steeplechase 95 international business park - transwestern · steeplechase 95 international...

O f f e r i n g M e M O r a n d u M

S t e e p l e c h a S e 95 i n t e r n at i O n a l B u S i n e S S pa r k

1032, 1100 and 1101 Hampton park BoulevardCapitol HeigHts, maryland

I. Executive Summary Executive Overview ...............................................................4 Summary of Terms ................................................................7 II. Property Overview 1032 Hampton Park Blvd (Building F2) BuildingSpecifications .................................................10 Site Plan / Floor Plan ...................................................12 1100 Hampton Park Blvd (Building G) BuildingSpecifications .................................................14 Site Plan / Floor Plan ...................................................16 1101 Hampton Park Blvd (Building C) BuildingSpecifications .................................................18 Site Plan / Floor Plan ...................................................20

III. Tenancy Tenant Descriptions .............................................................22

IV. Financial Analysis Cash Flow Summary ...........................................................26 Lease Expiration Schedule..................................................26 Financial Assumptions ........................................................28 Rent Roll Summary .............................................................29 Comparable Lease Survey ..................................................30 Comparable Sale Survey ....................................................30

V. Appendix Exhibit A: Lease Abstracts ................................................ CD Exhibit B: Argus Model ..................................................... CD

DEAL CONTACTS

Gerald P. Trainor executive managing director 202.775.7091 [email protected]

Mark Glagola senior vice president 443.285.7675 [email protected]

James M. Darby senior vice president 301.896.9134 [email protected]

CAPITAL MARKETS

Patricia A. Earnest managing director 202.775.7055 [email protected]

InSTITuTIOnAl COMMErCIAl GrOuP www.transwestern-iCg.net

Gerald P. Trainor 202.775.7091

James V. Cardellicchio 202.775.7094

robert J. Filley 202.775.7045

Patricia A. Earnest 202.775.7055

Paul H. Korns 202.775.7038

James M. Darby 301.896.9134

Matt Gannon 301.896.9029

OFFErInG

transwestern’s institutional Commercial group has been retained on an exclusive basis to sell 1032, 1100 and 1101 Hampton park Boulevard, a three building portfolio of Class “a” industrial buildings situated in the steeplechase 95 international Business park in Capitol Heights, maryland (the “property” or “properties”). the three buildings represent the best-in-class industrial product in the marketplace, are 100% leased with an average term remaining of 7 years.

SuMMAry

address: 1032 Hampton park Boulevard (a/k/a Building F2) 1100 Hampton park Boulevard (a/k/a Building g) 1101 Hampton park Boulevard (a/k/a Building C)

Built: 2008

stories: single-story

square Footage: 249,751

occupancy: 100%

year 1 noi (2011): $2,131,117

4 5

InVESTMEnT HIGHlIGHTS

100% leased and OccupiedProvides stable and secure cash flow• average remaining lease term of 7 years• average rental rate is $8.47 psf, nnn• strong tenant roster with both regional and national tenancy • represented

Submarket Is Strengtheningmost popular location due to proximity to Washington, dC • marketplacetenants are seeking Class “a” product in the market• the market’s existing Class “a” inventory is extremely limited; • primarily B and C quality

Property will be delivered Free & Clear of Debt

square

Footage

occupancy

tenancy

remaining

term

1032

Hampton

park

Blvd

60,766 sF

100%;

single-

tenant

restaurant

depot12 years

1100

Hampton

park

Blvd

56,843 sF

100%;

single-

tenant

service

source,

inc

5 years,

5 months

1101

Hampton

park

Blvd

132,142 sF

100%;

multi-

tenant

Five

tenants 1

5 years

(average)

1 Johnson Controls (29,383 SF); Goodman/Amana Distribution (29,740 SF); Gaylord Entertainment (40,448

SF); Sure Comfort/Rheem (14,005 SF); Pohanka Oldsmobile (18,566 SF).

1032 Hampton Park Blvd



1101 HamptonPark Blvd

1032

1100

1101

PrOPErTy HIGHlIGHTS

Best In Class Construction & Design

Class “a” industrial buildings constructed in 2008•

rear loaded with ample depth and truck court•

Functional floor plans that are not too deep•

First generation quality build-outs•

excellent visibility and store-frontage yields high image • space for tenants

nothing comparable in marketplace•

State of the Art Facilities

24’ to 28’ clear ceiling heights•

120’ to 145’ truck courts with 55’ concrete aprons•

40’ x 40’ columns spacing•

ESFR fire suppression system•

1.27 to 2.58 parking spaces / 1000 sF•

lOCATIOn HIGHlIGHTS

unparalleled location Along I-95/I-495

situated at exit# 13 (ritchie marlboro rd & • the Beltway (i-95/i-495)

unbeatable access to i-95 and Washington, dC • High visibility location with first class ancillary retail nearby

5 miles to the nation’s capital•

MASTEr PlAn

steeplechase 95 international Business park is a 110 acre Class “a” business park that will include industrial, retail and hotel uses (the “park”). the park is highlighted by its tremendous access to I-95/I-495 and represents the first new interchange developed from i-95/i-495 in over a decade. the new interchange, exit# 13 at ritchie marlboro road, is home to steeplechase 95 in the northwest quadrant and ritchie station in the southwest quadrant.

steeplechase 95 includes 8 retail pad sites and one 26,000 square foot multi-tenant retail building along ritchie marlboro road. ritchie station, located across from steeplechase 95 will be a new power center anchored by BJ’s Wholesale and the following proposed tenants: Best Buy, target, tJ-maxx, kohl’s and Bed, Bath & Beyond.

COnTInuED DEMAnD

the Washington, dC metropolitan area’s economic indicators lead the nation as the area continues to create jobs that fuel demand for goods and services. the area has the fourth largest economy in the country and is the only large economy to have added payroll jobs in the 12 months ending april 2010. Furthermore, the Washington, dC metropolitan area is creating more jobs than its historical average of 38,000 per year and is projected to create 40,000+ jobs per year for the next four years.

the region ranked number one in job growth across • the us.

Washington has the lowest unemployment rate at 5.9% • (9%+nationally)

the region is anticipated to outpace its long-term • average job growth of 38,000 jobs per year. it is anticipated to average 42,900 jobs per year over the next five years.

SuMMAry OF TErMS

interest offered Fee simpleasking price no asking priceBids due Friday, november 5, 2010deposit 3% of offer suggesteddue diligence 30 days suggested




Ham

pton

Par

k B

lvd

1032(BlDG F2)

1100(BlDG G)

1101(BlDG C)

Hotel Site

I-95 / I-495

(Capital Beltway)

Hampton Park Blvd

ritchieStation

ritchie Marlboro rd

Exit #13

reta

il Are

a

2009 2010 2011 2012 2013 2014 2015 J obs

50,000

40,000

30,000

20,000

W ashington dc M Sapayroll Job growth

l ong term average

dc & Md V a

NORTH

RETAIL SITES

PROPOSED

D

ECTI / Home Depot138,780 SF

F1

H

A1

A4

A5

A6

A2

A3

6

5

4

3

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il-A

1

Waw

a

Gas S

tatio

nCan

opy

Drug

Stor

e

GServiceSource

56,843 SF

F2RestaurantDepot60,766 SF

1032 HamptonPark Boulevard

CMulti-Tenant

132,142 SF

1101 Hampton

Park Boulevard

1100Hampton

Park Blvd

INTE

RS

TATE

I-95

/ I-4

95

I-95 EXIT RAMP

HAM

PTON

PARK BLVD

RITCHIE MARLBORO RD

RITCHIE MARLBORO RD

495

495

495

95

95

50

50

50

202

202

704

950

410

450

704

704

214

214

458

4

202

FORESTVILLE

LARGO

CHEVERLY

ARDWICKARDMORE

LANDOVER

FEDEX FIELDBOULEVARD AT THE

CAPITAL CENTER

WALKER MILLREGIONAL PARK

ANNAPOLIS RD

LANDOVER RD

LANDOVER RD

LANDOVER RD

ARDWICK ARDMORE RD

LOTTSFORD RD

JOHN HANSON HWY

MARTIN

LUTH

ER KIN

G JR H

WY

MAR

TIN

LUTH

ER K

ING

JR H

WY

SHERIFF RD

COLUMBIA PARK RD

SHERIFF RD

CENTRAL AVE

HILL RD

CENTRAL AVE

RITCHIE MARLBORO RD

SAN

SBU

RY R

DC

API

TAL

BELT

WA

Y

CA

PITAL BELTW

AY

DARCY RDMARLBORO PIKE

WALKER MILL RD

BROOKE RD

AD

DISO

N RD

S

RITCHIE MARLBORO RD

SHA

DY

GLE

N D

R

KIPLING PKWY

HA

MPT

ON

PA

RK B

LVD

SILV

ER H

ILL

RD

MARLBO

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RITC

HIE

RD

RITCH

IE RD

PENNSYLVANIA AVE

WHITE HOUSE RD

HA

RRY S TRUM

AN

DR

ARENA DR

CA

MPU

S W

AY

S

CENTRAL AVE

ADDISON

RD

CABIN

BRANC

H RD

75TH

AVE

CH

EVER

LY A

VE

PENNSY DR

MT LUBENTIA WAY

MC

CO

MRI

CK

DR

CAPITOLHEIGHTS

5 MILES TOWASHINGTON D.C.

CBD

STEEPLECHASE

BuIlDInG SPECIFICATIOnS : 1032 HAMPTOn PArK BOulEVArD (BlDG F2)

GEnErAl SPECIFICATIOnS

property name and address: steeplechase 95 - Bldg. F2 1032 Hampton park Blvd. Capitol Heights, md 20743

legal description: parcel 2-a steeplechase Business park subdivision tax map 74, grid d3

year Completed: 2008

site: 4.25 acres (185,130 square feet)

Building size: 60,766 square feet

stories: 1-story (with no mezzanine areas)

Zoning: the property is zoned i-1 (manufacturing light district). the i-1 zoning is established to permit a mix of manufacturing, warehousing, wholesale and business uses with provisions for limited retail sales.

loading docks:

* there is an additional 10 punch-outs available for future build-out.

truck Court: 120’ truck court with 55’ concrete apron.

parking: 149 surface spaces (2.45/1,000 sF)

10

total loading loading docks drive-ins5 5 0

COnSTruCTIOn

Foundation: reinforced concrete slab

structure: pre-engineered tilt-up concrete panels.

Warehouse interior: the building’s interior warehouse space generally consists of open warehouse space with concrete floors, concrete block, and exposed walls, exposed corrugated metal roof decking on steel web joists and steel i-beams.

sale area & the property contains a restaurant supply business. Office Interior: It includes about 5,000 SF freezer space and about 12,000 sF cooled storage. the remaining space contains general sales area, cash registers and office space for the store management. Office build-out is estimated to be less than 10% of the building’s total net rentable area.

roof: the roof deck is the original ballasted epdm single ply membrane roof on lttr-21 rigid insulation over 1 ½” metal deck

Ceiling Height: 28’ clear ceiling heights

Column spacing: 40’ x 40’

MECHAnICAl SySTEMS

utilities: the building is served by all public utilities including water, sewer, gas, telephone and electric.

metering: tenant is separately metered for electricity, water and gas and contracts directly with the service providers.

electric: the building’s electrical service is a heavy three- phase/480 volt circuit.

HvaC: the warehouse areas are equipped with gas-fired space heaters. The warehouse areas are not air-conditioned. The office areas are served by roof-mounted heating and electric air-conditioning units.

FIrE/lIFE SAFETy

Fire protection the property is fully protected by a combination of system: an esFr wet sprinkler system and a dry sprinkler system.

11

SITE PlAn

12

NORTH

301'

201'

Ste # 100Restaurant Depot

1032 Hampton Park Blvd (Bldg F2)60,766 SF

Exp 12/2022

55'

120'

LoadingArea

ConcreteApron

14

BuIlDInG SPECIFICATIOnS : 1100 HAMPTOn PArK BOulEVArD (BlDG G)


property name and address: steeplechase 95 – Bldg. g 1100 Hampton park Blvd. Capitol Heights, md 20743

legal description: parcel 3 steeplechase Business park subdivision tax map 74, grid d3





Zoning: the property is zoned i-1 (manufacturing light district). the i-1 zone is established to permit a mix of manufacturing, warehousing, wholesale and business uses with provisions for limited retail sales.

loading docks:

truck Court: 120’ truck court with 55’ concrete apron.



COnSTruCTIOn



Warehouse interior: the building’s interior warehouse space generally consists of open warehouse space with concrete floors, concrete block, and exposed walls, exposed corrugated metal roof decking on steel web joists and steel i-beams. please note that the tenant has modified the warehouse space to include a new ceiling that secures the space and its environment for tenant’s operations.

Office Interior: The Property contains office space areas in the front portions of the building. Finishes are typical for office space including commercial carpet, drywall and acoustic ceiling panels. Office build-out is estimated to be 40% of the building’s total net rentable area.

roof: the roof deck is the original ballasted epdm single ply membrane roof on lttr-21 rigid insulation over 1 ½” metal deck.



MECHAnICAl SySTEMS


metering: tenant is separately metered for electricity and contracts directly with the service provider.

electric: the building’s electrical service is 1,600 amp with a three-phase/465 volt circuit.

HvaC: the warehouse areas are equipped with gas-unit heaters. the warehouse areas are not air-conditioned. The office areas are served by roof-mounted heating and electric air-conditioning units.

FIrE/lIFE SAFETy

Fire protection the property is fully protected by an esFr wet system: sprinkler system.

emergency power: the property is also equipped with a backup emergency generator.

SITE PlAn

16

HAM

PTO

N P

ARK

BLVD

NORTH

40'40'

130'

435'

50'

55'

120'40

'

Con

cret

e Ap

ron

Load

ing

Area

# 100Service Source

1100 Hampton Park Blvd(Bldg G)

56,843 SFExp 05/2016

18

BuIlDInG SPECIFICATIOnS : 1101 HAMPTOn PArK BOulEVArD (BlDG C)


property name and address: steeplechase 95 – Bldg. C 1101 Hampton park Blvd. Capitol Heights, md 20743

legal description: parcel 22 steeplechase Business park subdivision tax map 74, grid d3





Zoning: the property is zoned i-1 (manufacturing light district). the i-1 zone is established to permit a mix of manufacturing, warehousing, wholesale and business uses with provisions for limited retail sales.

loading docks:

truck Court: 130’ to 145’ truck court with 55’ concrete apron.



COnSTruCTIOn



Warehouse interior: the building’s interior warehouse space generally consists of open warehouse space with concrete floors, concrete block, and exposed walls, exposed corrugated metal roof decking on steel web joists and steel i-beams.

Office Interior: The Property primarily contains office/showroom space area in the front portions of each tenant’s space. Finishes are typical for office space including commercial carpet drywall and acoustic ceiling panels.

roof: the roof deck is the original ballasted epdm single ply membrane roof on lttr-21 rigid insulation over 1 ½” metal deck



MECHAnICAl SySTEMS


metering: Electric: each tenant is separately metered for electricity and contracts directly with the service provider. Water: each tenant is separately sub-metered; main contract with landlord. Gas: each tenant is separately metered for gas and contracts directly with the service provider.

electric: the building has a 3,000 amp electrical service with a heavy three-phase/465 volt circuit.

HvaC: the warehouse areas are equipped with gas unit heaters. the warehouse areas are not air-conditioned. The office areas are served by roof-mounted heating and electric air-conditioning units.

FIrE/lIFE SAFETy

Fire protection the property is fully protected by an esFr wet system: sprinkler system.

SITE PlAn

20

NORTH

Rei

nfor

ced

Con

cret

e Ap

ron

55'

130'

LOAD

ING

AREA

HAM

PTO

N P

ARK

BLVD

#100Johnson Controls

29,383 SFExp 04/2018

#200Goodman Distribution

29,740 SFExp 09/2013

#300Gaylord Entertainment

40,448 SFExp 08/2016

#400Sure Comfort

14,005 SFExp 12/2015

#500Pohanka Oldsmobile

18,566 SFExp 03/2017

40'

600'

200'

40'

1032 Hampton Park BlvdRestaurant Depot

1100 Hampton Park BlvdService Source

I-95/I-495 (Capital Beltway)

Hampton Park Blvd

PohankaOldsmobile

SureComfort

GaylordEntertainment

GoodmanDistribution

JohnsonControls


rESTAurAnT DEPOT 1032 Hampton Park Boulevard (Bldg F2)60,766 SF 100% of Bldg F2 24.3% of Portfolio Exp 12/2022

restaurant depot is a members-only wholesale cash and carry foodservice supplier to any businesses and chefs wanting to buy commercial food, equipment and supplies. they provide a low-cost alternative to other foodservice suppliers by eliminating the overhead of a traditional distributor. restaurant depot provides a broad selection of quality foodservice products at significant savings.

each of restaurant depot’s 82 locations nationwide stocks national and regional brands as well as its own brands of beverages, cleaning supplies, dairy, disposables, equipment, fresh and frozen meat, poultry, produce and seafood, paper, provisions, and smallwares.

in regard to the subject property, restaurant depot’s build-out consists of less than 10% office space. The balance is used for its standard wholesale cash and carry operations that include walk-in refrigeration and freezer areas, and aisles of food products and supplies.

the lease is executed by rd america, inc and is fully guaranteed by restaurant depot’s parent company, Jetro Holdings, inc.

www.restaurantdepot.com

SErVICE SOurCE, InC 1100 Hampton Park Boulevard (Bldg G) 56,843 SF 100% of Bldg G 22.8% of Portfolio Exp 05/2016

ServiceSource, Inc is headquartered in Alexandria, Virginia, and is an affiliate of the ServiceSource Network. As a not-for-profit 501(c)(3) organization, ServiceSource offers rehabilitation and employment services to people with disabilities. it also offers outsourcing labor options to businesses and government agencies in a variety of fields, including food service, mail management, administrative services, document management, assembly and packaging, warehousing, shipping and receiving, and logistics.

the servicesource network provides outsourcing services to both private sector firms and over 30 Federal Government Agencies including all branches of the United states military. their customer list includes: u.s. army, u.s. air Force, irs, dayco products, epa, u.s. department of Commerce, u.s. Bureau of the Census, u.s. marine Corp.

servicesource inc utilizes 1100 Hampton park Boulevard as a mail processing center in connection with a contract the firm has with the Department of Homeland security. as a result of the materials processed through the facility, Building g is a highly secure premises with access limited to personnel of servicesource. the rear loading areas are secure with chain link fences, on-site security and numerous security monitoring devices. the building’s interior consists of secure areas where mail and packages are inspected and routed for delivery. servicesource selected Building g for its single-tenancy functionality for security reasons and its access to public transportation which is situated in front of the building.

www.ourpeoplework.org

TEnAnT DESCrIPTIOnSBelow is a brief description of the property’s entire tenant roster.

JOHnSOn COnTrOlS, InC1101 Hampton Park Boulevard (Bldg C)29,383 SF 22.2% of Bldg C 11.8% of Portfolio Exp 06/2018

Johnson Controls is a global diversified company in the building and automotive industries. the company serves these markets through its three business units: Building Efficiency, Automotive Experience, and power solutions

Johnson Controls utilizes its space at the Property for its Building Efficiency unit, a leading provider of equipment and controls for heating, ventilating, air-conditioning and refrigeration, as well as security systems for buildings. the business unit delivers products and services that increase energy efficiency yielding lower operating costs for building owners.

Johnson Controls’ space at 1101 Hampton Park Boulevard is primarily flex/office space that includes perimeter windows on two sides with open work stations, large training rooms and warehouse areas. the property’s high-image, Class “a” quality, and its location are what attracted Johnson Controls to the building. the property’s ease of access from i-95/i-495 and excellent frontage along Hampton park Boulevard make it an identifiable location for its employees and guests.

Johnson Controls enjoys an investment grade credit rating from s&p (BBB).

www.johnsoncontrols.com

GOODMAn DISTrIBuTIOn, InC1101 Hampton Park Boulevard (Bldg C)29,740 SF 22.5% of Bldg C 11.9% of Portfolio Exp 09/2013

goodman distribution, inc. is a subsidiary of goodman global Holdings, inc., the second largest manufacturer of HvaC products for residential and light commercial use. the company’s products are predominantly marketed under the goodman and amana brand names. the goodman brand name is one of the leading HvaC brands in north america while the amana brand provides premium performance for their product line.

as a result of the company’s breadth of markets and market share, goodman global sells its products through more than 1,000 north american distribution points with more than 160 of these distribution centers being company-owned through goodman distribution, inc. during 2008 and 2009, approximately 55% and 57%, respectively, of the company’s net sales were made through company-operated distribution centers and their direct sales force.

to that end, goodman uses the subject property’s location as a showroom (approximately 2,500 square feet) and distribution facility providing sales of new units and replacement parts to home builders and HvaC professionals. goodman operates their company-operated distribution centers, like the subject property’s location, with a common look and feel that enables them to deliver a high level of service with low overhead costs.

Goodman’s company-operated distribution centers are a key component to the firm’s success. they have opened more than 70 company-operated distribution centers since 2003, which has enabled them to efficiently grow local market share with low up-front investment expenditures. the company-operated centers allow goodman to maintain close relationships with dealers, capture incremental distribution margins and better manage their inventory.

Goodman Global enjoyed significant free cash flow during 2008 and 2009. Their net cash provided by operating activities was $141.4 million and $207.7 million, respectively. net sales during the same periods were $1.877 billion and $1.851 billion, respectively. For the six months ending June 2010, net sales totaled $961.2 million.www.goodmanmfg.com

24 25

GAylOrD nATIOnAl, llC1101 Hampton Park Boulevard (Bldg C)40,448 SF 30.6% of Bldg C 16.2% of Portfolio Exp 08/2016

Gaylord Entertainment Company, through its subsidiaries, operates as a diversified hospitality and entertainment company that focuses on the large group meetings and conventions sector. its Hospitality segment owns and operates the gaylord Hotels branded hotels, which include the gaylord opryland resort and Convention Center in nashville, tn, the gaylord palms resort and Convention Center in kissimmee, Fl, the gaylord texan resort and Convention Center in grapevine, tX, and the gaylord national resort and Convention Center located on the potomac river in prince george’s County, md.

to that end, gaylord utilizes the subject property as a warehouse facility for their nearby gaylord national resort and Convention Center. gaylord is the largest tenant in 1101 Hampton park Boulevard and the 3rd largest tenant in the portfolio. their 40,448 square foot unit is used strictly for warehouse storage of the hotel’s FF&e and seasonal decorations.

www.gaylordhotels.com

COMPOnEnTS AnD DISTrIBuTIOn, InC(d/b/a Sure Comfort Supply Centers)1101 Hampton Park Boulevard (Bldg C)14,005 SF 10.6% of Bldg C 5.6% of Portfolio Exp 12/2015

sure Comfort supply Centers provide cost-effective, reliable heating and cooling products to HvaC contractors and their customers. the company uses its premises as a showroom (approximately 2,500 square feet) and distribution facility. sure Comfort operates through dedicated factory centers like the subject property’s location with professional and knowledgeable staff.

the factory center showroom and warehouse at 1101 Hampton park Boulevard offers product delivery to on-site locations in addition to a full line of replacement parts and accessories.

www.surecomfortsupply.com

POHAnKA rITCHIE MArlBOrO, l.P.1101 Hampton Park Boulevard (Bldg C)18,566 SF 14.1% of Bldg C 7.4% of nrA Exp 03/2017

the pohanka automotive group operates new and used car dealerships throughout the virginia, maryland, and Washington, dC areas. pohanka has been serving the metropolitan Washington, dC area for decades providing quality products, excellent prices, and friendly service.

pohanka will utilize the subject property’s location as an off-site repair center where factory stock equipment and accessories are upgraded and altered to the customer’s specifications. The premise’s build-out includes approximately 3,000 square feet of office and reception areas. The balance of the space will remain high-bay warehouse areas.

www.pohanka.com

For the years ending year 1 year 2

dec-2012 year 3

dec-2013 year 4

dec-2014 year 5

dec-2015 year 6

dec-2016 year 7

dec-2017 year 8

dec-2018 year 9

dec-2019 year 10

dec-2020 year 11

dec-2021 psF dec-2011

Potential Gross revenue

Base rental revenue $8.53 $2,131,244 $2,185,509 $2,252,630 $2,325,018 $2,395,453 $2,634,496 $2,851,098 $3,027,933 $3,163,169 $3,255,933 $3,385,022

absorption & turnover vacancy 0.00 0 0 (42,064) 0 0 (218,126) (31,607) (71,188) 0 (28,067) (29,049)

scheduled Base rental revenue 8.53 2,131,244 2,185,509 2,210,566 2,325,018 2,395,453 2,416,370 2,819,491 2,956,745 3,163,169 3,227,866 3,355,973

expense reimbursement revenue 1.50 375,396 383,759 406,901 461,509 511,125 521,801 621,701 725,551 812,806 829,546 855,376

Total Potential Gross revenue 10.04 2,506,640 2,569,268 2,617,467 2,786,527 2,906,578 2,938,171 3,441,192 3,682,296 3,975,975 4,057,412 4,211,349

vacancy & Credit loss (5%, 0% existing tts) 0.00 0 0 0 (14,715) (15,323) 0 (72,607) (57,005) (143,379) (119,348) (124,599)

Effective Gross revenue 10.04 2,506,640 2,569,268 2,617,467 2,771,812 2,891,255 2,938,171 3,368,585 3,625,291 3,832,596 3,938,064 4,086,750

Operating Expenses

mgmt Fee (3%) 0.30 75,199 77,077 78,524 83,596 87,198 88,146 103,236 110,469 119,279 121,721 126,340

repairs & maintenance 0.09 23,351 24,051 24,774 25,516 26,281 27,070 27,882 28,718 29,580 30,468 31,382

grounds 0.11 28,119 28,963 29,831 30,726 31,648 32,597 33,576 34,584 35,620 36,689 37,790

snow removal 0.09 23,175 23,871 24,585 25,323 26,085 26,865 27,672 28,503 29,358 30,237 31,146

Contract services 0.03 8,127 8,371 8,621 8,881 9,148 9,420 9,705 9,995 10,295 10,605 10,922

insurance 0.06 15,388 15,849 16,326 16,815 17,319 17,839 18,374 18,925 19,493 20,078 20,680

taxes 0.60 150,096 152,076 175,227 213,871 254,969 298,630 344,967 440,512 503,222 518,319 533,868

admin & personnel (reimb) 0.08 20,231 20,838 21,463 22,107 22,770 23,454 24,157 24,882 25,629 26,397 27,188

association dues (reimb) 0.13 31,837 32,792 33,776 34,789 35,832 36,908 38,015 39,155 40,330 41,540 42,787

Total Operating Expenses 1.50 375,523 383,888 413,127 461,624 511,250 560,929 627,584 735,743 812,806 836,054 862,103

net Operating Income 8.53 2,131,117 2,185,380 2,204,340 2,310,188 2,380,005 2,377,242 2,741,001 2,889,548 3,019,790 3,102,010 3,224,647

leasing & Capital Costs

tenant improvements 0.00 0 0 35,495 0 0 243,996 24,940 117,446 0 0 44,964

leasing Commissions 0.00 0 0 72,521 0 0 376,060 54,492 122,731 0 0 100,165

Capital reserve 0.00 0 0 0 0 12,488 12,862 13,248 13,645 14,055 14,476 14,911

Total leasing & Capital Costs 0.00 0 0 108,016 0 12,488 632,918 92,680 253,822 14,055 14,476 160,040

Cash Flow Before Debt Service 8.53 2,131,117 2,185,380 2,096,324 2,310,188 2,367,517 1,744,324 2,648,321 2,635,726 3,005,735 3,087,534 3,064,607

CASH FlOw SuMMAry

26

ExPIrATIOn SCHEDulE

Expiration CY2011

CY2012

CY2013

CY2014

CY2015

CY2016

CY2017

CY2018

CY2019

CY2020

CY2021+

VacantSuite Date TenantC_200 9/13 Goodman Distribution 29,740 C_400 12/15 Sure Comfort 14,005 G_100 5/16 ServiceSource Inc 56,843 C_300 8/16 Gaylord Entertainment 40,448 C_500 3/17 Oldsmobile 8,566 C_100 4/18 Johnson Controls 29,383 F2_100 12/22 Restaurant Depot 60,766

Annual Total Square Feet 0 0 29,740 0 14,005 97,291 18,566 29,383 0 0 60,766 0% of Building Area (249,751) 0.0% 0.0% 11.9% 0.0% 5.6% 39.0% 7.4% 11.8% 0.0% 0.0% 24.3% 0.0%

Cumulative % of Building Area 0.0% 0.0% 11.9% 11.9% 17.5% 56.5% 63.9% 75.7% 75.7% 75.7% 100.0% 100.0%

27

0.0% 11.9% 0.0% 5.6% 39.0% 7.4% 11.8% 0.0% 0.0% 24.3% 0.0%0.0% 0.0%

11.9% 11.9%17.5%

56.5%

63.9%

75.7% 75.7% 75.7%

100.0% 100.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021+ Vacant

(as a percentage of NRA per calendar year)

A nnual Expirations

Cumulative Expirations

28

KEy ASSuMPTIOnS

market leasing assumptions

market rent

annual lease in-creases

lease type

lease term

renewal probability

downtime tenant improvements

leasing Commissions

new renew new renew new renew

1032 Hampton (Bldg F2) $12.00 3.0% nnn 7 years 75% 6 mo 0 mo $9.00 $0.50 6.0% 3.0%

1100 Hampton (Bldg g) $11.00 3.0% nnn 7 years 75% 6 mo 0 mo $9.00 $0.50 6.0% 3.0%

1101 Hampton (Bldg C): w/house $8.00 3.0% nnn 7 years 75% 6 mo 0 mo $3.00 $0.50 6.0% 3.0%

1101 Hampton (Bldg C): flex $11.00 3.0% nnn 7 years 75% 6 mo 0 mo $10.00 $1.00 6.0% 3.0%

Analysis Start Date Jan 01, 2011 (Jan-2011 - through - dec-2011) net rentable Area occupied area 249,751 100.0% vacant 0 0.0% total nra 249,751

Inflation Rates General Inflation (CPI) 3% Market Rent Inflation 2.0%, 4.0%, 6.0%, 6.0%, 3.5%, ….. Vacancy & Credit loss 5% in-place tenants are excluded until they roll. Operating Expenses Operating expenses reflect 2010 Budget +3%. Taxes Year 1 Taxes reflect actual assessments and 2010 tax rates. Years 2+ reflects the prior year’s assessment increased 3%. abatement the property’s tax abatement reduces the assessed value for all tax calculations except the taxes calculated for the state of maryland. the tax abatement reduces the increase in assessment that exceeds the base assessment amount. the tax abatement program ends June 2018. Base assessments 1032 Hampton park Blvd $1,128,700 1100 Hampton park Blvd $844,100 1101 Hampton park Blvd $1,265,500

Capital $0.05 psf effective year 5 of the model.

proforma year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8

tax year 07/2011 - 06/2012 07/2012 - 06/2013 07/2013 - 06/2014 07/2014 - 06/2015 07/2015 - 06/2016 07/2016 - 06/2017 07/2017 - 06/2018 07/2018 - 06/2019

80% 80% 70% 60% 50% 40% 30% 0%

Tax Abatement Program

28

tenant namesuite numberexpiration date/term

tenantsq Ftg

annual rent rates reimbursementsoper exp & re tax

By (stop amt)

CommentspsF rent Changes

annual on to (psF)

restaurant depot suite: F2_100 Jan-2008 to dec-2022

60,766 $11.25 $683,618

Jan-2012 Jan-2013 Jan-2014 Jan-2015 Jan-2016 Jan-2017 Jan-2018 Jan-2019 Jan-2020 Jan-2021 Jan-2022

$11.53 $11.82 $12.12 $12.42 $12.73 $13.05 $13.38 $13.71 $14.05 $14.41 $14.77

(1032) F2_100: nnn (tax+oe)

renewal: tenant has three 5-year renewals at market with 12 months advance notice.Guaranty: lease is guaranteed by Jetro Holdings, inc.

service source inc suite: g_100 Jun-2008 to may-2016

56,843 $8.06 $458,155

Jun-2011 Jun-2012 Jun-2013 Jun-2014 Jun-2015

$8.30 $8.55 $8.81 $9.07 $9.35

(1100) g_100: nnn (tax+oe)

renewal: tenant has three 5-year renewals; rent continues to increase at 3% year. Termination: if its contract with the government is canceled. tenant to give 120 days advance notice and pay $380,000 in first year; thereafter, penalty amortizes over 84 month period.restoration: tenant to restore space to vanilla box.

Johnson Controls suite: C_100 may-2008 to apr-2018

29,383 $7.37 $216,553

Jul-2011 Jul-2012 Jul-2013 Jul-2014 Jul-2015 Jul-2016 Jul-2017

$7.59 $7.82 $8.06 $8.30 $8.55 $8.80 $9.07

(1101) C_100: nnn (tax+oe)

renewal: tenant has two 3-year renewals at market with 9 months advance notice.Termination: a one time right to terminate effective 05/01/2016 with notice and payment of unamortized tis and lCs. tenant forfeits termination right should it exercise its right of First option during years 4 - 7 (05/2011 - 04/2015).rOFO: tenant may lease 8,400 sF in an adjacent building under the same terms. offer expires 05/01/2015.

goodman distribution suite: C_200 oct-2008 to sep-2013

29,740 $7.16 $212,938

oct-2011 oct-2012

$7.38 $7.60

(1101) C_200: nnn (tax+oe)

renewal: tenant has one 5-year renewal at market with 6 months advance notice.

gaylord entertainment suite: C_300 mar-2009 to aug-2016

40,448 $6.15 $248,755

sep-2011 sep-2012 sep-2013 sep-2014 sep-2015

$6.30 $6.46 $6.62 $6.79 $6.96

(1101) C_300: nnn (tax+oe)

renewal: tenant has one 5-year renewal at market with 12 months advance notice.Termination: on the following dates with 6 months notice:(i) 02/04/2013 with 6 mos rent + $101,120 + unamortized tis & lCs(ii) 02/04/2014 with 4 mos rent + $80,896 + unamortized tis & lCs(iii) 02/04/2015 with 3 mos rent + $60,672 + unamortized tis & lCs

sure Comfort suite: C_400 oct-2010 to dec-2015

14,005 $7.11 $99,576

Jan-2012 Jan-2013 Jan-2014 Jan-2015

$7.39 $8.11 $8.46 $9.18

(1101) C_400: nnn (tax+oe)

renewal: tenant has two 3-year renewals at market with 6 months advance notice.Termination: tenant may cancel lease on 08/31/2013 with120 days advance notice and penalty of $19,740 + unamortized tis and lCs amortized over an 11-year period.Guaranty: lease is guaranteed by rheem sales Company, inc.

oldsmobile suite: C_500 dec-2010 to mar-2017

18,566 $10.60 $196,800

dec-2014 dec-2015 dec-2016

$10.87 $11.14 $11.42

(1101) C_500: nnn (tax+oe)

renewal: tenant has two 5-year renewals; rent continues to escalate 2.5% per year.Guaranty: lease is guaranteed by pohanka oldsmobile, inc.

rEnT rOll SuMMAry

29

30

COMPArABlE SAlESProperty name and Address

13380 Mid Atlantic Blvd



6330 Columbia Park rd


City, State Beltsville, md Beltsville, md laurel, md Cheverly, md Capitol Heights, md

Submarket Beltsville Beltsville laurel landover/largo ind Home depot

Sale Date 05/2009 05/2009 02/2009 09/2007 06/2007

Square Feet 35,746 24,400 44,000 52,500 138,780

Sale Price $4,290,000 $3,620,000 $5,030,000 $6,037,000 $18,300,000

Sale Price PSF $120 $148 $114 $115 $132

Space Type industrial/showroom industrial/showroom industrial/showroom industrial/showroom industrial/showroom

Built/renovated 2009 2009 2009 2006 2006

location inferior inferior inferior inferior equal

Quality equal equal equal inferior equal

Seller Jackson shaw Jackson shaw Jackson shaw pactrust alapco

Buyer Floor maxamerican

mechanicalFreestate electric

architect of the Capitol

metzler

Company location lease Date Size rate

(nnn) Inc Term Ti Comments

siemens6435 virginia manor rd Beltsville, md

may-08 76,292 sF $12.25 3.00% 63 mos none ind/showroom

Creative options and employment

1441 mcCormick dr landover/lanham, md

mar-09 15,263 sF $11.00 3.00% 36 mos $13.50/sF ind/showroom

Christ embassy Church

1601 mcCormick dr landover/lanham, md

Jun-09 12,607 sF $11.00 3.00% 60 mos $5.00/sF ind/showroom

FF&e logistics6501 virginia manor rd Beltsville, md

aug-10 31,950 sF $8.50 3.00% 60 mospaint & Carpet

ind/Warehouse

Colonial distributors5200 sunnyside avenue Beltsville, md

oct-08 13,169 sF $8.50 3.00% 60 mos none ind/showroom

antenna research associates

4451 - 4485 nicole dr landover/lanham, md

apr-09 36,787 sF $8.35 3.00% 126 mos "as is" ind/showroom

simplexity9301 peppercorn pl landover/lanham, md

sep-09 51,667 sF $7.75 2.50% 60 mos $4.00/sF ind/showroom

allen impact13380 mid atlantic Blvd Beltsville, md

Jul-09 40,000 sF $7.75 3.00% 120 mos $8.00/sF ind/showroom

COMPArABlE lEASES

TRANSWESTERN (including their affiliates, subsidiaries, related parties,

successors, and assigns, hereinafter referred to singly and collectively

as “Transwestern” or “Agent”) have been engaged as the exclusive agent

by Atapco Ritchie Interchange, Inc., (the “Owner” or “Seller”) for the sale

of three industrial buildings totaling 249,751 square feet located at 1032,

1100 and 1101 Hampton Park Boulevard in Capitol Heights, Maryland (the

“Property”).

The Property is being offered for sale in an “as-is, where-is” condition and

the Seller and the Agent make no representations or warranties as to the

accuracy of the information contained in this Offering Memorandum. The

enclosed materials include highly confidential information and are being

furnished solely for the purpose of review by prospective purchasers of

the interest described herein. Neither the enclosed materials, nor any

information contained herein, are to be used for any other purpose, or

made available to any other person without the express written consent

of the Seller. Each recipient, as a prerequisite to receiving the enclosed

information, should be registered with Transwestern Commercial Services

as a “Registered Potential Investor” or as “Buyer’s Agent” for an identified

“Registered Potential Investor”. The use of this Offering Memorandum and

the information provided herein, is subject to the terms, provisions and

limitations of the Confidentiality Agreement furnished by the Agent prior

to delivery of this Offering Memorandum.

The enclosed materials are being provided solely to facilitate the prospective

investor’s due diligence for which it shall be fully and solely responsible. The

material contained herein is based on information and sources deemed to

be reliable, but no representation or warranty, express or implied, is being

made by the Agent or the Seller or any of their respective representatives,

affiliates, officers, employees, shareholders, partners and directors, as to the

accuracy or completeness of the information contained herein. Summaries

contained herein of any legal or other documents are not intended to be

comprehensive statements of the terms of such documents, but rather

only outlines of some of the principal provisions contained therein. Neither

the Agent or the Seller shall have any liability whatsoever for the accuracy

or completeness of the information contained herein, or any other written

or oral communications, or information transmitted, or made available,

or any action taken, or decision made by the recipient with respect to

the Property. Interested parties are to make their own investigations,

projections and conclusions without reliance upon the material

contained herein.

The Seller reserves the right, at its sole and absolute discretion, to withdraw

the Property from being marketed for sale at any time and for any reason.

The Seller and the Agent each expressly reserve the right, at their sole

and absolute discretion, to reject any and all expressions of interest or

offers regarding the Property and/or to terminate discussions with any

entity at any time, with or without notice. This Offering Memorandum is

made subject to omissions, corrections or errors, change of price or other

terms, prior sale or withdrawal from the market without notice. The Agent

is not authorized to make any representations or agreements on behalf of

the Seller.

The Seller shall have no legal commitment or obligation to any

interested party reviewing the enclosed materials, performing additional

investigation and/or making an offer to purchase the Property unless

and until a binding written agreement for the purchase of the Property

has been fully executed, delivered and approved by the Seller and

any conditions to the Seller’s obligations thereunder have been

satisfied or waived.

By taking possession of and reviewing the information contained herein,

the recipient agrees that (a) the enclosed materials and their contents are

of a highly confidential nature and will be held and treated in the strictest

confidence and shall be returned to the Agent or the Seller promptly upon

request; and (b) the recipient shall not contact employees or tenants of

the Property directly or indirectly regarding any aspect of the enclosed

materials or the Property without the prior written approval of the Seller or

the Agent; and (c) no portion of the enclosed materials may be copied or

otherwise reproduced without the prior written authorization of the Seller

or the Agent or as otherwise provided in the Confidentiality Agreement

executed and delivered by the recipient(s) to Transwestern.

The Seller will be responsible for any commission due the Agent in

connection with a sale of the Property. Each prospective purchaser will be

responsible for any claims for commissions by any other broker or agent

in connection with a sale of the Property if such claims arise from acts of

such prospective purchaser or its broker/agent. Any Buyer’s Agent must

provide a registration signed by the prospective investor acknowledging

said agent’s authority to act on its behalf.

If you have no interest in the Property at this time, please return this

Offering Memorandum to the address below if it is a hard copy or delete

the file if it is an electronic copy:

Transwestern Institutional Commercial Group

1700 K Street, NW, Suite 660

Washington, DC 20006

Attention: Gerald P. Trainor, Executive Managing Director

Confidential Memorandum And Disclaimer

31

DEAL CONTACTS

Gerald P. Trainorexecutive managing [email protected]

Mark Glagolasenior vice [email protected]

James M. Darbysenior vice [email protected]

CAPITAL MARKETS

Patricia A. Earnestmanaging [email protected]

Institutional Commercial Group www.transwestern-iCg.net

Gerald P. Trainor202.775.7091

James V. Cardellicchio202.775.7094

robert J. Filley202.775.7045

Patricia A. Earnest202.775.7055

Paul H. Korns202.775.7038

James M. Darby301.896.9134

Matt Gannon301-896.9029

1700 k street, nW tel 202.775.7000 suite 660 FaX 202.296.2647 Washington, dC 20006 www.transwestern-iCg.net

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