WASHINGTON, DC ICONIC, WORLD-RENOWNED MIXED-USE INVESTMENT OPPORTUNITY

Transcription

1 WASHINGTON, DC ICONIC, WORLD-RENOWNED MIXED-USE INVESTMENT OPPORTUNITY

2

3 EXECUTIVE summary

4 , L.P. ( HFF ), as exclusive representative for the Owner, is pleased to present this offering for Washington Harbour (the Property ), an iconic, worldrenowned, 562,105 RSF mixed-use property in an irreplaceable, waterfront location in Georgetown, Washington, DC. 98% leased to 31 tenants with 7 years of weighted average remaining lease term, Washington Harbour offers durable cash flow from entrenched credit tenants with long occupancy histories at the Property. A dynamic, experiential year-round retail and entertainment destination, Washington Harbour is home to some of the country s most successful restaurants, in an inimitable interactive environment, set against the back drop of the Potomac River. Two blocks south of the world-renowned retail of M Street, offering abundant amenities, the Property is located in Washington, DC s most authentic live-work-play environment. Georgetown is a perennially outperforming submarket, characterized by low vacancy, limited supply, and true barriers-to-entry. Tech and traditional tenants alike have flocked to the submarket recently, resulting in 5.7% submarket vacancy and 19% rent growth since Accordingly, Washington Harbour is a rare and coveted core opportunity to acquire a truly unique Washington, DC property in an irreplaceable location. The asset offers durable cash flow from entrenched credit tenants, while generating attractive risk-adjusted returns. 4

5 Investment Highlights Iconic, World-Renowned Mixed-Use Investment Opportunity Irreplaceable Waterfront Location with Panoramic Potomac River Views 98% Leased to 31 Tenants with 7 Years of WALT Durable Cash Flow From Entrenched Credit Tenancy PROPERTY SUMMARY Address 3000 & 3050 K Street NW Washington, DC Built / Renovated / Buildings 2 $55 Million in Improvements Since 2012 Dynamic, Experiential Year-Round Retail, Power Dining, and Entertainment Authentic Live-Work-Play Environment with Walkable Access to Abundant Amenities 5.7% Direct Submarket Vacancy & 19% Rent Growth Since 2013 Institutionally Owned and Maintained Since Construction Free and Clear of Existing Debt Rentable Area Stories Parking 84,762 RSF (Retail) 477,343 RSF (Office) 562,105 RSF (Total) 6 East Building 4 West Building 575 spaces (1.0 per 1,000 RSF) 5

6 Irreplaceable Waterfront Location; Timeless Fixture of the Washington, DC Skyline y No other property in Washington, DC offers comparable panoramic views of the Potomac River, Rosslyn, the Kennedy Center, and the Key and Memorial Bridges. y Washington Harbour is two of only six institutional quality office buildings located directly on the water in the District of Columbia. y The Property s connectivity to its environs the Georgetown Waterfront Park, the Riverside boardwalk, the C&O and Capital Crescent Trails, and the Potomac River itself is inimitable and irreplaceable. y The Property is the Capital s most prominent fixture on the banks of the Potomac River, visible to those flying in and out of Reagan National Airport as well as to those in Rosslyn and on the river itself. 6

7 Dynamic, Experiential Year Round Retail and Entertainment yy Washington Harbour features 10 marquee retailers, including some of Washington, DC s most acclaimed restaurants: Fiola Mare, Farmers Fishers Bakers, and Sequoia. yy A favored power dining destination for all of Washington, DC, its frequent visitors and tourists, often featuring celebrity sightings and afterparty award galas. yy A Bellagio-style fountain, riverside boardwalk, yacht dockage, and waterside dining make Washington Harbour one of the most vibrant entertainment destinations in Washington, DC during summer months. yy The Property s 12,000 SF outdoor ice rink, the largest in the Washington, DC metropolitan area, is an irresistible draw for visitors, anchoring Washington Harbour s winter entertainment offerings. FARMERS FISHERS BAKERS FARMERS FISHERS BAKERS FIOLA MARE BANGKOK JOE S

8 Durable Cash Flow from Entrenched Credit Tenancy y 98% Leased to 31 Tenants with 7 Years of WALT. y Trophy tenancy featuring two AmLaw 200 firms: (#52) Foley & Lardner (29% of RBA, Jan-23 LED) and (#124) Kelley Drye (19% of RBA, Dec-25 LED). y Anchor tenants have 25(+) year histories at the Property and high certainty of renewal. y Diversified cash flow from top tier law firms, defense contractors, tech companies, and consultants. y 64% of the rentable area is occupied by credit tenants. 8

9 Washington, DC is a Top Global Market; Georgetown is a Perennial Outperformer y The Georgetown submarket, characterized by true barriers to entry and limited existing office supply, has a 20-year average vacancy rate of 6.0%. y Current submarket vacancy is only 5.7% with 19% rent growth since 2013, driven by traditional and tech tenants that are attracted to Georgetown s 24/7 live-work-play environment. y No office development sites remain and more attractive highest & best use alternatives ensure no competitive office supply going forward. y Washington, DC is a top 4 market in the United States, the #1 ranked country globally for real estate investment. 9

10 Washington, DC s Most Authentic Live-Work-Play Environment y World renowned M Street is only two blocks north of the Property, with over 250 shopping options from designers to pop-up shops to convenient neighborhood shopping. y Over 150 restaurants and 90 bars and nightlife attractions are in walking distance of the Property, making Georgetown one of Washington, DC s most vibrant nightlife environments. y Washington, DC s best cultural and recreational activities, including the Kennedy Center, the National Cathedral, Loews Georgetown Theatres, Georgetown Waterfront Park, and the Capital Crescent Trail, are immediately proximate to the Property. y From idyllic Federalist homes to modern, glass-clad condominiums with Potomac River views, Georgetown offers some of Washington, DC s finest residential options. 10

11 11

12 WASHINGTON, DC INVESTMENT ADVISORY MARK GIBSON Executive Managing Director MANNY DE ZARRAGA Executive Managing Director STEPHEN CONLEY Executive Managing Director JAMES MEISEL Senior Managing Director ANDREW WEIR Senior Managing Director MATT NICHOLSON Associate Director DAVE BAKER Associate GLOBAL CAPITAL TEAM DEBT FINANCING DAN CASHDAN RIAZ CASSUM GERRY ROHM CARY ABOD Managing Director Pennsylvania Ave NW, 5th Floor Washington, D.C T F hfflp.com, L.P. ( HFF ) a Washington, DC 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.