great falls business center great falls crossroads...canal named matildaville are still visible in...

Partnership. Performance.

Great Falls Business CenterGreat Falls CrossroadsConfidential Offering Memorandum

731 & 746 Walker Road | Great Falls, Virginia

avisonyoung.com Page 3

Avison Young (“Listing Broker”) has been retained as the exclusive broker for Seller regarding the sale of the office condos located at 731 and 746 Walker Road, Great Falls, Virginia 22066.

The Offering Memorandum has been prepared by Listing Broker for use by a limited number of parties and does not purport to provide a necessarily accurate summary of the property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information that prospective Buyers may need or desire. Analysis and verification of the information contained in the Offering Memorandum are solely the responsibility of the prospective Buyer. Additional information and an opportunity to inspect the property will be made available to interested and qualified prospective Buyers.

The Seller and Listing Broker each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time with or without notice. The Seller shall have no legal commitment or obligations to any entity reviewing the

Offering Memorandum or making an offer to purchase the Property unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved by the Seller and its legal counsel, and any conditions to the Seller ’s obligation there under have been satisfied or waived.

The Offering Memorandum and the contents, except such information that is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting the Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose the Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make an offer and from whom you have obtained an agreement of confidentiality) without prior written authorization of the Seller or Listing Broker, and that you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of the Seller or Listing Broker.

Confidential Information and Disclaimer

Avison Young • 8300 Greensboro Drive, Suite 275, Tysons, Virginia 22102 • 702.288.2700 • avisonyoung.com

Executive Summary 4

Location & Market 5

Area Overview 7

Walking Distance Amenities 8

Property Overview & Tenancy 10

Table of Contents

731& 746 Walker Road | Great Falls, Virginia | Office Condos For Sale avisonyoung.com Page 5

EXECUTIVE SUMMARY

LOCATION & MARKET

The Offering

Avison Young, as authorized agent is pleased to present the opportunity to purchase the fee simple interest in some of the most notable and desired office condos in the Village of Great Falls, Virginia: 731 & 746 Walker Road.

The portfolio consists of seven leased commercial properties located in the heart of Great Falls in two separate condominium buildings. Together they comprise a total of over 8,335 gross square feet, under lease to three different long-term tenants; each tenancy extends back for from 13 to 25 years.

All seven properties are currently owned free of debt by four related entities under current owner control. Accordingly, attractive seller financing is offered but not required. Available terms are negotiable based on either recourse or non-recourse 25 year fixed loans, 20-30% down, and interest rates of from 5.25 to 6.75% Prepayment and assignment rights are also negotiable.

The pricing of these properties is based on cap rates that reflect the solid, extremely conservative natures of these tenancies. The primary attractions to an investor include the fundamentals of a stable and appreciating local market, tax benefits inducing accelerated depreciation, escalation provisions for rents, a long term interest lock and equity buildup through amortization of debt.

11400 Thunderbolt Place

Capital Beltway

Dulles Access Toll Rd

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Centreville

Herndon

Sterling

Clifton

Manassas

Alexandria

Suitland

Bethesda

CarmondyHillsArlington

GreatFalls

Reston

Clinton

Franconia

Greenbelt

Beltsville

SilverSpring

Hyattsville

Oakton

MurrayHills

Calverton

Potomac

Vienna

TysonsCorner

McLean

AnnandaleFairfax

Burke

StoneRidge

Reagan National

Airport

DullesInternational

Airport

University of Maryland-College

Park

Naval SurfaceWeapons Center

ArlingtonNational

Cemetary

MARYLAND

WASHINGTON, DC

VIRGINIA

RockCreekPark

AnacostiaRiver Park

ManassasNational

Bull Run Regional Park

HemlockOverlook

Regional Park

66

66

95

395

395

295

495

495

495

270

29

29

1

1

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190

185

650

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SUBJECTPROPERTIES

PROPERTY SUMMARYGreat Falls Business Center

Location: 731 Walker Road, Great Falls, Virginia 22066

Type: Class B Office Condos

Construction: Masonry

Submarket: Route 7 Corridor

No. of Floors: 2 Floors

Year Built: 1985

Land Area: 1.44 Acres

Zoning: P-Com R, County

Parking: 45 Surface Spaces; 3.8 per 1,000 SF

Great Falls Crossroads

Location: 746 Walker Road, Great Falls, Virginia 22066

Type: Class A Office Condos with Formal Lobby

Construction: Masonry

Submarket: Route 7 Corridor

No. of Floors: 2 Floors with Secured Elevator

Year Built: 1989

Land Area: 0.21 Acres

Zoning: C-6, Community Retail

Parking: 25 spaces (12 dedicated in garage) ; 3.2 per 1,000 SF

110,258 RESIDENTS

Within a 5-mile radius of the property

20,000 VEHICLES

Per day along Georgetown Pike at Walker Road

$226,485

Average household income within a 1-mile radius

6 MILES

To Tysons and just 30 minutes to Washington, DC

5,476 BUSINESSES

Employ over 63,347 people within a 5-mile radius

81.1% OF RESIDENTS

Holding a bachelors degree or higher


GREAT FALLS - YOURONE OF A KINDCOMMUNITY

Area OverviewGreat Falls is a census-designated place (CDP) in Fairfax County, Virginia, United States.

CNNMoney ranked Great Falls first in the nation on its list of “top earning towns” in 2011, with average household income of over $230,000.

Great Falls is located on Virginia State Route 7 and only 15 miles northwest of Downtown Washington DC and 10.5 miles north of Fairfax, Virginia. As a suburb of Washington DC, Great Falls is a part of both the Washington Metropolitan Area and the larger Baltimore - Washington Metropolitan Area. It is bordered on all sides by other Washington suburbs, including: Darnestown and Travilah, Maryland to the north, Potomac, Maryland to the east, McLean to the southeast, Wolf Trap to the south, Reston and Dranesville to the southwest, Sterling to the west, and Lowes Island to the northwest.Great Falls is not only one of the most thriving and

desired communities in Northern Virginia, it also has a lot of history in it and is widely known for its parks and nature walks.

One of the major attractions is Great Falls Park which overlooks the Great Falls of the Potomac River for which the community and the park are named. George Washington was involved with building a canal around the falls on the southwest, or Virginia side, called the Patowmack Canal, which did not become commercially viable. Remnants of the canal and of a village around the canal named Matildaville are still visible in the park. The Great Falls and Old Dominion Railroad extended along Old Dominion Drive to Great Falls Park in 1906.

River Bend County Park is another gathering area in Great Falls, as is the Village Green which hosts community celebrations and concerts in the summer.

VILLAGE OF GREAT FALLS


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WALKER ROAD731 Walker RoadGreat Falls, VA 22066

746 Walker RoadGreat Falls, VA 22066

RIGHTIN THE HEART

OFGREAT FALLS

VILLAGE

WALKING DISTANCE AMENITIES

GEORGETOWN PIKE

FIRE STATION

POST OFFICE

LIBRARY


This property consists of four contiguous, stacked condominium office units containing 3,456 gsf, located within the Great Falls Business Center. Located at the end cap this anchor is viewed most prominently from the primary intersection in Great Falls, Georgetown Pike and Walker Road. Since 1984 this has contained the Great Falls office of Weichert Realtors.

The lease is triple net, expiring in August 2021 but subject to a five-year renewal option. Gross 2018 rent for the four units totals $9,550 per month subject to annual inflation of about 3.0 %. Given the true NNN basis, net annual NOI is thus $114,600 or $33.16 per square foot. Pricing is based on a cap rate of 6.11 % given the tenancy has been in place for 33 years to a highly qualified tenant, subject to escalation.

PROPERTY OVERVIEW & TENANCY

731 Walker RoadUnits A1, A2, B1, B2

1st FloorUnits A1 | B1

2nd FloorUnits A2 | B2

www.weichert.com

UNIT A1

UNIT A2

UNIT B2

UNIT B1


This condominium office, containing 864 gross square feet, is located within the Great Falls Business Center. The location is at the northeast quadrant of the primary intersection of Great Falls: Georgetown Pike and Walker Road. This second floor unit is accessed directly by means of an interior stair and has been leased continuously for the past 24 years to a well-endowed charitable foundation. Substantial re-decorating and upgrading was undertaken in mid-2011, concurrent with the most recent 10-year lease extension, now expiring in mid-2021.

The current lease is on a full service basis, producing gross monthly rent of $2,605 or $36.18 per square foot, fixed until July of 2020. Following this, gross rent is scheduled to increase to $2,905 psf. After taxes, condo fees, utilities and overhead, net rental income in 2018 is estimated at $24,585 per year or $28 psf. Pricing is based on a cap rate of 6.39%, reflecting the mature and secure tenancy with a committed and responsible tenant.

UNIT G2


731 Walker RoadUnit G2

www.sarnofffoundation.org

Two stacked condominium office unites are offered in a professionally managed building known as the Great Falls Crossroads, located in the heart of Great Falls, VA. Total space comprises 4,017 square feet, leased to a wealth management firm based in Newport Beach, CA. The principal had occupied Unit 16 continuously since 2003. This stacked ADA conforming space is accessed directly from a marble entry lobby; the second floor by elevator. Extensive Class A renovations were completed in 2014. The tenant also enjoys the exclusive use of 12 dedicated indoor parking spaces.

The current lease is on a full service basis net of utilities and is due to expire in December 2020, with a three-year renewal option. Operating costs, including condo fees, taxes and overhead total approximately $2,065 per month for an annual NOI of approximately $101,729 or $25.50 psf. Pricing is based on a cap rate of 6.24 %, reflecting the long tenure of a highly qualified and secure tenant.

This building is situated between a free-standing Bank of America and new (2016) TD Bank building, each served by drive - thru access.


746 Walker RoadUnits 16, 26

www.unitedcp.com

avisonyoung.com

8300 Greensboro Drive, Suite 275Tysons, VA 22102703.288.2700

Dan [email protected]

For more information, please contact:

©2018 Avison Young - Washington DC LLC. All rights reserved. The information contained herein was obtained from sources deemed reliable and is believed to be true; it has not been verified and as such, cannot be warranted nor form any part of any future contract.

great falls business center great falls crossroads...canal named matildaville are still visible in...

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