2220 broadbirch drive - loopnet · mclan ch chas bthsda rocill whaton rnblt larl frdric mt airy...

10100 Business Parkway | Lanham, MD 20706 | +1 301 459 4400 | naimichael.com

OFFERING MEMORANDUM

2220 Broadbirch DriveSilver Spring, Montgomery County, MD 20904

2

EXECUTIVE SUMMARY | PROPERTY OVERVIEW | MARKET OVERVIEW | FINANCIAL SUMMARY

2220 Broadbirch Drive

Disclaimer: The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. Floor plans, site plans and other graphic representations of this property have been reduced and reproduced, and are not necessarily to scale. All information should be verified prior to purchase or lease.

WASHINGTONDULLES

INTERNATIONALAIRPORT

BALTIMOREWASHINGTON


WASHINGTON, DC

95

BALTIMORE

LEESBURG

ASHBURNPOTOMAC

GERMANTOWN GAITHERSBURG

STERLING

HERNDON

RESTON

VIENNA

TYSONSCORNER

CHANTILLY

GAINESVILLE

MANASSAS

DALE CITY

LORTON

FAIRFAX

SPRINGFIELD

ALEXANDRIA

ARLINGTON

FALLSCHURCH

McLEAN

CHEVYCHASE

BETHESDA

ROCKVILLE

WHEATON

GREENBELT

LAUREL

FREDERICK

MT. AIRY

DAMASCUS

CLARKSBURG

CLARKSVILLE COLUMBIA

REISTERSTOWN

OWINGS MILLS

ELLICOTT CITY

SEVERNA PARK

ANNAPOLIS

TOWSON

LUTHERVILLE-TIMONIUM

COCKEYSVILLE

SILVERSPRING

HYATTSVILLE LANHAM

LARGO

BOWIE

CROFTON

UPPERMARLBORO

CLINTON

BRANDYWINE

66

15

15

29

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301

66

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270 695

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450

REAGANNATIONALAIRPORT

VIRGINIA

MARYLAND2220 Broadbirch Drive

Michael IsenSenior Vice President+1 301 918 [email protected]

Allen CornellSenior Vice President+1 301 918 [email protected]

01 EXECUTIVE SUMMARY Offering Summary Investment Highlights Offering Procedure

02 PROPERTY OVERVIEW Property Description Maps & Aerials Site Plan, Plat, & Floor Plan Design & Construction

03 MARKET OVERVIEW Washington DC Montgomery County & Silver Spring Demographics

04 FINANCIAL SUMMARY Financial Information

Table of Contents

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Offering SummaryExecutive Summary01

NAI Michael, as exclusive representative for the owner, is pleased to offer the opportunity to purchase 2220 Broadbirch Drive (“Property” or “Building”) located in Silver Spring, Maryland.

The subject property is situated on approximately 7.83 acres of land zoned C-R (Commercial- Residential) and is improved with a single-story 66,150-square-foot flex/industrial building with associated surface parking. The building is currently is being operated and leased as a data center, along with associated offices and warehouse uses. The building was originally constructed in 1985 and has been well maintained since.

PROPERTY SUMMARY

Address:2220 Broadbirch Drive

Silver Spring, MD 20904

Size: 66,150± SF

Year Built: 1985

Site Area: 7.83± acres

Occupancy: 100% (as of August 2018)

Floors: Single-story

Annual Real

Estate Taxes

(2018):

$97,742.53

2220 Broadbirch Drive provides a value-add investment opportunity to substantially increase the cash flow of the property by repositioning and re-tenanting the building or redevelopment of the site under the existing C-R (Commercial / Residential) zoning.

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Investment Highlights

• Leased through June 2020, providing purchaser income while the Property is repositioned or redeveloped

• Easy access to Route 29 (Columbia Pike), I-95, and the Intercounty Connector (ICC); all major arteries connecting the Property to Washington DC, Baltimore, and surrounding markets

• Adjacent to major retailers, including Home Depot, Target, Kohl’s, ShopRite, and White Oak Town Center - a planned mixed-use development

• Walking distance to the new Washington Adventist Hospital

• Ample surface parking

• Located in the West Farm Technology Park

• The property is zoned C-R. Specifically, (C-R-0.75, C-0.75, R-0.25, H-75) C-R zone was created by Montgomery County in order to provide the most flexibility in the type of commercial uses allowable and to introduce a mix of other uses, including new residential areas where little may have existed previously and to meet market demands. In terms of residential, all types of housing uses are permitted within the C-R zone, including single-family, duplex, townhouse, and multifamily.

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Offering Procedure

OFFERING TIMELINE: Following the distribution of offering materials, Brokers will be available to review information with prospective purchasers and answer any questions they may have. Prospective purchasers may schedule and conduct property tours by appointment. Offers will be reviewed by Seller upon submission by NAI Michael.

TERMS: The Property is being offered on an “AS-IS, WHERE-IS” basis, without structural, economic or environmental representations or warranties.

PROPERTY TOURS: Property/market tours will be available by request. Per the terms of the Confi dentiality Agreement, prospects agree to direct all questions to the Broker and not to contact the Seller, the tenants or the property management staff of the Property. Furthermore, prospects agree to not tour the Property without being accompanied by a representative of Seller or the Broker.

UNDERWRITING: This is a confidential investment offering presented exclusively by NAI Michael to a select group of qualified investors. The prospective purchaser will be selected by the Seller at its sole and absolute dis cretion based upon a variety of factors, including but not limited to: • Offer price & terms• Prospective purchaser’s financial strength • Level of discretion to invest funds • Level of property and market due diligence • Experience with similar transactions • Industry reputation

• Ability to close in a timely manner An investor’s underwriting should reflect the following:

REAL ESTATE TAXES: Taxes shall be prorated on a cash basis.

CLOSING COSTS: Purchaser shall pay all closing costs, except the cost of State Revenue Stamps and recordation taxes. Real property transfer taxes shall be shared equally by Purchaser and Seller and each party shall pay its own attorney fees.

BROKERAGE: Seller shall pay NAI Michael a brokerage fee per a separate agreement between NAI Michael and the Seller. The Seller may elect to pay a co-op fee on a case by case basis at the Seller’s sole discretion.

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Property Description

PROPERTY SUMMARY

Address:2220 Broadbirch Drive

Silver Spring, MD 20904

Size: 66,150± SF

Year Built: 1985

Site Area: 7.83± acres

Occupancy: 100% (as of August 2018)

Floors: Single-story

Real Estate

Taxes (2018):$97,742.53

2220 Broadbirch Drive is a suburban flex/warehouse that was constructed in 1985. The Property is situated on 7.83± acres (340,921± square feet) of land - zoned C-R (Commercial – Residential) - with a 66,150-square-foot building. The site has excellent visibility from Broadbirch Drive with over 435 linear feet of road frontage.

The Property has ample surface parking with a total of 210 parking spaces. The ceiling heights of the building range from 15 feet in the office portion of the building to 25 feet in the warehouse section. The building is rear loaded with loading docks and an ample truck court. The space is currently configured with a 21,000-square-foot raised floor data center along with associated power and cooling infrastructure. There are currently two 1.5 megawatt generators on the site, along with multiple fiber carriers in the building. Additionally, the building currently is improved with a fully furnished call center with seating to accommodate 75 people and approximately 10,000 square feet of lease-ready office space.

2220 Broadbirch Drive is well located along Columbia Pike (Route 29) in Silver Spring, Maryland, with easy access to Route 200 (Intercounty Connector), I-95 and

I-495 (Capital Beltway). These are all major arteries serving the entire Washington DC metropolitan area. 2220 Broadbirch Drive is located within the White Oak Science Gateway Master Plan, a Montgomery County redevelopment plan. It is surrounded by new retail developments, hospitality (Hilton Garden Inn) and corporate office facilities. The Property is within walking distance of the new Washington Adventist Hospital, which is currently under construction. Some of the other

PropertyOverview02

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Regional Map

WASHINGTONDULLES


BALTIMOREWASHINGTON


WASHINGTON, DC

95

BALTIMORE

LEESBURG

ASHBURNPOTOMAC


STERLING

HERNDON

RESTON

VIENNA

TYSONSCORNER

CHANTILLY

GAINESVILLE

MANASSAS

DALE CITY

LORTON

FAIRFAX

SPRINGFIELD

ALEXANDRIA

ARLINGTON

FALLSCHURCH

McLEAN

CHEVYCHASE

BETHESDA

ROCKVILLE

WHEATON

GREENBELT

LAUREL

FREDERICK

MT. AIRY

DAMASCUS

CLARKSBURG


REISTERSTOWN

OWINGS MILLS

ELLICOTT CITY

SEVERNA PARK

ANNAPOLIS

TOWSON


COCKEYSVILLE

SILVERSPRING

HYATTSVILLE LANHAM

LARGO

BOWIE

CROFTON

UPPERMARLBORO

CLINTON

BRANDYWINE

66

15

15

29

50

50

1

50

29

301

66

66

95

495

295395

495

270

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83

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70

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450


VIRGINIA


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Local Map

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Nearby Development Aerial

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Site Plan

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Plat

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Floor Plan

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Design & Construction

Foundation Reinforced concrete slab

Framing Structural steel

Exterior WallsPrecast concrete, glass, and CMU block and brick

Roof EPDM

HVAC SystemsElectric rooftop heat pump units controlled by VAV systems

Data Center

Combination of computer room air conditioning units and Glycol fluid cooled system

ZoningC-R (Commercial Residential)

Fire/Life Safety Sprinkler system

Interior Walls Drywall

Ceilings Acoustic tile

FlooringCarpet, hardwood, tile, and polished stone

Parking210 spaces, parking ratio of 3.1/1000

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WASHINGTONDULLES


BALTIMOREWASHINGTON


WASHINGTON, DC

95

BALTIMORE

LEESBURG

ASHBURNPOTOMAC


STERLING

HERNDON

RESTON

VIENNA

TYSONSCORNER

CHANTILLY

GAINESVILLE

MANASSAS

DALE CITY

LORTON

FAIRFAX

SPRINGFIELD

ALEXANDRIA

ARLINGTON

FALLSCHURCH

McLEAN

CHEVYCHASE

BETHESDA

ROCKVILLE

WHEATON

GREENBELT

LAUREL

FREDERICK

MT. AIRY

DAMASCUS

CLARKSBURG


REISTERSTOWN

OWINGS MILLS

ELLICOTT CITY

SEVERNA PARK

ANNAPOLIS

TOWSON


COCKEYSVILLE

SILVERSPRING

HYATTSVILLE LANHAM

LARGO

BOWIE

CROFTON

UPPERMARLBORO

CLINTON

BRANDYWINE

66

15

15

29

50

50

1

50

29

301

66

66

95

495

295395

495

270

495

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270 695

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83

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70

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VIRGINIA


Washington DC

The Property is located within the Washington, D.C.-Maryland-Virginia metropolitan statistical area (“MSA”). The MSA is home to 6,131,977 residents, making it the sixth largest metropolitan area in the country behind New York, Los Angeles, Chicago, Dallas, and Houston. The MSA is comprised of 6,246 square miles and extends throughout the District of Columbia, parts of western Maryland, and northeastern Virginia.

Washington, D.C. thrives largely because of the presence of the Federal Government. This presence makes the region “recession-resistant” as it benefits from government expansion and intervention during times of economic crisis. The Federal Government is also a major employment driver, both through direct employment and by way of the private contractors employed by the government. These jobs tend to be high paying professional jobs, contributing to the area’s status as one of the wealthiest markets in the nation with an average household income of approximately $102,588, 56% above than the national average.

The government presence creates a unique employment composition in the region. Management business and financial occupations account for 23% of the regional employment, an amount that is more than double the share for the U.S. economy. Professional and related services account for 31% of the employment, 60% more than the national average. Health care practitioners and computer professionals are also well represented, each accounting for about 14% of those employed in professional occupations.

MarketOverview03

This diverse mix of highly-skilled labor illustrates that the market supports a wide variety of private sector businesses and opportunities. Technology-based industries such as telecommunications and biomedical research and development are particular standouts. Other growth areas include education, finance, public policy, and scientific research. Many organizations such as law firms, independent contractors (both defense and civilian), non-profit organizations, lobbying firms, trade unions, industry trade groups, and professional associations have their headquarters in or near Washington, D.C. to be close to the Federal Government.

Washington, D.C. also serves as an international travel destination, welcoming two million international travelers and 19.3 million domestic travelers in 2015. As the nation’s capital, Washington, D.C. offers tourists rich history, culture, and attractions that are unmatched by any other U.S. destination.

The Greater Washington, D.C. region is home to a large higher education presence, comprising 17 college and universities and 290,000 students. Notable institutions include Georgetown University, George Washington University, American University, University of Maryland College Park, and George Mason University.

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Montgomery County

Silver Spring

Montgomery County is located along the western borderof Maryland, directly bordering Washington, D.C. The county is the most populous and affluent county in the state of Maryland. Montgomery County is home to 1,043,863 million residents, marking a 7.4% increase from 2010, with a median household income of over $99,000. The area is home to over 32,500 companies including 19 federal facilitates, as well as more than 300 biotech and research firms. Montgomery County is home to four Fortune 500 companies in addition to various industry leaders including: GlaxoSmithKline, GEICO, Kaiser Permanente, Lockheed Martin, and more. Several educational and research organizations in Montgomery County include John Hopkins University’s Montgomery County Campus, Howard Hughes Medical Institute, and the Henry M. Jackson Foundation.

2220 Broadbirch Drive is located in the Westfield Technology Park, within the White Oak Science Gateway Master plan area. Currently in development as a vibrant global innovation hub, the community of Silver Spring and White Oak is destined to become a world-class center of excellence. Cutting-edge companies in BioHealth, life sciences, healthcare and IT can explore multiple opportunities to build, expand and thrive in this extraordinary science and technology hub—positioning it as a leader in research and discovery.

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Corporate Demand

In addition to a host of government institutions, the Greater Washington, D.C. MSA is home to 15 Fortune 500 companies including Fannie Mae, Freddie Mac, Capital One, and Booz Allen Hamilton. Nearly 25% of all federal employees across the nation work within the Greater Washington, D.C. region.

As of November 2017, Montgomery County has a very healthy unemployment rate of 3.3% which is supported by the area’s diverse corporate mix. Of the 15 Fortune500 companies located within the Greater Washington, D.C. market, four are located within Montgomery County: Lockheed Martin, Marriott International, Discovery Communications, and Host Hotels & Resorts.

Within Montgomery County, Rockville and neighboring Gaithersburg support many corporate demand generators as well. These organizations include the National Institute of Standards (NIST), Astra Zeneca, Sodexo, Emergent BioSolutions, QAIGEN, HUGHES, BAE Systems, and the US Army Reserve.

> National Institute of Standards is a measurement standards laboratory within the Department of Commerce whose goal is to promote innovation and industrial competitiveness. In addition to their Gaithersburg campus, NIST also operates out of a Boulder, CO campus.

> AstraZeneca operates a 2,300+ employee research lab in Gaithersburg, MD. The facility specializes in several of AstraZeneca’s business lines including target biology,

protein engineering, translational science, personalized healthcare, biopharmaceutical development, and clinical development. With a $1.0+ billion annual spend on research and development, the Gaithersburg campus is vital to the organization.

> Sodexo is a French food services and facility management company whose US headquarters are located in Gaithersburg, MD. Sodexo provides services to private companies, government agencies, schools, universities, military facilities, and prisons around the world. Sodexo North America generates $9.5 billion in annual revenue, employs 133,000 people, services 13,000 sites, and serves over 15 million consumers daily.

> Emergent BioSolutions is a biopharmaceutical company headquartered in Gaithersburg, MD with manufacturing operations in Rockville, MD. In August 2017, they were awarded a $23 million contract from the Medical Chemical, Biological, Radiological and Nuclear Defense Consortium for the development of a multi-drug auto injector for nerve agent antidote delivery.

The I-270 Corridor is a highly sought after location for the biotech and life sciences industries. Rockville and Gaithersburg are attractive development locations for investors given the favorable tax rate and quick review process for projects. In March 2016, IBM moved from their 40-acre campus which was then purchased by SunCap Property Group to develop a FedEX Ground distribution center.

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Demographics

1 mile 3 miles 5 miles

Population

2018 Estimate 13,563 107,855 300,188

2023 Projection 14,384 111,846 311,357

Growth 2018-2023 6.05% 3.70% 3.72%

Households

2018 Estimate 5,697 38,300 100,547

2023 Projection 6,023 39,637 104,147

Growth 2018-2023 5.72% 3.49% 3.58%

Average Household Income

2018 Estimate $100,176 $105,705 $108,260

Environics Analytics 2018

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WASHINGTONDULLES


BALTIMOREWASHINGTON


WASHINGTON, DC

95

BALTIMORE

LEESBURG

ASHBURNPOTOMAC


STERLING

HERNDON

RESTON

VIENNA

TYSONSCORNER

CHANTILLY

GAINESVILLE

MANASSAS

DALE CITY

LORTON

FAIRFAX

SPRINGFIELD

ALEXANDRIA

ARLINGTON

FALLSCHURCH

McLEAN

CHEVYCHASE

BETHESDA

ROCKVILLE

WHEATON

GREENBELT

LAUREL

FREDERICK

MT. AIRY

DAMASCUS

CLARKSBURG


REISTERSTOWN

OWINGS MILLS

ELLICOTT CITY

SEVERNA PARK

ANNAPOLIS

TOWSON


COCKEYSVILLE

SILVERSPRING

HYATTSVILLE LANHAM

LARGO

BOWIE

CROFTON

UPPERMARLBORO

CLINTON

BRANDYWINE

66

15

15

29

50

50

1

50

29

301

66

66

95

495

295395

495

270

495

495

95

95

40

1

270 695

95

83

695

70

70

7

606

236

7

123

28

97

214

210

5

4

32

355

234

450


VIRGINIA


Financial Information

The building is primarily being utilized as a data center with multiple tenants, including Gannett. As this is an ongoing operation, the Seller is willing to do a master lease for the entire property as summarized below:

Tenant: Agile Data Sites Chesapeake

Lease Term Expiration: June 30, 2020

Rent: $330,000 per year on Triple Net basis

Annual Increase: 3%

Landlord Right to Terminate: Anytime with six months’ notice Attached is the lease.

Financial Summary04

2220 broadbirch drive - loopnet · mclan ch chas bthsda rocill whaton rnblt larl frdric mt airy...

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