD
CABIN
BRANC
H RD
75TH
AVE
CH
EVER
LY A
VE
PENNSY DR
MT LUBENTIA WAY
MC
CO
MRI
CK
DR
CAPITOLHEIGHTS
5 MILES TOWASHINGTON D.C.
CBD
STEEPLECHASE
BuIlDInG SPECIFICATIOnS : 1032 HAMPTOn PArK BOulEVArD (BlDG F2)
GEnErAl SPECIFICATIOnS
property name and address: steeplechase 95 - Bldg. F2 1032 Hampton park Blvd. Capitol Heights, md 20743
legal description: parcel 2-a steeplechase Business park subdivision tax map 74, grid d3
year Completed: 2008
site: 4.25 acres (185,130 square feet)
Building size: 60,766 square feet
stories: 1-story (with no mezzanine areas)
Zoning: the property is zoned i-1 (manufacturing light district). the i-1 zoning is established to permit a mix of manufacturing, warehousing, wholesale and business uses with provisions for limited retail sales.
loading docks:
* there is an additional 10 punch-outs available for future build-out.
truck Court: 120’ truck court with 55’ concrete apron.
parking: 149 surface spaces (2.45/1,000 sF)
10
total loading loading docks drive-ins5 5 0
COnSTruCTIOn
Foundation: reinforced concrete slab
structure: pre-engineered tilt-up concrete panels.
Warehouse interior: the building’s interior warehouse space generally consists of open warehouse space with concrete floors, concrete block, and exposed walls, exposed corrugated metal roof decking on steel web joists and steel i-beams.
sale area & the property contains a restaurant supply business. Office Interior: It includes about 5,000 SF freezer space and about 12,000 sF cooled storage. the remaining space contains general sales area, cash registers and office space for the store management. Office build-out is estimated to be less than 10% of the building’s total net rentable area.
roof: the roof deck is the original ballasted epdm single ply membrane roof on lttr-21 rigid insulation over 1 ½” metal deck
Ceiling Height: 28’ clear ceiling heights
Column spacing: 40’ x 40’
MECHAnICAl SySTEMS
utilities: the building is served by all public utilities including water, sewer, gas, telephone and electric.
metering: tenant is separately metered for electricity, water and gas and contracts directly with the service providers.
electric: the building’s electrical service is a heavy three- phase/480 volt circuit.
HvaC: the warehouse areas are equipped with gas-fired space heaters. The warehouse areas are not air-conditioned. The office areas are served by roof-mounted heating and electric air-conditioning units.
FIrE/lIFE SAFETy
Fire protection the property is fully protected by a combination of system: an esFr wet sprinkler system and a dry sprinkler system.
11
SITE PlAn
12
NORTH
301'
201'
Ste # 100Restaurant Depot
1032 Hampton Park Blvd (Bldg F2)60,766 SF
Exp 12/2022
55'
120'
LoadingArea
ConcreteApron
14
BuIlDInG SPECIFICATIOnS : 1100 HAMPTOn PArK BOulEVArD (BlDG G)
GEnErAl SPECIFICATIOnS
property name and address: steeplechase 95 – Bldg. g 1100 Hampton park Blvd. Capitol Heights, md 20743
legal description: parcel 3 steeplechase Business park subdivision tax map 74, grid d3
year Completed: 2008
site: 3.12 acres (135,907 square feet)
Building size: 56,843 square feet
stories: 1-story (with no mezzanine areas)
Zoning: the property is zoned i-1 (manufacturing light district). the i-1 zone is established to permit a mix of manufacturing, warehousing, wholesale and business uses with provisions for limited retail sales.
loading docks:
truck Court: 120’ truck court with 55’ concrete apron.
parking: 72 surface spaces (1.27/1,000 sF)
total loading loading docks drive-ins16 16 0
COnSTruCTIOn
Foundation: reinforced concrete slab
structure: pre-engineered tilt-up concrete panels.
Warehouse interior: the building’s interior warehouse space generally consists of open warehouse space with concrete floors, concrete block, and exposed walls, exposed corrugated metal roof decking on steel web joists and steel i-beams. please note that the tenant has modified the warehouse space to include a new ceiling that secures the space and its environment for tenant’s operations.
Office Interior: The Property contains office space areas in the front portions of the building. Finishes are typical for office space including commercial carpet, drywall and acoustic ceiling panels. Office build-out is estimated to be 40% of the building’s total net rentable area.
roof: the roof deck is the original ballasted epdm single ply membrane roof on lttr-21 rigid insulation over 1 ½” metal deck.
Ceiling Height: 24’ clear ceiling heights
Column spacing: 40’ x 40’
MECHAnICAl SySTEMS
utilities: the building is served by all public utilities including water, sewer, gas, telephone and electric.
metering: tenant is separately metered for electricity and contracts directly with the service provider.
electric: the building’s electrical service is 1,600 amp with a three-phase/465 volt circuit.
HvaC: the warehouse areas are equipped with gas-unit heaters. the warehouse areas are not air-conditioned. The office areas are served by roof-mounted heating and electric air-conditioning units.
FIrE/lIFE SAFETy
Fire protection the property is fully protected by an esFr wet system: sprinkler system.
emergency power: the property is also equipped with a backup emergency generator.
SITE PlAn
16
HAM
PTO
N P
ARK
BLVD
NORTH
40'40'
130'
435'
50'
55'
120'40
'
Con
cret
e Ap
ron
Load
ing
Area
# 100Service Source
1100 Hampton Park Blvd(Bldg G)
56,843 SFExp 05/2016
18
BuIlDInG SPECIFICATIOnS : 1101 HAMPTOn PArK BOulEVArD (BlDG C)
GEnErAl SPECIFICATIOnS
property name and address: steeplechase 95 – Bldg. C 1101 Hampton park Blvd. Capitol Heights, md 20743
legal description: parcel 22 steeplechase Business park subdivision tax map 74, grid d3
year Completed: 2008
site: 8.59 acres (374,180 square feet)
Building size: 132,142 square feet
stories: 1-story (with no mezzanine areas)
Zoning: the property is zoned i-1 (manufacturing light district). the i-1 zone is established to permit a mix of manufacturing, warehousing, wholesale and business uses with provisions for limited retail sales.
loading docks:
truck Court: 130’ to 145’ truck court with 55’ concrete apron.
parking: 192 surface spaces (1.45/1,000 sF)
total loading loading docks drive-ins41 39 2
COnSTruCTIOn
Foundation: reinforced concrete slab
structure: pre-engineered tilt-up concrete panels.
Warehouse interior: the building’s interior warehouse space generally consists of open warehouse space with concrete floors, concrete block, and exposed walls, exposed corrugated metal roof decking on steel web joists and steel i-beams.
Office Interior: The Property primarily contains office/showroom space area in the front portions of each tenant’s space. Finishes are typical for office space including commercial carpet drywall and acoustic ceiling panels.
roof: the roof deck is the original ballasted epdm single ply membrane roof on lttr-21 rigid insulation over 1 ½” metal deck
Ceiling Height: 28’ clear ceiling heights
Column spacing: 40’ x 40’
MECHAnICAl SySTEMS
utilities: the building is served by all public utilities including water, sewer, gas, telephone and electric.
metering: Electric: each tenant is separately metered for electricity and contracts directly with the service provider. Water: each tenant is separately sub-metered; main contract with landlord. Gas: each tenant is separately metered for gas and contracts directly with the service provider.
electric: the building has a 3,000 amp electrical service with a heavy three-phase/465 volt circuit.
HvaC: the warehouse areas are equipped with gas unit heaters. the warehouse areas are not air-conditioned. The office areas are served by roof-mounted heating and electric air-conditioning units.
FIrE/lIFE SAFETy
Fire protection the property is fully protected by an esFr wet system: sprinkler system.
SITE PlAn
20
NORTH
Rei
nfor
ced
Con
cret
e Ap
ron
55'
130'
LOAD
ING
AREA
HAM
PTO
N P
ARK
BLVD
#100Johnson Controls
29,383 SFExp 04/2018
#200Goodman Distribution
29,740 SFExp 09/2013
#300Gaylord Entertainment
40,448 SFExp 08/2016
#400Sure Comfort
14,005 SFExp 12/2015
#500Pohanka Oldsmobile
18,566 SFExp 03/2017
40'
600'
200'
40'
1032 Hampton Park BlvdRestaurant Depot
1100 Hampton Park BlvdService Source
I-95/I-495 (Capital Beltway)
Hampton Park Blvd
PohankaOldsmobile
SureComfort
GaylordEntertainment
GoodmanDistribution
JohnsonControls
1101 Hampton Park Blvd
rESTAurAnT DEPOT 1032 Hampton Park Boulevard (Bldg F2)60,766 SF 100% of Bldg F2 24.3% of Portfolio Exp 12/2022
restaurant depot is a members-only wholesale cash and carry foodservice supplier to any businesses and chefs wanting to buy commercial food, equipment and supplies. they provide a low-cost alternative to other foodservice suppliers by eliminating the overhead of a traditional distributor. restaurant depot provides a broad selection of quality foodservice products at significant savings.
each of restaurant depot’s 82 locations nationwide stocks national and regional brands as well as its own brands of beverages, cleaning supplies, dairy, disposables, equipment, fresh and frozen meat, poultry, produce and seafood, paper, provisions, and smallwares.
in regard to the subject property, restaurant depot’s build-out consists of less than 10% office space. The balance is used for its standard wholesale cash and carry operations that include walk-in refrigeration and freezer areas, and aisles of food products and supplies.
the lease is executed by rd america, inc and is fully guaranteed by restaurant depot’s parent company, Jetro Holdings, inc.
www.restaurantdepot.com
SErVICE SOurCE, InC 1100 Hampton Park Boulevard (Bldg G) 56,843 SF 100% of Bldg G 22.8% of Portfolio Exp 05/2016
ServiceSource, Inc is headquartered in Alexandria, Virginia, and is an affiliate of the ServiceSource Network. As a not-for-profit 501(c)(3) organization, ServiceSource offers rehabilitation and employment services to people with disabilities. it also offers outsourcing labor options to businesses and government agencies in a variety of fields, including food service, mail management, administrative services, document management, assembly and packaging, warehousing, shipping and receiving, and logistics.
the servicesource network provides outsourcing services to both private sector firms and over 30 Federal Government Agencies including all branches of the United states military. their customer list includes: u.s. army, u.s. air Force, irs, dayco products, epa, u.s. department of Commerce, u.s. Bureau of the Census, u.s. marine Corp.
servicesource inc utilizes 1100 Hampton park Boulevard as a mail processing center in connection with a contract the firm has with the Department of Homeland security. as a result of the materials processed through the facility, Building g is a highly secure premises with access limited to personnel of servicesource. the rear loading areas are secure with chain link fences, on-site security and numerous security monitoring devices. the building’s interior consists of secure areas where mail and packages are inspected and routed for delivery. servicesource selected Building g for its single-tenancy functionality for security reasons and its access to public transportation which is situated in front of the building.
www.ourpeoplework.org
TEnAnT DESCrIPTIOnSBelow is a brief description of the property’s entire tenant roster.
JOHnSOn COnTrOlS, InC1101 Hampton Park Boulevard (Bldg C)29,383 SF 22.2% of Bldg C 11.8% of Portfolio Exp 06/2018
Johnson Controls is a global diversified company in the building and automotive industries. the company serves these markets through its three business units: Building Efficiency, Automotive Experience, and power solutions
Johnson Controls utilizes its space at the Property for its Building Efficiency unit, a leading provider of equipment and controls for heating, ventilating, air-conditioning and refrigeration, as well as security systems for buildings. the business unit delivers products and services that increase energy efficiency yielding lower operating costs for building owners.
Johnson Controls’ space at 1101 Hampton Park Boulevard is primarily flex/office space that includes perimeter windows on two sides with open work stations, large training rooms and warehouse areas. the property’s high-image, Class “a” quality, and its location are what attracted Johnson Controls to the building. the property’s ease of access from i-95/i-495 and excellent frontage along Hampton park Boulevard make it an identifiable location for its employees and guests.
Johnson Controls enjoys an investment grade credit rating from s&p (BBB).
www.johnsoncontrols.com
GOODMAn DISTrIBuTIOn, InC1101 Hampton Park Boulevard (Bldg C)29,740 SF 22.5% of Bldg C 11.9% of Portfolio Exp 09/2013
goodman distribution, inc. is a subsidiary of goodman global Holdings, inc., the second largest manufacturer of HvaC products for residential and light commercial use. the company’s products are predominantly marketed under the goodman and amana brand names. the goodman brand name is one of the leading HvaC brands in north america while the amana brand provides premium performance for their product line.
as a result of the company’s breadth of markets and market share, goodman global sells its products through more than 1,000 north american distribution points with more than 160 of these distribution centers being company-owned through goodman distribution, inc. during 2008 and 2009, approximately 55% and 57%, respectively, of the company’s net sales were made through company-operated distribution centers and their direct sales force.
to that end, goodman uses the subject property’s location as a showroom (approximately 2,500 square feet) and distribution facility providing sales of new units and replacement parts to home builders and HvaC professionals. goodman operates their company-operated distribution centers, like the subject property’s location, with a common look and feel that enables them to deliver a high level of service with low overhead costs.
Goodman’s company-operated distribution centers are a key component to the firm’s success. they have opened more than 70 company-operated distribution centers since 2003, which has enabled them to efficiently grow local market share with low up-front investment expenditures. the company-operated centers allow goodman to maintain close relationships with dealers, capture incremental distribution margins and better manage their inventory.
Goodman Global enjoyed significant free cash flow during 2008 and 2009. Their net cash provided by operating activities was $141.4 million and $207.7 million, respectively. net sales during the same periods were $1.877 billion and $1.851 billion, respectively. For the six months ending June 2010, net sales totaled $961.2 million.www.goodmanmfg.com
24 25
GAylOrD nATIOnAl, llC1101 Hampton Park Boulevard (Bldg C)40,448 SF 30.6% of Bldg C 16.2% of Portfolio Exp 08/2016
Gaylord Entertainment Company, through its subsidiaries, operates as a diversified hospitality and entertainment company that focuses on the large group meetings and conventions sector. its Hospitality segment owns and operates the gaylord Hotels branded hotels, which include the gaylord opryland resort and Convention Center in nashville, tn, the gaylord palms resort and Convention Center in kissimmee, Fl, the gaylord texan resort and Convention Center in grapevine, tX, and the gaylord national resort and Convention Center located on the potomac river in prince george’s County, md.
to that end, gaylord utilizes the subject property as a warehouse facility for their nearby gaylord national resort and Convention Center. gaylord is the largest tenant in 1101 Hampton park Boulevard and the 3rd largest tenant in the portfolio. their 40,448 square foot unit is used strictly for warehouse storage of the hotel’s FF&e and seasonal decorations.
www.gaylordhotels.com
COMPOnEnTS AnD DISTrIBuTIOn, InC(d/b/a Sure Comfort Supply Centers)1101 Hampton Park Boulevard (Bldg C)14,005 SF 10.6% of Bldg C 5.6% of Portfolio Exp 12/2015
sure Comfort supply Centers provide cost-effective, reliable heating and cooling products to HvaC contractors and their customers. the company uses its premises as a showroom (approximately 2,500 square feet) and distribution facility. sure Comfort operates through dedicated factory centers like the subject property’s location with professional and knowledgeable staff.
the factory center showroom and warehouse at 1101 Hampton park Boulevard offers product delivery to on-site locations in addition to a full line of replacement parts and accessories.
www.surecomfortsupply.com
POHAnKA rITCHIE MArlBOrO, l.P.1101 Hampton Park Boulevard (Bldg C)18,566 SF 14.1% of Bldg C 7.4% of nrA Exp 03/2017
the pohanka automotive group operates new and used car dealerships throughout the virginia, maryland, and Washington, dC areas. pohanka has been serving the metropolitan Washington, dC area for decades providing quality products, excellent prices, and friendly service.
pohanka will utilize the subject property’s location as an off-site repair center where factory stock equipment and accessories are upgraded and altered to the customer’s specifications. The premise’s build-out includes approximately 3,000 square feet of office and reception areas. The balance of the space will remain high-bay warehouse areas.
www.pohanka.com
For the years ending year 1 year 2
dec-2012 year 3
dec-2013 year 4
dec-2014 year 5
dec-2015 year 6
dec-2016 year 7
dec-2017 year 8
dec-2018 year 9
dec-2019 year 10
dec-2020 year 11
dec-2021 psF dec-2011
Potential Gross revenue
Base rental revenue $8.53 $2,131,244 $2,185,509 $2,252,630 $2,325,018 $2,395,453 $2,634,496 $2,851,098 $3,027,933 $3,163,169 $3,255,933 $3,385,022
absorption & turnover vacancy 0.00 0 0 (42,064) 0 0 (218,126) (31,607) (71,188) 0 (28,067) (29,049)
scheduled Base rental revenue 8.53 2,131,244 2,185,509 2,210,566 2,325,018 2,395,453 2,416,370 2,819,491 2,956,745 3,163,169 3,227,866 3,355,973
expense reimbursement revenue 1.50 375,396 383,759 406,901 461,509 511,125 521,801 621,701 725,551 812,806 829,546 855,376
Total Potential Gross revenue 10.04 2,506,640 2,569,268 2,617,467 2,786,527 2,906,578 2,938,171 3,441,192 3,682,296 3,975,975 4,057,412 4,211,349
vacancy & Credit loss (5%, 0% existing tts) 0.00 0 0 0 (14,715) (15,323) 0 (72,607) (57,005) (143,379) (119,348) (124,599)
Effective Gross revenue 10.04 2,506,640 2,569,268 2,617,467 2,771,812 2,891,255 2,938,171 3,368,585 3,625,291 3,832,596 3,938,064 4,086,750
Operating Expenses
mgmt Fee (3%) 0.30 75,199 77,077 78,524 83,596 87,198 88,146 103,236 110,469 119,279 121,721 126,340
repairs & maintenance 0.09 23,351 24,051 24,774 25,516 26,281 27,070 27,882 28,718 29,580 30,468 31,382
grounds 0.11 28,119 28,963 29,831 30,726 31,648 32,597 33,576 34,584 35,620 36,689 37,790
snow removal 0.09 23,175 23,871 24,585 25,323 26,085 26,865 27,672 28,503 29,358 30,237 31,146
Contract services 0.03 8,127 8,371 8,621 8,881 9,148 9,420 9,705 9,995 10,295 10,605 10,922
insurance 0.06 15,388 15,849 16,326 16,815 17,319 17,839 18,374 18,925 19,493 20,078 20,680
taxes 0.60 150,096 152,076 175,227 213,871 254,969 298,630 344,967 440,512 503,222 518,319 533,868
admin & personnel (reimb) 0.08 20,231 20,838 21,463 22,107 22,770 23,454 24,157 24,882 25,629 26,397 27,188
association dues (reimb) 0.13 31,837 32,792 33,776 34,789 35,832 36,908 38,015 39,155 40,330 41,540 42,787
Total Operating Expenses 1.50 375,523 383,888 413,127 461,624 511,250 560,929 627,584 735,743 812,806 836,054 862,103
net Operating Income 8.53 2,131,117 2,185,380 2,204,340 2,310,188 2,380,005 2,377,242 2,741,001 2,889,548 3,019,790 3,102,010 3,224,647
leasing & Capital Costs
tenant improvements 0.00 0 0 35,495 0 0 243,996 24,940 117,446 0 0 44,964
leasing Commissions 0.00 0 0 72,521 0 0 376,060 54,492 122,731 0 0 100,165
Capital reserve 0.00 0 0 0 0 12,488 12,862 13,248 13,645 14,055 14,476 14,911
Total leasing & Capital Costs 0.00 0 0 108,016 0 12,488 632,918 92,680 253,822 14,055 14,476 160,040
Cash Flow Before Debt Service 8.53 2,131,117 2,185,380 2,096,324 2,310,188 2,367,517 1,744,324 2,648,321 2,635,726 3,005,735 3,087,534 3,064,607
CASH FlOw SuMMAry
26
ExPIrATIOn SCHEDulE
Expiration CY2011
CY2012
CY2013
CY2014
CY2015
CY2016
CY2017
CY2018
CY2019
CY2020
CY2021+
VacantSuite Date TenantC_200 9/13 Goodman Distribution 29,740 C_400 12/15 Sure Comfort 14,005 G_100 5/16 ServiceSource Inc 56,843 C_300 8/16 Gaylord Entertainment 40,448 C_500 3/17 Oldsmobile 8,566 C_100 4/18 Johnson Controls 29,383 F2_100 12/22 Restaurant Depot 60,766
Annual Total Square Feet 0 0 29,740 0 14,005 97,291 18,566 29,383 0 0 60,766 0% of Building Area (249,751) 0.0% 0.0% 11.9% 0.0% 5.6% 39.0% 7.4% 11.8% 0.0% 0.0% 24.3% 0.0%
Cumulative % of Building Area 0.0% 0.0% 11.9% 11.9% 17.5% 56.5% 63.9% 75.7% 75.7% 75.7% 100.0% 100.0%
27
0.0% 11.9% 0.0% 5.6% 39.0% 7.4% 11.8% 0.0% 0.0% 24.3% 0.0%0.0% 0.0%
11.9% 11.9%17.5%
56.5%
63.9%
75.7% 75.7% 75.7%
100.0% 100.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+ Vacant
(as a percentage of NRA per calendar year)
A nnual Expirations
Cumulative Expirations
28
KEy ASSuMPTIOnS
market leasing assumptions
market rent
annual lease in-creases
lease type
lease term
renewal probability
downtime tenant improvements
leasing Commissions
new renew new renew new renew
1032 Hampton (Bldg F2) $12.00 3.0% nnn 7 years 75% 6 mo 0 mo $9.00 $0.50 6.0% 3.0%
1100 Hampton (Bldg g) $11.00 3.0% nnn 7 years 75% 6 mo 0 mo $9.00 $0.50 6.0% 3.0%
1101 Hampton (Bldg C): w/house $8.00 3.0% nnn 7 years 75% 6 mo 0 mo $3.00 $0.50 6.0% 3.0%
1101 Hampton (Bldg C): flex $11.00 3.0% nnn 7 years 75% 6 mo 0 mo $10.00 $1.00 6.0% 3.0%
Analysis Start Date Jan 01, 2011 (Jan-2011 - through - dec-2011) net rentable Area occupied area 249,751 100.0% vacant 0 0.0% total nra 249,751
Inflation Rates General Inflation (CPI) 3% Market Rent Inflation 2.0%, 4.0%, 6.0%, 6.0%, 3.5%, ….. Vacancy & Credit loss 5% in-place tenants are excluded until they roll. Operating Expenses Operating expenses reflect 2010 Budget +3%. Taxes Year 1 Taxes reflect actual assessments and 2010 tax rates. Years 2+ reflects the prior year’s assessment increased 3%. abatement the property’s tax abatement reduces the assessed value for all tax calculations except the taxes calculated for the state of maryland. the tax abatement reduces the increase in assessment that exceeds the base assessment amount. the tax abatement program ends June 2018. Base assessments 1032 Hampton park Blvd $1,128,700 1100 Hampton park Blvd $844,100 1101 Hampton park Blvd $1,265,500
Capital $0.05 psf effective year 5 of the model.
proforma year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8
tax year 07/2011 - 06/2012 07/2012 - 06/2013 07/2013 - 06/2014 07/2014 - 06/2015 07/2015 - 06/2016 07/2016 - 06/2017 07/2017 - 06/2018 07/2018 - 06/2019
80% 80% 70% 60% 50% 40% 30% 0%
Tax Abatement Program
28
tenant namesuite numberexpiration date/term
tenantsq Ftg
annual rent rates reimbursementsoper exp & re tax
By (stop amt)
CommentspsF rent Changes
annual on to (psF)
restaurant depot suite: F2_100 Jan-2008 to dec-2022
60,766 $11.25 $683,618
Jan-2012 Jan-2013 Jan-2014 Jan-2015 Jan-2016 Jan-2017 Jan-2018 Jan-2019 Jan-2020 Jan-2021 Jan-2022
$11.53 $11.82 $12.12 $12.42 $12.73 $13.05 $13.38 $13.71 $14.05 $14.41 $14.77
(1032) F2_100: nnn (tax+oe)
renewal: tenant has three 5-year renewals at market with 12 months advance notice.Guaranty: lease is guaranteed by Jetro Holdings, inc.
service source inc suite: g_100 Jun-2008 to may-2016
56,843 $8.06 $458,155
Jun-2011 Jun-2012 Jun-2013 Jun-2014 Jun-2015
$8.30 $8.55 $8.81 $9.07 $9.35
(1100) g_100: nnn (tax+oe)
renewal: tenant has three 5-year renewals; rent continues to increase at 3% year. Termination: if its contract with the government is canceled. tenant to give 120 days advance notice and pay $380,000 in first year; thereafter, penalty amortizes over 84 month period.restoration: tenant to restore space to vanilla box.
Johnson Controls suite: C_100 may-2008 to apr-2018
29,383 $7.37 $216,553
Jul-2011 Jul-2012 Jul-2013 Jul-2014 Jul-2015 Jul-2016 Jul-2017
$7.59 $7.82 $8.06 $8.30 $8.55 $8.80 $9.07
(1101) C_100: nnn (tax+oe)
renewal: tenant has two 3-year renewals at market with 9 months advance notice.Termination: a one time right to terminate effective 05/01/2016 with notice and payment of unamortized tis and lCs. tenant forfeits termination right should it exercise its right of First option during years 4 - 7 (05/2011 - 04/2015).rOFO: tenant may lease 8,400 sF in an adjacent building under the same terms. offer expires 05/01/2015.
goodman distribution suite: C_200 oct-2008 to sep-2013
29,740 $7.16 $212,938
oct-2011 oct-2012
$7.38 $7.60
(1101) C_200: nnn (tax+oe)
renewal: tenant has one 5-year renewal at market with 6 months advance notice.
gaylord entertainment suite: C_300 mar-2009 to aug-2016
40,448 $6.15 $248,755
sep-2011 sep-2012 sep-2013 sep-2014 sep-2015
$6.30 $6.46 $6.62 $6.79 $6.96
(1101) C_300: nnn (tax+oe)
renewal: tenant has one 5-year renewal at market with 12 months advance notice.Termination: on the following dates with 6 months notice:(i) 02/04/2013 with 6 mos rent + $101,120 + unamortized tis & lCs(ii) 02/04/2014 with 4 mos rent + $80,896 + unamortized tis & lCs(iii) 02/04/2015 with 3 mos rent + $60,672 + unamortized tis & lCs
sure Comfort suite: C_400 oct-2010 to dec-2015
14,005 $7.11 $99,576
Jan-2012 Jan-2013 Jan-2014 Jan-2015
$7.39 $8.11 $8.46 $9.18
(1101) C_400: nnn (tax+oe)
renewal: tenant has two 3-year renewals at market with 6 months advance notice.Termination: tenant may cancel lease on 08/31/2013 with120 days advance notice and penalty of $19,740 + unamortized tis and lCs amortized over an 11-year period.Guaranty: lease is guaranteed by rheem sales Company, inc.
oldsmobile suite: C_500 dec-2010 to mar-2017
18,566 $10.60 $196,800
dec-2014 dec-2015 dec-2016
$10.87 $11.14 $11.42
(1101) C_500: nnn (tax+oe)
renewal: tenant has two 5-year renewals; rent continues to escalate 2.5% per year.Guaranty: lease is guaranteed by pohanka oldsmobile, inc.
rEnT rOll SuMMAry
29
30
COMPArABlE SAlESProperty name and Address
13380 Mid Atlantic Blvd
13300 Mid Atlantic Blvd
13335 Mid Atlantic Blvd
6330 Columbia Park rd
1000 Hampton Park Blvd
City, State Beltsville, md Beltsville, md laurel, md Cheverly, md Capitol Heights, md
Submarket Beltsville Beltsville laurel landover/largo ind Home depot
Sale Date 05/2009 05/2009 02/2009 09/2007 06/2007
Square Feet 35,746 24,400 44,000 52,500 138,780
Sale Price $4,290,000 $3,620,000 $5,030,000 $6,037,000 $18,300,000
Sale Price PSF $120 $148 $114 $115 $132
Space Type industrial/showroom industrial/showroom industrial/showroom industrial/showroom industrial/showroom
Built/renovated 2009 2009 2009 2006 2006
location inferior inferior inferior inferior equal
Quality equal equal equal inferior equal
Seller Jackson shaw Jackson shaw Jackson shaw pactrust alapco
Buyer Floor maxamerican
mechanicalFreestate electric
architect of the Capitol
metzler
Company location lease Date Size rate
(nnn) Inc Term Ti Comments
siemens6435 virginia manor rd Beltsville, md
may-08 76,292 sF $12.25 3.00% 63 mos none ind/showroom
Creative options and employment
1441 mcCormick dr landover/lanham, md
mar-09 15,263 sF $11.00 3.00% 36 mos $13.50/sF ind/showroom
Christ embassy Church
1601 mcCormick dr landover/lanham, md
Jun-09 12,607 sF $11.00 3.00% 60 mos $5.00/sF ind/showroom
FF&e logistics6501 virginia manor rd Beltsville, md
aug-10 31,950 sF $8.50 3.00% 60 mospaint & Carpet
ind/Warehouse
Colonial distributors5200 sunnyside avenue Beltsville, md
oct-08 13,169 sF $8.50 3.00% 60 mos none ind/showroom
antenna research associates
4451 - 4485 nicole dr landover/lanham, md
apr-09 36,787 sF $8.35 3.00% 126 mos "as is" ind/showroom
simplexity9301 peppercorn pl landover/lanham, md
sep-09 51,667 sF $7.75 2.50% 60 mos $4.00/sF ind/showroom
allen impact13380 mid atlantic Blvd Beltsville, md
Jul-09 40,000 sF $7.75 3.00% 120 mos $8.00/sF ind/showroom
COMPArABlE lEASES
TRANSWESTERN (including their affiliates, subsidiaries, related parties,
successors, and assigns, hereinafter referred to singly and collectively
as “Transwestern” or “Agent”) have been engaged as the exclusive agent
by Atapco Ritchie Interchange, Inc., (the “Owner” or “Seller”) for the sale
of three industrial buildings totaling 249,751 square feet located at 1032,
1100 and 1101 Hampton Park Boulevard in Capitol Heights, Maryland (the
“Property”).
The Property is being offered for sale in an “as-is, where-is” condition and
the Seller and the Agent make no representations or warranties as to the
accuracy of the information contained in this Offering Memorandum. The
enclosed materials include highly confidential information and are being
furnished solely for the purpose of review by prospective purchasers of
the interest described herein. Neither the enclosed materials, nor any
information contained herein, are to be used for any other purpose, or
made available to any other person without the express written consent
of the Seller. Each recipient, as a prerequisite to receiving the enclosed
information, should be registered with Transwestern Commercial Services
as a “Registered Potential Investor” or as “Buyer’s Agent” for an identified
“Registered Potential Investor”. The use of this Offering Memorandum and
the information provided herein, is subject to the terms, provisions and
limitations of the Confidentiality Agreement furnished by the Agent prior
to delivery of this Offering Memorandum.
The enclosed materials are being provided solely to facilitate the prospective
investor’s due diligence for which it shall be fully and solely responsible. The
material contained herein is based on information and sources deemed to
be reliable, but no representation or warranty, express or implied, is being
made by the Agent or the Seller or any of their respective representatives,
affiliates, officers, employees, shareholders, partners and directors, as to the
accuracy or completeness of the information contained herein. Summaries
contained herein of any legal or other documents are not intended to be
comprehensive statements of the terms of such documents, but rather
only outlines of some of the principal provisions contained therein. Neither
the Agent or the Seller shall have any liability whatsoever for the accuracy
or completeness of the information contained herein, or any other written
or oral communications, or information transmitted, or made available,
or any action taken, or decision made by the recipient with respect to
the Property. Interested parties are to make their own investigations,
projections and conclusions without reliance upon the material
contained herein.
The Seller reserves the right, at its sole and absolute discretion, to withdraw
the Property from being marketed for sale at any time and for any reason.
The Seller and the Agent each expressly reserve the right, at their sole
and absolute discretion, to reject any and all expressions of interest or
offers regarding the Property and/or to terminate discussions with any
entity at any time, with or without notice. This Offering Memorandum is
made subject to omissions, corrections or errors, change of price or other
terms, prior sale or withdrawal from the market without notice. The Agent
is not authorized to make any representations or agreements on behalf of
the Seller.
The Seller shall have no legal commitment or obligation to any
interested party reviewing the enclosed materials, performing additional
investigation and/or making an offer to purchase the Property unless
and until a binding written agreement for the purchase of the Property
has been fully executed, delivered and approved by the Seller and
any conditions to the Seller’s obligations thereunder have been
satisfied or waived.
By taking possession of and reviewing the information contained herein,
the recipient agrees that (a) the enclosed materials and their contents are
of a highly confidential nature and will be held and treated in the strictest
confidence and shall be returned to the Agent or the Seller promptly upon
request; and (b) the recipient shall not contact employees or tenants of
the Property directly or indirectly regarding any aspect of the enclosed
materials or the Property without the prior written approval of the Seller or
the Agent; and (c) no portion of the enclosed materials may be copied or
otherwise reproduced without the prior written authorization of the Seller
or the Agent or as otherwise provided in the Confidentiality Agreement
executed and delivered by the recipient(s) to Transwestern.
The Seller will be responsible for any commission due the Agent in
connection with a sale of the Property. Each prospective purchaser will be
responsible for any claims for commissions by any other broker or agent
in connection with a sale of the Property if such claims arise from acts of
such prospective purchaser or its broker/agent. Any Buyer’s Agent must
provide a registration signed by the prospective investor acknowledging
said agent’s authority to act on its behalf.
If you have no interest in the Property at this time, please return this
Offering Memorandum to the address below if it is a hard copy or delete
the file if it is an electronic copy:
Transwestern Institutional Commercial Group
1700 K Street, NW, Suite 660
Washington, DC 20006
Attention: Gerald P. Trainor, Executive Managing Director
Confidential Memorandum And Disclaimer
31
DEAL CONTACTS
Gerald P. Trainorexecutive managing director202.775.7091gerry.trainor@transwestern.net
Mark Glagolasenior vice president443.285.7675mark.glagola@transwestern.net
James M. Darbysenior vice president301.896.9134jim.darby@transwestern.net
CAPITAL MARKETS
Patricia A. Earnestmanaging director202-775-7055patricia.earnest@transwestern.net
Institutional Commercial Group www.transwestern-iCg.net
Gerald P. Trainor202.775.7091
James V. Cardellicchio202.775.7094
robert J. Filley202.775.7045
Patricia A. Earnest202.775.7055
Paul H. Korns202.775.7038
James M. Darby301.896.9134
Matt Gannon301-896.9029
1700 k street, nW tel 202.775.7000 suite 660 FaX 202.296.2647 Washington, dC 20006 www.transwestern-iCg.net
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