WELLS FARGO GROUND LEASE

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Lucy Margaret Lucas
5 years ago
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com Offering Highlights Long Term Ground Lease with Scheduled Increases S&P AA- Investment Grade Credit Rating

1 Investment Property Offering $4,071,945 WELLS FARGO GROUND LEASE 5801 Silver Hill Road, District Heights, MD Presented By: Kase Abusharkh DRE# Abigail Circle Danville, CA (925) Offering Highlights Long Term Ground Lease with Scheduled Increases S&P AA- Investment Grade Credit Rating Over $33 Million in Deposits Major Retail Trade Area 03/21/2012 All Sperry Van Ness Offices Independently Owned and Operated.

2 Table of Contents 1 Financial Analysis Executive Summary Investment Information Rent Roll Summary 2 Additional Information Pictures

3 All Sperry Van Ness Offices Independently Owned and Operated. 1. Financial Analysis

Executive Summary WELLS FARGO GROUND LEASE 5801 Silver Hill Road District Heights, MD 20747 List Price $4,071,945 Price Per GLA $123.93 Price per S.F. $921.05 CAP 5.50 % GLA 32,858 Building S.F. 4,421 Percent Occupied 100.

4 Executive Summary WELLS FARGO GROUND LEASE 5801 Silver Hill Road District Heights, MD List Price $4,071,945 Price Per GLA $ Price per S.F. $ CAP 5.50 % GLA 32,858 Building S.F. 4,421 Percent Occupied % Land Acres Wells Fargo NNN Ground Lease Cross Street Marlboro Pike Tax Parcel Number Market Washington, DC Sub Market Prince George's County Year Built 2007 Building Class A Location Class A No. of Buildings 1 No. of Pads 1 Shadow Anchored Rite Aid Street Frontage Approx. 220 Feet Corner Yes Zoning Type CSC No. of Parking Spaces 23 Parking Ratio 5.2/1000 No.Tenants 1 No. Stories 1 Property Descriptions Construction Class A improvements newly constructed in Modern Wells Fargo prototype building. Construction is consistent with design of the rest of the Shops at Silver Hill shopping center. Parking Ample on-site parking for 23 vehicles with an overall parking ratio of 5.2/1000. Traffic Counts Signalized intersection with approximately 25,051 vehicles per day on Sliver Hill Road. Additionally, the roads at either corner adjacent to the property are main thoroughfares. Marlboro Pike at Silver Hill Road has an average of 23,225 vehicles per day. And Pennsylvania Avenue at Silver Hill Road has approximately 37,900 vehicles per day. There is an additional 9,157 vehicles per day passing the rear of the asset on Old Silver Hill Road. Ingress/Egress The site has excellent ingress and egress to and from Silver Hill Road. There is additional access to the rear of the asset as it connects the the greater center Shops at Silver Hill. Major Tenants The tenant is Wells Fargo Bank NA. With assets of approximately $622 billion, Wells Fargo, NA maintains an investment grade credit rating by Moody's Investor Service (Aa3) and Standard & Poor's Rating Service (AA-). The parent company, Wells Fargo & Co. has an S&P rating of A+ and a Moody's rating of A2.

5 Area District Heights is an incorporated city in. Prince George's County, Maryland, located near Maryland Route 4 (Pennsylvania Avenue adjacent to site). District Heights is 9.85 miles away from central Washington, DC. The asset benefits from being in close proximity to many retailers including Safeway, Giant Foods, CVS/pharmacy, Rite Aid, Marshalls, Dollar Tree, Family Dollar, Aldi, 7-Eleven, Big Lots, Advance Auto Parts, and many others. Property The subject pad site is located in front of the Shops at Silver Hill. In addition to the inline shops is a Rite Aid Pharmacy adjacent to the subject property to the west (shadow anchor). The asset sits in the center of a major retail core surrounded by many national and regional tenants. Silver Hill Road and Pennsylvania Avenue is a heavily trafficked intersection in the trade area. The asset benefits from its up-front position in the center as well as a large pylon sign and a signalized entrance. The long term absolute net ground lease calls for zero landlord obligations. The underlying fee simple interest in the land is what is being sold. The lease calls for 10% increases in rent every 5 years and renewal options beyond the initial term. The bank features four drive-thru lanes.

6 Investment Information WELLS FARGO GROUND LEASE 5801 Silver Hill Road District Heights, MD Listing Price $4,071, CAP 5.50 % 2017 CAP 6.05 % Price Per S.F. $ Price Per GLA $ GLA 32,858 Building S.F. 4,421 Percent Occupied % Land Acres Net Operating Income $223,957 $246,353 $270,988 $298,087 Highlights Long Term Ground Lease with Scheduled Increases S&P AA- Investment Grade Credit Rating Over $33 Million in Deposits Major Retail Trade Area

7 Rent Roll Summary Tenant Name Start Date End Date Occupied S.F. Annual Rent S.F. Occupied Rent % of Total Escalations / Options / Comments Wells Fargo 12/1/ /30/ ,858 $6.82 $223, % Rent increases 10% every 5 years. Tenant has four 5 year options to renew. Total 32,858 $223, % All Sperry Van Ness Offices Independently Owned and Operated.

8 2. Additional Information All Sperry Van Ness Offices Independently Owned and Operated.

9 Tenant Overview Wells Fargo & Co. (NYSE: WFC) is a diversified financial services company with operations around the world. Wells Fargo is the 4th largest bank in the US by assets and the second largest bank by market cap. It is the only bank in the United States to be rated AA+ by S&P. Headquartered in San Francisco, California (its bank, Wells Fargo Bank, N.A., is legally chartered in Sioux Falls,SD), Wells Fargo is a result of a merger between California-based Wells Fargo & Co. and Minneapolis-based Norwest Corporation in The new company chose to keep the name Wells Fargo, to capitalize on the 150-year history of the nationally-recognized Wells Fargo name and its trademark stagecoach. After the merger, the company maintained its headquarters in San Francisco, CA and charter in Sioux Falls, SD. Wells Fargo was named as "The World's Safest US Bank" based on long-term foreign currency ratings from Fitch Ratings and Standard & Poor's and the longterm bank deposit ratings from Moody s Investors Service for the year As of 2009, Wells Fargo has 6,650 retail branches (called stores by Wells Fargo), 12,260 Automated Teller Machines, 276,000 employees, over 48 million customers and assets of over $622 billion. Wells Fargo currently operates stores and ATMs under the Wells Fargo and Wachovia names.

10 Site Photo Site Photo

11 Site Photo

12 Aerial Photo All Sperry Van Ness Offices Independently Owned and Operated.

13 Trade Area Aerial Photo All Sperry Van Ness Offices Independently Owned and Operated.

14 Parcel Map All Sperry Van Ness Offices Independently Owned and Operated.

15 Location Map All Sperry Van Ness Offices Independently Owned and Operated.

16 5801 Silver Hill Road District Heights, MD Demographics Report 1.00 Mile Ring 3.00 Mile Ring 5.00 Mile Ring POPULATION 1990 Population 19, , , Population 20, , , Population 20, , , Total Population 20, , , Total Households 9,290 59, ,388 % Households Change % 9.82 % 8.72 % % Households Change % 1.44 % 2.32 % 2009 Household Income $200,000-$249, Household Income $250,000-$499, Household Income $500, Average Household Size Total Owner Occupied Housing Units 3,912 31,708 72, Total Renter Occupied Housing Units 5,336 27,239 72, Total Daytime Population 15, , , Total Daytime Work Population 5,975 44, , Total Establishments 688 5,145 12,255 HOUSEHOLDS 1990 Households 8,173 53, , Households 8,607 53, , Households 9,254 58, ,025 % Households Change % 0.70 % 1.32 %

17 2009 RACE AND ETHNICITY White Population 856 6,442 24,504 Black Population 18, , ,743 American Indian/Alaska Native Population ,053 Asian/Hawaiian/Pacific Islander Population ,991 Other Population (Incl 2+ Races) 570 3,068 8, Hispanic Population 667 3,563 10, Non-Hispanic Population 19, , ,435 INCOME 2009 Per Capita Income $27,812 $25,621 $24, Median Household Income $49,910 $49,320 $46, Average Household Income $61,890 $61,349 $60, HOUSEHOLD INCOME DISTRIBUTION Household Income < $10, ,727 12,639 Household Income $10,000-$14, ,955 6,245 Household Income $15,000-$19, ,505 7,007 Household Income $20,000-$24, ,878 7,955 Household Income $25,000-$29, ,214 8,436 Household Income $30,000-$34, ,790 9,538 Household Income $35,000-$39, ,685 8,607 Household Income $40,000-$44, ,064 9,161 Household Income $45,000-$49, ,218 9,115 Household Income $50,000-$59,999 1,293 8,099 16,802 Household Income $60,000-$74,999 1,495 9,968 21,015 Household Income $75,000-$99,999 1,522 7,942 19,902 Household Income $100,000-$124, ,594 4,883 Household Income $125,000-$149, ,141 Household Income $150,000-$199,

TIM HORTONS (NYSE: THI)

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