45245 BUSINESS COURT STERLING, VA EXECUTIVE SUMMARY

Transcription

1 45245 BUSINESS COURT EXECUTIVE SUMMARY STERLING, VA

2 EXECUTIVE SUMMARY Holliday exclusive mile from the future Route 606 Metrorail Station and accessible representative for the Owner, is pleased to present this offering Fenoglio Fowler, L.P. ( HFF ), as via mass transit. This coveted multi-modal accessibility, for the 100% fee simple interest in Loudoun Gateway I (the coupled with Orbital ATK s substantial capital investment in Property ), a 102,015 SF, Class A suburban office asset its space and proximity to its global headquarters campus located within the Loudoun Gateway Business Park in Sterling, four miles to the north, greatly increases the likelihood of the Virginia. Orbital ATK, Inc. (NYSE: OA; S&P: BB+ rating), a $6.3 tenant s renewal at the Property and cements its commitment billion company and global leader in aerospace and defense to Loudoun County and the Washington, DC region. technologies, leases and occupies 100% of the Property Accordingly, this core offering represents a compelling through August opportunity to acquire a 100% leased, institutional quality Class A office property, leased long-term to a single, credit tenant Located three miles north of Washington Dulles International at the forefront of the aerospace and technology industries. Airport at the intersection of Route 28 and Old Ox Road (Route Investors will benefit not only from Orbital ATK s contractual, 606), Loudoun Gateway s convenient location offers the tenant appreciating cash flows, but also the likelihood of its renewal in and its clients outstanding access to the greater Washington, 2023 and beyond in a submarket that will experience significant DC metropolitan region via Route 28, the Dulles Toll Road, rental rate appreciation and investment upside due to Loudoun Route 50, and Route 7. With the Silver Line s Phase II expansion County s future growth as a Metro-served location. expected to be complete circa 2020, the Property will be one LOUDOUN GATEWAY I OVERVIEW INVESTMENT HIGHLIGHTS Address: Business Court, Sterling, VA 20166»» Institutional Quality Class A Office Building Year Built: 1998»» 100% Leased to Orbital ATK, Inc. (NYSE: OA; S&P: BB+ rating) Through August 2023 Developer: Alter Group Rentable Area (SF): 102,015 Stories: 4 Avg Floorplate (SF): ± 26,000 Site Area: 7.8 acres Zoning: PD-IP Parking Ratio: 4.7 per 1,000 SF % Leased: 100% through Aug-23»» Direct Washington Dulles International Airport Access»» Exceptional Regional Accessibility»» Future Metro-Served Location»» Highly Amenitized Location»» Superior Loudoun County Fundamentals»» Free & Clear of Existing Debt 2

3 INSTITUTIONAL QUALITY CLASS A OFFICE BUILDING Developed in 1998, the Property has been maintained to institutional standards since completion and possesses the requisite Class A finishes throughout. With Orbital ATK fully expanding into the building over the last year, the majority of the tenant spaces and common areas at the Property are new and benefit from significant tenant capital investment over and above Landlord s recent tenant improvement allowance of $4.15 million. ORBITAL ATK RECEPTION 100% LEASED THROUGH AUGUST 2023; ORBITAL ATK CREDIT MAIN LOBBY DIRECT WASHINGTON DULLES INTERNATIONAL AIRPORT ACCESS; EXCEPTIONAL ACCESSIBILITY Located three miles north of Washington Dulles International Airport at the intersection of Route 28 and Old Ox Road (Route 606), Loudoun Gateway s convenient location also provides exceptional vehicular access to a network of highways and other commuter thoroughfares that connect Northern Virginia with the broader Washington, DC metropolitan region. Route 28, just east of the Property, is the major north-south artery that connects the Property to the Dulles Toll Road (1 mile), Dulles International Airport (3 miles), as well as the many businesses and residential communities throughout Fairfax, Prince William, and Fauquier Counties to the south. The Dulles Toll Road, immediately south of the Property, is a major east-west connector and provides access to Reston (6 miles) and Tysons Corner (14 miles) to the east and Leesburg (26 miles) to the west. The Property is leased long-term to Orbital ATK, Inc. (NYSE: OA; S&P: BB+ rating) through August A $6.3 billion aerospace and defense company, the tenant possesses exceptional credit and offers investors approximately 8 years of remaining lease term with uninterrupted, appreciating cash flows. Orbital ATK s substantial capital investment in its space, coupled with its proximity to its global headquarters campus four miles to the north, greatly increases its likelihood of renewal and cements its commitment to Loudoun County and the Washington, DC region. WASHINGTON DULLES INTERNATIONAL AIRPORT 3

4 FUTURE METRO-SERVED LOCATION The Route 606 Metrorail Station, which is expected to open circa 2020 as a part of the Silver Line s Phase II expansion, will be located one mile northwest of the Property and will provide the Property, its tenant, and Loudoun County an even greater level of accessibility to the Washington, DC region. Substantial demand and rental rate growth is already being seen throughout Tysons Corner and Reston thanks to the opening of Phase I of the Silver Line and this trend is expected to continue. According to George Mason s Center for Regional Analysis, Metrorail s arrival to Loudoun County will cause gross county product ( GCP ) to grow by a factor of more than ten by 2040 ($21.2 B to $230.4 B), further transforming the once rural community into a high-density, mixed-use environment prime for all industries. SILVER LINE METRO HIGHLY AMENITIZED LOCATION Dulles Town Center (4.5 miles), Dulles Town Crossing (4 miles), Dulles 28 Centre (2.5 miles), and Reston Town Center (6 miles) are all within short driving distances of the Property, offering tenants a multitude of dining and entertainment options. Dulles Town Center is the premier shopping and dining destination of Loudoun County, featuring 185 destination retailers including anchors Nordstrom, Macy s, Lord & Taylor, JCPenney and Sears, as well as 40+ dining options including The Cheesecake Factory, P.F. Chang s China Bistro, Benihana and Vapiano. Reston Town Center, the iconic mixed-use hub of the Dulles Corridor s outstanding amenity base, offers more than 60 retail outlets such as Ann Taylor, Anthropologie, Banana Republic, Pottery Barn, Apple, and Williams-Sonoma. Notable restaurants include Clyde s, McCormick & Schmick s, DULLES TOWN CENTER and Morton s Steakhouse. 4

5 Reston (6 Miles) Washington Dulles International Airport (3 Miles) 267 Dulles Toll Road Su lly Ro ad Old Ox Road Pa cifi cb ou lev ard SUPERIOR LOUDOUN COUNTY FUNDAMENTALS With a strong base of corporate headquarters including AOL, Verizon, Raytheon and United Airlines, Loudoun County has enjoyed 72% growth in the job market over the last 15 years. Loudoun County is the 2nd richest county in America According to Forbes 2014 rankings, with a median household income of $118,934. Many key decision makers in the Washington, DC region choose to live in close proximity to where they work and have settled in many of the high quality residential communities within Loudoun County. FREE & CLEAR OF EXISTING DEBT The Property is offered free and clear of existing debt, allowing investors to take advantage of today s competitive interest rate environment. 5 Dulles Toll Road

6 45245 BUSINESS COURT STERLING, VA INVESTMENT SALES: FINANCING: Stephen Dek Potts, Jr. Senior Managing Director James A. Meisel Senior Managing Director Andrew M. Weir Senior Managing Director Daniel J. McIntyre Director Stephen C. Conley Executive Managing Director Matthew T. Nicholson Associate Director Robert M. Jenkins Senior Real Estate Analyst ( HFF ) a Virginia licensed real estate broker HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on 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 we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references 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 buyer. Buyers 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