14160 newbrook drive chantilly, va 20151...sprinkler systems: fire hydrants: wet-pipe fire sprinkler...
TRANSCRIPT
CONFIDENTIAL OFFERING MEMORANDUM
14160 NEWBROOK DRIVE
14160 NEWBROOK DRIVE CHANTILLY, VA 20151
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This Offering Memorandum contains select information pertaining to the business and affairs of the Property of 14160 Newbrook Drive, Chantilly, VA (Property). It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Owner and Colliers International. The material is based in part upon information supplied by the Owner and in part upon financial information obtained by Colliers International from sources it deems reliable. Neither Owner, nor their officers, employees, or agents make any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Offering Memorandum from Colliers International, you agree:1. The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence;3. All photographs and graphic elements are property of Colliers International and use without expressed written permission is prohibited; and you will not,
directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner.
Owner expressly reserve the right, at its sole discretion, to reject any and all expressions of interest offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to the Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Owner or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.
CONFIDENTIALITY DISCLAIMER
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INVESTMENT ADVISORS:
Paul SchweitzerVice [email protected]
Adam SchindlerExecutive Vice [email protected]
Connor StewartAssociate, Client [email protected]
CONTACTS
1EXECUTIVE SUMMARY
2PROPERTY OVERVIEW
3MARKET
HIGHLIGHTS
4COMPARABLES
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Colliers International, as the exclusive advisors to the Owner, is pleased to present the opportunity to purchase 14160 Newbrook Drive, Chantilly, Virginia. This three story 35,000 SF office building offers a unique small property investment opportunity for a tenant seeking ownership, a local investor or 1031 Exchange buyer. With the building provides the opportunity to create value through light repositioning/cosmetic renovation and lease up of vacant space.. This high-quality asset is located in a segment of the Northern Virginia office market that has a solid existing tenant base and strong track record of past performance.
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EXECUTIVE SUMMARY
ROUTE 28 CORRIDOR MARKET METRICS: PEAK VS. SEQUESTRATION VS. CURRENT LEVELS
2007 2013 2017
Vacancy 16.3% 18.8% 15.1%
Rent Levels $28.00 $24.53 $25.01
The submarket in which this asset is located is home to a significant presence of federal government agencies as well as the contractors which support them. Increases in federal contract awards have led to declining vacancy rates and rising rents throughout the Route 28 Corridor. A strong transportation infrastructure combined with access to a variety of housing types and strong retail amenities makes this one of Northern Virginia’s most successful office markets.
14160 Newbrook Drive is in the increasingly robust Westfields submarket, a submarket which has seen 437,900 square feet of net office absorption over the past 18 months. Significant retail and neighborhood amenities have delivered in the past twelve months, including The Field at Commonwealth Development, a new 187,000 SF retail center anchored by Wegmans. The retail center located one block from the Property has space for more than 10 restaurants with five currently under construction.
Community Residences, the property owner, is a non-profit organization providing quality services to help empower individuals with a wide range of disabilities to live as independently and with as high a quality of life as possible. Through our programs, our residents experience greater independence, dignity, fulfillment and happiness. As a community based non-profit, Community Residences is open to a purchase structure that incorporates a portion of the property value as a tax deductible deduction for both the purchaser and sellers benefit.
ROUTE 28 CORRIDOR OFFICE USE ATTRIBUTES
• Opportunity to invest in a market with lower price points as compared with Reston/Herndon, Tysons, or any other market inside theBeltway; plus price a point are well below replacement cost rent levels
• Opportunity for a user of up to 25,000 SF initially to own and occupy their office with the benefit of low interest rates and long termvalue appreciation.
• Federal Government agencies and private sector contractor tenancies are housed throughout the corridor
» These tenancies include the U.S. Customs and Border Protection, Department of Defense, Department of Justice, FBI, NationalReconnaissance Office, and the CIA, as well as SAIC, TASC, Vencore, Aerospace, Boeing, General Dynamics, Aecom and Accenture
» The Northern Virginia market captures 52% of DC Regional contract awards ($32 billion); Northern Virginia contact awards increased$1 billion from 2015 – 2016
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CLASSB
SUBMARKETRoute 28 South
YEAR BUILT1989
RBA33,651 SF
STORIES3
AVAILABLE SPACE21,000 SF
PARKING3.70/1,000 SF
MAJOR TENANTSCommunity Residences, Quinn Consulting and EmeSec Incorporated
14160 Newbrook Drive, Chantilly, VA
PROPERTY HIGHLIGHTS
LEASE
10PROPERTY DESCRIPTION
CONSTRUCTION DETAIL
Structural Framing:
Walls:
Curtain wall exterior attached to structural steel framing
Brick with Tinted Glass treatments on 4” insulated studs
Finished Ceiling Height:
Slab-to-Slab Height:
Column Spacing:
Roof:
9’0”
12’9”
27’ x 30’ O.C. (on center)
Replaced approximately 6 years ago
1 ½” Steel Deck with 3” rigid insulation, standard non-reinforced roof membrane; membrane and insulation are held in place with river round ballast stone
Fixed, 1” Insulated, Tinted Filmed Glazing Set in Black Aluminum Storefront framing
Tempered and Tinted Filmed Glazing set in bright stainless top & bottom 4” channel
Found on Main Level & Garden Level - Painted Metal Frames w/ aluminum & Glass Storefront Kit.
Corrugated Metal w/ 5” thick poured concrete. Partial Garden Level is below street grade.
One (1) set per floor – Includes (2) Stalls & (1) ADA Stall Per Restroom / Garden Level has additional shower room/restroom & locker room
SITE DESCRIPTION
Location: The site is mid-block on the east side of Newbrook Drive, one block south of Westfields Drive, within Fairfax County’s largest business park. Westfield’s, containing 1,100 acres is presently developed with 7.24 Million SF of office and flex buildings in a campus-like setting.
1989Year Built/Renovated:
Developer:
Architect:
Stories:
Tax Parcel Number:
Zoning:
FAR:
2017 Real Estate Tax Assessment:
Net Rentable Area:
Site Area:
The Long Property Company, Inc.
Kiat, Inc./Olivola-Parker & Assoc.
Three (3)
0442-18-0003(Fairfax County)
I-3, Light Industrial
0.33
Total: $4,208,070
33,651 Net Rentable Areas > Garden Level – 9,430 RSF> Lobby Level – 11,430 RSF> Upper Level – 12,791 RSF
2.41 acres (105,032 SF)
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Windows:
Main Entry Doors:
Pedestrian Doors (Service Areas):
Floor:
Restrooms:
11PROPERTY DESCRIPTION (CONT.)
MECHANICAL DETAIL
HVAC:
Boiler:
Split system VAV for each individual floor. (3) Condenser units located in exterior enclosure. Electric baseboards in restrooms.
N/A
Electrical Distribution: Single Phase 208 amp / 120 Volt transformer
Utilities: Water:
Sewer:
Electric:
Telephone
Fairfax County Water Authority
Fairfax County Water Authority
Dominion Virginia Power
Verizon (formally Bell Atlantic)
Elevators: One (1) hydraulic passenger elevator
Stairs: Two (2) stairwells
Fire Protection / Life Safety:
Sprinkler Systems:
Fire Hydrants:
Wet-pipe fire sprinkler system
Yes
OTHER
Parking:
Security:
Paved Surface Parking for 122 Cars in front of building / Approx. Ratio of 3.86/1,000 sf
Kastle Systems
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9LOCATION AERIAL MAP
14160 NEWBROOK DRIVE
Park Meadow Dr
New
broo
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VA State Route 28
LOCATION HIGHLIGHTS
• Area credit tenants include General Dynamics,OGSystems, Iron Bow Technologies, AOC Solutions andManTech International Corporation;
• Wegmans grocery store is under construction near theintersection of Westfields Blvd and Park Meadow Dr,bringing a significant amenity to Westfields (completionexpected by Summer 2019)
• Defense budget watchers anticipate growth in theWestfields market as more procurement dollars areallocated to national defense efforts;
ŵ Westfields Corporate Center is a highly desirablelocation for government contractors thanks to nearby agencies (NRO, CIA and FBI)
ŵ Prospect of additional defense spending leads to greater demand for office space from the contracting community
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MAIN LEVEL
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UPPER LEVEL
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GARDEN LEVEL
1515OWNER/TENANT PROFILE
Square Feet:20,860 SF - comprised of the full Garden and Lobby Floors
% of Building:62%
Availability Date: Space to be vacated on a mutually acceptable date
Website: communityresidences.org
COMMUNITY RESIDENCES (CR) is a non-profit organization providing quality services to help empower individuals with a wide range of disabilities to live as independently and with as high a quality of life as possible. Through our programs, our residents experience greater independence, dignity, fulfillment and happiness.
CR is one of the largest providers of supports to individuals with disabilities in Virginia, with services in Arlington, Fairfax, Loudoun and Prince William counties, in the Richmond area, and in Anne Arundel County, Maryland.
CR provides medical, therapeutic, educational, vocational, residential and integrative recreational services to the formation of vital relational communities through which each individual may experience greater independence, dignity, fulfillment and happiness.
Community Residences began in 1975 when a group of Arlington families, faith groups and government leaders worked with Arlington County to charter an independent nonprofit agency that would bring together and expand efforts to help people with mental health and/or developmental disabilities.
At its outset, Arlington Community Residences (as it was initially known) stood at the forefront of the growing community integration movement. This grass-roots, family-driven effort sought to create community-based alternatives to the institutionalization of people with mental health or intellectual disabilities. Arlington Community Residences brought together a few existing group homes and started several new homes so that Arlington resident with disabilities could live close to and regularly interact with family, friends and and neighbors.
Over the past four decades, thousands of individuals have been supported by CR. That tradition continues with individualized support providing for fulfilling, high-quality lives of maximum independence.
COMMUNITY RESIDENCES Intelligence Compliance Solutions
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1616TENANT PROFILE
When Elizabeth Quinn founded Quinn Consulting Services in 1997, she committed to providing her clients with a successful project delivery based on the highest standards of professionalism and an experienced, well-trained staff.More than 20 years later, Quinn remains committed to those standards of quality. It’s why most of our business comes from repeat customers.Consider the Quinn advantage:
• A 100 percent woman-owned WBE/DB firm with DBE certifications in Virginia,Maryland, District of Columbia, North Carolina, and Pennsylvania
• Awarded DBE Consultant Engineering Firm of the Year (2014) by the VirginiaDepartment of Transportation (VDOT)
• Our team of more than 125 certified construction/coating inspectors–some of the bestin the business–readily available to provide construction inspection and management,quality assurance and quality control inspection, engineering support, and NACEcertified coating inspection services.
QUINN CONSULTING SERVICESQuinn supports federal, state and municipal clients through regional, districtwide and proj-ect specific contracts.
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Suite:220
Square Feet:8,000 RSF (second floor)
% of Building:24%
In Place Base Rent: $20.35
Website:quinn-consulting.com
Lease Expiration Date: 12/1/2018
1717TENANT PROFILE
Suite:210
With a decade plus of differentiation, EmeSec is a living proof of how to lead a cloud-first technology strategy. EmeSec’s philosophy of ensuring, managing, and evolving security practices is essentially today’s approach to handling current threats to cyber and business.
“Don’t Rest on Your Laurels” is another mantra by which EmeSec has helped its customers face complex cyber challenges. More recently, EmeSec has taken proactive cyber steps to transform businesses and manufacturers as it relates to protecting information and data from incidents, leaks and breaches. Our cloud consulting services reflect the DevSecOps business mentality required for digital transformation and modernization at the due diligence and compliance levels.
When defending the integrity of our nation’s most critical government and commercial IT systems, the most important aspect of hiring EmeSec is that we solve hard problems in cloud, security, engineering, and compliance.
We have a record of excellence delivering intelligent solutions built to work with both legacy and “smart” connected systems. Our future-oriented solutions are dependable. We deliver an enterprise view of the real and potential threats, risks, and due diligence necessary to meet the expanded thinking of a cyber risk defense for now and the future.
EMESEC, INC.Custom cloud security and engineering creatively for business value.
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4,679
% of Building:14%
In Place Base Rent: $20.35
Lease Expiration Date: 2/29/2020
Website:https://www.emesec.net/
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MARKET HIGHLIGHTS
• Local area office market includes
9,689,107 rentable square feet
of traditional office product and
12,379,680 rentable square feet
of flex office product
• Net absorption has remained
positive in 9 out of the last 10
years
• Tenants in the market:
communications, computer and
data processing, agricultural and
utilities services, government,
engineering and medical
practices
• Major tenants include AOL,
Raytheon, Verizon and Orbital
ATK
• Loudoun County remains one of the fastest growing jurisdictions in the United States
» Averaged 3.6% annual growth in population since the beginning of 2008
» Office-using jobs growing at a faster rate than the overall job market in Loudoun County (3.1% for office versus 2.7%overall); constitute over 50% of the total jobs created since 2008
14160 Newbrook Drive
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ROUTE 28 SOUTH VACANCY DECLINES
ROUTE 28 SOUTH OVERVIEW
Located approximately 25 miles west of Washington, DC, the Route 28 South submarket sits along Route 28 in Western Fairfax just south of Dulles International Airport. The area offers excellent access to other Northern Virginia submarkets as well as Washington, DC through a major network of transportation arteries. Interstate 66 and Route 50 provide over 12 lanes moving traffic East / West, while Route 28, Centreville Road and the Fairfax County Parkway connect on a North-South basis. Public transportation in the Route 28 South submarket is served by a vast network of bus routes, which will be enhanced as Metrorail extends along the Dulles Toll Road just a few miles to the North.
The Route 28 Corridor submarket is well located to capitalize on one of the nation’s most highly educated and technical savvy workforces residing in Western Fairfax, Loudoun and Prince William Counties. As a center for government contracting, the submarket contains numerous secured locations and buildings to conduct work on behalf of security-conscious clients. The submarket has matured significantly in the last 10 years and now offers an extensive amenity base all within a short drive of any given location. Additionally, the Route 28 South submarket contains a robust supply of fiber and power infrastructures, allowing for redundancy and a high degree of reliability at relatively low costs. Proximity to Dulles International Airport allows for short commutes for inbound and outbound global business travelers, making the submarket ideal for national and international companies.
MARKET DEMAND DRIVERS
Several key economic drivers have led to the successful development of the Route 28 South submarket. Moving over 21 million passengers and 565 million pounds of freight annually, Dulles International Airport has been a significant factor in this submarket’s evolution. Industrial product service operations for freight forwarders and the office market caters to many firms conducting business with the airline industry. In 1996, a 1.6 million square foot headquarters was constructed in the Route 28 South submarket to house the National Reconnaissance Organization. Available land allowed for the necessary security setbacks; and other government agencies including the Central Intelligence Agency, Federal Bureau of Investigations and the Department of Defense followed in subsequent years. As a result, the Route 28 South submarket has become a major home to companies procuring goods and services for the Federal Government. Such firms include Boeing, the Aerospace Corporation, SCITOR, CACI, and ManTech.
The local Washington, DC regional economy is also a key driver of growth in this submarket. Since commercial real estate in larger submarkets such as Tysons Corner and the Rosslyn / Ballston Corridor has become so expensive, many companies serving the local community have elected to move further west in search of more economically priced real estate. Firms in the construction trades, home goods and personal services can all be found in the Route 28 South submarket.
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ROUTE 28 SOUTH OVERVIEW
ROUTE 28 SOUTH OVERVIEW
After several years of declining federal contract awards resulting from Sequestration, discretionary government spending and the resulting contract awards are on the rise. This is particularly relevant for Northern Virginia since almost 27% of its economy is driven by federal contracting. In fact, Northern Virginia typically captures more than half of the federal contract awards in the Washington, D.C. region. The total amount of these awards increased $1 billionfrom 2015 – 2016. The expectation is that federal contract awards in Northern Virginia will continue to increase as a result of the 2017 Federal Budget approved earlier this year. This budget includes
items which directly benefit our markets such as:
• $25.7 Billion increase in Defense Spending• $3.7 Billion increase in the Research & Development allocation
in the DOD Budget• $1.45 Billion increase in discretionary spending for DHS
As a result of these awards, both government agencies and their contractors have been expanding along the Route 28 Corridor. Vacancy has declined from 20% in 2014 to approximately 16% today thanks to steady positive net absorption.
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Confidential – Colliers International 2016
Eastern Loudoun Office Market
1
Second Quarter 2017
13.0%
14.0%
15.0%
16.0%
17.0%
18.0%
19.0%
20.0%
21.0%
(200,000)
(100,000)
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
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Vacancy(%
)
(SF)
Demand/Supply FundamentalsNet Absorption, Change in Supply, Vacancy
Absorption Overall Vacancy Rate
DEMAND AND SUPPLY FUNDAMENTALSNet Absorption and Vacancy Rates - Route 28 North / Route 7
Squa
re F
eet Vacancy (%)
Confidential – Colliers International 2016
Eastern Loudoun Office Market
1
Second Quarter 2017
13.0%
14.0%
15.0%
16.0%
17.0%
18.0%
19.0%
20.0%
21.0%
(200,000)
(100,000)
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
YtD
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Vacancy(%
)
(SF)
Demand/Supply FundamentalsNet Absorption, Change in Supply, Vacancy
Absorption Overall Vacancy Rate
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• The Chantilly office market contains 14,336,197 square feet (163 buildings) and currently has a vacancy rate of 16.2% for all office
• Increased federal contracting awards is driving demand in Westfields
• Class A office rents have increased from the mid $20’s to low $30’s in the last 18 months, making Class B rent levels more attractive tomid-level tenants
• Class A vacancy has fallen 50% in the last 3 years to 11.0%; Class B vacancy has declined only 10.0%; historical trends show that onceClass A space tightens, demand for Class B spikes
• Absorption: 900,000 SF (last 24 months); primarily mid-rise office product
OFFICE MARKET HIGHLIGHTS
The Field at Commonwealth Development MA
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• The Chantilly flex market contains 9,706,107 square feet (139 buildings)
• Vacancy has steadily declined during the last three years
• Investors see opportunity with flex product as evidenced by recent portfolio sales:
» First Potomac flex portfolio, purchased by Finmarc Management in March 2016 (27-property portfolio)
» Ares Management flex portfolio at 5310-5350 Spectrum Drive, purchased by Ruppert Properties in July 2016 (5-property portfolio)
» Avion flex portfolio at 3701 & 3725 Concorde Parkway, purchased by Granules Pharmaceuticals in April 2017
FLEX MARKET HIGHLIGHTS
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14%
15%
16%
17%
18%
19%
20%
21%
22%
-0.5
0.0
0.5
1.0
1.5
2.0
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
YtD
201
7
Vacancy
(%)(S
F in
Milli
ons)
Demand/Supply FundamentalsNetAbsorption,Change in Supply, Vacancy
Absorption Supply Changes Overall Vacancy Rate
DEMAND AND SUPPLY FUNDAMENTALSNet Absorption and Vacancy Rates - Route 28 South Flex Market
Net absorption continues to be positive for the fourth year in a rowVacancy rate has dropped 6% since 2015
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After several years of declining federal contract awards resulting for Sequestration, discretionary government spending and the resulting contract awards are on the rise. This is particularly relevant for Northern Virginia since almost 27 percent of its economy is driven by federal contracting. In fact, Northern Virginia typically captures more than half of the federal contract awards in the Washington, DC region. The total amount of these spending increased by $1.1 billion from the end of 2014 to the end of 2017. The expectation is that federal contract awards in Northern Virginia will continue to increase as a result of the new federal budget past in 2017. This budget includes items which directly benefit the Northern Virginia market such as:
• $25.7 Billion increase in Defense Spending• $3.7 Billion increase in the Research & Development allocation in the DOD Budget• $1.45 Billion increase in discretionary spending for DHS
As a result of these awards, both government agencies and their contractors have been expanding along the Route 28 Corridor. Vacancy has declined from 19.6 percent in 2014 to 14.8 percent as of the first quarter 2018 thanks to steady positive net absorption.
MORE FEDERAL CONTRACTS LEAD TO NET ABSORPTION
Sources: White House Office of Budget and Management (OMB), Colliers International
0
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est
$ in
Billi
on
Federal Discretionary Spending By SectorNational
Defense
Non-Defense
Stimulus Ends
Budget Control Act in Effect
(Sequestration) Renewed Spending
New Federal Budget
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27ROUTE 28 SOUTH FLEX SALE COMPARABLES
Address Class Year Built Size Occupancy Date of Sale Price (psf) Cap Rate Seller Buyer
14026 & 14030 Thunderbolt Place B 1998 58,393
42,112100%71.1%
Under Agreement TBD N/A Lone Star Funds TBD
14000 Thunderbolt Place B 1987 92,308 N/A 2/1/2018 $ 6,700,000 N/A CIM Group, RREEF 14000 Thunderbolt LLC
Albemarle Point, Dulles Business Park and Dulles South (14-building portfolio)
B 1999 -2005 706,000 85% 8/16/2017 $81,150,000
($115) 7.50% Ares Management Buchanan Partners
“Ares JV Adler VA Industrial Portfolio 2017” N/A N/A 704,974 N/A 7/17/2017 $ 81,170,000 N/A Adler Group, Ares
ManagementBuchanan Partners,
Elion Partners
14320-14330 Sullyfield Circle14200 Thunderbolt Place B 1986
198799,87792,395
64%84% 5/8/2017 $19,875,000
($103) N/A CIM Group Beckham Gumbin Ventures
3701 Concorde Parkway3725 Concorde Parkway B 1988 49,068
50,184 70% 4/25/2017 $11,495,376 ($116) 6.45% Deutsche Bank,
RREEFGranules
Pharmaceuticals
4100 Lafayette Center Drive B 1988 79,777 27.7% 3/3/2017 $4,900,000 ($61) N/A Finmarc
ManagementBetter Lafayette,
LLC
13912-13933 Willard Road B 1988 49,200 100% 2/28/2017 $4,000,000 ($81) N/A Woodmont
PropertiesChantilly Business
Park LLC
2900 Towerview Road A 1982 151,000 100% 10/19/2016 $12,100,000 N/A COPT CenturyLink
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CIM Group, RREEF
28ROUTE 28 SOUTH FLEX SALE COMPARABLES
Address Class Year Built Size Occupancy Date of Sale Price (psf) Cap Rate Seller Buyer
13850 McLearen Road B 1978 89,073 N/A 11/18/2016 $7,300,000 N/A BAE Systems McLearen LLC
4120 Lafayette Center Drive B 1988 54,530 100% 12/20/2016 $22,940,000 ($421) N/A Finmarc
Management, Inc.Legacy Investing,
LLC
14555 Avion Parkway 14585 Avion Parkway A 1997
198958,003 57,836
82% 100% 7/29/2016 $18,275,000
($158) 7.00% Starwood Capital Operations, LLC Ritz Banc Group
14104 Parkeast Circle A 1988 176,055 24% 3/15/2016 $19,804,852 ($112) N/A Liberty Property
Trust, NYSCRFCornerstone RE
Advisers
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29ROUTE 28 SOUTH FLEX LEASE COMPARABLES
Tenant Building Address Type Square Footage
Initial Base Rent (PSF)
Annual Escalations
Term (Mos.)
TI's PSF / Free Rent
Execution Date
Home Improvement, Inc. 4425 Brookfield Corporate Drive Relocation 2,000 $12.00/NNN N/A 36 $0.00 /
0 mos. 8/1/2017
Video Dynamics Inc. 14000 Thunderbolt Place Renewal 11,204 $12.50/NNN N/A 60 $0.00 /0 mos. 5/1/2017
Uffect 14420 Albemarle Point Place Relocation 5,094 $21.50/FS 2.75% 61 $25.00 /2 mos. 5/15/2017
Rugged Logic 4200 Technology Court Relocation 6,422 $14.00/FS N/A 63 $0.00 /3 mos. 2/1/2017
Forella Group 5180 Parkstone Drive Relocation 2,850 $22.00/FS N/A 60 $0.00 /3 mos. 1/1/2017
Scott Long Construction 14420 Albemarle Point Place Relocation 14,450 $20.00/FS 2.50% 91 $55.00 /7 mos. 4/1/2016
A. Morton Thomas &Associates 14555 Avion Parkway Relocation 7,000 $23.00/FS 2.50% 66 $38.00 /
6 mos. 11/1/2015
Auburn School 3800 Concorde Parkway New 15,000 $20.00/FS 3.00% 120 $0.00 /7 mos. 7/25/2015
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30ROUTE 28 SOUTH OFFICE SALE COMPARABLES
Address Class Year Built Size Occupancy Date of Sale Price (psf) Cap Rate Seller Buyer
4605 Brookfield Corporate Drive B 2000 69,241 N/A 2/21/18 $8,250,000 N/A David Beach; Atlantic Exhibits Va F & B LLC
4440 Brookfield Corporate Drive B 1988 46,222 N/A 1/3/2018 N/A N/A N/A Brookfield Parnters LLC
14800 Conference Center Drive A 1989 94,144 N/A 12/21/2017 $8,300,000 N/A Northridge Associates LLC AAFMAA
4451 Brookfield Corporate Drive B 1988 74,086 N/A 9/14/2017 $5,050,000 N/A Quest Management Services Inc
SugarOak Investments
“Normandy Real Estate Office Offering 2017” N/A 379,609 N/A 9/12/2017 $71,800,000 8.50% Normandy RE
Partners RMR Group
4800 Westfields Boulevard 4840 Westfields Boulevard 14150 Newbrook Drive 14151 Newbrook Drive 14155 Newbrook Drive 14170 Newbrook Drive
A
2007 2007 1999 2000 2000 1989
457,244
52.0% 97.0% 82.0% 100% 54.0% 45.0%
9/12/2017 $71,800,000 ($127) 8.50% Normandy Real
Estate GOV REIT
4080 Lafayette Center Drive B 2006 14,000 N/A 6/20/2017 $3,750,000 N/A Meladon Mgmt Prtnrs
Meladon Mgmt Prtnrs
15052 Conference Center Drive A 2007 140,635 100.0% 6/14/2017 $27,750,000 ($197) 9.00% Colony Realty
Partners REIT-Public
Lincoln Park II3076 Centreville Road B 2006 96,920 92% 4/28/2017 $13,500,000
($139) N/A ING 3076 Centreville LLC
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31ROUTE 28 SOUTH OFFICE SALE COMPARABLES
Address Class Year Built Size Occupancy Date of Sale Price (psf) Cap Rate Seller Buyer
“Eaton Vanca JV Duke VA Office Portfolio 2017” N/A N/A 324,155 N/A 12/28/2016 $73,550,000 N/A David Beach;
Atlantic ExhibitsEaton Vance RE,
Duke Realty
“Federal Partners VA Office Portfolio 2016” N/A N/A 408,798 N/A 12/27/2016 $110,000,000 7.70% CalSTRS, Spaulding
& Slye RMR Group
“Atlantic Exhibits VA Refi Portfolio 2016” N/A N/A 146,041 N/A 11/17/2016 N/A N/A N/A David Beach;
Atlantic Exhibits
3901 Stonecroft Boulevard B 1998 102,022 79% 11/1/2016 $6,400,000 N/ALNR Partners, JPMCC 2006-
CIBC14Exeter
4160 Pleasant Valley Road B 1998 26,560 N/A 10/6/2016 $2,700,000 N/A Burgess & Niple IncBAPS
Swaminarayan Sanstha
15036 Conference Center Drive A 1999 275,002 82% 7/14/2016 $60,500,000 N/A Alony Hetz, Carr Properties Tritower Financial
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32ROUTE 28 SOUTH OFFICE LEASE COMPARABLES
Tenant Building Address Type Square Footage
Initial Base Rent (PSF)
Annual Escalations
Term (Mos.)
TI's PSF / Free Rent
Execution Date
Compusult Systems, Inc. 4795 Meadow Wood Lane Relocation 8,665 $24.50/FS 2.75% 88 $60.00 /4 mos. 6/8/2017
Intergraph 14291 Park Meadow Drive Relocation 17,138 $27.50/FS 2.75% 132 $75.00 /17 mos. 4/1/2017
ADDX 14280 Park Meadow Drive Relocation 7,300 $27.50/FS 2.75% 90 $70.00 /6 mos. 4/1/2017
Hexagon Federal 14291 Park Meadow Drive Relocation 17,138 $27.50/FS N/A 132 $75.00 /15.3 mos. 3/24/2017
American Systems Corporation (ASC) 4501 Singer Court Renewal 3,996 $26.00/FS N/A 12 $0.00 /
0 mos. 1/26/2017
SOC LLC 3975 Virginia Mallory Drive Relocation 44,441 $25.00/FS 2.50% 65 $45.00 /5 mos. 1/15/2017
Alpha Industries, Inc. 14200 Park Meadow Drive Expansion 1,490 $24.00/FS N/A 27 $0.00 /1 mo. 1/15/2017
Ellipse 14501 George Carter Way Relocation 7,178 $25.00/FS 2.75% 120 $0.00 /14 mos. 12/5/2016
C2 Essentials 3975 Virginia Mallory Drive Relocation 17,039 $25.25/FS 2.50% 156 $67.50 /14 mos. 11/1/2016
Burgess & Niple Inc. 14500 Avion Parkway Relocation 8,500 $22.50/FS 2.75% 66 $0.00 /2 mos. 10/31/2016
Eastern Research Group, Inc. 14555 Avion Parkway Renewal/
Expansion 29,983 $23.00/FS 2.50% 132 $40.00 /24 mos. 10/15/2016
Securitas 13900 Lincoln Park Drive Relocation 15,408 $25.00/FS 2.75% 65 $47.00 /5 mos. 10/15/2016
American Systems Corporation (ASC) 14151 Park Meadow Drive Renewal 57,572 $25.00/FS 2.50% 133 $0.00 /
9 mos. 6/1/2016 COMPA
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MA
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RVIE
WFOR MORE INFORMATION CONTACT:
Paul SchweitzerVice [email protected]
Adam SchindlerExecutive Vice [email protected]
Connor StewartAssociate, Client [email protected]