MEDICAL OFFICE PORTFOLIO SALE OFFERING MEMORANDUM 2 & 14 Pidgeon Hill Drive Sterling, Virginia 20165 1990 M St., NW Suite 250 Washington, DC 20036 Tel: (202) 289-5400 Fax: (202) 682-9117 PREPARED BY: James Legat Principal 703-677-0101 Cell jlegat@summitcre.com $20,450,000.00 7.00% CAP RATE
2 & 14 Pidgeon Hill Drive Sterling,Virginia Table of Contents I. Executive Summary II. III. IV. Property Description A. General Property Data for 2 Pidgeon Hill Drive B. General Property Data for 14 Pidgeon Hill Drive Seller Financing and Non-recourse Financing Aerial, Map & Pictures V. Demographics VI. VII. VIII. Market Information Summary Rent Rolls (Need to execute NDA to access) Expenses and Analysis (Need to execute NDA to access)
2 & 14 Pidgeon Hill Drive Sterling,Virginia I. Executive Summary 2 &14 Pidgeon Hill Drive consist of approximately 119,792 square foot medical office space within the Countryside Center mixed use development. The mixed use development consists of five office buildings (one of which contains an on-site surgery center), a grocery anchored shopping center as well as several retail oriented free standing buildings. The Countryside Center is strategically located off Rt. 7 (Harry Byrd Hwy.) near the intersection of Rt. 28. Each building in this portfolio sale consists of five stories with well-sized floor plates and landscaped grounds with a nearby water feature and park-like setting. The buildings offer the finishes of a class A medical office property with unparalleled access to retail, shopping, banking, both fast casual and sitdown restaurants, a car wash, child care and numerous other walkable amenities. The property currently has a Walk Score of 70 for 2 Pidgeon Hill and 77 for 14 Pidgeon Hill, which indicates that the portfolio is very walkable to the nearby amenity base. The property is also serviced by public transportation via the Loudoun Connector bus service. The buildings have been renovated and upgraded and are now considered two of the most desirable addresses in the Sterling,Virginia market. The zoning for the development is PDH-3 (Planned Development Housing District), which is one of the most flexible business zoning within the Loudoun County Zoning Ordinance for planned developments. The portfolio is ideally located, having countless amenities within the Countryside Development along with nearby high-end dining and shopping at the nearby Dulles Town Center. With the stellar demographics, strategic location and first class office construction and interior finishes, this portfolio will continue to be a very solid long-term investment which should steadily increase in value as the below market rental rates escalate and the local real estate market strengthens. A prospective purchaser can also take advantage of purchasing multi-tenant office buildings in a market with a strong economy in one of the highest income counties in the country. The tenancy in the buildings are a strong mix of medical and traditional office tenants. The buildings currently have slightly below market rental rates so there is a significant opportunity for appreciation as leases are renewed in the future. This buildings are also priced significantly below replacement cost.
2 & 14 Pidgeon Hill Drive,Sterling,Virginia II. Property Description A. General Property Data for 2 Pidgeon Hill Drive Address: 2 Pidgeon Hill Drive, Sterling, VA 20165 Legal Address: Loudoun County Tax Map Number: 029-49-4607 Directions: Year Built/Renovated: Please note that the property will be provided with a new legal address as its existing condominium regime (Countryside Center Office Condominiums) is being dissolved and it is being converted back into a fee simple office building. West from Washington, DC on I-66 to Rt. 28 North towards Dulles Airport. Keep on Rt. 28 North and take the Rt. 7 (Harry Byrd Highway) exit towards Tysons Corner/Falls Church. Proceed about 1/10 th of a mile on Rt. 7 and take a left on Countryside Blvd. Then take a right on to Pidgeon Hill Drive. The building is located on the right. 2 Pidgeon Hill Drive was built in 1986 and was extensively renovated in 2015. Lot Size: 3.44 AC
2 & 14 Pidgeon Hill Drive,Sterling,Virginia Building Description & Measurements: Parking: Zoning: Five story, office building, totaling approximately 59,400 rentable square feet. The building have extensive parking well above the required minimums. The office building are commercial siding on steel and poured concrete construction with masonry accents. The building has surface parking with cross easement access to adjacent parcels in the Countryside Center development. The building has ample signage opportunity both on Pidgeon Hill Drive and Rt. 7 (Harry Byrd Highway). The combination of building aesthetics, quality construction and access to amenities makes this one of the most attractive office environment in its submarket. 233 spaces (4/1000 Parking Ratio) PDH-3 2018 Estimated Real Estate Taxes: $74,178 Please note that this property is being converted back to a standard fee simple property by doing away with its condominium regime. This process will lower the taxes significantly. The tax estimate is based on the per square foot tax rate of similar property in the development. Tenancy: The property will be delivered 95% leased with a partial landlord master lease. Transportation The Loudoun Connector bus service stop is located within the Countryside Center office park. Zoning The property is zoned PDH-3. This very flexible zoning has enabled the Countryside Center to flourish with office, medical, retail, banking and entertainment uses. Renovations The building was extensively renovated in 2015
2 & 14 Pidgeon Hill Drive,Sterling,Virginia Renovations The building was extensively renovated in 2015. Renovation items include: Common area restrooms Elevator cabs Common area flooring, wall covering and paint Lighting and ceiling grid improvements within the common areas Signage upgrades Landscaping upgrades Parking lot upgrades New curbs gutter and sidewalk upgrades Shingle roofing replaced, downspouts and gutters replaced Upgraded front entrance Electronic directory Structural System Brick and commercial siding exterior with steel frame and poured slab. Roof Built up roofing system was inspected in August 2015. Noted to be in good condition with 12 years of life remaining. Plumbing All levels have ADA-compliant restrooms and janitors closets. Many of the suites have kitchenettes. Electrical System 2 Pidgeon Hill Drive has a 2400 AMP electrical service MTU 10 KW diesel generator HVAC Total of 155 tons of AC broken down per floor. 1 st Floor: 35 ton 2 nd Floor: 30 ton 3 rd Floor: 35 ton 4 th Floor: 30 ton 5 th Floor: 25 ton Fire Protection Fully Sprinklered, wet system, monitored. Elevator Two electric ADA-compliant elevators.
2 & 14 Pidgeon Hill Drive,Sterling,Virginia Egress Two separate stairwells for egress. Security The building has surveillance cameras, off-site monitoring and controlled card entry. ADA The building is ADA accessible and has ADA restrooms. Interior Finishes The building has high-end, class A finishes throughout. Internet Providers The building currently has Verizon Fios as well as Comcast.
2 & 14 Pidgeon Hill Drive,Sterling,Virginia B. General Property Data for 14 Pidgeon Hill Drive Address: 14 Pidgeon Hill Drive, Sterling, VA 20165 Legal Address: Loudoun County Tax Map Number: 029-40-1507 Directions: Year Built/Renovated: West from Washington, DC on I-66 to Rt. 28 North towards Dulles Airport. Keep on Rt. 28 North and take the Rt. 7 (Harry Byrd Highway) exit towards Tysons Corner/Falls Church. Proceed about 1/10 th of a mile on Rt. 7 and take a left on Countryside Blvd. Then take a right on to Pidgeon Hill Drive. The building is located on the right. 14 Pidgeon Hill Drive was built in 1989 and was renovated extensively in 2000 and 2012. Lot Size: 3.51 AC
2 & 14 Pidgeon Hill Drive,Sterling,Virginia Building Description & Measurements: Parking: Zoning: 2018 Estimated Real Estate Taxes: Tenancy: Five story, office building, totaling approximately 60,392 rentable square feet. The building have extensive parking well above the required minimums. The office building are commercial siding on steel and poured concrete construction with masonry accents. The building has surface parking with cross easement access to adjacent parcels in the Countryside Center development. The building has ample signage opportunity both on Pidgeon Hill Drive and Rt. 7 (Harry Byrd Highway). The combination of building aesthetics, quality construction and access to amenities makes this one of the most attractive office environment in its submarket. 200 parking spaces (3.5/1000 Parking Ratio) PDH-3 $75,199 The property will be delivered 95% leased with a partial landlord master lease. Transportation The Loudoun Connector bus service stop is located within the Countryside Center office park. Zoning The property is zoned PDH-3. This very flexible zoning has enabled the Countryside Center to flourish with office, medical, retail, banking and entertainment uses.
2 & 14 Pidgeon Hill Drive,Sterling,Virginia Renovations The building was extensively renovated in 2000 and 2012, Renovation items include: Common area restrooms Elevator cabs Common area flooring, wall covering and paint Lighting and ceiling grid improvements within the common areas Signage upgrades Landscaping upgrades Shingle roofing replaced, downspouts and gutters replaced Upgraded front entrance Structural System Brick and commercial siding exterior with steel frame and poured slab. Roof The roofing system consists of two types. Over the fifth floor there is a pitched roof with wood decking and asphalt shingles. Over the third and fourth floors there is a flat roof with TPO roof membrane. The TPO roof membrane was replaced in 2012. As of 2015 the pitched roof system was observed to be in good condition. Plumbing All levels have ADA-compliant restrooms and janitors closets. Many of the office suites have kitchenettes. Electrical System 14 Pidgeon Hill Drive has a 2000 AMP electrical service with 400 AMP sub panels at each floor. HVAC The HVAC systems have the original condenser unit. All five floors have new compressors that have been installed in the eight years. Floors one thru three have new evaporators. The building has a total of 190 tons of AC broken down per floor. 1 st Floor: 40 ton 2 nd Floor: 40 ton 3 rd Floor: 40 ton 4 th Floor: 40 ton 5 th Floor: 30 ton Fire Protection Fully Sprinklered, wet system, monitored. Elevator Two electric ADA compliant elevators.
2 & 14 Pidgeon Hill Drive,Sterling,Virginia Egress Two separate stairwells for egress. Security The building has surveillance cameras, off-site monitoring, and controlled card entry. ADA The building is ADA accessible and has ADA restrooms. Interior Finishes The building has high-end finishes throughout. Internet Providers The building currently has Verizon Fios as well as Comcast.
2 & 14 Pidgeon Hill Drive,Sterling,Virginia III. Seller Financing and Non-recourse Financing Seller Financing Option: The seller of this property currently has no debt on the property, therefore, seller financing could be made available. Assuming a 50% down payment, the seller will offer an interest only 3% rate for a term of two years. This will be a first trust note. Non-Recourse Financing: With good credit the prospective purchaser could qualify for non-recourse financing for a 20-year loan term with 5% interest rate fixed for a five year period.
2 & 14 Pidgeon Hill Drive,Sterling,Virginia IV. Aerial, Map & Pictures Parcel Map Property Line 2 Pidgeon Hill Drive Parcel Map Property Line 14 Pidgeon Hill Drive Expanded Aerial
2 & 14 Pidgeon Hill Drive Sterling,Virginia Amenity Map We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of
2 & 14 Pidgeon Hill Drive Sterling,Virginia Area Map We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of
2 & 14 Pidgeon Hill Drive Sterling,Virginia Photos of 2 Pidgeon Hill Drive Renovated Lobby Renovated Hallways Digital Directory Renovated Restrooms Renovated Elevator Cab
2 & 14 Pidgeon Hill Drive Sterling, Virginia Area Water Feature with Seating Alternate Building View Elevated View Alternate Building View
2 & 14 Pidgeon Hill Drive Sterling,Virginia Photos of 14 Pidgeon Hill Drive Renovated Lobby Renovated Hallways Renovated Restrooms Renovated Elevator Cab
2 & 14 Pidgeon Hill Drive Sterling,Virginia Area Water Feature Outdoor Seating Alternate View Rooftop Deck Area
2 & 14 Pidgeon Hill Drive Sterling,Virginia V. Demographics
2 & 14 Pidgeon Hill Drive Sterling,Virginia VI. Market Information Summary Rt. 28 North Submarket, Extracted from Costar Market Research
2 & 14 Pidgeon Hill Drive Sterling,Virginia