REAL ESTATE SERVICES PROPOSAL Worth Avenue

Transcription

1 REAL ESTATE SERVICES PROPOSAL Worth Avenue Prepared For: Alliance Partners HSP, LLC Prepared by: George Galloway Ray Schupp Andrew Rose Mr. Paul Stanton Mr. Joe Credit

2 TABLE OF CONTENTS Section I Executive Summary Who is Next Realty? Strategy & Approach Section II Site Analysis Location Map Site Aerial Property Highlights S.W.O.T. Analysis Section III Competitive Analysis Section IV - Marketing Plan Merchandising Plan Single Tenant Building Timing Multi-Tenant Building Timing Demographic Comparison Section IV - Professional Profile Team Member Profiles References / Significant Clients 2

3 WHO IS NEXT REALTY MID-ATLANTIC, LLC? Next Realty Mid-Atlantic founded by George Galloway in 1999, with corporate office in Chicago. DC office has six professionals and a full marketing and administrative staff based in McLean, Virginia. Full service real estate services and brokerage firm specializing in the leasing of retail shopping centers and mixed-use projects, tenant representation and development. Next Realty will provide the technical expertise, integrity and professionalism necessary to execute a successful project leasing program. We take a long term view of Landlord relationships; how long and how often our clients return to Next Realty for assistance in the leasing of their assets. 3

4 WHO IS NEXT REALTY MID-ATLANTIC, LLC? Next Realty has worked for many Landlords with their leasing strategies including: 4

5 STRATEGY AND APPROACH Next Realty is equipped with the local market knowledge, the retailtenant and broker contacts, and the deal-making experience to identify, negotiate and secure tenants for Alliance Partners HSP, LLC and Worth Avenue. Start to finish, Next Realty will: Perform a comprehensive market and trade area analysis. Propose a merchandising and leasing strategy consisting of the full-range of tenant-prospects that should be contacted. Design an effective property marketing campaign. Contact, qualify and follow-up with all potential prospects. Draft and negotiate proposals for interested tenant-prospects. Assist Alliance Partners HSP, LLC in all lease negotiations. Provide continual follow-up throughout the entire leasing process, from proposal generation to store-opening. 5

6 STRATEGY AND APPROACH Next will produce the following to give Worth Avenue the most possible coverage in the retail market, including the following: Next Realty Mid-Atlantic Leasing Signage On Site, Several Locations Property Brochure Dedicated Property Website ( or Digital Media Communication (5,000 + retail oriented recipients) Retail Listing Services (Co-Star & Loopnet) 6

7 IF YOU HIRE NEXT REALTY We will endeavor to find Alliance Partners HSP, LLC the best possible tenant at the highest possible rent. We will pound the pavement and leave no stone left unturned we will be industrious, creative, and responsive. At all times we will represent Alliance Partners HSP, LLC with the highest level of professionalism. We will leverage our networks and contact every retailer that makes sense for your space. We will work your project as if it is only opportunity we will get to work with Alliance Partners HSP, LLC. In fact, it is, if we do not live up to your expectations. No one will work harder for you than Next Realty! 7

8 LOCATION MAP 8

9 SITE AERIAL 9

10 14041 WORTH AVENUE PROPERTY HIGHLIGHTS Approximately 155,112 square foot building located peripheral to Potomac Mills Mall in Woodbridge, VA. Prime location at Northeast corner of Worth Avenue, the main entrance to Potomac Mills from Prince William County Parkway, and Potomac Mills Circle (mall ring road). Site possesses good visibility to the mall - situated directly across Worth Avenue from a newly-expanded Wal-Mart Supercenter and Sam s Club as well as the exterior entrances of JC Penney, Burlington Coat Factory as well as future Christmas Tree Shops at Buy Buy Baby. Easily accessed location within a very successful, super-regional trade area. 10

11 14041 WORTH AVENUE PROPERTY HIGHLIGHTS 73 Parking Spaces 220 Parking Spaces 354 Parking Spaces Multiple access points and ample parking provide for a strong retail site. Site serviced by full-movement, lighted intersection off of Worth Avenue as well as two fullmovement entrances off the mall ring road and an additional right-in/right-out on Worth Avenue. 735 parking spaces dedicated for retail use with access to 220 additional spaces across the street, at the mall by right. 11

12 14041 WORTH AVENUE PROPERTY HIGHLIGHTS DEMOGRAPHICS 3 Mile 5 Miles 10 Miles POPULATION 118, , ,438 HOUSEHOLDS 38,426 71, ,773 MEDIAN HH INCOME $81,414 $93,599 $109,186 DAYTIME POPULATION 62, , ,518 DEVELOPMENT FACTS PROPOSED RETAIL SPACE LOT SIZE 155,112 SF ~12.50 Acres ZONING B-1 CEILING HEIGHT ON-SITE PARKING PROVIDED OFF-SITE PARKING PROVIDED 24 Feet 735 Spaces 220 spaces 12

13 S.W.O.T. ANALYSIS Internal Origin (attributes of the property) External Origin (attributes of the environment) Helpful to achieving the objective Centrally located within the regional retail node of Dale City, on the Mall ring road. Multiple full-movement access points and a traffic S controlled intersection. Parking field on multiple sides of the building provides greater potential for a split scenario. Multiple loading docks to accommodate multiple tenants if space is split. Shape of building lends well to splitting for multiple users. High ceiling space Super-regional trade area with strong, nationalcredit co-tenancy. Types of neighboring retailers provide for daily trips past site providing O significant exposure. Adjacent to Potomac Mills Mall, the largest discount retail outlet destination in Virginia. Road network equipped to handle significant traffic and provides for relatively easy access to site. Proven trade area for most tenants and categories Harmful to achieving the objective Previously occupied for office/flex will add to conversion costs Façade changes W need to be created to accommodate retail storefronts. Large space may require splitting to accommodate prospective tenants which may prove costly Good exposure to mall traffic but some retailers will prefer visibility to Prince William Parkway or Smoketown Road. Deed restrictions with mall limits prospect pool, could be a challenge working with Simon. Pool of tenants for the entire building could be limited based on retailers T expansion plans. Fairly mature regional trade node, most national retailers and virtually all categories are already present within the market. Special Exception required for tenants over 80,000 square feet. Multiple sites with vacancy competing for tenants. 13

14 COMPETITIVE ANALYSIS POTOMAC MILLS MALL Property: Potomac Mills Mall Address: Retail SF: Parking: Tenants: Notes: 2700 Potomac Mills Circle 1,519,000 SF 7,445 spaces AMC Theatres, Bloomingdale's-Outlet, Costco, H&M, jcpenney, Last Call by Neiman Marcus, Modell s, Nike Factory Store, Nordstrom Rack, Off Broadway Shoes, Saks OFF 5TH Adding Cheesecake Factory, Bobby Flay, Christmas Tree Shops, Buy Buy Baby 14

15 COMPETITIVE ANALYSIS PARKWAY CROSSING WEST Property: Address: Anchor Space Available: Parkway Crossing West 2542 Prince William Parkway 25,240 SF (Roomstore) Asking Rent: $16 p.s.f. / $3.00 NNN Parking Provided: Tenants: 128 spaces Target, Value City Furniture Notes: Stand-alone former RoomStore Furniture store available. 15

16 COMPETITIVE ANALYSIS POTOMAC TOWN CENTER Property: Address: Retail SF: Potomac Town Center I-95 Between Opitz & Dale Boulevards 550,000 SF Rent Comps: Golfsmith (18,414 SF): $17 p.s.f. REI (26,000 SF): $26 p.s.f. Tenants: Notes: Wegman s, Old Navy, REI, ULTA, DSW, Golfsmith, PF Changs, Travinia, Firebirds, White House Black Market, Chicos, Ann Taylor Loft Commercial Office (500,000 SF) 500 Residential Units 16

17 COMPETITIVE ANALYSIS SMOKETOWN STATION Property: Address: Retail SF: Anchor Space Available: Smoketown Station Prince William Parkway & Worth Avenue 494,506 SF 12,593 SF (Ulta) 12,000 SF (Fashion Bug) Asking Rent: Ulta: $25 p.s.f. / $5.45 NNNs Fashion Bug: $17 p.s.f. / $4.60 NNNs Rent Comps: Tenants: LA Fitness (47,328 SF): $17.50 p.s.f./$50 p.s.f. TI Dick s Sporting Goods (57,437 SF): $15.50 p.s.f./$55 p.s.f. TI Dicks Sporting Goods, LA Fitness, Best Buy, PetSmart, Shoppers Food Warehouse 17

18 COMPETITIVE ANALYSIS POTOMAC FESTIVAL SHOPPING CENTER Property: Address: Retail SF: Rent Comps: Tenants: Notes: Potomac Festival Shopping Center Potomac Mills Road & Opitz Blvd 337,649 SF Savers (29,761 SF): $10.73 p.s.f. / $5 NNNs Everest College (35,402 SF): $19 p.s.f. / $5 NNNs Swim Kids (10,200 SF): $11 p.s.f. / $5 NNNs Paul Mitchell (9,685 SF): $17 p.s.f. / $5 NNNs HH Gregg, Savers, Everest College, David s Bridal, Staples, Outback, Sakura, Hard Times Café Significant shop-space vacancy still remains. 18

19 COMPETITIVE ANALYSIS PRINCE WILLIAM SQUARE SHOPPING CENTER Property: Address: Retail SF: Anchor Space Available & Asking Rent: Prince William Square Shopping Center Smoketown Road 232,957 SF 55,000 SF: Mid-Teens p.s.f. / $3.71 NNNs 32,120 SF (Conway): Low-Teens p.s.f. / $3.71 NNNs Rent Comps: JoAnn Fabrics (23,840 SF): Low-to-Mid Teens p.s.f. / $3.71 NNNs Tenants: Notes: Ashley Furniture, Harbor Freight Tools, JoAnn Fabrics, Conway, Rainbow, Dairy Queen 55,000 SF medical office space & Conway space coming available. 19

20 SINGLE TENANT BUILDING TIMING (Likely best case scenario) Tenant Identification Identify prospect - 30 to 90 days Negotiate LOI, receive real estate committee approval within 90 to 180 days from tenant identification Lease negotiation - 45 to 90 days after REC approval Preparation of plans, permits, construction* Tenant plans prepared - 30 to 60 days after lease execution Special Exception for tenant over 80,000 square feet to 365 days in Prince William County (might be concurrent with plans) Exterior and interior improvements days Tenant opens 4 th quarter 2014 to early 2015 *Consulted with Teel Construction on permitting and construction assumptions **Does not contemplate approvals that may be required from Simon which could take 3-6 months 20

21 MULTI-TENANT BUILDING TIMING (Likely best case scenario) Tenant Identification Identify prospects - 60 to 120 days Negotiate LOI s, receive Real Estate Committee approvals - 90 to 180 days from tenant identification Lease negotiations - 45 to 90 days after REC approvals Preparation of plans, permits, construction* Tenant plans prepared - 30 to 60 days after lease execution Plan approval from Prince William County - 60 to 90 days Landlord construction (split and upgrade utilities, demise spaces, construct common areas and interior corridors, new exterior facades, deliver as cold dark shell) to 180 days from permits Tenant construction - 60 to 90 days from delivery of premises Tenants open 4 th quarter 2014 to early 2015 *Consulted with Teel Construction on permitting and construction assumptions **Does not contemplate approvals that may be required from Simon which could take 3-6 months 21

22 TEAM MEMBER BIO: GEORGE GALLOWAY George Galloway entered the commercial real estate industry in 1984, after receiving his Bachelor of Business Administration from Southern Methodist University in Dallas, Texas. George has extensive knowledge and experience in planning and implementing store positioning, site acquisition and disposition strategies in over 40 major retail markets across the United States. His primary client base over the last 26 years has been national credit retailers, restaurant groups and shopping center owners. Galloway opened Next Realty s Washington office in May 1999 after several years with Northwest Atlantic Real Estate Services, where he served as Executive Vice President and Managing Member. Prior to that he served as Senior Vice President and Regional Manager for Staubach Retail Services from 1987 to He began his career at Henry S. Miller/Grubb & Ellis in Galloway offices in McLean, Virginia and is a licensed real estate broker in several states and the District of Columbia, and is active in ICSC, and serves on the Board of the Inova Hospital Foundation. George is married to Lien Galloway, an Associate General Counsel of The Peace Corps, and has 2 terrific daughters, Lan Anh and Christine Galloway. 22

23 TEAM MEMBER BIO: RAY SCHUPP Ray Schupp joined Next Realty as an Associate in 2003 and was promoted to Principal in Ray specializes in retail tenant and landlord representation throughout the Mid-Atlantic Region and is a licensed salesperson in Virginia, Maryland, West Virginia, and the District of Columbia. Since joining Next Realty, Ray has played an active or lead role in the closing of over three million square feet of retail sale or lease transactions. Ray s list of retail clients served includes Target, Kohl s, BJ s Wholesale Club, Dick s Sporting Goods, LA Fitness, Circuit City, Michaels Arts & Crafts, Books A Million, Golf Galaxy, Office Depot, McDonald s, Texas Roadhouse, Hollywood Video, and T Mobile. Currently, Ray is responsible for leasing approximately two million square feet of retail space in the Mid-Atlantic Region. Representing developers, Ray assists in all facets of the development; from site identification, acquisition, securing of anchor tenants, to project lease up. Ray s experience ranges from urban retail in mixed use-developments to suburban shopping centers. Ray graduated from Drew University with a B.A. in Economics and is a candidate for a Masters in Real Estate at Georgetown University. Ray is a native Washingtonian, and currently lives in Georgetown and offices in McLean, VA. 23

24 TEAM MEMBER BIO: ANDREW ROSE Andrew Rose joined Next Realty as an Associate in Andrew specializes in retail tenant and landlord representation throughout the Mid-Atlantic region and is a licensed salesperson in Virginia, Maryland and the District of Columbia. Since joining Next Realty, Andrew has played an active role assisting in the closing of over 500,000 square feet of retail lease transactions. Representing developers and retail tenants, Andrew assists in all facets of development; from site identification, acquisition, securing of anchor tenants, to project lease up. Andrew s experience ranges from urban retail in mixed use-developments to suburban shopping centers. Andrew graduated from the University of Maryland with a B.A. in Government and Politics in 2006 as well as a Masters in Real Estate Development in Andrew is a native Washingtonian and currently lives in Bethesda, MD and offices in McLean, VA. 24

25 REFERENCES Taylor Chess Senior Vice President - Retail The Peterson Companies Fair Lakes Circle, Suite 400 Fairfax, VA Phone: (703) tchess@petersoncos.com Gordon Ashby Vice President of Leasing, Mid-Atlantic Region Kimco Realty Corporation 170 W Ridgely Road, Suite 300 Lutherville, MD Phone: (410) gashby@kimcorealty.com Jim Thompson Managing Director Regency Centers One Independent Drive, Suite 114 Jacksonville, FL Phone: (904) jthompson@regencycenters.com Jack Waghorn President NV Retail Incorporated 8230 Leesburg Pike, Suite 500 Vienna, VA Phone: (703) jwaghorn@nvretail.com 25

26 SIGNIFICANT CLIENTS (PAST & PRESENT) Target Stores Kohl s Department Stores BJ s Wholesale Office Depot Sun & Ski Sports Organized Living CompUSA Fiesta Mart, Inc. IHOP Corporation Hechinger Company Fleming Prime Steakhouse & Wine Bar La Madeleine French Bakery & Café Corner Bakery Cafe Circuit City Michael s Arts & Crafts Rave Theaters The Home Depot Dicks Sporting Goods Lowes Home Improvement LL Bean Mercantile Stores SteinMart, Inc. Sportmart, Inc. Costco Wholesale Elder Beerman Stores Company Muvico Theatres Biaggi s Ristorante Italiano Ace Hardware Corporation Golf Galaxy Texas Roadhouse Krispy Kreme Doughnuts 26