210 e lexington st - vansant bldg...210 e lexington st - vansant bldg baltimore, md 21202 - cbd...

210 E Lexington St - VanSant Bldg

PREPARED BY

Susan Rosko-Thomas

Commercial Sales & Leasing Agent

Underwriting Report

10,690 SF Office Building

SUBJECT PROPERTY

Property Details 2

MARKET SUMMARY

CBD Baltimore Submarket Summary 6

Baltimore Market Summary 7

Economic Summary 8

PEER PROPERTIES

Peer Properties Summary 11

Peer Property Photos 13

Peer Property Comparison 15

Peer Property Details 19

LEASING ANALYTICS

Vacancy Analytics 27

Rent Analytics 33

Absorption Analytics 35

Leasing Analytics 36

LEASE COMPS

Lease Comps Summary 39

Lease Comps Details 41

CONSTRUCTION COMPS

Overall Construction Summary 47

Construction Activity 50

Under Construction Summary 55

Under Construction Details 57

Completed Construction Past 12 Months 59

Deliveries Past 12 Months Details 61

SALE COMPS

Sale Comps 63

Sale Comps Detail 67

Sales Volume 75

Sales Pricing 76

Cap Rates 78

Top Buyers & Sellers 79

Table Of Contents

1/25/2018Copyrighted report licensed to CRCT, LLC - 142570.

DEMOGRAPHICS

Overview 82

APPENDIX

Historical Leasing Data 84

Historical Construction Data 86

Table Of Contents


Subject Property

210 E Lexington St - VanSant BldgBaltimore, MD 21202 - CBD Baltimore Submarket

PROPERTY

Type: Class C Office

Yr Blt/Renov: 1890/1985

Property Size: 10,690 SF

Stories: 4

Typical Floor: 2,380 SF

Parking Spaces: 4: 0.25/1,000 SF

LOCATION

Distance To Tran… 4 Minute Walk

Walk Score®: Walker's Paradise (98)

Transit Score®: Excellent Transit (89)

EXPENSES PER SF

Taxes: $1.45/SF (2017)

OWNER

Vansant L.L.C.

Purchased 2/1/2002

VACANCY

Current:

Last Quarter:

0.0%

0.0%

Year Ago: 0.0%

Peers: 26.7%

Submarket 1-3 Star: 13.4%

GROSS ASKING RENT PER SF

Current:

Last Quarter:

$15.00

$15.00

Year Ago: -

Peers: $22.77

Submarket 1-3 Star: $17.35

12 MO. LEASING SF ACTIVITY

Subject Property:

Peers Total:

0

8,496

Peers Avg: 653

Submarket Total: 818,571

Submarket Avg: 2,480

AVAILABLE SPACES

Rent

Space Type

Floor Use

Square Feet

Type SF AvailOccupancySuite Listing CompanyBldg Contig

30 Days CRCT, LLC$15.00/FS9,520793 - 2,380ReletOfficeE 1st -

30 Days CRCT, LLC$15.00/FS9,520793 - 2,380ReletOfficeE 2nd -

30 Days CRCT, LLC$15.00/FS9,520793 - 2,380ReletOfficeE 3rd -

30 Days CRCT, LLC$15.00/FS9,520793 - 2,380ReletOfficeE 4th -

All Spaces 9,520 9,520 $15.00/SF/Yr


Page 2

http://gateway.costar.com/Gateway/Redir/RedirectToProduct.aspx?productId=PPW&redirUrl=%2Fredir%2Fdefault.aspx%3Feid%3D140234%26ProductMode%3DProperty%26external%3D1

Subject Property

Tenant # Emps Move Date Exp DateFloor SFIndustry

KEY TENANTS

Keller Professional Svc Inc 1 Mar 2015 -1,0004thBusiness Services

Baltimore Shredding Services 6 Jul 2016 -900UnkwnBusiness Services

Nile Construction 6 Jul 2016 -900UnkwnAgri/Mining/Utilities

Law Offices-Butschky 5 Jul 2016 -7504thLaw Firms

Brothers Bail Bonds 4 Jul 2016 -6001stFinancial Institutions

Butschky & Butschky, LLC 4 Jul 2016 -6004thLaw Firms

US Locksmith Baltimore 4 Jul 2016 -6001stPersonal Services

Kirwan, Susan 1 Jul 2010 -5551stLaw Firms

Higherschool Tutoring 3 Jul 2016 -4504thPersonal Services

Inspirations LLC 15 Oct 2011 -4001stMedical

Karp Frosh 2 Jul 2016 -3001stLaw Firms

Suder Law Firm 5 Apr 2003 -2381stLaw Firms

Chariot Group LLC - Jul 2016 --1stAgri/Mining/Utilities

Will To Health LLP 6 Oct 2016 --1stMedical

CoStar Research Moving Out Moving In My Data Shared Data

NOTES

-High quality renovations-Close proximity to courthouses-Great space for law firm or small business,-Full floor suite available-Shared conference rooms available-Security system in place-Elevator served

12 units for lease at $500 per month each10,690 square foot Class C office/residential building4 storiesBuilt in 1890 and renovated in 1985Across the street from the Courthouse and City HallGreat space for law firm or small businessShared conference roomsSecurity system in placeElevator servedWalking distance to the metro/subway, bus stops and the light railEach floor consists of approximately 2,380 s.f.4 free surface parking spaces

Located across the street from City Hall and the Courthouse


Page 3

Subject Property

PRIMARY LEASING COMPANY

CRCT, LLC

Linthicum, MD 21090

207 Transmission Ct

(410) 859-5000

Susan Rosko-Thomas


[email protected]

(410) 859-5000 (p)(410) 303-1551 (m)

TRUE OWNER

Vansant L.L.C.

Baltimore, MD 21202

210 E Lexington St

(410) 727-8177 (p)(410) 625-2916 (f)

RECORDED OWNER

Vansant L.L.C.

Baltimore, MD 21202

210 E Lexington St

(410) 727-8177 (p)(410) 625-2916 (f)

PROPERTY MANAGEMENT

Vansant L.L.C.

Baltimore, MD 21202

210 E Lexington St

(410) 727-8177 (p)(410) 625-2916 (f)

Joanne Suder

Owner

[email protected]

(410) 727-8177

DEVELOPER

Lexington Associates

(908) 497-1400


Page 4


PREPARED BY

Susan Rosko-Thomas


Market Summary


Submarket SummaryCBD Baltimore Office

Baltimore’s Central Business District's transformation isevident almost quarterly. More than two million SF ofoffice space has been turned into high-end apartmentcommunities this cycle, and over 2,000 market-rateapartments have been leased. The removal of obsoleteassets, not to mention the thousands of new residentsbreathing life into (and creating demand for retailamenities in) Baltimore's CBD, has allowed vacancies todrop from post-recession highs and rent growth to meetor exceed submarket averages for four years running.The pace of gains slowed notably in 2017, though, andas a result landlords will have to celebrate a return toprerecession rent levels in the new year. There are onlyso many conversions that can take place, however, andleasing has not been strong here the last few years.Constellation Energy’s exit in 16Q4 added another largeblock of vacant space to the market, even with

engineering firm RK&K backfilling half of the 250,000 SFleft by the energy firm.

Acquisitions of CBD office properties have been helpedby multifamily developers, but more traditionalacquisitions have also played a part in above-averagetrade volume recently. Sales volume reached new highsin 2015 and remained well above historical norms for thelast two years despite a downward trend. The largestsale in the last two years involved the 660,000 SF 4 Starasset at 100 E. Pratt St., which sold for $187 million($282/SF) at a reported 8% cap rate. The building was98.5% leased when it sold, the largest tenant being T.Rowe Price, which renewed its lease for 443,000 SFthrough 2027. The buyer, New Jersey–based VisionProperties, has stated that the asset fits its long-term-hold strategy.

NET ABSORPTION, NET DELIVERIES & VACANCY


Page 6

Market SummaryBaltimore Office

Office vacancies are near their historical average in theBaltimore metro area entering 2018, but rent growth ismixed amid below-average leasing velocity. Ofcourse,the conversation everyone is talking aboutmetrowide is the chase for Amazon's secondheadquarters. While other candidates among the nearly300 that submitted proposals for the e-commerce giant'ssecond North American headquarters are strongeroverall bets, state government and the forces behindUnder Armour are putting every effort forward to bringthe projected eight million SF of future office space to thecity's Port Covington redevelopment.

Income growth prospects here are tame compared tothose of more dynamic metros, but investors have foundopportunities in Baltimore's office landscape. Metrowideinventory turnover has topped 4% in five out of the last

six calendar years, and 2017eclipsed 2015 as this cycle'sbiggest year for turnover. A significant component ofoffice trading here has consisted of conversion-motivated acquisition, and several older/obsoletebuildings downtown have or will become part ofBaltimore's urban multifamily boom. Traditional saleshave also made headlines. The biggest deal in the last18 months was the trade of 100 East Pratt St., whichsold for $187 million ($282/SF) to Vision Properties. Thebuilding was 99% leased to companies such as T. RowePrice, which recently renewed its lease for more than440,000 SF through 2027. And in the suburbs, Boston-based Tritower Financial Group acquired a portfolio ofClass A product close to BWI and Fort Meade for $57.5million ($217/SF) in August 2016, marking the second-largest office sale in the metro.

NET ABSORPTION, NET DELIVERIES & VACANCY


Page 7


BALTIMORE ECONOMIC SUMMARY

Baltimore remains an eds and meds stronghold, but anongoing diversification of sectors leaves the whole of theeconomy on firm footing entering 2018. Home to apopulation of roughly 2.75 million and a civilian laborforce of just under half that total, the Baltimore metroarea has an unemployment rate in line with the nationalaverage. On the flip side, that population is notexpanding much, and Baltimore City's population actuallyshrank by 1%, according to the latest U.S. CensusBureau Estimates. The Baltimore metro area has had anan average growth rate of roughly one half of apercentage point between 2009–16; if a similar pacecontinues, the population will be around 2.85 million bythe end of CoStar's forecast period.

While education and health services makes up over one-fifth of the jobs here, government/military hiring as wellas a burgeoning tech sector are propping up games. Ahub of U.S. cyber-security operations, Baltimore'smilitary tech outlook generates strong prospects for themetro.While traditional defense spending faces greaterchances of hitting roadblocks caused by fiscal pressures,federal spending on intelligence and cyber securityshould continue to increase as the threat of attacks onthe nation’s networks increases. As the home of theNational Security Agency, Fort Meade is at the center ofthe nation’s cyber-security effort, resulting in risingnumbers of highly skilled, high-paying military andcivilian jobs, boosting spending power in the local

economy. In 2005, the base had about 33,000employees, and now it has over 52,000 (more than twicethe number of workers at the Pentagon). Additionally, theU.S. Naval Academy is planning a $100 million cyber-security center in Annapolis. Cyber-security shouldcontinue to benefit the Baltimore metro, especially inregard to office absorption, which is expected to postsolid gains throughout the forecast.

Charm City will remain a front-runner in the educationand health services field as well.The sector employsnearly one-fifth of the metro’s workers, and thesetypically stable industries should thrive in the comingyears. The Baby Boomers are reaching retirement ageand need more health services, while the Millennialsreaching young adulthood are keeping enrollments up atlocal universities. Johns Hopkins’s continued expansionand position as a global leader will help to createintellectual capital and produce educated workers, whichbodes well for the local economy. U.S. News & WorldReport ranked the hospital number one in the countryfrom 1999–2011, and again in 2013 (it slipped to thirdplace in 2014 and 2015). Johns Hopkins’s research-and-development budget is $2.2 billion—two-thirds morethan that of any other university in the U.S. Because itsapplied physics laboratory employs thousands ofengineers and scientists, primarily supporting defenseprograms, 90% of Johns Hopkins’s budget comes fromthe federal government.


Page 8


Source: Moody’s Analytics

YEAR OVER YEAR JOB GROWTH

DEMOGRAPHIC TRENDS

Current GrowthCurrent Level

Metro U.S.Metro U.S.Demographic Category

10-Year Growth Forecast Growth

Metro U.S. Metro U.S.

Population 326,758,3312,803,032 0.1% 0.7% 0.5% 0.8% 0.1% 0.7%

Households 125,993,8051,101,647 0.7% 1.2% 0.7% 0.8% 0.7% 1.1%

Median Household Income $59,796$80,133 2.4% 3.3% 2.3% 1.5% 2.8% 2.9%

Labor Force 160,815,5671,511,094 1.4% 0.7% 0.8% 0.5% 0.3% 0.8%

Unemployment 4.3%4.0% -0.4% -0.4% 0% 0% - -

Source: Moody’s Analytics

POPULATION GROWTH

Source: Moody's Analytics

LABOR FORCE GROWTH INCOME GROWTH


Page 9


PREPARED BY

Susan Rosko-Thomas


Peer Properties


Peer Properties Summary210 E Lexington St - VanSant Bldg

No. Peers

13Gross Direct Asking Rent

$22.77Availability Rate

29.8%Vacancy Rate

26.7%PEER LOCATIONS

PEER SUMMARY STATISTICS

Property Attributes Low Average Median High

Building SF 4,300 19,171 6,310 61,655

Year Built 1870 1895 1900 1900

Stories 2 3 3 5

Typical Floor SF 468 5,230 3,155 14,000

Vacancy Rate 0% 26.7% 25.4% 100%

Availability Rate 0% 29.8% 34.9% 100%

Star Rating 2.4

Available Space Attributes Low Average Median High

Space SF 0 5,716 3,666 21,802

Gross Direct Asking Rent Per SF $19.80 $22.77 $21.27 $27.78

Months On Market 4.2 26.8 15.4 92.6

Floor Number LL 2 2 5


Page 11

Peer Properties Summary210 E Lexington St - VanSant Bldg

Property Name / Address Rating Yr Blt/Renov Bldg SF Stories SF Avail %

Property Size

Spcs

Availability

Vac % Gross Direct Rent

-1 1030 N Charles St1900/- 54,000 3 5,557 10.3%2 10.3% $27.78

-2 The Travel Bldg1900/- 4,468 2 4,468 100%

1020 Saint Paul St2 100% $22.29

-3 1014 Morton St1900/- 5,700 2 2,850 50.0%1 0% $20.26

-4 1016 Morton St1900/- 6,244 2 6,244 100%1 100% $19.80

-VanSant Bldg

1890/1985 10,690 4 9,520 89.1%210 E Lexington St

4 0% $15.00

-5 300 W Pratt St1870/1999 61,655 5 21,802 35.4%7 31.6% -

-6 200 N Paca St1900/- 18,048 5 18,048 100%5 100% -

-7 Strauss Building1888/- 5,005 4 5,005 100%

10-12 Howard St1 100% -

-8 EJ Codd1881/2004 32,760 3 3,666 11.2%

700 S Caroline St1 11.2% -

-9 The Blakeslee Building1900/- 22,000 3 2,575 11.7%

916 N Charles St1 0% -

-10 Building 21900/1983 6,310 2 1,600 25.4%

207-213 Key Hwy1 25.4% -

-11 514 Saint Paul Pl1900/- 4,300 3 1,500 34.9%1 34.9% -

-12 111 S Broadway1900/- 4,966 3 1,000 20.1%1 20.1% -

-13 Mount Vernon Business…1900/1997 23,773 4 0 0%

10 W Eager St3 0% -


Page 12















1014 Morton St

5,700 SF / 2 Stories

Owner: Howard W Chambers

Rent/SF $20.26, Vacancy 0%

3The Travel Bldg1020 Saint Paul St


Owner: 10 E Chase Street Associa…


21030 N Charles St


Owner: Dr. Agha Khan

Rent/SF $27.78, Vacancy 10.3%

1

300 W Pratt St


Owner: ValStone Partners, LLC

Rent/SF -, Vacancy 31.6%

5VanSant Bldg210 E Lexington St


Owner: Vansant L.L.C.


Subject Property

1016 Morton St


Owner: Howard W Chambers


4

EJ Codd700 S Caroline St


Owner: Harbor East L.P.


8Strauss Building10-12 Howard St


Owner: Paradise Property LLC

Rent/SF -, Vacancy 100%

7200 N Paca St


Owner: -


6

Peer Property Photos210 E Lexington St


Page 13

514 Saint Paul Pl


Owner: -


11Building 2207-213 Key Hwy


Owner: Sapero & Sapero


10The Blakeslee Building916 N Charles St


Owner: Biabani Group


9

Mount Vernon Business10 W Eager St


Owner: Himmelrich Associates, Inc


13111 S Broadway


Owner: -


12

Peer Property Photos210 E Lexington St


Page 14

Property Name/Address Rating Gross Direct Rent Per SF Vacancy Rate

1030 N Charles St1 $27.78 10.3%

The Travel Bldg

1020 Saint Paul St2 $22.29 100%

1014 Morton St3 $20.26 0%

1016 Morton St4 $19.80 100%

VanSant Bldg

210 E Lexington St$15.00 0%

Strauss Building

10-12 Howard StWithheld7 100%

200 N Paca StWithheld6 100%

514 Saint Paul PlWithheld11 34.9%

300 W Pratt StWithheld5 31.6%

Building 2

207-213 Key HwyWithheld10 25.4%

111 S BroadwayWithheld12 20.1%

EJ Codd

700 S Caroline StWithheld8 11.2%

Mount Vernon Business…

10 W Eager St13 0%

The Blakeslee Building

916 N Charles St

Average

(Arrows indicate trend over last quarter)

Withheld9 0%

25.6%$20.19

Peer Property Comparison210 E Lexington St - VanSant Bldg


Page 15
















Property Name/Address Rating Availability Rate Vacancy Rate

Strauss Building

10-12 Howard St7 100% 100%

1016 Morton St4 100% 100%

The Travel Bldg

1020 Saint Paul St2 100% 100%

200 N Paca St6 100% 100%

VanSant Bldg

210 E Lexington St89.1% 0%

1014 Morton St3 50% 0%

300 W Pratt St5 35.4% 31.6%

514 Saint Paul Pl11 34.9% 34.9%

Building 2

207-213 Key Hwy10 25.4% 25.4%

111 S Broadway12 20.1% 20.1%


916 N Charles St9 11.7% 0%

EJ Codd

700 S Caroline St8 11.2% 11.2%

1030 N Charles St1 10.3% 10.3%


10 W Eager St

Average


13 0% 0%

25.6%32.3%


Page 16
















Property Name/Address Rating Gross Direct Rent Per SF Median Months on Market

1030 N Charles St1 $27.78 15

The Travel Bldg

1020 Saint Paul St2 $22.29 5

1014 Morton St3 $20.26 6

1016 Morton St4 $19.80 16

VanSant Bldg

210 E Lexington St$15.00 10

300 W Pratt StWithheld5 93

Strauss Building

10-12 Howard StWithheld7 54

Building 2

207-213 Key HwyWithheld10 48

EJ Codd

700 S Caroline StWithheld8 45


916 N Charles StWithheld9 19

111 S BroadwayWithheld12 14

200 N Paca StWithheld6 5

514 Saint Paul PlWithheld11 4


10 W Eager St

Average


13

34$20.19


Page 17
















Property Name/Address Rating 12 Mo. Leasing Activity in Thousand SF 12 Mo. Net Absorption in Thousand SF

300 W Pratt St5 3 7

1014 Morton St3 3 3

EJ Codd

700 S Caroline St8 2 (1)

VanSant Bldg

210 E Lexington St0 2


916 N Charles St9 0 2


10 W Eager St13 0 0

Strauss Building

10-12 Howard St7 0 0

111 S Broadway12 0 0

Building 2

207-213 Key Hwy10 0 0

514 Saint Paul Pl11 0 (2)

The Travel Bldg

1020 Saint Paul St2 0 (4)

1016 Morton St4 0 (6)

1030 N Charles St1 0 (6)

200 N Paca St

Average

6 0 (18)

(2)1


Page 18















Peer Property Details210 E Lexington St - VanSant Bldg

1 1030 N Charles StDistance to Subject Property: 0.8 Miles

EXPENSES

Taxes: $1.41/SF (2017)

PROPERTY

Type: Class B Office

Yr Blt/Renov: 1900

RBA: 54,000 SF

Stories: 3



# of Tenants: 4

OWNER

Dr. Agha Khan

Purchased 4/19/2004

Price $3,500,000; $65/SF

COMPARISON SUBJECTTHIS PROPERTY

Vacancy %: 10.3% 0%

Available SF: 5,557 9,520

Gross Ask Rent: $27.78 $15.00

Months To Lease: 29 mo -

Time On Market: 15 mo 10 mo

Walk Score®: 97 98

Transit Score®: 85 89

AVAILABILITY OFFICE

Spaces: 2

Square Feet: 5,557

Range: 2,511 - 3,046

Max Contig: 3,046

% Sublet: 0 %

Asking Rent: $22.02

2 1020 Saint Paul StDistance to Subject Property: 0.8 Miles

EXPENSES

Taxes: $1.51/SF (2017)

PROPERTY


Yr Blt/Renov: 1900

RBA: 4,468 SF

Stories: 2


OWNER

Purchased 6/9/2016


Vacancy %: 100% 0%



Months To Lease: - -


Walk Score®: 96 98


AVAILABILITY OFFICE

Spaces: 2

Square Feet: 4,468

Range: 2,234

Max Contig: 4,468

% Sublet: 0 %

Asking Rent: $15.00/NNN


Page 19




3 1014 Morton StDistance to Subject Property: 0.8 Miles

EXPENSES

Taxes: $1.36/SF (2017)

PROPERTY


Yr Blt/Renov: 1900

RBA: 5,700 SF

Stories: 2



# of Tenants: 1

OWNER

Howard W Chambers

Purchased 3/31/2009


Vacancy %: 0% 0%





Walk Score®: 97 98


AVAILABILITY OFFICE

Spaces: 1

Square Feet: 2,850

Range: 2,850

Max Contig: 2,850

% Sublet: 0 %

Asking Rent: $17.25/+E&C

4 1016 Morton StDistance to Subject Property: 0.8 Miles

EXPENSES

Taxes: $0.92/SF (2017)

PROPERTY


Yr Blt/Renov: 1900

RBA: 6,244 SF

Stories: 2



OWNER

Howard W Chambers

Purchased 3/31/2009


Vacancy %: 100% 0%





Walk Score®: 97 98


AVAILABILITY OFFICE

Spaces: 1

Square Feet: 6,244

Range: 6,244

Max Contig: 6,244

% Sublet: 0 %

Asking Rent: $17.25/+UTIL


Page 20




5 300 W Pratt StDistance to Subject Property: 0.5 Miles

EXPENSES

Taxes: $2.47/SF (2017)

PROPERTY

Type: Class A Office


RBA: 61,655 SF

Core Factor: 12%

Stories: 5


Parking Spaces: 0.20/1,000 SF

# of Tenants: 14

OWNER

ValStone Partners, LLC

Purchased 7/31/2015

Price $7,360,000; $119/SF


Vacancy %: 31.6% 0%


Gross Ask Rent: - $15.00



Walk Score®: 92 98


AVAILABILITY OFFICERETAIL

Spaces: 2 5

Square Feet: 2,332 19,470

Range: 1,081 - 1,251 1,130 - 8,674

Max Contig: 1,251 9,804

% Sublet: 0 % 0 %

Asking Rent: - -

6 200 N Paca StDistance to Subject Property: 0.6 Miles

EXPENSES

Taxes: $0.47/SF (2009)

PROPERTY


Yr Blt/Renov: 1900

RBA: 18,048 SF

Stories: 5




Vacancy %: 100% 0%





Walk Score®: 97 98


AVAILABILITY OFFICE

Spaces: 5

Square Feet: 18,048

Range: 1,640 - 4,102

Max Contig: 18,048

% Sublet: 100 %

Asking Rent: $15.00/FS


Page 21




7 10-12 Howard StDistance to Subject Property: 0.4 Miles

EXPENSES

Taxes: $1.12/SF (2012)

PROPERTY


Yr Blt/Renov: 1888

RBA: 5,005 SF

Stories: 4

Typical Floor: 468 SF


OWNER

Paradise Property LLC

Purchased 12/10/2013

Price $1,025,550; $205/SF (Confirmed)


Vacancy %: 100% 0%





Walk Score®: 96 98



Spaces: 1 0

Square Feet: 5,005 0

Range: 5,005 -

Max Contig: 5,005 -

% Sublet: 0 % 0 %

Asking Rent: - -

8 700 S Caroline StDistance to Subject Property: 1.0 Miles

EXPENSES

Taxes: $2.09/SF (2009)

PROPERTY



RBA: 32,760 SF

Stories: 3



# of Tenants: 2

OWNER

Harbor East L.P.

Purchased 11/20/2003

Price $2,600,000; $79/SF


Vacancy %: 11.2% 0%





Walk Score®: 97 98


AVAILABILITY OFFICE

Spaces: 1

Square Feet: 3,666

Range: 3,666

Max Contig: 3,666

% Sublet: 0 %

Asking Rent: -


Page 22





EXPENSES

Taxes: $0.61/SF (2017)

PROPERTY


Yr Blt/Renov: 1900

RBA: 22,000 SF

Core Factor: 12%

Stories: 3


# of Tenants: 4

OWNER

Biabani Group

Purchased 8/28/2017

Price $1,725,000; $78/SF (Confirmed)


Vacancy %: 0% 0%





Walk Score®: 98 98


AVAILABILITY OFFICE

Spaces: 1

Square Feet: 2,575

Range: 2,575

Max Contig: 2,575

% Sublet: 0 %

Asking Rent: -

10 207-213 Key HwyDistance to Subject Property: 0.8 Miles

EXPENSES

Taxes: $4.76/SF (2009)

PROPERTY



RBA: 6,310 SF

Stories: 2



# of Tenants: 5

OWNER

Sapero & Sapero


Vacancy %: 25.4% 0%





Walk Score®: 95 98


AVAILABILITY OFFICE

Spaces: 1

Square Feet: 1,600

Range: 1,600

Max Contig: 1,600

% Sublet: 0 %

Asking Rent: $28.00/NNN


Page 23




11 514 Saint Paul PlDistance to Subject Property: 0.3 Miles

EXPENSES

Taxes: $0.94/SF (2017)

PROPERTY


Yr Blt/Renov: 1900

RBA: 4,300 SF

Stories: 3



# of Tenants: 1

OWNER

Purchased 6/14/2016

Price $454,650; $106/SF


Vacancy %: 34.9% 0%





Walk Score®: 99 98



Spaces: 1 0


Range: 1,500 -

Max Contig: 1,500 -

% Sublet: 0 % 0 %

Asking Rent: $12.00/NNN -

12 111 S BroadwayDistance to Subject Property: 1.0 Miles

EXPENSES

Taxes: $1.22/SF (2017)

PROPERTY


Yr Blt/Renov: 1900

RBA: 4,966 SF

Stories: 3


OWNER

Purchased 5/13/2016

Price $230,000; $46/SF


Vacancy %: 20.1% 0%





Walk Score®: 96 98



Spaces: 1 0


Range: 1,000 -

Max Contig: 1,000 -

% Sublet: 0 % 0 %

Asking Rent: $14.40/MG -


Page 24




13 10 W Eager StDistance to Subject Property: 0.7 Miles

EXPENSES

Taxes: $1.33/SF (2017)

Op. Exp: $7.24/SF (2012-Est)

PROPERTY



RBA: 23,773 SF

Stories: 4


# of Tenants: 7

OWNER

Himmelrich Associates, Inc

Purchased 9/20/2013

Price $1,340,000; $56/SF


Vacancy %: 0% 0%

Available SF: - 9,520



Time On Market: - 10 mo

Walk Score®: 97 98


AVAILABILITY OFFICE

Spaces: 3

Square Feet: 2,500

Range: 100 - 1,000

Max Contig: 1,000

% Sublet: 0 %

Asking Rent: -


Page 25



PREPARED BY

Susan Rosko-Thomas


Leasing Analytics


BALTIMORE - MD VACANCY OVERVIEW

Fundamentals in the Baltimore office market remainhealthy, with vacancies essentially in line with both thenational major markets average and the metro’s ownhistorical average as got underway.

Part of this positive storyline comes from Baltimore’sCBD and the continuation of heavy office-to-apartmentconversions. Roughly one million square feet of datedoffice supply has been removed from the market since2016, adding to another million SF already converted toapartments earlier in the cycle. In the nearby BaltimoreSoutheast Submarket, which includes the Harbor East,Harbor Point, Federal Hill, and Canton neighborhoods,vacancies have trended under 5% since 2014,encouraging some of the strongest rent growth in themetro.

The regional economy continues to grow, driven in partby high tech employment sectors. Jobs there have

increased by about 30% over the past 10 years, morethan in any other Northeast metro in that time period.Baltimore can claim one of the highest concentrations ofSTEM (science, technology, engineering, andmathematics) workers in the region, and modern officespace is in high demand. An area in particular to watchfor STEM leasing demand is in CoStar Group’s ColumbiaSouth Submarket, home to Howard County’s largestbusiness center, Columbia Gateway. Howard County andstate government officials have recently shined a light onthe tech and startup opportunities Gateway offers,centered around the newly minted Gateway InnovationDistrict and the Innovation Center housed there. TheHoward County Economic Development Authority,Howard Tech Council, and the Maryland Center forEntrepreneurship will all be in place by the end of 2018.

CBD BALTIMORE VACANCY OVERVIEW

Vacancies continue to compress in downtown Baltimore,but the local job market isn't doing much to tightenfundamentals, and both mid- and upper-tier officeproduct is experiencing above-average softness. Thecensus reports that in 2014 the submarket providedabout 83,000 jobs, which is fewer than at any point since2002. Office-to-apartment conversions have been thebiggest factor in removing vacant space from thesubmarket. Over the near term, office vacancies areunlikely to tighten significantly. A flurry of large leasessigned in the last two years—including engineering firmRK&K's 116,000 SF deal at 111 Market Place andMorgan Stanley's for 57,000 SF at the Bank of AmericaTower—aren't enough to fill the space vacated recently,most notably by Constellation Energy (Exelon), which left

250,000 SF of empty space when it moved toneighboring Southeast Baltimore Submarket inNovember 2016.

Office conversions to apartments could also become lessfrequent due to the glut of apartments in the CBD and inother nearby submarkets. While the city is holding upfairly well, roughly 2,000 additional units will deliver in thenext 18 months, and lease-up is slowing at newbuildings, even with concessions increasing. Forexample, the largest conversion project, the 419-unit 10Light St., took nearly two years to stabilize. In all,apartment buildings built since 2010 were roughly 10%vacant at the beginning 2018.

Vacancy Analytics210 E Lexington St - VanSant Bldg


Page 27


VACANCY RATE

VACANCY RATE

Vacancy Trend (YOY) VacancyTrend (YOY) Trend (YOY)VacancyTrend (YOY)Vacancy

VanSant Bldg Peers CBD Baltimore Baltimore - MD

-0.3%11.7%-0.9%12.5%4.5%22.4%-1.6%29.4%2012

-0.2%11.4%-1.7%10.8%7.8%30.2%13.7%43.0%2013

0%11.4%4.1%14.9%0.9%31.1%0%43.0%2014

-0.8%10.6%-0.4%14.5%-6.5%24.6%16.7%59.7%2015

0%10.6%-0.5%14.0%-8.1%16.5%-43%16.7%2016

-0.6%10.0%-1%13.0%10.1%26.6%-16.7%0%2017

-0.3%10.1%-2%13.2%9.5%26.7%0%0%2018 YTD

----2018

----2019

----2020 Forecast >

----2021

----2022


Page 28


AVAILABILITY RATE

AVAILABILITY RATE

Availability Trend (YOY) AvailabilityTrend (YOY) Trend (YOY)AvailabilityTrend (YOY)Availability

VanSant Bldg Peers CBD Baltimore 1-2 Star Baltimore 1-2 Star

-0.8%13.2%-5.7%13.1%-1.6%25.8%-1.6%29.4%2012

-1.2%12.0%-1.8%11.3%10.1%35.9%13.7%43.0%2013

-0.1%11.9%-0.3%11.0%1.8%37.7%0%43.0%2014

-0.8%11.1%-0.5%10.5%-11.7%26.0%16.7%59.7%2015

-0.9%10.2%-3.8%6.7%3.5%29.5%-43%16.7%2016

-1.2%9.0%0%6.7%0.3%29.8%72.4%89.1%2017

-1%8.9%2.9%6.9%-4.3%29.8%89.1%89.1%2018 YTD


Page 29


MEDIAN MONTHS ON MARKET

MEDIAN MONTHS ON MARKET

Peers CBD Baltimore Baltimore

2008 10.6 18.9 10.6

2009 15.6 22.2 11.9

2010 23.7 25.9 14.2

2011 30.5 28.4 15.7

2012 20.9 33.1 18.2

2013 12.0 35.9 19.8

2014 14.1 38.3 21.0

2015 19.4 38.9 21.7

2016 23.7 33.3 19.5

2017 13.6 26.1 15.7

2018 15.4 25.8 15.1


Page 30


MONTHS TO LEASE BY BLOCK SIZE (PAST 3 YEARS)

MONTHS TO LEASE BY BLOCK SIZE (PAST 3 YEARS)

Peers CBD Baltimore Baltimore

0-9,999 SF 12.8 13.2 11.6

10,000-19,999 SF - 17.4 13.1

20,000-49,999 SF - 17.7 17.8

50,000-99,999 SF - 26.0 16.8

100,000+ SF - 0.0 11.7


Page 31


RENEWAL RATES

RENEWAL RATES

CBD Baltimore & Adjacent Baltimore

2008 68.5% 67.1%

2009 55.3% 63.6%

2010 75.4% 69.2%

2011 81.8% 71.3%

2012 77.4% 71.6%

2013 73.9% 69.2%

2014 52.1% 67.8%

2015 79.0% 74.9%

2016 68.0% 69.6%

2017 64.6% 64.4%


Page 32

BALTIMORE - MD RENT TRENDS

Lagging leasing velocity has impacted rent growth,although gains aren't too far removed from a normalrange in this steady-as-you-go metro. . With few majorcorporate relocations into the city and state, renewalshave done most of the heavy lifting on the leasing frontand it appears landlords are offering favorable terms toknown entities. While gains here are historically modestrelative to more dynamic markets, CoStar Group hasn'tseen average asking rents increase by more than 2% inyears.

Baltimore City submarkets have all shown slowing

annualized rent growth the last couple of years, and theCentral Business District has cooled significantly. Rentgrowth pacing that topped 5% in 2015 has essentiallybeen cut in half each year since, and significant spacealong Pratt Street could be weighing on the negotiationscales. Similar trends are seen in the other downtownsuburbs, too.

The story remains only slightly better across mostsuburban office submarkets, with a handful of themclearing 1% in annualized gains. Route 2 Corridor Southand Aberdeen are clear outliers to the upside as of late.

CBD BALTIMORE RENT TRENDS

A reduction in obsolete inventory over the last severalyears enabled above-average rent growth, but it easedoff to a more typical level in 2017. The expectation is thataverage asking rents will surpass their previous peak in2018 unless weakness seen at the outset of the yearpersists. Modest gains should continue as leases expire,but vacancies are not tight enough to spark robust near-term rent hikes and suburban enclaves like ColumbiaNorth and South are making strong pitches for tenantsseeking the latest and greatest space and amenities.

Properties like the M&T Bank Building, City Crescent,

and the Candler Building have chunks of availablecontiguous space greater than 75,000 SF, so tenantswilling to shop around might resist rent hikes. Notably,City Crescent once housed the Army Corps ofEngineers, which has signed on to fill the vacant officebuilding at 2 Hopkins Plaza in 2018. Smaller spaces, asmight be expected, are not in short supply, either. This istrue across the mid- and upper-level office classes:Entering 2018, 4 & 5 Star properties were over 12%vacant (and nearly a quarter of high-end space wasavailable), while 3 Star properties were more than 16%empty.

Rent Analytics210 E Lexington St - VanSant Bldg


Page 33

Rent Analytics210 E Lexington St - VanSant Bldg

GROSS ASKING RENT PER SQUARE FOOT


Rent Trend (YOY) RentTrend (YOY) Trend (YOY)RentTrend (YOY)Rent

VanSant Bldg (Direct) Peers (Direct) CBD Baltimore (Overall) Baltimore - MD (Overall)

1.9%$21.35-0.1%$20.49-4.2%$20.06--2012

-0.4%$21.27-5%$19.46-1.8%$19.69-$12.002013

-0.6%$21.151%$19.655.5%$20.780%$12.002014

3.5%$21.899.6%$21.54-5.9%$19.550%$12.002015

2.4%$22.402.3%$22.03-5.4%$18.500%$12.002016

2.7%$23.020.7%$22.1924.5%$23.0325%$15.002017

0.8%$22.71-2%$21.608.8%$22.77-$15.002018 YTD

-0.6%$22.88-1.9%$21.772018

1%$23.100.9%$21.972019

0.4%$23.190.4%$22.052020 Forecast >

0.2%$23.230.1%$22.072021

0.9%$23.430.8%$22.232022


Page 34

Absorption Analytics210 E Lexington St

NET ABSORPTION IN PEERS IN SQUARE FEET

NET ABSORPTION IN CBD BALTIMORE SUBMARKET IN SQUARE FEET

NET ABSORPTION IN BALTIMORE IN SQUARE FEET


Page 35

Leasing Analytics210 E Lexington St

LEASING ACTIVITY IN PEERS IN SQUARE FEET

LEASING ACTIVITY IN CBD BALTIMORE SUBMARKET IN SQUARE FEET

LEASING ACTIVITY IN BALTIMORE IN SQUARE FEET


Page 36

Leasing Analytics210 E Lexington St

SUBLEASE SPACE AVAILABLE IN BALTIMORE IN SQUARE FEET


Page 37


PREPARED BY

Susan Rosko-Thomas


Lease Comps


Lease Comps Summary210 E Lexington St - VanSant Bldg

Deals

5Gross Asking Rent Per SF

$23.01Gross Starting Rent Per SF

$22.53Avg. Months On Market

17LEASE COMPARABLES

SUMMARY STATISTICS

Rent Deals Low Average Median High

Gross Asking Rent Per SF

Gross Starting Rent Per SF

Gross Effective Rent Per SF

Asking Rent Discount

TI Allowance

Months Free Rent

4

5

3

4

-

-

$14.26

$14.26

$14.26

-9.5%

-

-

$23.01

$22.53

$22.46

2.3%

-

-

$23.75

$23.00

$25.50

0.0%

-

-

3.8%

-

-

$33.71

$33.71

$33.71

Lease Attributes Deals Low Average Median High

Months on Market

Deal Size

Lease Deal in Years

Floor Number

5

5

4

5

7

356

1.0

1

17

1,759

2.8

1

12

720

2.5

1 3

34

5,000

5.0


Page 39

Lease Comps Summary210 E Lexington St - VanSant Bldg

Property Name - Address Rating SF Leased Floor Sign Date Rent Rent Type

Lease

Type

Rents

-1 1714 Saint Paul St375 3rd 11/22/2017 $23.00/fs StartingNew

-2 2526 Saint Paul St2,344 1st 10/2/2017 $14.00/+char EffectiveNew

-3 Park Plaza Professional…720 1st 9/20/2017 $23.00/fs Starting

800 N Charles StNew

-4 180-188 W Ostend St5,000 2nd 5/1/2017 $25.50/fs EffectiveNew

-5 100-114 W 22nd St356 1st 3/1/2017 $33.71/fs EffectiveNew


Page 40

http://gateway.costar.com/Gateway/Redir/RedirectToProduct.aspx?productId=PPW&redirUrl=%2Fredir%2Fdefault.aspx%3Feid%3D7947295%26ProductMode%3DProperty%26SelectedTab%3Dlease%26external%3D1





Lease Comps Details210 E Lexington St - VanSant Bldg

1 1714 Saint Paul StBaltimore, MD 21202 - Baltimore Midtown Submarket

RENTS

Asking Rent: $20.00-$22.00/FS

Starting Rent: $23.00/FS

CONCESSIONS AND BUILDOUT

Asking Discount: -9.52%

PROPERTY EXPENSES

Taxes: $0.87/SF (2017)

LEASE

SF Leased: 375 SF

Sign Date: Nov 2017

Space Use: Office

Lease Type: Direct

Floor: 3rd Floor

Suite: 2

LEASE TERM

Start Date: Dec 2017

Lease Term: 1 Year

TIME VACANT

Date Vacated: Mar 2017

Date Occupied: Dec 2017

Months Vacant: 9 Months

TIME ON MARKET

Date On Market: Nov 2016

Date Off Market: Dec 2017

Months on Market: 13 Months

LEASING REP

Argus Properties

32 E Ostend St

Baltimore, MD 21230

David Lapides (443) 854-8688

PROPERTY

Rentable Area: 3,475 SF

Stories: 3

Floor Size: 1,158 SF

Vacancy at Lease: 0.0%

Land Acres: 0.04

Property Type: Office

Status: Built 1900

Tenancy: Multi

Class: B

Construction: Masonry

Parking: 1 Surface Space is a…

MARKET AT LEASE

Vacancy Rate 2017 Q4 YOY

0.9%

0.6%

32.6%Current Building 0.0%

Submarket 1-2 Star

Metro Overall 10.0%

6.4%

Gross Asking Rent Per SF 2017 Q4 YOY

10.1%

2.7%

Current Building $21.00

Submarket 1-2 Star

Metro Overall $23.02

$18.95

-

Submarket Leasing Activity 2017 Q4 YOY

5.3

18.9%12 Mo. Leased SF 131,718

Months On Market 7.2


Page 41



2 2526 Saint Paul StBaltimore, MD 21218 - Baltimore Midtown Submarket

TENANT

Tenant Name: FreeState Justice

RENTS

Asking Rent: $14.00/+CHAR

Starting Rent: $14.00/+CHAR

Effective Rent: $14.00/+CHAR


Asking Discount: 0.00%

PROPERTY EXPENSES

Taxes: $1.49/SF (2017)

Operating Exp.: $1.73/SF (2012-Est);…

LEASE

SF Leased: 2,344 SF

Sign Date: Oct 2017

Space Use: Office

Lease Type: Direct

Floor: 1st Floor

LEASE TERM

Start Date: Nov 2017

Expiration Date: Oct 2020

Lease Term: 3 Years

TIME VACANT

Date Vacated: Feb 2017

Date Occupied: Nov 2017


TIME ON MARKET

Date On Market: Feb 2017

Date Off Market: Oct 2017


LEASING REP

Otis Warren & Company, Inc.

2223 Wheatley Dr

Baltimore, MD 21207-7702

Dawn L. Taylor (410) 539-1010 X231

PROPERTY


Stories: 3



Land Acres: 0.15


Status: Built 1900

Tenancy: Multi

Class: B


Parking: 10 Surface Spaces a…

MARKET AT LEASE


0.2%

0.6%


Submarket 1-3 Star

Metro Overall 10.0%

5.3%


11.3%

2.7%


Submarket 1-3 Star


$19.65

-


5.3

18.9%12 Mo. Leased SF 131,718



Page 42



3 800 N Charles St - Park Plaza Professional BldgBaltimore, MD 21201 - Baltimore Midtown Submarket

TENANT

Tenant Name: Financial services

RENTS


PROPERTY EXPENSES

Taxes: $0.99/SF (2011)

LEASE

SF Leased: 720 SF

Sign Date: Sep 2017

Space Use: Office

Lease Type: Sublease

Floor: 1st Floor

LEASE TERM

Start Date: Jan 2018

Lease Term: 5 Years

TIME VACANT

Date Vacated: Jan 2016

Date Occupied: Jan 2018


TIME ON MARKET


Date Off Market: Dec 2017


LEASING REP

Greenspring Realty Partners

1212 York Rd, Suite c-300

Lutherville, MD 21093-6240

Dan Flamholz (410) 977-4738

PROPERTY


Stories: 5



Land Acres: 0.31


Status: Built 1900

Tenancy: Multi

Class: B


MARKET AT LEASE


1.8%

0.3%


Submarket 2-4 Star

Metro Overall 9.8%

5.7%


7.4%

2.0%

Current Building -

Submarket 2-4 Star


$20.24

-


2.6

16.4%12 Mo. Leased SF 133,498



Page 43



4 180-188 W Ostend StBaltimore, MD 21230 - Baltimore Southwest Submarket

TENANT

Tenant Name: HBK Engineering, LLC

Industry: Manufacturing

RENTS



Effective Rent: $25.50/FS

Escalations: 4% Annual



Buildout Status: Shell Space

PROPERTY EXPENSES

Taxes: $0.83/SF (2017)

LEASE

SF Leased: 5,000 SF

Sign Date: May 2017

Space Use: Office

Lease Type: Sublease

Floor: 2nd Floor

LEASE TERM

Start Date: May 2017

Expiration Date: Oct 2022

TIME VACANT

Date Vacated: Sep 2015

Date Occupied: May 2017


TIME ON MARKET

Date On Market: Jun 2014

Date Off Market: May 2017


TENANT REP

Cushman & Wakefield

One E Pratt St, Suite 700

Baltimore, MD 21202

Brian P. Wyatt (410) 347-7804

LEASING REP

CBRE

100 E Pratt St, Suite 1700

Baltimore, MD 21202-1009

Alan Grace (410) 244-3110

Ketchum Secor (410) 244-3118

PROPERTY


Stories: 3



Land Acres: 1.18


Status: Built 1900

Tenancy: Multi

Class: B


Parking: 20 free Surface Spa…

MARKET AT LEASE


0.7%

0.3%


Submarket 2-4 Star

Metro Overall 9.9%

19.6%


0.9%

1.6%


Submarket 2-4 Star


$19.32

-


5.1

175.0%12 Mo. Leased SF 121,329



Page 44



5 100-114 W 22nd StBaltimore, MD 21218 - Baltimore Midtown Submarket

TENANT

Tenant Name: Next Generation Therapeutics

RENTS



Effective Rent: $33.71/FS



PROPERTY EXPENSES

Taxes: $0.70/SF (2017)

LEASE

SF Leased: 356 SF

Sign Date: Mar 2017

Space Use: Office

Lease Type: Direct

Floor: 1st Floor

Suite: Suite C

LEASE TERM

Start Date: Mar 2017

Expiration Date: Feb 2019

Lease Term: 2 Years

TIME VACANT

Date Vacated: Feb 2016

Date Occupied: Mar 2017


TIME ON MARKET


Date Off Market: Mar 2017


TENANT REP

Long & Foster Real Estate, Inc. (Comme…

8227 Old Courthouse Rd, Suite 200

Vienna, VA 22182-3815

Samuel York, Jr. (703) 506-2850 X5743

LEASING REP

Long & Foster Real Estate, Inc. (Comme…

8227 Old Courthouse Rd, Suite 200

Vienna, VA 22182-3815

Samuel York, Jr. (703) 506-2850 X5743

PROPERTY


Stories: 3



Land Acres: 0.03


Status: Built 1900

Tenancy: Multi

Class: B


Parking: 24 Surface Spaces a…

MARKET AT LEASE


3.2%

0.0%


Submarket 1-3 Star

Metro Overall 10.4%

4.7%


5.4%

1.9%


Submarket 1-3 Star


$18.51

-


7.1

59.6%12 Mo. Leased SF 173,034



Page 45



PREPARED BY

Susan Rosko-Thomas


Construction Comps


All-Time Annual Avg. SF

258,940Delivered SF Past 4 Qtrs

75,000Delivery SF Next 4 Qtrs

674,597Proposed SF Next 4 Qtrs

135,000PAST 4 QUARTERS DELIVERIES, UNDER CONSTRUCTION, & PROPOSED

PAST & FUTURE DELIVERIES IN SQUARE FEET

Overall Construction Summary210 E Lexington St - VanSant Bldg


Page 47

Construction OverviewBaltimore Office

While the metro area holds its collective breath waiting tohear about the Amazon HQ2 lottery ticket it bought withits Port Covington bid, office-building demolitions remaina significant supply-related story. A prime example isMonument Realty’s renovation of the Calvert Center at225 N. Calvert St. (CBD Submarket). The 1970s-vintageoffice building is being converted into 346 upscaleapartments, removing 400,000 SF of dated inventoryfrom the market. Additionally, PMC Group has finishedconverting the 150,000 SF U.S. Appraisers Store buildingand commenced its project at 300 St. Paul Place: the314,000 SF former CitiFinancial Building, which willbecome 280 market-rate apartments by 18Q2.

Elsewhere, spec development has picked up. In theColumbia South Submarket, Greenebaum Enterpriseshas a 105,000 SF asset in the booming Business Districtat Maple Lawn. A 60-acre office park in the sprawling500-acre Maple Lawn mixed-use master development,the Business District has over one million SF of upper-

tier office space. Average floor plates exceed 25,000 SF,and ground-floor retail will include dining, banking, anddaycare options.

In the largest office delivery of 2016, the Exelon Tower, a475,000 SF, 20-story office building that housesExelon’s Constellation business unit, opened in 16Q4 inBaltimore's Harbor Point neighborhood. In total, 175,000SF of Class A office space is being built in the city, all ofit speculative. The pipeline could grow considerably in2017: 1 Light Street, which contains nine floors of officespace (66% of it preleased) broke ground this spring,and Beatty Development will reportedly break ground onan additional tower in Harbor Point. In suburbansubmarkets, Fort Meade operations continue to driveoffice development. Within a five-mile radius of the Armyinstallation and cyber security hub, more than 1.7 millionSF of office space has been built this cycle, with anadditional 375,000 SF under construction (about half of itpreleased).

DELIVERIES & DEMOLITIONS


Page 48

Construction OverviewCBD Baltimore Office

Office-to-apartment conversions remain this cycle'sbiggest source of supply, and no new office propertieshave completed since 2010. At least 15, including twoformer Bank of America buildings, have been convertedor demolished, totaling more than two million SF (about7% of inventory, in 2010).

Metropolitan Partnership, the developer behind thelargest office-to-apartment conversion project to date(10 Light St.) went vertical in 2017 with the mixed-use 1Light St., which will include roughly 250,000 SF of 5 Staroffice space, two-thirds of which is preleased. M&TBank will relocate its regional headquarters from 25 S.

Charles St., bringing along a reported 500 employees.

Although the specifics and timeline are unknown,Towson-based Caves Valley Partners purchased thevacant 900,000 SF former Social Security building at300–400 North Greene St. for future redevelopment. Thedeveloper closed on the building for $7.1 million in April2016, and according to The Baltimore Sun, seeks tolease at least one-third of the asset before beginningextensive renovations.

DELIVERIES & DEMOLITIONS


Page 49

UNDER CONSTRUCTION IN SQUARE FEET

PROJECTED DELIVERIES IN SQUARE FEET

3 Mile Radius Construction Activity210 E Lexington St - VanSant Bldg


Page 50


DELIVERIES IN SQUARE FEET

STARTS IN SQUARE FEET


Page 51


PERCENT OCCUPIED AT DELIVERY

DELIVERIES AND OCCUPANCY IN SQUARE FEET


Page 52


NEW CONSTRUCTION OCCUPANCY AFTER DELIVERY BY YEAR BUILT

NET ABSORPTION IN SQUARE FEET


Page 53




Page 54

Properties

4Square Feet

674,597Percent of Inventory

1.6%Preleased

42.5%UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION SUMMARY STATISTICS

Low Average Median High

Building SF 33,094 168,649 155,752 330,000

Stories 3 9 8 17

Typical Floor SF 11,031 18,375 14,735 33,000

Preleasing 1.4% 42.4% 31.8% 66.7%

Estimated Delivery Date August 2018 September 2018 September 2018 October 2018

Months to Delivery 7 8 8 9

Construction Period in Months 10 14 14 19

Star Rating 4.0

Under Construction Summary210 E Lexington St - VanSant Bldg


Page 55

Under Construction Summary210 E Lexington St - VanSant Bldg

COMPLETIONS MORE THAN 6 MONTHS AWAY

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Oct-2017Wills St

Harbor Point - Wills Wharf330,000 12 Aug-2018

Beatty Development Group, LLC

Beatty Development Group, LLC1

May-20171 Light St

One Light234,891 17 Sep-2018

Madison Marquette

-2

Oct-20171265 E Fort Ave

McHenry Row III76,612 5 Oct-2018

-

-3

Mar-201737 W Cross St

Union Bros.33,094 3 Oct-2018

37 West Cross Street LLC

37 West Cross Street LLC4


Page 56





Under Construction Property Details210 E Lexington St - VanSant Bldg

1 Wills St @ S Caroline St - Harbor Point - Wills WharfDistance to Subject Property: 1.1 Miles

AVAILABILITY

Percent Leased: 31.8%

Available SF: 225,000

Gross Asking Rent: $37.59

PROPERTY


Year Built: Delivers Aug 2018

RBA: 330,000 SF

Core Factor: -

Stories: 12


Parking Spaces: -

CONSTRUCTION

Start Date: Oct-2017

Completion Date: Aug-2018

Build Time: 10 Months

Time To Delivery: 7 MonthsCONTACTS

Developer: Beatty Development Gro…

Owner: Beatty Development Gro…

2 1 Light St - One LightDistance to Subject Property: 0.2 Miles

AVAILABILITY



Gross Asking Rent: -

PROPERTY


Year Built: Delivers Sep 2018

RBA: 234,891 SF

Core Factor: -

Stories: 17



CONSTRUCTION

Start Date: May-2017

Completion Date: Sep-2018



Developer: Madison Marquette

Owner: -

Name SF Sign Date Expiration Date

KEY TENANTS

M&T Bank 156,594 Aug-2017 Feb-2034


Page 57



Under Construction Property Details210 E Lexington St - VanSant Bldg

3 1265 E Fort Ave - McHenry Row IIIDistance to Subject Property: 1.8 Miles

AVAILABILITY



Gross Asking Rent: $31.93

PROPERTY


Year Built: Delivers Oct 2018

RBA: 76,612 SF

Core Factor: -

Stories: 5


Parking Spaces: -

CONSTRUCTION

Start Date: Oct-2017

Completion Date: Oct-2018



Developer: -

Owner: -

Name SF Sign Date Expiration Date

KEY TENANTS

Gross Mendelsohn 24,283 Oct-2017 -

4 37 W Cross St - Union Bros.Distance to Subject Property: 1.1 Miles

AVAILABILITY



Gross Asking Rent: -

PROPERTY


Year Built: Delivers Oct 2018

RBA: 33,094 SF

Core Factor: -

Stories: 3


Parking Spaces: -

CONSTRUCTION

Start Date: Mar-2017

Completion Date: Oct-2018



Developer: 37 West Cross Street LLC

Owner: 37 West Cross Street LLC


Page 58



Properties

1Square Feet

75,000Percent Leased

50.0%Asking Rent

-COMPLETED CONSTRUCTION PAST 12 MONTHS

CONSTRUCTION SUMMARY STATISTICS

Low Average Median High

RBA 75,000 75,000 75,000 75,000

Stories 6 6 6 6

Typical Floor SF 12,500 12,500 12,500 12,500

Leases Signed 2 2 2 2

Percent Leased 50.0% 50.0% 50.0% 50.0%

Asking Rent - - - -

Star Rating 3.0

Completed Construction Past 12 Months210 E Lexington St - VanSant Bldg


Page 59

Completed Construction Past 12 Months210 E Lexington St - VanSant Bldg

Property Name/Address Rating RBA Stories Complete Leased Developer/Owner

Apr-2017145 W Ostend St

Stadium Square75,000 6 50.0%

Caves Valley Partners

Caves Valley Partners1


Page 60


Deliveries Past 12 Months210 E Lexington St - VanSant Bldg

1 145 W Ostend St - Stadium SquareBaltimore, MD 21230 - Baltimore Southwest Submarket

AVAILABILITY



Asking Rent: -

PROPERTY


Tenancy: Multi-Tenant

Yr Blt/Renov: 2017

Property Size: 75,000 SF

Stories: 6



Distance To Subj… 1.2 Miles

Distance To Transit: 7 Minute Walk

CONSTRUCTION

Start Date: May-2016

Completion Date: Apr-2017


Time Since Delivery: 9 Months

DEVELOPER

Caves Valley PartnersOWNER

Caves Valley Partners

-

AVAILABLE SPACES

Rent

Space Type

Floor Use

Square Feet

Type SF AvailOccupancySuite Listing CompanyBldg Contig

Cushman & WakefieldWithheld12,50012,500NewOfficeE 1st - Vacant

Cushman & WakefieldWithheld12,50012,500NewOfficeE 2nd - Vacant

Cushman & WakefieldWithheld12,50012,500NewOfficeE 3rd - Vacant

All Spaces 37,500 12,500 -

-


Page 61



PREPARED BY

Susan Rosko-Thomas


Sale Comps


Sale Comps210 E Lexington St - VanSant Bldg

Sale Comparables

15Avg. Cap Rate

-Avg. Price/SF

$91Avg. Vacancy At Sale

9.5%SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High

Sale Price $335,000 $937,220 $737,500 $1,932,500

Price Per SF $53 $91 $81 $198

Cap Rate - - - -

Time Since Sale in Months 2.8 14.1 14.8 23.7

Property Attributes Low Average Median High

Building SF 5,600 10,310 8,206 17,710

Stories 2 3 3 4

Typical Floor SF 1,400 4,084 2,712 8,855

Vacancy Rate At Sale 0% 9.5% 0% 100%

Year Built 1886 1927 1920 1982

Star Rating 1.9


Page 63


Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF

Property

Sale Date

Sale

Cap Rate

-1 1001 N Calvert St1886 7,600 0% $1,223,000 $16110/31/2017 -

-2 2519 N Charles St1960 17,400 0% $1,100,000 $6310/31/2017 -

-3 Park Sign1935 14,723 100% $1,532,000 $104

880 Park8/24/2017 -

-4 717 Light St1900 9,075 0% $1,800,000 $1985/30/2017 -

-5 2521 N Charles St1960 16,400 0% $1,400,000 $854/25/2017 -

-6 805 N Calvert St1900 5,712 0% $459,900 $811/25/2017 -

-7 2112 Maryland Ave1900 6,970 0% $540,000 $7712/20/2016 -

-8 1100 Cathedral St1924 6,825 0% $545,000 $8011/1/2016 -

-9 Mueller Bldg1982 17,710 0% $1,932,500 $109

1401 S Edgewood St7/12/2016 -

-10 6 E Eager St- 16,388 0% $875,000 $536/6/2016 -

-11 825 Park Ave1956 7,719 0% $433,400 $565/19/2016 -

-12 16 S Frederick St1914 5,600 0% $335,000 $605/16/2016 -

-13 1019 Cathedral St1915 5,601 0% $595,000 $1065/4/2016 -

-14 315 N Charles St1920 8,206 0% $737,500 $904/21/2016 -

-15 2126 Maryland Ave1920 8,716 0% $550,000 $632/3/2016 -


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http://gateway.costar.com/Gateway/Redir/RedirectToProduct.aspx?productId=PPW&redirUrl=%2Fredir%2Fdefault.aspx%3Feid%3D139974%26ProductMode%3DProperty%26SelectedTab%3Dsale%26external%3D1
















CBD BALTIMORE INVESTMENT TRENDS

Sales volume in the CBD set a record in 2015, and evenwith diminished investment, the last two years' volumehas easily topped the submarket's historical average.Over 30% of the CBD's office inventory has soldbetween 2015–2017.

This year's largest sale occurred in February, when the590,000 SF Candler Building, at 111 Market Place, soldfor $60.1 million to American Real Estate PartnersManagement. The seller, which purchased the building in2003 for $63 million at a 10% cap rate, reported that theproceeds from the sale were $44.1 million, "net of creditsfor contractual lease costs, capital, and rent abatements."Primarily due to the move-out of Constellation Energy(Exelon) in 16Q4, the asset was about 20% vacant and

available for lease at the time of sale.

Shortly after 111 Market Place closed, the seller alsoclosed on the sale of the 360,000 SF 25 S. Charles St.,to a Boston-based firm. The asset was nearly 100%leased when sold, because it serves as M&T Bank'sheadquarters. However, 200,000-plus SF occupied bythe bank is marketed for lease and will likely be vacant in2018 (M&T Bank is moving its regional headquarters intothe 1 Light Street project, where site work has begun).The time to re-lease the impending vacant spaceaffected the sale price, which was $24.5 million($68,000/SF). The buyer, Grander Capital Partners,plans to update the lobby, fitness center, and cafe.

CBD BALTIMORE SALES VOLUME & PRICE PER SF


Page 65


BALTIMORE - MD INVESTMENT TRENDS

While rent growth here remains tame compared with thatof more high-tempo office markets, solid fundamentalsand a diverse workforce keep investors active in theBaltimore office market. This cycle’s yearly inventoryturnover has been remarkably consistent and 2017finished as the second-highest volume year since 2010.The fourth quarter of 2017 started out with a pair oftrades that eclipsed $30 million, including a deal inBaltimore’s CBD that sent the 25-story, 325,000 SF 120East Baltimore St. from one Boston area ownershipgroup (Franklin Street Partners) to another (GranderCapital Partners). While a broker’s press release labeledthe sale indicative of a hot submarket, the building was25% vacant and sold for a $30 million discount to itsprevious, prerecession price tag.

In February 2017, the 590,000 SF Candler Building, at111 Market Place, sold for $60.1 million. According to theseller, which purchased the building in 2003 for $63million at a 10% cap rate, proceeds from the sale were$44.1 million “net of credits for contractual lease costs,capital, and rent abatements.” After the move-out ofConstellation Energy in 16Q4, the asset was about 20%vacant and available for lease at the time of sale.

Shortly after 111 Market Place closed, the seller alsoclosed on the sale of the 360,000 SF 25 South CharlesSt. to a Boston-based company. At the time of sale, theasset was nearly 100% leased, serving as M&T Bank’sregional headquarters. However, the 200,000-plus SFoccupied by the bank is marketed for lease and will likelybe vacant in 2018. (M&T is rumored to be moving intothe proposed 1 Light Street project, where site work hasbegun.) The time needed to re-lease the impendingvacant space affected the $24.5 million sale price($68/SF). The buyer, Grander Capital Partners, plans toupdate the lobby, fitness center, and cafe.

The biggest deal in 2016 involved 100 East Pratt St.,which sold for $187 million ($282/SF) to New Jersey-based Vision Properties. The building was essentially fullat the time of sale and is anchored by T. Rowe Price,which recently renewed its lease for more than 440,000SF through 2027. The seller, Columbia Properties Trust,generally targets high-barrier markets and wanted tounload the lone remaining Charm City asset in itsportfolio.

BALTIMORE SALES VOLUME & PRICE PER SF


Page 66

Sale Comps Details210 E Lexington St - VanSant Bldg

1 1001 N Calvert StDistance to Subject Property: 0.7 Miles

PROPERTY


Yr Blt/Renov: 1886

RBA: 7,600 SF

Stories: 4


Vacancy At S… 0%

Parking: 12: 2.00/1,000 SF

SALE

Sale Type: Owner/User

Sale Date: 10/31/2017

Time On Mar… 285 Days

Sale Price: $1,223,000

Price/SF: $161

CONTACTS

Buyer: Kandel & Associates

Seller: Steven & Linda Rivelis

Buyer Broker: Hubble Bisbee Group -…

Listing Broker: Keller Williams Flagshi…

SALE TERMS

Sale Conditio… Bulk/Portfolio Sale

TRANSACTION NOTES

The consideration recorded on the attached deed was drawn up for transfer tax purposes only, and does not reflect the full consideration value of$1.223 million.

Kandel & Associates will use the property for their law firm, and expect to move in by June of 2018.

The details of this comparable were confirmed with the listing broker, a buyer representative, and via public record.


PROPERTY


Yr Blt/Renov: 1960

RBA: 17,400 SF

Stories: 2


Vacancy At S… 0%

Parking: 9: 0.83/1,000 SF

SALE


Sale Date: 10/31/2017



Price/SF: $63

CONTACTS

Buyer: Robert W. Deutsch Fou…

Seller: The Afro-American New…

Listing Broker: RE/MAX Commercial L…

-

TRANSACTION NOTES

The details of this comparable were confirmed via public record only.


Page 67




3 880 Park - Park SignDistance to Subject Property: 0.8 Miles

PROPERTY


Yr Blt/Renov: 1935

RBA: 14,723 SF

Stories: 3


Vacancy At S… 100%

Parking: 10: 0.47/1,000 SF

SALE

Sale Type: Investment

Sale Date: 8/24/2017



Price/SF: $104

CONTACTS

Buyer: Jabber Five Real Estate…

Seller: The Catholic Review

SALE TERMS

Financing: Unknown: Branch B…

TRANSACTION NOTES

Jabber Five Real Estate Group acquired the property as an investment. At the time of writing this comparable, the property was available for lease at$20/SF/YR plus utilities. No brokers were involved in the transaction.

Note that the first floor of the three story property is a parking garage.

The details of this comparable were verified with the seller, the buyer's website, and via public record.

4 717 Light StDistance to Subject Property: 0.8 Miles

PROPERTY


Yr Blt/Renov: 1900; Renov 1986

RBA: 9,075 SF

Stories: 4


Vacancy At S… 0%

Parking: 6: 0.66/1,000 SF

SALE



Time On Mar… 1 Yr 5 Mos


Price/SF: $198

CONTACTS

Buyer: Wing Hing Trading Corp

Seller: Milestone Hospitility M…

Listing Broker: Blue & Obrecht Realty,…

-

TRANSACTION NOTES

Wing Hing Trading Corp acquired a 9,075 SF office building from Milestone Hospitility Management, LLC on May 30th, 2017.

The former paid $1.8M or $198.35 per square foot, the property had been on the market for 14 months.

The sale price and size were confirmed by source(s) deemed reliable.


Page 68





PROPERTY



RBA: 16,400 SF

Stories: 2


Vacancy At S… 0%

Parking: 26: 1.56/1,000 SF

SALE




Price/SF: $85

CONTACTS

Buyer: House of Ruth Maryland

Seller: Trinity Partners Ltd

-

TRANSACTION NOTES

House of Ruth Maryland acquired a 16,400 SF office building from Trinity Partners Ltd on April 25th, 2017.

The former paid $1.4 Million or $85.27 per square foot and will occupy the entire building. No decision has been made as to when they will be movingin, there was no recorded financing.

The sale price, size and motivation were confirmed by source(s) deemed reliable.

6 805 N Calvert StDistance to Subject Property: 0.5 Miles

PROPERTY


Yr Blt/Renov: 1900

RBA: 5,712 SF

Stories: 4


Vacancy At S… 0%

Parking: 2.86/1,000 SF

SALE



Time On Mar… 1 Yr 1 Mo

Sale Price: $459,900

Price/SF: $81

CONTACTS

Seller: St Ignatius Historic Tru…

Listing Broker: Coldwell Banker Comm…

-


Page 69




7 2112 Maryland AveDistance to Subject Property: 1.6 Miles

SALE

Sale Date: 12/20/2016


Price/SF: $77

PROPERTY


Yr Blt/Renov: 1900

RBA: 6,970 SF

Stories: 3


Vacancy At S… 0%

Parking: 10: 1.43/1,000 SF

-

CONTACTS

Buyer: 2112-14 Maryland Aven…

Seller: Roberts-norris Realty Llc

Buyer Broker: Marcus & Millichap Inc…

Listing Broker: Marcus & Millichap Inc…

8 1100 Cathedral StDistance to Subject Property: 0.8 Miles

SALE





Price/SF: $80

PROPERTY



RBA: 6,825 SF

Stories: 2


Vacancy At S… 0%

Parking: 10: 1.47/1,000 SF-

CONTACTS

Buyer: Doubledge Design, LLC

Seller: Khan Realty, LLC


Page 70




9 1401 S Edgewood St - Mueller BldgDistance to Subject Property: 3.7 Miles

SALE



Time On Mar… 1 Yr 2 Mos


Price/SF: $109

PROPERTY


Yr Blt/Renov: 1982

RBA: 17,710 SF

Stories: 2


Vacancy At S… 0%

Parking: 75: 4.63/1,000 SF-

CONTACTS

Buyer: Maghari Enterprises, LLC

Seller: The Mueller Partnership

Buyer Broker: Lancelotta Real Estate -…

Listing Broker: SVN Realsite - Tony Ca…

10 6 E Eager StDistance to Subject Property: 0.7 Miles

PROPERTY


RBA: 16,388 SF

Stories: 4


Vacancy At S… 0%

Parking: 0.12/1,000 SF

SALE

Sale Date: 6/6/2016


Price/SF: $53

CONTACTS

Buyer: Access Holdings Mana…

Seller: Bona Nova Inc

SALE TERMS

Financing: 1st Mortgage: First…


Page 71




11 825 Park AveDistance to Subject Property: 0.7 Miles

SALE




Price/SF: $56

PROPERTY


Yr Blt/Renov: 1956

RBA: 7,719 SF

Stories: 3


Vacancy At S… 0%

Parking: 2: 0.85/1,000 SFSALE TERMS

Sale Conditio… REO Sale

Financing: 1st Mortgage Bal/P…

CONTACTS

Buyer: Darly R Romain

Seller: PNC Financial Services…

Listing Broker: Re/Max First Choice - M…

12 16 S Frederick StDistance to Subject Property: 0.3 Miles

SALE



Time On Mar… 5 Yrs 4 Mos


Price/SF: $60

PROPERTY


Yr Blt/Renov: 1914

RBA: 5,600 SF

Stories: 4


Vacancy At S… 0%

Parking: 2: 0.35/1,000 SFSALE TERMS

Sale Conditio… Deferred Maintenan…

CONTACTS

Buyer: Preller Law Firm

Seller: Jones Networking

Listing Broker: NAI KLNB - Abby Glass…


Page 72




13 1019 Cathedral StDistance to Subject Property: 0.8 Miles

PROPERTY



RBA: 5,601 SF

Stories: 3


Vacancy At S… 0%

Parking: 5: 1.25/1,000 SF

SALE


Sale Date: 5/4/2016



Price/SF: $106

CONTACTS

Buyer: 1019 Cathedral LLC

Seller: Flowers By Chris, Inc.

Listing Broker: Coldwell Banker Reside…

-

TRANSACTION NOTES

This transaction was confirmed by the seller. He confirmed the address as 1019 Cathedral st Baltimore MD, sale date 05/04/2016, sale price$595,000, and the square footage 5,601. He confirmed who the buyer and seller were also. All other info was verified through public record andassessor.


PROPERTY



RBA: 8,206 SF

Stories: 4


Vacancy At S… 0%

Parking: 5

SALE





Price/SF: $90

CONTACTS

Buyer: Lavie Popack

Seller: W&K Charles Street, LLC

Listing Broker: Transwestern - Brian W…

-


Page 73




15 2126 Maryland AveDistance to Subject Property: 1.6 Miles

SALE


Sale Date: 2/3/2016


Price/SF: $63

PROPERTY


Yr Blt/Renov: 1920

RBA: 8,716 SF

Stories: 4


Vacancy At S… 0%

Parking: 0.00/1,000 SFSALE TERMS

Financing: 1st Mortgage Bal/P…

CONTACTS

Buyer: K&S Management, LLC


Page 74


Sales Volume210 E Lexington St

CBD BALTIMORE SUBMARKET SALES VOLUME IN SQUARE FEET

DOWNTOWN BALTIMORE CITY SUBMARKET CLUSTER SALES VOLUME IN SQUARE FEET

BALTIMORE METRO SALES VOLUME IN SQUARE FEET


Page 75

Sales Pricing210 E Lexington St - VanSant Bldg

NATIONAL PRICE INDICES

REGIONAL OFFICE PRICE INDICES


Page 76

Sales Pricing210 E Lexington St - VanSant Bldg

PRICE PER SF INDEX

UNITED STATES OFFICE PRICE PER SF IN PAST YEAR BALTIMORE OFFICE PRICE PER SF IN PAST YEAR

PRICE PER SF SUMMARY OF SALES IN PAST YEAR

Geography HighTop 25%AverageMedianBottom 25%LowTransactions

$7,015United States 17,829 $0.08 $43 $121 $232 $411

$481Baltimore 194 $23 $62 $116 $139 $218

$161Downtown Baltimore City 25 $23 $38 $78 $72 $129

$102CBD Baltimore 9 $27 $36 $69 $78 $96

$198Selected Sale Comps 15 $53 $58 $81 $91 $144


Page 77

Cap Rates210 E Lexington St - VanSant Bldg

CAP RATE TRENDS

UNITED STATES OFFICE CAP RATES IN PAST YEAR BALTIMORE OFFICE CAP RATES IN PAST YEAR

CAP RATE SUMMARY OF SALES IN PAST YEAR

Geography HighTop 25%AverageMedianBottom 25%LowTransactions

24.0%United States 3,500 0.9% 5.1% 7.3% 7.4% 9.8%

18.0%Baltimore 33 4.3% 5.9% 8.0% 7.9% 10.3%

8.6%Downtown Baltimore City 7 4.3% 4.7% 6.4% 6.3% 7.8%

8.6%CBD Baltimore 4 4.3% 4.3% 6.0% 6.2% 8.6%

-Selected Sale Comps 0 - - - - -


Page 78

Buyers210 E Lexington St - VanSant Bldg

TOP BALTIMORE OFFICE BUYERS PAST TWO YEARS

Purchased at least one asset in CBD Baltimore submarket

Properties Bought

Company Name Bldgs VolumeSF

Properties Sold

SF BldgsVolume

Vision Properties, LLC 1 662,708 $187,000,000 0 0 -

CBRE Global Investors Ltd 1 613,006 $165,119,296 0 0 -

Grander Capital Partners LLC 5 978,050 $106,400,000 0 0 -

Northrop Grumman Corporation 2 315,350 $79,000,000 0 0 -

RFP Realty Trust 11 373,393 $67,694,586 0 0 -

CSG Partners, LLC 16 516,768 $61,599,999 12 301,106 $31,500,000

America's Capital Partners 1 589,380 $60,100,000 0 0 -

Tritower Financial Group, LLC 3 265,354 $57,449,999 0 0 -

Fernau LeBlanc Investment Partners 9 431,546 $43,375,498 1 27,850 $4,075,000

Angelo, Gordon & Co. 2 184,874 $38,668,656 0 0 -

MCB Real Estate, LLC 2 184,874 $38,668,656 0 0 -

Caves Valley Partners 5 1,114,973 $38,056,615 4 215,081 $30,982,875

Healthcare Realty Services Incorporated 2 113,631 $36,275,000 0 0 -

The Howard Hughes Corporation 2 224,084 $35,750,000 0 0 -

Johns Hopkins University 4 198,440 $34,149,934 0 0 -

Boston Andes Capital LLC 1 326,822 $32,800,000 0 0 -

Stoltz Real Estate Partners 1 215,064 $32,500,000 0 0 -

Origami Capital Partners, LLC 12 301,106 $31,500,000 0 0 -

Merritt Properties, LLC 1 121,414 $24,550,000 0 0 -

Continental Realty Corporation 1 104,204 $21,000,000 1 10,151 $1,921,596

Workshop Development 1 104,204 $21,000,000 0 0 -

Pratt Street Capital LLC 3 162,776 $19,125,000 0 0 -

Maryland Port Administration 2 259,070 $18,659,358 1 161,109 $10,417,410

Abrams Development Group 3 92,814 $17,893,420 0 0 -

Adler Kawa Real Estate Advisors 3 120,963 $16,429,999 0 0 -

TYPES OF OFFICE BALTIMORE BUYERS PAST TWO YEARS

Company Type Bldgs Millions Avg PricePrice/SF

Average Purchase

SF

Buying Volume

Private 151 7,654,909 $115 $5,856,632$884.4

Institutional 18 2,446,092 $168 $22,913,523$412.4

User 44 2,290,860 $110 $5,769,660$253.9

Private Equity 28 1,226,705 $112 $4,923,916$137.9

REIT/Public 4 337,715 $213 $18,006,250$72

$0 $230.0 $460.0 $690.0 $920.0


Page 79

Sellers210 E Lexington St - VanSant Bldg

TOP BALTIMORE OFFICE SELLERS PAST TWO YEARS

Sold at least one asset in CBD Baltimore submarket

Properties Sold

Company Name Bldgs VolumeSF

Properties Bought

SF BldgsVolume

Columbia Property Trust 1 662,708 $187,000,000 0 0 -

H&S Bakery Inc 1 613,006 $165,119,296 0 0 -

Greenfield Partners LLC 19 853,119 $136,433,289 0 0 -

Corporate Office Properties Trust 21 1,064,768 $124,648,708 0 0 -

Goldman Sachs Group, Inc. 8 550,088 $94,689,998 0 0 -

Equity Commonwealth 3 1,298,858 $84,600,000 0 0 -

Hudson Americas, LP 2 315,350 $79,000,000 0 0 -

Normandy Real Estate Partners 3 255,278 $45,283,656 0 0 -

Cross Street Partners 2 184,874 $38,668,656 0 0 -

Kinsley Properties 2 113,631 $36,275,000 0 0 -

MacKenzie Commercial Real Estate Servic… 2 113,631 $36,275,000 0 0 -

Franklin Street Properties Corporation 1 326,822 $32,800,000 0 0 -

Blue Vista 12 301,106 $31,500,000 1 125,000 $9,000,000

CSG Partners, LLC 12 301,106 $31,500,000 16 516,768 $61,599,999

Caves Valley Partners 4 215,081 $30,982,875 5 1,114,973 $38,056,615

Rockefeller Group 1 121,414 $24,550,000 0 0 -

Guardian Realty Investors 1 97,364 $22,250,000 0 0 -

Hunt Companies 1 104,204 $21,000,000 0 0 -

Deutsche Bank AG 3 289,070 $20,399,358 0 0 -

Starwood Capital Group 4 250,285 $17,878,818 0 0 -

Altus Realty Partners 1 84,262 $17,550,000 0 0 -

Exeter Property Group 3 114,178 $16,599,934 0 0 -

AEW Capital Management 3 120,963 $16,429,999 0 0 -

First Potomac Realty Trust 6 348,540 $16,429,999 0 0 -

Harrison Street Capital 1 74,296 $15,600,000 0 0 -

TYPES OF OFFICE BALTIMORE SELLERS PAST TWO YEARS

Company Type Bldgs Millions Avg PricePrice/SF

Average Sale

SF

Selling Volume

Institutional 59 3,738,192 $137 $8,711,900$514

Private 126 3,810,855 $131 $3,985,107$502.1

REIT/Public 34 3,766,519 $119 $13,208,197$449.1

User 21 2,479,216 $92 $10,921,521$229.4

Private Equity 13 382,856 $93 $2,742,307$35.7

$0 $130 $260 $390 $520


Page 80


PREPARED BY

Susan Rosko-Thomas


Demographics


Demographic Overview210 E Lexington St

Population (1 mi)

46,810Avg. HH Size (1 mi)

1.7Avg. Age (1 mi)

36Med. HH Inc. (1 mi)

$41,133DEMOGRAPHIC RADIUS RINGS

DEMOGRAPHIC SUMMARY

5 Mile3 Mile1 MilePopulation

553,067273,27746,8102017 Population

553,286273,86947,4172022 Population

0.0%0.2%1.3%Pop Growth 2017-2022

3736362017 Average Age

Households

220,206113,21021,6892017 Households

220,284113,56522,0712022 Households

0.0%0.3%1.8%Household Growth 2017-2022

$44,312$42,741$41,133Median Household Income

2.42.31.7Average Household Size

111Average HH Vehicles

Housing

$163,687$181,096$281,121Median Home Value

194819471968Median Year Built


Page 82


PREPARED BY

Susan Rosko-Thomas


Appendix


Historical Leasing Data210 E Lexington St - VanSant Bldg

PEERS HISTORICAL LEASING DATA

Available Space Gross Direct Asking Rent

Quarter AvailabilitySF Vacancy Direct Net Absorption SFRent Growth Leasing SF

Demand

QTD 29.8% 26.7% $22.77 -1.1% (319) 074,315

2017 Q4 29.8% 26.6% $23.03 -0.6% 981 2,19274,315

2017 Q3 42.3% 27.0% $23.18 -1.2% (26,866) 0105,374

2017 Q2 31.5% 16.2% $23.46 12.1% 2,524 3,45478,508

2017 Q1 34.1% 17.2% $20.92 13.1% (1,734) 2,85085,032

2016 Q4 29.5% 16.5% $18.50 4.1% 9,648 10,47473,487

2016 Q3 30.2% 20.4% $17.78 8.8% 6,179 10,14175,356

2016 Q2 30.5% 22.9% $16.33 -15.8% 2,904 075,914

2016 Q1 24.9% 24.0% $19.40 -0.8% 1,370 5,62461,971

2015 Q4 26.0% 24.6% $19.55 -3.3% 4,212 4,02364,711

2015 Q3 29.9% 26.3% $20.22 0.0% 6,644 074,423

2015 Q2 29.4% 28.9% $20.22 0.5% (600) 9,34473,173

CBD BALTIMORE SUBMARKET HISTORICAL LEASING DATA



Demand

QTD 17.1% 13.2% $21.74 -2.5% (46,725) 14,2673,975,824

2017 Q4 17.2% 13.0% $22.28 0.3% (38,498) 120,9863,991,125

2017 Q3 16.8% 12.8% $22.22 -0.7% (21,150) 242,0083,904,620

2017 Q2 16.3% 12.7% $22.38 1.2% 257,821 164,6213,768,584

2017 Q1 16.5% 13.9% $22.12 0.2% 35,061 276,6893,777,591

2016 Q4 16.7% 14.0% $22.07 0.0% (376,377) 268,4333,827,309

2016 Q3 16.4% 12.4% $22.07 0.8% 58,647 187,8823,772,984

2016 Q2 17.7% 12.6% $21.90 0.0% 37,215 339,9904,054,768

2016 Q1 18.2% 12.8% $21.90 1.5% (66,780) 218,6374,171,491

2015 Q4 16.8% 12.5% $21.57 4.3% (21,553) 64,2023,847,852

2015 Q3 16.1% 12.4% $20.69 -0.1% 23,215 174,0563,702,534

2015 Q2 16.0% 12.5% $20.71 2.4% 73,029 310,3823,669,291


Page 84

Historical Leasing Data210 E Lexington St - VanSant Bldg

DOWNTOWN BALTIMORE CITY SUBMARKET CLUSTER HISTORICAL LEASING DATA



Demand

QTD 15.9% 11.2% $21.19 -2.7% 39 26,8184,813,924

2017 Q4 14.6% 11.2% $21.79 -0.3% (32,352) 190,5404,419,568

2017 Q3 14.6% 11.1% $21.84 -0.6% (81,678) 268,6834,409,387

2017 Q2 14.0% 10.8% $21.99 1.3% 274,674 200,9354,248,112

2017 Q1 14.2% 11.7% $21.71 0.5% 89,727 305,2844,248,288

2016 Q4 14.3% 12.0% $21.61 -0.4% (254,056) 308,5674,290,173

2016 Q3 14.5% 11.2% $21.69 0.7% 110,985 216,3374,342,336

2016 Q2 15.4% 11.4% $21.55 0.2% 46,861 372,7284,636,578

2016 Q1 15.9% 11.6% $21.51 1.7% (117,760) 290,3444,768,240

2015 Q4 14.6% 11.2% $21.15 3.8% (22,365) 93,8064,392,139

2015 Q3 14.3% 11.0% $20.38 -0.4% 2,609 199,7524,272,197

2015 Q2 14.2% 11.0% $20.47 2.5% 108,597 337,2174,243,387

BALTIMORE METRO HISTORICAL LEASING DATA



Demand

QTD 13.8% 10.1% $22.84 -1.3% (105,670) 232,80019,836,654

2017 Q4 13.4% 10.0% $23.15 2.0% 700 1,616,40019,324,850

2017 Q3 13.6% 9.8% $22.71 0.2% 235,189 1,132,74919,471,558

2017 Q2 13.5% 9.9% $22.67 0.1% 423,725 1,382,99319,294,028

2017 Q1 13.7% 10.0% $22.66 0.6% 981,431 1,560,87919,558,797

2016 Q4 13.9% 10.5% $22.53 1.2% 371,046 1,762,67919,791,494

2016 Q3 13.9% 10.0% $22.27 0.5% 239,583 1,541,58019,782,191

2016 Q2 14.0% 10.1% $22.15 -0.1% 756,510 1,898,68719,838,381

2016 Q1 13.9% 10.3% $22.17 0.6% (112,643) 1,969,09019,679,447

2015 Q4 13.5% 10.1% $22.04 2.2% 271,503 1,411,67419,043,333

2015 Q3 13.5% 10.3% $21.56 0.7% 238,247 1,255,52719,088,217

2015 Q2 13.5% 10.3% $21.42 0.1% 885,417 1,625,91519,005,024


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Historical Construction Data210 E Lexington St - VanSant Bldg

3 MILE RADIUS HISTORICAL DATA

Bldgs Bldg SF Vacancy Bldgs Bldg SF Leased

Inventory Deliveries

Quarter

Under Construction

Bldg SFBldgs Preleased

QTD 42,853,225 10.5% 0 0 0.0%1,329 4 674,597 42.4%

2017 Q4 42,853,225 10.3% 0 0 0.0%1,329 4 674,597 47.3%

2017 Q3 42,853,225 10.2% 0 0 0.0%1,329 2 267,985 100%

2017 Q2 42,853,225 10.0% 1 75,000 0.0%1,329 2 267,985 100%

2017 Q1 43,108,024 11.2% 0 0 0.0%1,330 2 108,094 30.6%

2016 Q4 43,108,024 10.8% 2 641,336 92.8%1,330 1 75,000 0.0%

2016 Q3 42,547,243 10.4% 2 82,500 81.2%1,329 3 716,336 82.3%

2016 Q2 42,576,459 10.6% 1 174,120 100%1,329 5 798,836 79.4%

2016 Q1 42,434,172 10.6% 0 0 0.0%1,329 4 860,456 88.4%

2015 Q4 42,977,272 11.4% 1 24,800 100%1,331 4 860,456 88.4%

2015 Q3 43,137,624 11.6% 0 0 0.0%1,332 4 840,256 88.4%

2015 Q2 43,137,624 11.5% 0 0 0.0%1,332 4 840,256 87.8%

CBD BALTIMORE SUBMARKET HISTORICAL DATA



Quarter

Under Construction


QTD 22,953,153 13.2% 0 0 0.0%295 1 234,891 66.7%

2017 Q4 22,953,153 13.0% 0 0 0.0%295 1 234,891 66.7%

2017 Q3 22,953,153 12.8% 0 0 0.0%295 1 234,891 100%

2017 Q2 22,953,153 12.7% 0 0 0.0%295 1 234,891 100%

2017 Q1 23,282,952 15.1% 0 0 0.0%297 0 0 0.0%

2016 Q4 23,282,952 13.8% 0 0 0.0%297 0 0 0.0%

2016 Q3 23,363,507 12.5% 0 0 0.0%298 0 0 0.0%

2016 Q2 23,475,223 12.8% 0 0 0.0%300 0 0 0.0%

2016 Q1 23,475,223 12.5% 0 0 0.0%300 0 0 0.0%

2015 Q4 24,018,323 14.2% 0 0 0.0%302 0 0 0.0%

2015 Q3 24,197,315 14.5% 0 0 0.0%303 0 0 0.0%

2015 Q2 24,197,315 14.5% 0 0 0.0%303 0 0 0.0%


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Historical Construction Data210 E Lexington St - VanSant Bldg

DOWNTOWN BALTIMORE CITY CLUSTER HISTORICAL DATA



Quarter

Under Construction


QTD 30,011,702 11.2% 0 0 0.0%787 1 234,891 66.7%

2017 Q4 30,011,702 11.2% 0 0 0.0%787 1 234,891 66.7%

2017 Q3 30,011,702 11.1% 0 0 0.0%787 1 234,891 100%

2017 Q2 30,011,702 10.8% 0 0 0.0%787 1 234,891 100%

2017 Q1 30,341,501 12.7% 0 0 0.0%789 0 0 0.0%

2016 Q4 30,341,501 11.9% 0 0 0.0%789 0 0 0.0%

2016 Q3 30,422,056 11.3% 1 45,000 80.7%790 0 0 0.0%

2016 Q2 30,488,772 11.6% 0 0 0.0%791 1 45,000 100%

2016 Q1 30,520,605 11.4% 0 0 0.0%792 1 45,000 100%

2015 Q4 31,063,705 12.6% 1 24,800 100%794 1 45,000 100%

2015 Q3 31,217,897 12.7% 0 0 0.0%794 1 24,800 100%

2015 Q2 31,217,897 12.8% 0 0 0.0%794 1 24,800 100%

BALTIMORE METRO HISTORICAL DATA



Quarter

Under Construction


QTD 142,363,914 10.1% 0 0 0.0%6,476 12 1,471,775 44.3%

2017 Q4 142,363,914 10.0% 3 309,392 59.5%6,476 11 1,353,161 50.5%

2017 Q3 142,094,412 9.9% 1 130,000 17.5%6,474 11 1,228,414 65.0%

2017 Q2 141,965,390 9.9% 5 271,162 45.3%6,474 10 1,286,334 64.4%

2017 Q1 142,219,267 10.4% 3 311,579 79.8%6,473 14 1,322,605 59.1%

2016 Q4 141,907,688 10.6% 8 1,260,576 57.5%6,470 13 1,052,133 60.6%

2016 Q3 140,751,567 10.2% 7 150,374 71.7%6,464 18 2,045,681 62.1%

2016 Q2 140,712,909 10.2% 7 558,620 77.2%6,459 23 2,093,341 64.5%

2016 Q1 140,186,122 10.3% 4 105,190 26.0%6,453 24 2,403,381 72.2%

2015 Q4 140,680,484 10.6% 3 42,400 97.3%6,452 23 2,147,059 71.0%

2015 Q3 140,823,236 10.8% 3 173,080 62.3%6,451 17 1,801,445 79.1%

2015 Q2 140,656,324 10.9% 2 234,168 87.7%6,450 14 1,431,995 76.7%


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