Coomber Hall at McMillen Farm 1521 Dranesville Road Herndon, VA OFFERING MEMORANDUM Prime Infill Single Family Lot Opportunity
CONTENTS Offering Terms 3 Executive Summary 4 Property Summary 5 Investment Highlights 7 Economic Overview 8 Maps and Aerials 9 CONTACT Lisa Benjamin Senior Managing Director 202.471.3009 lbenjamin@ngkf.com 1521 Dranesville Road Offering Memorandum / 2
Offering Terms Ownership Coomber Hall at McMillen Farm LLC Interest Offered 100% Fee Simple Offer Deadline A formal call for offers letter will be distributed at the appropriate time. All submissions must be faxed, emailed or hard copy delivered. Offers should be submitted in the form of a non-binding letter of intent and should specify the following: Purchase Price Feasibility Period Closing Date Deposit Contingencies (if any) Proposed team of consultants Sources of Funds (Equity and Debt, if applicable) Consents and/or approvals needed for closing Recent development or home building experience in Fairfax County. Any other information having a direct bearing on the purchaser s ability to close the proposed transaction 1521 Dranesville Road Offering Memorandum / 3
Executive Summary Newmark Grubb Knight Frank is pleased to offer for sale Coomber Hall at McMillen Farm located at 1521 Dranesville Road in Herndon Virginia. Coomber Hall offers developers and homebuilders the opportunity to purchase a prime single family home development site in the Herndon submarket of Fairfax County. Coomber Hall is a 5.71 acre property that includes a single family home, historic barn and several small outbuildings. The property is currently zoned R-1 which allows for 1 dwelling unit per acre. The Fairfax County Comprehensive Plan provides for 2-3 single family lots per acre, so rezoning the site for a more dense single family development is likely. A zoning opinion letter outlining the salient issues from Cooley LLP is attached. The existing improvements on the property include a barn built in the mid -1800s, and a single family home built between1905-1908. The improvements total 9516 square feet. The barn is currently rented out as a catering hall for weddings and other social occasions. The property is listed on the Inventory of Historic Sites in Fairfax County however inclusion on this list does not provide details on the importance of preservation of any specific structures. The property is generally rectangular in shape and rolling. Access is from Dranesville Road, just north of Herndon High School. Dranesville Road is a four lane divided road, serving as a major North- South connector between Route 7 (Leesburg Pike) and Route 267 (Dulles Access Road). The Fairfax County Parkway is a limited access highway that runs parallel to Dranesville Road to the east. Phase I of the Silver Line Metro is complete to Wiehle Avenue, a short drive from the site and the future Herndon Station stop is less than three miles away. Dullas Airport is only 7 miles from the property. There is a very limited supply of new single family homes in Herndon, with pricing in the high $700,000s to low $900,000s. Demand for housing will continue to increase with the extension of Metro and accompanying employment centers. 1521 Dranesville Road Offering Memorandum / 4
Property Summary Address: Ownership: 1521 Dranesville Road, Herndon VA Coomber Hall at McMillen Fam LLC Year Built: 1850-1908 Building Area: Zoning: Submarket: 9516 SF in multiple buildings on 5.71 acre lot R-1, Fairfax County Comprehensive Plan provides for 2-3 Dwelling Units per Acre Herndon, VA Location: 3 miles to future Herndon Station Silver Line Metro ( n ) 4 miles to Reston Town Center.5 miles to Fairfax County Parkway 7 miles to Dulles Airport 1521 Dranesville Road Offering Memorandum / 5
Property Summary 1521 Dranesville Road represents a unique opportunity to purchase a large, infill property with strong rezoning potential. Currently zoned R-1, the Comprehensive Plan provides for infill development in the range of 2-3 dwelling units per acre providing the opportunity to achieve up to 17 lots on the 5.7 acre property. The property s extensive frontage along Dranesville Road enhances marketing efforts for future development. The site s rectangular shape is efficient to lay out an enclave of lots in the 1/3 to 1/2 acre range. Abundant retail and recreational amenities are close including Reston Town Center, the town of Herndon, Lake Fairfax Park and Reston National Golf Course. Transportation options surrounding the site are abundant. The Fairfax County Parkway and Dulles Access Road provide limited access highway options to the District of Columbia and other areas of Northern Virginia. Metro s Silver Line is complete to Wiehle Avenue, just 6 miles from the site and the future Herndon Station stop is 3 miles away. Dulles Airport is less than 7 miles from the property. 1521 Dranesville Road Offering Memorandum / 6
Investment Highlights CLOSE IN FAIRFAX COUNTY LOCATION RARE REDEVELOPMENT OPPORTUNITY WITH CURRENT INCOME ENCLAVE OF UP TO 17 NEW SINGLE FAMILY HOME LOTS POSSIBLE Zoning: Current Use: Location: Supply Factors: Property is currently zoned R-1 with Comprehensive Plan recommendation for 2-3 single family homes per acre. Successful rezoning will yield up to 17 single family lots. Rolling former dairy farm with historic barn and single family home Southeast Corner of Dranesville Road and Kingstream Drive Supply of single family lots in Herndon is extremely limited. Recent lot sales range from $275,000 to $350,000. 1521 Dranesville Road Offering Memorandum / 7
Economic Overview The Washington, DC metropolitan area continues to be one of the best performing economies in the country. It is driven by strong demographics, a diverse employment base fueled by both the private and public sectors, and the lowest unemployment rate in the nation for major metropolitan areas at 4.1% as of March 2016. The region, which includes the surrounding suburbs in Maryland, Virginia and West Virginia, with a median household income of $90,149, ranks highest among the nation s 25 most populous metro areas. Incomes in the metropolitan area grew by 34% from 2000 to 2012, compared to just 20.0% nationally. The region also boasts the most educated populations in the nation, with 25.3% of adults ages 25+ holding a bachelor s degree and 23.3% of adults ages 25+ holding a graduate or professional degree. With almost 3.2 million payroll jobs, the DC metropolitan area continues to rank in the top five largest job markets among metro areas, behind New York, the LA Basin and Chicago. Non-farm employment grew by 70,600 in 2015 or 2.3% compared to a national rate of 1.9%. A major contributing factor to the stability in the region is its consistently strong job market, a result of the presence of the federal government and a diverse economy based on technology, construction, healthcare and hospitality industries. 1521 Dranesville Road Offering Memorandum / 8
Maps and Aerials 1521 Dranesville Road Offering Memorandum / 9
Maps and Aerials 1521 Dranesville Road Offering Memorandum / 10
Memorandum To: From: Date: April 8, 2016 Re: Lisa Benjamin, Newmark Grubb Knight Frank Ben Wales, Cooley LLP Mark Looney, Cooley LLP McMillen Farm, 1521 Dranesville Road Per your request, this memo has been prepared to provide initial zoning information concerning the property known as McMillen Farm, located at 1521 Dranesville Road, Herndon (the Property ). The Property is identified on the Fairfax County Tax Map as 10-2 ((1)) Parcel 5 (see Exhibit A). The Property lies outside of the limits of the Town of Herndon and within Fairfax County s Dranesville District. The Dranesville District Supervisor is John W. Foust and the District s Planning Commissioner is John Ulfelder. Please note that this memo is not intended to provide a complete zoning analysis of the Property. It only includes information that we have been able to research in the time available. I. Zoning Ordinance The Property is zoned R-1 (Residential, one dwelling unit per acre) pursuant to the Fairfax County Zoning Ordinance. The R-1 zoning district was created to provide for single family detached dwellings and other uses compatible with the district s low-density residential character. We are not aware of any existing legislative approvals by Fairfax County associated with the Property. II. Comprehensive Plan A. Land Use Designation The Property is within an area of the County identified for development with 2-3 dwelling units per acre. As depicted on Exhibit A, much of the land surrounding the Property is zoned R-3 (Residential, three dwelling units per acre); a zoning district consistent with the Comprehensive Plan s recommended density. The redevelopment of the Property would represent infill development. The Comprehensive Plan recommends that infill development is of a compatible use, type and intensity with the other uses in the surrounding neighborhood. The Comprehensive Plan also 128304072 v1 Confidentiality note: This memorandum and the information it contains are intended to be a confidential communication only to the person or entity to whom it is addressed. If you have received this information in error, please notify us by telephone and return this original to this office by mail. 1
recommends that residential development should be clustered to allow the preservation of open space. B. Inventory of Historic Sites The Comprehensive Plan identifies the Property as being on Fairfax County s Inventory of Historic Sites. The Inventory recognizes the Property s farmhouse and the five out buildings as being historically significant. Inclusion of a historic site on the Inventory is an honorary designation, which does not impose restrictions or limits on what an owner can do with their property. However, the Comprehensive Plan encourages that, where possible, historic sites are preserved. III. Rezoning Application The redevelopment of the Property with an intensity greater than 1 dwelling unit per acre will require approval of a rezoning application by the Fairfax County Board of Supervisors. In light of the Comprehensive Plan recommending the development of the Property with 2-3 dwelling units per acre and the existing zoning of surrounding residential neighborhoods, the R- 3 zoning district would appear to be an appropriate option should the rezoning of the Property be considered. The rezoning of the Property to the R-3 district would potentially allow the development of up to 17 single family detached homes. For confirmation, townhomes are not permitted in the R-3 zoning district. It is important to note that in reviewing a rezoning application for the Property the County will consider all Comprehensive Plan recommendations associated with it, including the impact of the proposal to its historic buildings. We would suggest that additional research is undertaken into the historic structures included on the Inventory of Historic Sites prior to a rezoning application being filed. We trust that the above information is helpful. Should you have any questions or require further information, please do not hesitate to contact us. Mark Looney Ben Wales 703-456-8652 709-456-8609 mlooney@cooley.com bwales@cooley.com 128304072 v1 Confidentiality note: This memorandum and the information it contains are intended to be a confidential communication only to the person or entity to whom it is addressed. If you have received this information in error, please notify us by telephone and return this original to this office by mail. 2
EXHIBIT A 128304072 v1 Confidentiality note: This memorandum and the information it contains are intended to be a confidential communication only to the person or entity to whom it is addressed. If you have received this information in error, please notify us by telephone and return this original to this office by mail. 3