OFFERING MEMORANDUM Silver Spring Park 8113-7 Fenton Street Silver Spring, MD

Ken Freeman Vice President [email protected] 301-828-1236

7250 Woodmont Ave, Suite 350 | Bethesda, Maryland 20814 | Phone: 301 828 1200 | www.broadstreetllc.net CONFIDENTIALITY & CONDITIONS

This Offering Memorandum (“Memorandum”) is furnished to prospective purchasers solely to facilitate the purchaser’s consideration of 8113-7 Fenton Street, Silver Spring, MD (“Property”). The Memorandum contains proprietary information and was prepared by Broad Street Realty LLC using information compiled from sources we consider to be reliable. By receipt of this Memorandum you agree that: (a) the Memorandum and its contents are of a confidential nature and that you will hold and treat it in strictest confidence in full compliance with the separate confidentiality agreement you have executed; (b) you will not reproduce, transmit, disseminate the information contained in the Memorandum through any means, or disclose this Memorandum or any of its contents to any other entity without the prior written authorization of Broad Street Realty LLC nor will you use this Memorandum or any of its contents in any fashion or manner detrimental to the interests of Broad Street Realty LLC or the seller; and (c) upon request you will return the Memorandum without retaining any copy or extract of any portion thereof.

This Memorandum does not purport to be all-inclusive or to contain all the information which prospective purchasers may desire and is a summary upon which prospective purchasers are not entitled to rely. Certain documents and materials are described herein in summary form. The summaries are not complete descriptions of the documents and materials. Interested parties are expected to review all such documents and materials independently. Market financial projections are provided for reference purposes only and are based on assumptions relating to the general economy, competition and other factors beyond the control of Broad Street Realty LLC and are, therefore subject to material variation. Additional information and an opportunity to inspect the Property will be made available to qualified prospective purchasers upon request. Each purchase offer is to be based strictly and entirely upon the purchaser’s independent investigation, analysis, appraisal and evaluation of the facts and circumstances deemed relevant by the purchaser. Neither Owner, Broad Street Realty LLC nor any of their respective directors, officers, or affiliates have made any representation or warranty, express or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of this Memorandum or its contents.

This offering is submitted and received with the understanding that all negotiations for the acquisition of the herein described property will be conducted through Broad Street Realty LLC. The sellers and Broad Street Realty LLC expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate discussions with any entity at any time with or without notice.

Silver Spring Park Table of Contents

01 Executive Summary 02 Neighborhood Overview 03 Financials 04 Due Diligence 05 Broad Street 01 Executive Summary

Silver Spring Park Executive Summary- The Offering

Broad Street Realty is pleased to offer the fee simple interest in 8113-7 Fenton Street, Silver Spring, MD. The Property is comprised of an existing four-story 28,170 s.f. Class C office building and adjacent surface parking of 40,393 s.f., totaling a 50,396 s.f. lot. In 2010 the site received approvals from the Montgomery County Planning Board under Project Plan 920100030 for a 147,888 s.f. mixed-use development including a 110 room hotel and 58 residential units, while maintaining the existing office building (http://www.daicsearch.org/imageENABLE/search.asp?Keyword=920100030).

The office building is cash-flowing generating a projected gross income of $508,895 in 2018. There is one tenant, Zene’s Deli and World Market, occupying 4,000 s.f. with a lease expiring July 31, 2025. All other tenants are either month-to-month or their leases expire in 2019. The Property has a split zoning with 22,278 s.f. in CR-3.0; C-2.0; R-2.75; H-60 T and 22,278 s.f. In CR-3.0; C-2.0; R-2.75; H-60 T. It is located in the Silver Spring Central Business District, Fenton Village zoning overlay.

The Property presents an excellent opportunity to immediately develop in the burgeoning Silver Spring downtown market or as a covered land play until the next development cycle presents itself. The site presents an infrequent opportunity to acquire a large, downtown development site walkable to mass transit.

Silver Spring is a family-friendly, walkable downtown atmosphere located minutes from the Nation’s Capital and the Beltway. Silver Spring offers excellent restaurants and stores for every budget and a vibrant mix of arts and entertainment, like the Fillmore music venue and the AFI Silver Theatre. Silver Spring has seen a boost in development recently as the completion of the Paul S. Sarbanes Transit Center and the beginning of construction for the Purple Line has integrated the area into the greater Washington D.C. mass transit infrastructure.

Silver Spring Park 02 Neighborhood Overview

Silver Spring Park A Brief History of Silver Spring In 1840, Francis Preston Blair, along with his daughter Elizabeth, discovered a "mica-flecked" spring near Washington D.C. (Mica is a type of mineral that flakes easily and is known for its glittery silver color.) He liked the location so much that he bought the surrounding land and created a summer home for his family which he called "Silver Spring." The city of Silver Spring, Maryland took its name from Blair's estate. Acorn Park, tucked away in an area of south Silver Spring away from the main downtown area, is believed to be the site of the original spring. Acorn Park in 1917– the acorn-shaped gazebo is visible at left Blair Family History Francis Preston Blair (April 12, 1791 – October 18, 1876) was an American journalist and politician. Francis Blair was father of Montgomery Blair, a member of President Lincoln's cabinet. Preston Blair’s daughter, Elizabeth Blair, married Samuel Phillips Lee, third cousin of future Confederate leader Robert E. Lee, and gave birth to a boy, Francis Preston Blair Lee. The child would eventually become the first popularly elected Senator in United States history.

Silver Spring Grows The early 20th century set the pace for downtown Silver Spring's growth. E. Brooke Lee and his brother, Blair Lee I, founded the Lee Development Company, whose Colesville Road office building remains a downtown fixture. In the early 1900’s, Washington trolley service on Georgia Avenue (present-day Maryland Route 97) provided transportation through the city. The trolleys stopped running for a period of time, but were rebuilt again in 1948 with additional lanes for automobile traffic, opening the areas to the north of Silver Spring to suburban development. The Trolley Museum on Bel-Pre Rd. is now home to many of these original trolleys. Takoma-Silver Spring High School, built in 1924, was the first high school for Silver Spring. The community's rapid growth led to the need for a larger school. In 1935, when a new high school was built at Wayne Avenue and Sligo Creek Parkway, it was renamed Montgomery Blair High School. The school remained at that location for over sixty years, until 1998, when it was moved to a new, larger facility at the corner of Colesville Road and University Boulevard. The former high school building became a combined middle school and elementary school.

Silver Spring Park The Silver Spring Shopping Center and Silver Theatre were completed in 1938. The shopping center was unique because it was one of the nation's first retail spaces that featured a streetfront parking lot. Until that time, stores were built so that merchandise was displayed in windows closest to the street so that people could see it; the shopping center broke those rules. By the 1950s, Silver Spring was the second busiest retail market between Baltimore and Richmond, with the Hecht Company, J.C. Penney, Sears, Roebuck and Company, and a number of other businesses. In 1954, after standing for over a century, the Blair mansion "Silver Spring" was torn down and replaced with the Blair Station Post office. In 1960, Wheaton Plaza (later known as Westfield Wheaton), a shopping center several miles north of downtown Silver Spring opened, and captured much of the town's business. The downtown area soon started a long period of decline. Washington Metro rail service into Washington, D.C. helped breathe life into the region starting in 1978 with the opening of the Silver Spring station on the Metro Red Line. By the mid-1990s, the Red Line continued north from the downtown Silver Spring core, entering a tunnel just past the Silver Spring station and running underground to three more stations, Forest Glen, Wheaton and Glenmont

Silver Spring Now At the beginning of the 21st century, downtown Silver Spring began to see the results of redevelopment. Several city blocks near City Place Mall were completely reconstructed to accommodate a new outdoor shopping plaza called "Downtown Silver Spring." New shops included national retail chains such as Whole Foods Market, Regal Theatres, Ann Taylor Loft, DSW Shoe Warehouse, Office Depot, and Pier 1 Imports, as well as many restaurants, including Macaroni Grill, Panera Bread, Red Lobster, Cold Stone Creamery, Fuddruckers, Potbelly , Baja Fresh, and Chick-fil-a. In addition to these chains, Downtown Silver Spring is home to a wide variety of family-owned restaurants representing its vast ethnic diversity. In 2003, Discovery Communications completed the construction of its headquarters and relocated to downtown Silver Spring. The same year also brought the reopening of the Silver Theatre, as AFI Silver. Development continues with the opening of new office buildings, condos, stores, and restaurants. In 2005 Downtown Silver Spring was awarded the Rudy Bruner Award for Urban Excellence silver medal. http://www.montgomeryschoolsmd.org/uploadedFiles/schools/cannonroades/classroom/grade4/A%20Brief%20History%20of%20Silver%20Spring2.pdf

Silver Spring Park Silver Spring Park Silver Spring Park Aerial

Silver Spring Park Purple Line Stop

.03 miles SITE

Silver Spring Park ZONING MAP

Site

Silver Spring Park ZONING

Silver Spring Park BUS

The Property is serviced by the F4 and 17 lines

Silver Spring Park RAIL

The Property is closest to the red line at the Silver Spring Metro station

Silver Spring Park DEMOGRAPHICS

Silver Spring Park 03 Financials

Silver Spring Park RENT ROLL Current as of July 15, 2018

Silver Spring Park EXPENSES

2017-2015 Annual Income 2017 2016 2015 RETAIL SPACE $189,599 $194,331 $260,599 Challenges/Threats:OFFICE SPACE $239,869 $246,529 $208,412 PARKING / LOT SPACE $79,200 $67,800 $67,800 • Lack ofTOTAL tenant credit $508,668 $508,660 $536,811 • CBRE counter point: historically well occupied with high Expenses renewal probability, multi-tenant occupancy alleviates risk from any CLEANING AND MAINTENANCE $18,701 $18,701 $15,347 single tenantELECTRICITY and strong local-tenant story.$24,667 $25,156 $48,500 • Short-termWATER in place leases $8,795 $8,247 $6,005 GAS $6,610 $4,038 $10,000 •MANAGEMENT CBRE counter FEE/WAGES point: catering$31,600 to an under$41,600-served$25,480 tenant LEASING FEES/WAGES $1,200 $1,000 $6,790 niche, HamiltonLEGAL/PROFESSIONAL Court FEES has exhibited some$2,250 of the$2,250 highest renewal$0 percentagesSUPPLIES in the market with an average$8,561 tenant$8,311 tenure approaching$3,022 REPAIRS $9,560 $9,560 $2,511 10 years.BUILDING INSURANCE $8,307 $8,105 $7,496 • “Off theREAL beaten ESTATE TAXES path” $91,647 $90,059 $46,876 •Total CBRE Expenses counter point: with office,$211,898 housing$217,027 and commuting$172,027

costs continuingNOI to escalate, tenants $296,770are gravitating$291,633 towards$364,784 24/7 mixed-use properties and being located in the heart of Georgetown is more valuable than ever.

Silver Spring Park SILVER SPRING RESIDENTIAL MARKET

Silver Spring Park SILVER SPRING OFFICE MARKET

Silver Spring Park 04 Due Diligence

Silver Spring Park SUBDIVISION RECORD PLAT

Challenges/Threats: • Lack of tenant credit • CBRE counter point: historically well occupied with high renewal probability, multi-tenant occupancy alleviates risk from any single tenant and strong local-tenant story. • Short-term in place leases • CBRE counter point: catering to an under-served tenant niche, Hamilton Court has exhibited some of the highest renewal percentages in the market with an average tenant tenure approaching 10 years. • “Off the beaten path” • CBRE counter point: with office, housing and commuting costs continuing to escalate, tenants are gravitating towards 24/7 mixed-use properties and being located in the heart of Georgetown is more valuable than ever.

Silver Spring Park SITE PLAN

Silver Spring Park EXTERIOR ELEVATIONS

Silver Spring Park SURVEY

Silver Spring Park PLANS – GARAGE LEVEL 2

Silver Spring Park PLANS – GARAGE LEVEL 1

Silver Spring Park PLANS – RESIDENTIAL LEVEL 2

Silver Spring Park 05 Broad Street

Silver Spring Park Our Operating Principles Operating Our Clients • requirement. requirement. space term short a fulfilling simply than rather them, reach you help to work our organize and goals operational term long your understand We to hard strive goals. your of accomplishment the to ourselves dedicate and your objectives We embrace

Quality • easier wrong.easier the against right difficult the pursue weand perceived, or real whether conflicts, potential of youinform industry.We prevalent our in conflicts remain abovethe endeavors and professional our of all in excellence We pursue

Value • in our industry. our in norms abovethe services well value added of standards maintaining by expectations exceed your to hard work day.every We deliver value to We strive Our Services

Dispositions / Development

Financial & Acquisitions Strategic Consulting

Broad Street Green Realty Building Research Issues / Sustainability

Corporate Real Estate Property (CRE) Management Outsourcing About Broad Street

“The real estate professionals at Broad Street consistently produce the results that achieve our clients’ objectives”

Broad Street Realty is a market leading commercial real estate services firm that delivers cost effective solutions for office, industrial and retail clients throughout the Greater Washington DC/Baltimore area. The company has extensive experience in tenant representation, landlord representation, property acquisition and disposition, real estate development, project/construction management, finance, strategic consulting, property management and asset management.

When your organization is facing an important real estate decision, you may be presented with many complicated and potentially costly issues. There may be hidden risks and obligations. The amount of time your organization may need to focus on the real estate dilemma may seem daunting and the integrity of your current/former real estate professional, if you have one, may be questionable. The professionals of Broad Street Realty help firms protect their interests for the duration of the process and beyond.

Silver Spring Park The Broad Street Difference • Experience and Leadership: Vast real estate experience in all facets of the industry • Focus: Building value creation and developing customized cost saving and risk mitigation strategies for our customers • Breadth of skills and services: Big enough to offer a broad array of services, small enough to respond quickly to our clients immediate needs • Regional Focus: District of Columbia, Maryland and Virginia • Commitment to Customer Value: Zealous client service striving for complete accountability to our customer • Intangibles: We love what we do! In an ever changing business climate, we do our best to bring a sense of energy and fun to each assignment.

Silver Spring Park Broad Street Values our “Guiding Lights” • INTEGRITY: The foundation for all of our activities. We make no compromises. Everyone in our firm is held to the highest ethical standards of honesty and personal integrity in all business affairs both within and beyond the company. • RESPECT: We celebrate and embrace the inclusion of diverse perspectives and cultural backgrounds. Inclusion builds a positive work environment regardless of race, creed, age, gender or sexual orientation. • TEAMWORK: The collective efforts of our professionals will produce extraordinary results that individual efforts cannot. Commitment to the team ethic will result in personal accomplishments beyond one’s own capabilities. • BALANCE: Balanced lives will make for a healthier and consistently productive organization. While hard work and devotion to our profession are desired qualities, all employees are encouraged to embrace faith, family, community and self with those of their vocation. • LEADERSHIP: Our continued success hinges on our ability to attract, motivate and inspire leaders of character within the organization. We will invest in our people who demonstrate integrity and achievement; success will be the natural consequence. Principled leadership and technical competence will never be obsolete. “Teamwork is the fuel that allows common people to achieve uncommon results” A. Carnegie

Kenneth Freeman |Vice President

Kenneth Freeman specializes in investment sales in the Greater Washington D.C. region, including Virginia, Maryland and the District of Columbia. Mr. Freeman, a former transactional real estate attorney, brings 20 years of commercial real estate expertise to his clients. His practical approach to solving problems emphasizes one objective: client satisfaction.

Areas of Practice: Investment Sales – multi-family, mixed-use, office, industrial, land

Experience: Prior to joining Broad Street Realty, Mr. Freeman was First Vice President at CBRE in the Washington, D.C. office and a member of the Investment Sales Group specializing in the sale of mid-cap office, mixed-use and industrial properties. Mr. Freeman previously spent 10 years brokering the sale of multiple product types in the New York City market with Massey Knakal Realty (now Cushman and Wakefield). Prior to beginning his brokerage career, Mr. Freeman was an Associate General Counsel at Mack-Cali Realty Corporation and a real estate attorney at Pryor, Cashman, Sherman & Flynn.

Top Clients: Mack-Cali Realty Corporation, Costco, LNR, CW Capital, Property Markets Group, Linden Development

Professional Licensed as a salesperson in Virginia and Washington D.C. Licensed as a Affiliations/Designations: broker in Maryland and New York.

Education: Mr. Freeman received his B.A. from Cornell University and his J.D. from Emory University.

Community/Personal Mr. Freeman lives in Chevy Chase, MD with his wife, Colleen, and children Griffin, Information: Alice and Abraham. He is actively involved in youth sports.

Contact Information: (301) 828-1236 [email protected]

Silver Spring Park

Tanya Walls |Office Manager/Executive Assistant Tanya joined Broad Street in 2010 in the role of Administrative Assistant working primarily with the Brokers. She has now taken on the role of assisting the CEO and Vice President of Administration as well as managing the day to day operations of the office. Tanya assists the office with a variety of Administrative and Marketing functions.

Experience: Prior to joining Broad Street, Tanya spent ten years working as an Office Manager at Levine Group Architects + Builders, Inc. She was responsible for managing client relations, setting up photoshoots and marketing functions. Tanya created CRM for the office that helped streamline the company’s interaction with clients, vendors

Education: Tanya holds a Bachelor's degree in Business Administration from Capitol College. Community/Personal Tanya resides in Laurel, Maryland with her boyfriend and cats. She enjoys Information: traveling, going to concerts and scrapbooking in her spare time. Contact Information: (301) 828-1203 [email protected]

Silver Spring Park