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