Investment Property Offering $4,071,945 WELLS FARGO GROUND LEASE 5801 Silver Hill Road, District Heights, MD 20747 Presented By: Kase Abusharkh DRE#01311211 252 Abigail Circle Danville, CA 94506 (925)348-1844 kase@svn.com 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.
Table of Contents 1 Financial Analysis Executive Summary Investment Information Rent Roll Summary 2 Additional Information Pictures
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 100.00 % Land Acres 0.7543 Wells Fargo NNN Ground Lease Cross Street Marlboro Pike Tax Parcel Number 06-3938354 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 2007. 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.
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.
Investment Information WELLS FARGO GROUND LEASE 5801 Silver Hill Road District Heights, MD 20747 Listing Price $4,071,945 2012 CAP 5.50 % 2017 CAP 6.05 % Price Per S.F. $921.05 Price Per GLA $123.93 GLA 32,858 Building S.F. 4,421 Percent Occupied 100.00 % Land Acres 0.7543 2012 2017 2022 2027 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
www.svn.com 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 12/1/2007 11/30/2027 32,858 $6.82 $223,957 100.0 % Rent increases 10% every 5 years. Tenant has four 5 year options to renew. Total 32,858 $223,957 100.0 % All Sperry Van Ness Offices Independently Owned and Operated.
2. Additional Information All Sperry Van Ness Offices Independently Owned and Operated.
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 1998. 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 2007. 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.
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www.svn.com Aerial Photo All Sperry Van Ness Offices Independently Owned and Operated.
www.svn.com Trade Area Aerial Photo All Sperry Van Ness Offices Independently Owned and Operated.
www.svn.com Parcel Map All Sperry Van Ness Offices Independently Owned and Operated.
www.svn.com Location Map All Sperry Van Ness Offices Independently Owned and Operated.
5801 Silver Hill Road District Heights, MD 20747 Demographics Report 1.00 Mile Ring 3.00 Mile Ring 5.00 Mile Ring POPULATION 1990 Population 19,920 143,717 364,479 2000 Population 20,864 139,181 352,043 2009 Population 20,593 141,100 355,873 2014 Total Population 20,441 141,098 358,333 2014 Total Households 9,290 59,777 148,388 % Households Change 2000-2009 7.52 % 9.82 % 8.72 % % Households Change 2009-2014 0.39 % 1.44 % 2.32 % 2009 Household Income $200,000-$249,999 3 30 98 2009 Household Income $250,000-$499,999 23 198 607 2009 Household Income $500,000+ 1 5 9 2009 Average Household Size 2.25 2.39 2.41 2009 Total Owner Occupied Housing Units 3,912 31,708 72,198 2009 Total Renter Occupied Housing Units 5,336 27,239 72,844 2009 Total Daytime Population 15,157 111,997 295,730 2009 Total Daytime Work Population 5,975 44,381 114,247 2009 Total Establishments 688 5,145 12,255 HOUSEHOLDS 1990 Households 8,173 53,286 131,655 2000 Households 8,607 53,658 133,397 2009 Households 9,254 58,927 145,025 % Households Change 1990-2000 5.31 % 0.70 % 1.32 %
2009 RACE AND ETHNICITY White Population 856 6,442 24,504 Black Population 18,938 130,221 318,743 American Indian/Alaska Native Population 50 399 1,053 Asian/Hawaiian/Pacific Islander Population 180 971 2,991 Other Population (Incl 2+ Races) 570 3,068 8,583 2009 Hispanic Population 667 3,563 10,438 2009 Non-Hispanic Population 19,926 137,537 345,435 INCOME 2009 Per Capita Income $27,812 $25,621 $24,712 2009 Median Household Income $49,910 $49,320 $46,603 2009 Average Household Income $61,890 $61,349 $60,641 2009 HOUSEHOLD INCOME DISTRIBUTION Household Income < $10,000 264 3,727 12,639 Household Income $10,000-$14,999 176 1,955 6,245 Household Income $15,000-$19,999 345 2,505 7,007 Household Income $20,000-$24,999 463 2,878 7,955 Household Income $25,000-$29,999 498 3,214 8,436 Household Income $30,000-$34,999 650 3,790 9,538 Household Income $35,000-$39,999 735 3,685 8,607 Household Income $40,000-$44,999 890 4,064 9,161 Household Income $45,000-$49,999 617 4,218 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-$124,999 177 1,594 4,883 Household Income $125,000-$149,999 76 797 2,141 Household Income $150,000-$199,999 26 258 864