VALUE-ADD TYSONS OFFICE OPPORTUNITY STEPS TO SPRING HILL METRORAIL STATION EXECUTIVE SUMMARY

Transcription

1 VALUE-ADD TYSONS OFFICE OPPORTUNITY STEPS TO SPRING HILL METRORAIL STATION EXECUTIVE SUMMARY

2 EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS Institutional-Quality 150,897 SF Tysons Office Asset Over $3.3 Million In Recent Capital Improvements 60% Leased To 9 Tenants Effective May 2017; Value- Add Investment Opportunity In-Place Office Rents That Are 9% Below Market Steps To The Spring Hill Silver Line Metrorail Station Direct Leesburg Pike (Route 7) Access Provides Connectivity To The Capital Beltway (I-495) & Dulles Toll Road (Route 267) Highly Walkable Existing Amenity Base; Ruth s Chris Steak House On Site The Boro A Transformational 4.2 Million Square Foot Mixed-Use Development Located A Half Mile Or One Metro Stop From The Property Free & Clear of Existing Debt ( HFF ), as exclusive representative for the Owner, is pleased to present this offering for the sale of 8521 Leesburg Pike (the Property ), a 150,897 square foot institutionalquality office asset located just steps from the Spring Hill Silver Line Metrorail Station in the Tysons submarket of Northern Virginia. The completion of the first phase of the $5.7 billion Silver Line has been transformational for both Tysons and the Property, now connecting tenants and area residents via mass transit to other key regional employment hubs such as Reston, the Rosslyn-Ballston Corridor, and downtown Washington, DC. Furthermore, Phase II of the Silver Line, which is scheduled to open in 2020, will provide direct access to Washington Dulles International Airport and connect additional employees to Tysons, Northern Virginia s largest employment hub. The Silver Line is driving significant transit-oriented development in Tysons, most notably headlined by The Boro a 4.2 million square foot mixed-use development project located a half mile southeast of or one Metrorail stop from the Property. At full buildout, The Boro will feature significant retail, a flagship Whole Foods Market, a Showplace Icon Theater, over 2,000 apartments, 1.9 million square feet of office, 640,000 square feet of hotel space, 7 parks, and a public library, further adding to and diversifying an already amenityrich Tysons submarket. PROPERTY OVERVIEW Address 8521 Leesburg Pike Tysons, Virginia Rentable Area 150,897 SF (BOMA) Year Built 1984; Renovated Stories 7 Typical Floor Plate ± 22,000 RSF Parking Ratio 3.8 spaces per 1,000 SF (structured & surface) Site Area 141,134 SF (3.24 acres) Zoning C-7, Fairfax County Major Tenancy Systems Made Simple, Inc. 29,529 SF 20% of RBA Baum Romstedt Technology Research Corporation 28,308 SF 19% of RBA Ruth s Chris Steak House 10,422 SF 7% of RBA WALKABLE AMENITIES 2 The recent beneficiary of more than $3.3 million in capital improvements, 8521 Leesburg Pike is currently 92% leased to 14 tenants and offers exceptional in-place cash flow, credit, and term. With 60% occupancy expected in May 2017 and in-place office rents that are currently 9% below market, investors can create immediate value through the Property s lease up and re-stabilization. Investors will be positioned long-term at an attractive basis to benefit from the continued leasing demand generated by high-quality, metro-proximate Tysons office assets.

3 MAIN LOBBY INSTITUTIONAL QUALITY OFFICE; $3.3 MILLION IN RECENT IMPROVEMENTS RUTH S CHRIS STEAK HOUSE The Property has been institutionally operated and maintained since completion and is the recent beneficiary of over $3.3 million in capital improvements. Notable improvements include extensive garage renovations, lobby upgrades, elevator modernizations, restroom upgrades, and other base building systems and mechanical improvements. The asset offers prime signage, efficient 22,000 square foot floor plates, surface and structured parking, a newly added rear terrace, as well as a Ruth s Chris Steak House located on the first floor of the building. VALUE-ADD INVESTMENT OPPORTUNITY; 60% OCCUPANCY EFFECTIVE MAY 2017 The Property is currently 92% leased to 14 tenants, offering excellent in-place cash flow, credit, and term. With 60% occupancy expected in May 2017, 8521 Leesburg Pike represents the ideal opportunity for investors to create value through the lease up and re-stabilization of an institutional quality, metro-proximate Tysons office asset. 3

4 EXECUTIVE SUMMARY STEPS TO THE SPRING HILL SILVER LINE METRORAIL STATION The Spring Hill Silver Line Metrorail Station is located less than a quarter mile from the Property, less than a 5 minute walk. The completion of the first phase of the $5.7 billion Silver Line has been transformational for both Tysons and the Property, now connecting tenants and area residents via mass transit to key regional employment hubs such as Reston, the Rosslyn-Ballston Corridor, and downtown Washington, DC. The Silver Line s Phase II completion in 2020 will provide additional mass transit connectivity to Reston Town Center, Herndon, Washington Dulles International Airport, and eastern Loudoun County. METRORAIL PROXIMITY DRIVING TYSONS OFFICE DEMAND Office assets within a quarter mile of Tysons Metrorail stations have experienced strong demand, significantly outpacing the broader submarket. Since 2014, this competitive set has experienced over 850,000 square feet of positive net absorption, in comparison to the broader Tysons submarket, which has experienced approximately 20,000 square feet of negative net absorption over the same period. Investors and the Property are poised to continue to capitalize on this trend near-term as tenants increasingly seek high quality, cost efficient space at the doorstep of Metrorail. TYSONS GALLERIA LESS THAN 5 MINUTE WALK TO METRO CHAIN BRIDGE ROAD (ROUTE 123) AVALON TYSONS CORNER TYSONS METRO CENTER INTERNATIONAL DRIVE ROTONDA CONDOMINIUMS GREENSBORO DRIVE WESTPARK DRIVE PIKE 7 PLAZA GREENSBORO METRO STATION TYSONS SQUARE THE ASCENT AT SPRING HILL STATION LEESBURG PIKE (ROUTE 7) TYSONS CORNER SPRING HILL ROAD SPRING HILL METRO STATION TYSONS WEST LESS THAN 5 MINUTE WALK TO METRO RAGLAN ROAD PARK AMENITY-RICH TYSONS LOCATION WITH DIRECT METRORAIL ACCESS 4

5 TRANSIT-ORIENTED DEVELOPMENT TRANSFORMING TYSONS The Silver Line is driving significant transit-oriented development in Tysons, most notably headlined by The Boro a 4.2 million square foot mixed-use development project located a half mile southeast of or one Metrorail stop from the Property. At full buildout, The Boro will feature significant retail, a flagship Whole Foods Market, a Showplace Icon Theater, over 2,000 apartments, 1.9 million square feet of office, 640,000 square feet of hotel space, 7 parks, and a public library, further adding to and diversifying an already amenity-rich Tysons submarket. Its phased delivery starting in 2018 will dramatically enhance Leesburg Pike between the Greensboro and Spring Hill Metrorail Stations, benefitting well-located, metro-proximate office assets such as 8521 Leesburg Pike long-term. SPRING HILL METRORAIL STATION THE BORO LESS THAN A FIVE MINUTE WALK HIGHLY WALKABLE AMENITY BASE In addition to Ruth s Chris Steak House on site, the Property already benefits from an array of nearby retail offerings that are highly accessible along Leesburg Pike (Route 7). Tysons Corner (0.1 miles) and Pike 7 Plaza (0.4 miles) are highly walkable from the Property and both offer a diverse array of restaurants and retailers. Notable walkable dining options available to tenants include Chik-fil-A, Chipotle, Roti Mediterranean Grill, Panera Bread, Potbelly Sandwich Shop, and Starbucks. Tysons West (0.4 miles) is also a very popular destination, offering additional dining and retail options such as Noodles & Company, Smashburger, Moby Dick House of Kebab, 24 Hour Fitness, and Walmart. Tysons Galleria (1.0 mile) and Tysons Corner Center (1.6 miles) continue to offer the Tysons market hundreds of retail options and are now just two Metro stops away from the Property. TYSONS WEST WHOLE FOODS MARKET DELIVERING IN 2018 FREE & CLEAR TRANSACTION The Property will be sold free and clear of debt, providing investors the opportunity to take advantage of historically-low interest rates. LESS THAN A TEN MINUTE WALK 5

6 Andrew M. Weir Stephen Dek Potts, Jr. James A. Meisel Financing: Daniel J. McIntyre Senior Managing Director Senior Managing Director Senior Managing Director Director Stephen C. Conley Matthew T. Nicholson Executive Managing Director Associate Director ( HFF ) a Virginia licensed real estate broker. HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change Pennsylvania Ave, NW 5th Floor Washington, DC hfflp.com