St. Mary's County

Confidential Land Offering - St. Mary’s County, MD 22.76 Acres - High Density Residential or Retail

22835 Old Rolling Road, California, MD 20619

THREE NOTCH ROAD

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Presented by: Josh Weiner Brad Berzins, SIOR Craig Morrell, SIOR Stevan Varga KLNB KLNB KLNB Enterprise Realty Services 8065 Leesburg Pike, Suite 700 100 West Road, Suite 505 6011 University Blvd, Suite 350 10000 Falls Road, Suite 102 Tysons, VA 22182 Baltimore, MD 21204 Ellicott City, MD 21043 Potomac, MD 20854 tel 703 268 2715 | fax 703 268 2700 tel 443 632 2048 | fax 410 321 0129 tel 443 574 1425 | fax 410 290 0723 tel 301 294 0795 | fax 301 294 5918 [email protected] [email protected] [email protected] [email protected] 1 22835 Old Rolling Road

CALIFORNIA, MARYLAND

NAI KLNB (“Broker”) has been retained by the owner of 22835 Old Rolling Road in California, Maryland (“Property”) as the exclusive broker for this acquisition opportunity.

This Confidential Offering Memorandum has been prepared by Broker for use by the prospective purchaser (“Prospective Purchaser”) to whom Broker has provided this Confidential Offering Memorandum. Although the information contained herein is based upon sources believed to be reasonably reliable, Owner and Broker, on their own behalf, and on behalf of their respective officers, employees, shareholders, partners, directors, members and affiliates, disclaim any responsibility or liability for inaccuracies, representations and warranties (expressed or implied) contained in, or omitted from, the Confidential Offering Memorandum or any other written or oral communication or information transmitted or made available to the recipient of this Confidential Offering Memorandum. No representations or warranties are made as to the completeness and/or accuracy of any information contained herein. Prospective purchasers of the Property should make their own investigations and conclusions without reliance upon this Confidential Offering Memorandum, the information contained herein or any other written or oral communication or information transmitted or made available.

Owner expressly reserves the right, exercisable in Owner’s sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Owner and Broker each expressly reserves the right, exercisable in 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. Broker is not authorized to make any representations or agreements on behalf of Owner. Owner shall not have any legal commitment or obligation to any entity reviewing this Confidential Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed, delivered and approved by Owner and the other party thereto, and any conditions to Owner’s obligations thereunder have been satisfied or waived. If you have no interest in the Property at this time, return this Confidential Offering Memorandum immediately to:

NAI KLNB Josh Weiner 8065 Leesburg Pike, Suite 700 Tysons, Virginia tel +1 703 268 2715 fax +1 703 268 2701 klnb.com

2 THREE NOTCH ROAD

59,970 (2016 ADT)

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Table of Contents

05 Section 1 Executive Summary / Property Description

19 Section 2 Market Overview

DD 33 Section 3 AA OO Aerials / Site Plans RR GG NN LII LLL OO RR LLDD OO

Executive Summary / Property Description

5 COCKEYSVILLE ABERDEENExecutive Summary / REISTERSTOWN RIVERSIDE MARTINSBURG Property Description j EDGEWOOD1 95 FREDERICK OWINGS MILLS ¦¨§ ¤£13 ELDERSBURG TOWSON MT AIRY

¦¨§70 BALTIMORE ELLICOTT CITY

COLUMBIA ¦¨§695 GERMANTOWN GLEN BURNIE GAITHERSBURG LEESBURG

ROCKVILLE WHEATON-GLENMONT STERLING

¨§495 BETHESDA ¦ ¤£17 ANNAPOLIS BOWIE 1 HR 48 MIN RESTON

CHANTILLY WASHINGTON

ALEXANDRIA ST MICHAELS MANASSAS SPRINGFIELD

1 HR 30 MIN WOODBRIDGE

¤£50 ST CHARLES Chesapeake Bay ¤£13 ¤£15

£17 ¤ Blackwater National Wildlife Refuge ¤£301 j

SALISBURY

FREDERICKSBURG CALIFORNIA

LEXINGTON PARK

¤£522 Potomac River

¦¨§95 ¤£13 ¤£17 FAIRMOUNT 6 COCKEYSVILLE ABERDEEN CHESAPEAKE BAY Executive Summary / REISTERSTOWN RIVERSIDE MARTINSBURG Property Description j EDGEWOOD UNITED STATES 1 95 FREDERICK OWINGS MILLS ¦¨§ ¤£13 LEXINGTON PARK ELDERSBURG TOWSON NAVAL BASE MT AIRY

¦¨§70 BALTIMORE ELLICOTT CITY

COLUMBIA ¦¨§695 GERMANTOWN GLEN BURNIE GAITHERSBURG LEESBURG

ROCKVILLE WHEATON-GLENMONT STERLING

¨§495 BETHESDA ¦ ¤£17 ANNAPOLIS BOWIE RESTON

CHANTILLY WASHINGTON

ALEXANDRIA ST MICHAELS FDR BOULEVARD MANASSAS SPRINGFIELD THREETHREE NOTCHNOTCH ROADROAD

WOODBRIDGE

¤£50 OLD ROLLING ROAD ST CHARLES Chesapeake Bay ¤£13 ¤£15

59,970 (2016 ADT)

£17 ¤ Blackwater National Wildlife Refuge ¤£301 j

SALISBURY

FREDERICKSBURG CALIFORNIA

LEXINGTON PARK

¤£522 Potomac River

¦¨§95 ¤£13 ¤£17 FAIRMOUNT 7 Executive Summary / 1 Property Description

OLDOLD ROLLINGROLLING ROADROAD

8 Executive Summary / 1 Property Description 22835 Old Rolling Road

Executive Summary NAI KLNB and Enterprise Realty Services are pleased to exclusively offer the opportunity to purchase 22835 Old Rolling Road, the GERRED PROPERTY, located in California, Maryland. Located just 48 miles from Washington, DC and 79.6 miles from Baltimore, Maryland, the location provides access to some of the nation’s major economic drivers while boasting a local economy that sustains itself commercially and with the Naval Air Station Patuxent River. An overview of the Naval Air Station Patuxent River is located in the Market Overview.

Located just south of the intersection of Old Rolling Road and Three Notch Road, the Property is a prime development opportunity consisting of 22.76 acres of developable land. With average daily traffic counts of 60,000 cars on the submarket’s main thoroughfare, Three Notch Road, this site, at a the prime intersection of Old Rolling Road and Three Notch Road, is perfectly positioned to capitalize on the existing marketplace and the market’s projected growth. This location will also dramatically benefit from the new construction FDR Boulevard. FDR Boulevard is a game- changer for both California, Lexington Park, and St. Mary’s County in general. An update on FDR Boulevard, and it’s expansion can be found on the next page.

The site is currently zoned RL, but under the Lexington Park Development District (LPDD) Master Plan, adopted in February 2016, the site is slated to be rezoned to the Medium Intensity Mixed-Use (MXM) zone during 3Q 2018 (more information on the pending zoning located in the property description). With this rezoning taking place, the site will be a prime opportunity for a residential / mixed use development that can capitalize on the steady to robust growth that St. Mary’s County, California, and Lexington Park have experienced and should continue to experience in the years to come.

With over 25,000 employees dedicated to the nearby Naval Air Station Patuxent River, this submarket benefits from a strong military presence and solid core demographics. St. Mary’s County has a current population of approximately 116,000 people with projected growth to 123,000 by 2023. The average household income in St. Mary’s County is $105,000 and expected to grow to over $124,000 in 2023. California boasts similar income numbers, and the town’s population is expected to grow to over 14,000 by 2023.

9 Executive Summary / 1 Property Description

OLD ROLLING ROAD

FDR Boulevard Map

O R

G IN L L O R D OL

F D R B OULEVARD

10 Executive Summary / 1 Property Description

FDR Boulevard: Construction Update for July 2018 FDR Boulevard Phase 1A (MD 237 to Kinnegad Drive -0.5 mile) Substantial completion was issued on 12-21-17 and punch list items will be completed this fall (minor turfgrass and landscaping items). This portion of the roadway (Amber Drive) is open to traffic.

FDR Boulevard Phase 1B (First Colony Blvd. to west of Old Rolling Rd.- 0.6 m Substantial completion was issued on 11-28-17 and punch list items will be completed this fall (minor turfgrass and landscaping items). This portion of the roadway will not be open to traffic until the remaining Phase 1C is completed.

FDR Boulevard Phase 1C (West of Old Rolling Rd. to Kinnegad Drive - 0.6 mile) During the first two (2) weeks of the month, storm drain inlets and pipes will be installed along Old Rolling Rd. and the contractor will then begin installation of pipes along existing FDR Boulevard. Washington Gas will relocate the existing gas main located between Barefoot Lane and Kinnegad Drive. Contractor will also be working on the stormwater management facility, located between Laurel Glen Rd. and Montery Lane during the entire month and will include installation of a large concrete weir. SMECO will begin the installation of underground primary power lines along the western side of the FDR Boulevard right-of-way, between Old Rolling Road and Monterey Lane, towards the end of the month. Following the work on the stormwater management facility as noted above, excavation of material for the triple cell culverts will begin. Steel plates will be installed over any open storm drainage trenches. Please use caution when traveling on Old Rolling Road and FDR Boulevard in the Laurel Glen Community.

Thank you for your patience during construction of the FDR Boulevard project. If you have any questions, please contact the DPW&T Project Manager at 301-475-4200, ext. *3525. This monthly Construction Update was prepared by the St. Mary’s County DPW&T.

11 Executive Summary / 1 Property Description

Property Description 1. Legal Description St. Mary’s County Tax Map 34, Parcel 91 22835 Old Rolling Road, California, MD 20619 Parcel Size: 22.76 acres

12 Executive Summary / 1 Property Description

2. Current Zoning The subject property is currently zoned RL, residential low-medium density. Base density of 1 du/acre and 0.10 FAR. Allows up to 5 du/acre and 0.20 FAR with 20% Affordable Dwelling Units.

3. Sector Plan The subject property is located within the FDR Blvd Corridor of the Lexington Park Development District which is currently undergoing a Master Plan and Zoning revision. Revised LPDD Master Plan and rezoning expected to be adopted by the County Council Fall 2018. The Master Plan recommends rezoning the Gerred Property from the current RL zone to the MXM Medium Intensity mixed-use zone.

13 Executive Summary / 1 Property Description

4. Planned Zoning The subject property is in the process of being rezoned through the Lexington Park Development District Sector Plan to the Medium Intensity Mixed-Use (MXM) zoning category.

The MXM zone proposes large-scale and clustered commercial and residential uses adjacent to existing or planned principal transportation corridors. Any development exceeding 5 acres would incorporate a mix of uses or multifamily residences to occupy at least 20% of the resulting floor area.

The new proposed MXM zone establishes the following criteria: • Minimum density 3.5 du/acre • Maximum density 25 du/acre • Maximum height 100 feet • Open Space 200 SF per du • Base Non-residential FAR 0.60 • Maximum Mixed Use FAR 1.20 • Maximum non-residential FAR 0.70

Single use residential development in Mixed use Zones: When a mix of residential and non-residential uses is required on a site based on parcel size, a single use residential development may be allowed if the development is clustered to achieve a minimum density of 3.5 units per acre in the development envelope and the site designed in a manner to integrate with the future development of an equivalent non-residential floor area on the site.

Residential Density may be increased as follows: a. Providing ADU’s at up to 2.5du/acre b. An additional 5 units for each acre of land donated to and accepted by the county as a site for the construction of facilities identified in an approved county masterplan for schools, recreation and parks, 21 or capital facilities. c. An additional 5 units for each permanent on-site bus stop with approved shelter subject to coordination with the St. Mary’s Transit System; d. An additional 2 units for installation with applicant funds of an approved shelter at a new or existing off-site bus stop subject to coordination with the St. Mary’s Transit System; e. An additional 1 units for each 1,000 square feet of sidewalk infill constructed with applicant funds in a public right-of-way within 1mile of site (maximum 5 units) subject to coordination with the Department of Public Works and Transportation; 14 Executive Summary / 1 Property Description

f. An additional 1 unit for each bike parking area totaling 1 bike space per 10 parking spaces; g. An additional 2 units for each covered and enclosed bike storage area having the greater of 10 spaces or 1 bike space for each dwelling or for each 10 employees in a mixed use structure; h. An additional 1 units for each 1,000 square feet of Green-roof (maximum 10units allowed); i. An additional 1 units for each 1,000 square feet of active roof deck on a structure (limit 2 unit increase per structure); j. An additional 1 unit for each 10KWs of rooftop solar panels while maintaining an attractive and cohesive architectural form and avoiding glare that interferes with aircraft flight or testing.

Non-residential density may be increased as follows: Additional 0.05 FAR w LEED Certified Additional 0.10 FAR w LEED Silver Additional 0.15FAR w LEED Gold

5. Potential Development Based upon the planned MXM zone, a mix of townhouse and multifamily product is envisioned as one potential scenario. Assuming a multifamily density of 20-22 units per acre (3 and 4-story walk up surface parked units) and a generic townhouse density of 10-12 units per acre, the following is a conceptual mix:

Acres Use Density # of Units 9 Multifamily 22 198 11 Townhouse 12 132 20 16.5 330

6. Entitlement Process The subject parcels will be approved in the Lexington Park Development District Sector Plan (LPDD) with specific entitlement processes as described below:

The overall approval process generally involves three (3) basic steps: 1. Sketch Plan – requires approval by Planning Commission. Public process. Approximately 8-12 months. 2. Preliminary Plan/Site Plan – requires approval by Planning Commission. Public process. Approximately 6-8 months. 3. Record Plat – administrative staff level approval (with consent agenda approval by Planning Commission). Approximately 4 months.

15 Executive Summary / 1 Property Description

7. ADU's Affordable Dwelling Units are not required as standard policy in new residential developments in St Mary’s County. However, additional density may be achieved by providing ADU’s in a development. Typically a minimum of 12% up to maximum of 25%.

8. Impact Fees Development of the Property is subject to the following residential; Economic Impact Fees: • New Home Up to 1,199 SF $6,071 per unit • New Home Up to 2,399 SF $6,280 per unit • New Home 22,400 SF or more $6,489 per unit

9. Storm Water Management SWM quality will be provided through on-site treatment for the project using Environmental Site Design measures to the maximum extent practicable. ESD methods will include micro-bioretention, bio-swales, planter boxes, and drywells.

10. Utilities The subject Property will be served by MetCom sewer and water lines located in the public ROW surrounding the property. The project is expected to have multiple connections to the existing mains.

The site is currently in water and sewer category W-6D and S-6D, respectively. Indicating properties are located within a designated development district and anticipating public water and sewer service within 6-10 years.

16 Executive Summary / 1 Property Description

11. Water & Sewer CONNECTION FEES: The project is subject to the standard Metcom connection charges as follows: • Sewer: $6,941 per EDU • Water: $10,956 per EDU • Total: $17,897 per EDU NOTE: »»1 Apartment Unit = 0.80EDU »»1 Townhouse Unit = 1.0 EDU

12. Schools The subject Property is currently served by the following St. Mary’s County Public Schools:

School Capacity 2020 Enrollment % Hollywood Elementary School 512 500 98 Esperanza Middle School 869 882 101 Great Mills High School 1,695 1,636 97

13. Site Description The site is vacant and generally wooded. Topography is gently rising toward the center of the site.

17 Executive Summary / 1 Property Description

Process and Contacts For scheduled appointments, property or market tours and correspondence, please contact: Josh Weiner Craig Morrell, SIOR > The Property is being offered without a formal asking Senior Vice President Principal price.

> The initial bid date is to be determined. Offers before 8065 Leesburg Pike 6011 University Boulevard the bid date will be entertained and the Seller reserves Suite 700 Suite 350 Tysons, VA 22182 Ellicott City MD 21043 the right to respond to or accept earlier, acceptable tel 703 268 2715 tel 443 574 1425 offers. [email protected] [email protected]

> The Property is offered free and clear of any in-place Brad Berzins, SIOR Steve Varga financing. The purchase price should be payable “all Principal Principal cash” to the seller at settlement.

> Other terms and conditions shall be in accordance with 100 West Road 10000 Falls Road the Seller’s purchase and sale agreement, which will Suite 505 Suite 102 Towson, MD 21204 Potomac, MD 20854 include among other things an acknowledgement that tel 443 632 2048 tel 301 294 0795 the Property is being sold on an “as is” basis. [email protected] [email protected]

> The Seller reserves the unrestricted right to refuse all offers and to change term and conditions as required. For assistance financing this or any other commercial property or for an update on current market financing conditions and typical terms, please contact Steve Arnold at Arris Realty Capital. > All due diligence materials will be provided during the bid process. Steve Arnold Vice President

100 East Pratt Street Suite 2540 Baltimore, MD 21202 tel 410 735 3961 [email protected]

18 Market Overview

Market Overview

2 19 2 Market Overview St. Mary's County

Brief Economic Facts Brief Economic Facts ST. MARY’S COUNTY, MARYLAND ST. MARY’S COUNTY, MARYLAND 3,4,5 4 New Yo rk LABOR AVAILABILITY (BY PLACE OF RESIDENCE) EMPLOYMENT (2016, BY PLACE OF WORK) St. Mary’s County is situated on a Labor Mkt. Estab- Annual Avg. Emp. Avg. Wkly. peninsula in Southern Maryland with over Washington, DC Civilian Labor Force (2016 avg.) County Area* Industry lishments Empl. % Wage 500 miles of shoreline on the Patuxent Baltimore River, Potomac River and Chesapeake Total civilian labor force 54,683 184,452 Federal government 41 9,590 22.1 $2,039 Bay. The Naval Air Station, Patuxent River, Employment 52,440 176,936 State government 11 919 2.1 928 employing 22,400 military, civilians and Washington, DC Unemployment 2,243 7,516 Local government 59 3,827 8.8 945 defense contractors, is home to the U.S. Naval Air Systems Command (NAVAIR), St. Mary’s County is situated Unemployment rate 4.1% 4.1% Private sector 2,030 28,987 66.9 1,032 on a peninsula in Southern Leonardtown Number Percent including the Naval Air Warfare Center Maryland with over 500 miles Residents commuting outside the Natural resources and 17 73 0.2 628 Aircraft Division (NAWCAD). With over of shoreline on the Patuxent county to work (2012-2016) 14,335 26.0% mining 200 high-tech aerospace and defense and Potomac Rivers and the Employment in selected occupations (2012-2016) Construction 281 1,660 3.8 1,000 contractors, the county has emerged as a Chesapeake Bay. Management, business, science and arts 24,208 44.6% Manufacturing 35 378 0.9 1,093 world-class center for maritime aviation research, development, testing, evaluation, Service 8,601 15.8% Trade, transportation 453 6,780 15.6 765 and acquisition. St. Mary’s County’s 2,030 businesses employ 29,000 workers; Sales and office 11,291 20.8% and utilities nearly 50 of these businesses have 100 or more workers. Information 20 172 0.4 1,328 The area combines access to technology with a rich heritage and Businesses include DynCorp International, Wyle, BAE Systems, Production, transp. and material moving 4,126 7.6% a myriad of outdoor sports and recreational opportunities. The SAIC, Engility, Lockheed Martin, Northrop Grumman, and many * St. Mary’s, Calvert and Charles counties Financial activities 146 818 1.9 1,016 county’s location allows for easy access to major metropolitan others. Non-defense employers include MedStar St. Mary’s Professional and business. 454 9,616 22.2 1,609 areas while offering residents a high quality of life and affordable Hospital, St. Mary’s College of Maryland, Burch Oil, and the Paul services lifestyles. Hall Center for Maritime Training and Education. MAJOR EMPLOYERS6,7 (2017) Education and health 248 4,518 10.4 946 services Employer Product/Service Employment 2,3 Leisure and hospitality 216 3,971 9.2 313 LOCATION POPULATION Naval Air Station Patuxent Military installation 11,725 Driving distance from Leonardtown: Miles Kilometers St. Mary’s St. Mary’s River* Other services 160 1,001 2.3 544 Atlanta, Georgia 613 986 County County Maryland MedStar St. Mary's Hospital Medical services 1,200 Total 2,141 43,323 100.0 1,245 Households Population Population Baltimore, Maryland 81 131 DynCorp International Prof. and technical services 985 Includes civilian employment only 2000 30,642 86,211 5,296,486 Boston, Massachusetts 477 768 Wyle Tech. research services 910 2010 37,604 105,151 5,773,552 Chicago, Illinois 741 1,192 BAE Systems Tech. products and services 580 2020* 43,634 120,150 6,141,900 HOURLY WAGE RATES4 (2016) New York, New York 266 428 St. Mary's College of Higher education 460 *Projections Maryland Selected Occupations Median Entry Experienced Philadelphia, Pennsylvania 177 284 Selected places population (2010): California 11,857; Lexington HMR of Maryland / Nursing care 440 Accountants $35.97 $23.49 $44.98 Pittsburgh, Pennsylvania 277 446 Park 11,626; Golden Beach 3,796; Leonardtown 2,930; Charlotte Hall Mechanicsville 1,508; Charlotte Hall 1,420 Aerospace engineers 52.37 36.51 60.10 Richmond, Virginia 95 152 Booz Allen Hamilton Systems engineering and 400 Washington, DC 54 87 management Bookkeeping/accounting clerks 19.19 14.53 23.01 PAE Applied Technologies Prof. and technical services 395 Computer systems analysts 40.31 26.97 50.33 POPULATION DISTRIBUTION2,3 (2016) CLIMATE AND GEOGRAPHY1 Northrop Grumman Systems and software devt. 380 Computer user support specialists 24.97 14.96 30.79 Age Number Percent General Dynamics Aeronautics, systems engr. 350 Customer service representatives 15.83 10.29 19.82 Yearly Precipitation (inches) 46.2 Under 5 7,231 6.4 J.F. Taylor Technology simulations 335 Electrical engineers 46.94 32.79 56.58 Yearly Snowfall (inches) 14.5 5 - 19 23,455 20.8 Lockheed Martin Aeronautics, systems 315 Electronics engineering 42.22 29.24 47.06 Summer Temperature (ºF) 75.3 20 - 44 37,173 33.0 engineering technicians Winter Temperature (ºF) 37.6 45 - 64 30,581 27.2 Boeing Engineering services 280 Freight, stock and material 12.19 9.98 16.61 Days Below Freezing 81.4 65 and over 14,147 12.6 McKay's Food & Drug Groceries 275 movers, hand Land Area (square miles) 372.5 Total 112,587 100.0 Eagle Systems Systems engr. and mgmt. 260 Industrial truck operators 18.42 15.40 21.85 Water Area (square miles) 37.7 Median age 36.4 years Sabre Systems Engineering services 250 Information security analyst 43.10 24.86 50.60 Shoreline (miles) 536 Burch Oil Fuel oil 230 Maintenance and repair workers 18.33 12.53 23.79 Elevation (feet) sea level to 192 Smartronix Information technology 215 Network administrators 47.75 33.06 56.24 Engility Systems engr. and mgmt. 200 Packers and packagers, hand 8.90 8.74 10.09 SAIC Engr. and mgmt. services 200 Secretaries 18.73 11.96 22.72 CACI Systems engr. and mgmt. 165 Shipping/receiving clerks 13.70 10.29 17.82 2018 Excludes post offices, state and local governments, national retail and national Wages are an estimate of what workers might expect to receive in Southern foodservice; includes higher education Maryland (Calvert, Charles and St. Mary’s counties) and may vary by industry, * Employee counts for federal and military facilities exclude contractors to the employer and locality extent possible; embedded contractors may be included

20 2 Market Overview St. Mary's County

Brief Economic Facts ST. MARY’S COUNTY, MARYLAND Brief Economic Facts ST. MARY’S COUNTY, MARYLAND

SCHOOLS AND COLLEGES3,8 INCOME3 (2012-2016) TRANSPORTATION UTILITIES Educational Attainment - age 25 & over (2012-2016) Percent Households Highways: Maryland arteries in the county connect with U.S. Electricity: Southern Maryland Electric Cooperative; High school graduate or higher 89.9% Distribution St. Mary’s Co. Maryland U.S. 301, I-95 and I-495 (Washington D.C. Beltway) customers of investor-owned utilities and major cooperatives may choose their electric supplier Bachelor’s degree or higher 29.9% Under $25,000 11.8 14.9 22.3 Rail: The closest rail depot, CSX Transportation, is in adjacent Charles County at Waldorf Gas: Natural gas is available from Washington Gas; customers $25,000 - $49,999 15.2 17.6 23.1 Public Schools Truck: 57 local and long-distance trucking establishments are may choose their gas supplier; propane is available from Burch Number: 18 elem.; 4 mid.; 3 high; 1 career/tech; 1 charter $50,000 - $74,999 15.9 16.9 17.8 located in Southern Maryland Propane and Taylor Gas Co. Enrollment: 18,053 (Sept. 2017) $75,000 - $99,999 15.2 13.3 12.2 Water: Served by the Port of Baltimore, 50’ channel; a leading Water and Sewer: St. Mary’s County Metropolitan Commission serves greater Lexington Park-Hollywood area Cost per pupil: $12,171 (2014-2015) $100,000 - $149,999 23.5 18.4 13.5 U.S. automobile and break-bulk port; seven public terminals including the state-of-the-art Intermodal Container Transfer and Piney Point; municipal system serves Leonardtown Students per teacher: 16.7 (Oct. 2016) $150,000 - $199,999 10.0 9.2 5.4 Facility; 81 miles from Leonardtown Telecommunications: Local carrier is Verizon Maryland; cable High school career / tech enrollment: 1,807 (2017) $200,000 and over 8.4 9.7 5.7 Air: Served by Baltimore/Washington International Thurgood internet or broadband service is available from MetroCast or High school graduates: 1,156 (July 2016) Marshall Airport (BWI), Washington Dulles International Comcast; Long distance carriers include AT&T, Sprint Nextel, Median household $86,810 $76,067 $55,322 Airport and Ronald Reagan Washington National Airport; Verizon and others Nonpublic Schools Average household $100,183 $100,071 $77,866 St. Mary’s County Regional Airport (www.co.saint-marys. Number: 38 (Sept. 2016) Per capita $36,814 $37,756 $29,829 md.us/dpw/Airportinfo.asp) is available for private planes; 4150’ Higher Education Enrollment (‘17) Degrees (‘16) runway Total income (millions) $3,905 $217,904 $9,166,046 11 2-year institutions GOVERNMENT County Seat: Leonardtown Seafarers Harry Lundeberg School NA NA 2,3,10 of Seamanship HOUSING RECREATION AND CULTURE Government: Five commissioners elected for four-year terms; commissioner form of government limits county legislative College of Southern Maryland* 7,061 1,123 Occupied Units (2011-2015) 38,978 (71.9% owner occupied) Parks: Five state parks and 22 county parks, two year-round pools, boat ramps, beaches, fishing piers, tennis courts, picnic power to areas authorized by the General Assembly 4-year institution Median James R. Guy, President, Commissioners of St. Mary’s County Housing Transactions Units Selling Price facilities, playgrounds, a skate park, and a disc golf course St. Mary’s College of Maryland 1,600 553 301.475.4200, ext. 1350 All arms-length transactions (2016) 1,225 $295,000 Recreation and Leisure: Boating, sailing, fishing, camping, hiking, Rebecca Bolton Bridgett, County Administrator Johns Hopkins University, the University of Maryland College Park, and cycling, paddling trails, golf courses, and three motor sports 301.475.4200, ext. 1321 8 other institutions offer programs at the Southern Maryland Higher All multiple-listed properties (2017)* 1,621 $269,967 venues; waterside restaurants and marinas dot the county’s Website: www.stmarysmd.com Education Center. In addition, the University of Maryland University *Excludes auctions and FSBO miles of shoreline; historic Leonardtown, the county seat, College and other national universities offer programs at the Frank features a variety of shops, galleries, restaurants, a waterfront County Bond Rating: AA+ (S&P); Aa2 (Moody’s); AA+ (Fitch) Knox Center at NAS Patuxent River. park and a winery St. Mary’s County Department of Economic Development * Includes four campuses in Calvert, Charles and St. Mary’s counties 6 BUSINESS AND INDUSTRIAL PROPERTY Sports and Athletics: Team sports include soccer, basketball, Chris Kaselemis, Director A variety of business sites are available in St. Mary’s County. roller hockey, lacrosse, football, and baseball; sports venues 23115 Leonard Hall Drive include a gymnastics center, four county recreation centers, 9 Industrial and office parks offer raw acreage, furnished office P. O. Box 653, Potomac Building TAX RATES space and everything in between. Utilities including fiber-optic and a variety of public parks with sports fields Leonardtown, Maryland 20650 St. Mary’s Co. Maryland lines, public water, sewer, broadband service and natural gas are Attractions: St. Clement’s Island, site of Maryland’s founding; Telephone: 301.475.4200 x1405 available at most locations. Historic St. Mary’s City, Maryland’s first capital and one of the Email: [email protected] Corporate Income Tax (2018) none 8.25% High tech firms are clustered in and around Lexington Park. nation’s premier archaeological and outdoor living history www.stmarysmd.com/ded Base – federal taxable income Major business parks include Wildewood, Lexington Park museums; Point Lookout Lighthouse, Blackistone Lighthouse, Personal Income Tax (2018) 3.00% 2.0%-5.75% * Corporate Center, Exploration, Expedition, Willows Run and Point No Point Lighthouse and Piney Point Lighthouse, the Sources: oldest lighthouse on the Potomac River; 18th-century Sotterley Base – federal adjusted gross income Pine Hill. Manufacturing is concentrated in St. Mary’s Industrial 1 National Oceanic and Atmospheric Administration (1981-2010 normals); *Graduated rate peaking at 5.75% on taxable income over $300,000 Park in Hollywood, adjoining the regional airport. Plantation; and Patuxent River Naval Air Museum Maryland Geological Survey Arts & Entertainment District: Leonardtown 2 Maryland Department of Planning Sales & Use Tax (2018) none 6.0% St. Mary’s County has one business incubator located at the Events: Over 50 festivals and fairs include the River Concert 3 U.S. Bureau of the Census Exempt – sales for resale; manufacturer’s purchase of raw materials; regional airport focusing on unmanned and autonomous systems and Navy technology transfer. The St. Mary’s County Series, Crab Festival, County Fair, Blessing of the Fleet, Oyster 4 Maryland Department of Labor, Licensing and Regulation, Office of Workforce manufacturing machinery and equipment; purchases of materials and Information and Performance equipment used in R&D and testing of finished products; purchases Dept. of Economic Development publishes a directory of tech Festival/National Oyster Shucking Championships, Wine 5 U.S. Bureau of Labor Statistics of computer programs for reproduction or incorporation into companies and resources and can assist businesses in finding Festival and Monster Rockfish Festival another computer program for resale office, warehouse, and industrial space to suit their needs. For more information, contact St. Mary’s County Division of 6 St. Mary’s County Department of Economic Development 7 Maryland Department of Commerce Real Property Tax (FY 18) $0.8478 $0.112 Business Incubator Tourism: 1.800.327.9023, www.visitstmarysmd.com TechPort at the Airport, Leonardtown 8 Maryland State Department of Education; Maryland Higher Education Effective rate per $100 of assessed value Commission In an incorporated area a municipal rate will also apply 9 Maryland State Department of Assessments and Taxation; Comptroller of the Market Profile Data(2017) Low High Average Treasury Business Personal Property Land – cost per acre 10 Maryland Association of Realtors Tax (FY 18) $2.1195 none 11 Maryland State Archives; Maryland Association of Counties Rate per $100 of depreciated value Industrial NA NA $174,000 Exempt – manufacturing and R&D machinery, equipment, materials Office/Commercial $9,100 $2,525,000 $268,000 and supplies; manufacturing, R&D and warehousing inventory Rental Rates – per square foot Major Tax Credits Available Warehouse / Industrial NA NA $5.50 Job Creation, More Jobs for Marylanders, R&D, Biotechnology and Cybersecurity Investment, Arts & Flex / R&D / Technology NA NA $14.00 Entertainment District Class A Office $21.00 $28.00 $24.23

21 2 Market Overview

Naval Air Station Patuxent River Naval Air Station Patuxent River is home to both the Naval Air Systems Command headquarters and the Naval Air Warfare Center Aircraft Division, and is host to more than 50 tenants including three services, federal agencies and private industry.

NAVAIR at Patuxent River is one of eight Naval Air Systems Command sites that provides the highest standard in warfare technology through supremacy in naval aviation technologies.

The mission of NAWCAD at Patuxent River, which includes Webster Outlying Field, is to support NAVAIR in providing the warfighter with absolute combat power through technologies that deliver dominant combat effects and matchless capabilities.

The missions aboard NAS Pax River provide effective and affordable integrated warfare systems and life-cycle support by performing research, development, test and evaluation, engineering and fleet support for manned and unmanned aircraft, engines, avionics, aircraft support systems and ship/shore/air operations.

Patuxent River encompasses over 13,800 acres and houses 935 buildings (including 10 hangars, totaling more than 8.76 million square feet), with five active runways (longest is 11,800 feet), and possesses 5,000 square miles of controlled airspace of which 780 square miles are restricted.

Growth Continues Pax River continues to evolve to meet the needs of its employees and mission requirements for today and the future with millions of dollars invested in construction and improvements around the air station.

Major plant improvements have been made and new state-of-the-art laboratories have been added during the last two decades. Such new additions as the Manned Flight Simulator, the Aircraft Anechoic Test Facility, the Air Combat Environment Test and Evaluation Facility, the Aircraft Test and Evaluation Facility, the Capt. Steven A. Hazelrigg Flight Test Facility, the U.S. Naval Test Pilot School academic building and an Aviation Survival Training Center pool facility and a new Air Traffic Control Tower have significantly improved aviation safety and enhanced simulation capabilities.

A $15 million renovation project for Hangar 110, one of the most recognizable structures at the base, was completed in 2013 which extends the life and serviceability of this history facility.

Also in 2013, a newly constructed $13.1 milllion Child Development Center (CDC) opened its doors. At 38,000 square feet, this CDC is one of the largest in the Navy and increases the support of the military and civilian workforce at the air station by offering the space to care for more children on base.

Looking to the increased reliance on unmanned aircraft, construction of a new facility to support the Triton program was completed July 2013 - the first of its kind. At over 70,000 square feet, the $33 million hangar now houses three MQ-4C Tritons that are currently undergoing tests and evaluation to ensure the unmanned asset will meet the Navy's specifications, bringing the UAS one step closer to the fleet.

22 2 Market Overview

In the coming years, the air station's airfield, known as Trapnell Field, will undergo a multi-million dollar facelift to rehabilitate runway pavements as well as support infrastructure and facilities. Additionally, the project will repair the airfield's electrical infrastructure.

Also on the horizon is a $40 million construction project for a 110,000-square-foot, multi-story facility to house unaccompanied junior enlisted service members. This modern, market-style apartment complex will boast modules comprising sleeping and living areas, a kitchen, bathrooms, closets and in- module laundry facilities.

Population St. Mary's County key economic driver continues to be the region's largest employer, NAS Patuxent River. In 2011, the base's workforce was more than 22, 200. The average base salary approaches $90,000. More than two-thirds of the Navy’s workforce resides in St. Mary’s County. Because of solid, high- tech job growth, the County’s average weekly wage has grown to be the 2nd highest in Maryland.

In the past decade, St. Mary’s labor force grew 18.9%. Maryland Department of Planning is projecting that St. Mary’s County’s labor force will grow to 119,340 by 2030.

The latest U.S. Census Bureau population for St. Mary’s County is 105,151. St. Mary’s County’s population has grown 22 percent over the past decade, the highest growth rate in the state between 2000 and 2010.

Also in the past decade, St. Mary’s County’s median household income grew 28.2% to $88,444 in 2010. St. Mary’s County has the 14th highest median household income in the United States, and the 4th highest in Maryland. In addition, St. Mary’s County continues to have one of the youngest populations in the state with a median age of 36, and one of the highest percentages of veterans (12%).

Despite a weak national economy, the county’s unemployment rate continues to remain lower than the state and national averages for the past several years largely due to the vital defense aviation programs arriving at the Navy base. In 2011 the county’s unemployment rate was 5.9%, the fourth lowest unemployment rate in the state of Maryland. The average national unemployment rate was 8.9% in 2011.

Growth in housing, shopping, restaurants, hotels, recreation, arts, and entertainment attracts new residents and supports the County’s many historical sites. Live, work, play, or simply visit St. Mary’s County and be inspired by the rich history, undeniable progress, and enduring quality of life.

23 2 Market Overview

CALIFORNIA, MD BALTIMORE CITY California is a census-designated place and community in St. Mary's County, Maryland, United States. The population was 11,857 at the 2010 census, an increase of 27.4% from the 2000 census. California continues to grow with the spread of population out from the older adjacent community of Lexington Park and the growth in both technology-related and defense-related jobs at the Patuxent River Naval Air Station. There are department stores and numerous shopping centers situated along Maryland Highway 235 ("Three Notch Road"). Maryland Route 4 crosses Highway 235 in California, providing access to the wide Governor Thomas Johnson Bridge and the popular ANNE ARUNDEL COUNTY weekend resort town of Solomons, Maryland on the opposite side. Bridge-bound traffic is infamous for backing up during rush hour.

History WASHINGTON PRINCE The community was named after the state of California. D.C. GEORGE’S COUNTY Geography According to the United States Census Bureau, California has a total area of 14.8 square miles (38 km2), of which, 12.8 square miles (33 km2) of it is land and 1.9 LEXINGTON square miles (4.9 km2) of it (12.64%) is water. PARK, MD

Demographics CALVERT As of the census of 2010, there were 11,857 people residing in California in COUNTY 4,327 households. The population density was 928.1 people per square CHARLES COUNTY mile (358.3/km²). There were 4,697 housing units and a 71.8% home ownership rate. The racial makeup was 70.7% White, 18.3% Black, 5.7% Hispanic or Latino, 4.6% Asian, 0.5% Indigenous American, and 0.1% Pacific Islander.

CALIFORNIA, MD ST. MARY’S COUNTY 24 2 Market Overview

Of the 4,327 households 42.7% had children under the age of 18 living in them, 57.2% had married couples, 9.9% had a female householder with no husband present, and 29.4% were non-families. 25.4% of all households HISTORICAL POPULATION were made up of individuals and 4.1% had someone living alone who was 65 years of age or older. The average Census Population %± household size was 2.74 and the average family size was 3.31. 1980 5,770 - 1990 7,626 32.2% The population consisted of 29.8% under the age of 20, 6.6% from 20 to 24, 17.7% from 25 to 34, 17.7% from 25 to 2000 9,307 22.0% 34, 17.3% from 35 to 44, 11.4% from 45 to 54, 10.5% from 55 to 64, and 6.5% who were 65 years of age or older. 2010 11,857 27.45 The median age was 32.5 years. The population was 49.1% male and 50.9% female.

The median household income was $85,240, and the median family income for was $91,935. Male full-time year- round workers had a median income of $63,657 versus $44,390 for females. The per capita income for the CDP was $35,386. Just 0.8% of families and 3.1% of people were below the poverty line, including 2.3% of people under age 18 and 4.8% of those age 65 or over. In 2017, California, MD was listed as the metropolitan area with the 4th highest number of households with investable assets above one million dollars.

LEXINGTON PARK, MD State Maryland County St. Mary's Land 5.62 sq mi (14.6 km2) Elevation 115 ft (35 m) Population (2010 US Census) Total 11,626 Density 2,068.3/sq mi (553.6/km2)

Lexington Park is a census-designated place (CDP) in St. Mary's County, Maryland, United States, and the principal community of the Lexington Park, Maryland Micropolitan Statistical Area. The population was 11,626 at the 2010 census.

History World War Two: Advent of naval base spurs establishment of "Lexington Park" "Lexington Park" came into being in 1943 with the establishment of the Patuxent Naval Air Station during World War II, and was named for the recently sunk USS Lexington aircraft carrier. Prior to this Lexington Park was called "Jarbosville". John Glenn, Alan Shepard, and many noted astronauts trained there. In 1977 the Governor Thomas Johnson Bridge spanning the Patuxent River linked the area to Calvert County and Solomons, Maryland. In recent years several aerospace and high-tech companies have located in the area bringing additional jobs. Continually expanding shopping Centers along Maryland Route 235 ("Three Notch Road") and Great Mills Road have many department stores. Area students attend Great Mills High School.

25 2 Market Overview

Town Lexington Park in seaside St. Mary's County is one of the nation's fastest-growing "micropolitan" areas, expanding by 14.6 percent since 2000, largely on the strength of military growth. The county population has surpassed 100,000 in 2010. In addition, Southern Maryland is the fast-growing area in the state, and a very desirable bedroom community for people who work in the District of Columbia, but unlike neighboring Charles and Calvert counties, many in St. Mary's County both work and live in the county.

Base The Patuxent Naval Air Station, which is based in Lexington Park, employs about 20,000 people, driving about 75 percent of the economy in St. Mary's County and providing roughly $3 billion to the state economy.

Civilian Home Prices The average price of a home in St. Mary's County in 2014 is $252,100, compared with $337,501 in 2007, and about $200,000 in 2003. The area is surrounded by farmland and has a countryside charm with a historical appeal. In addition, there are many high tech jobs.

Secondary Schools Lexington Park's schools include Town Creek Elementary, Green View Knolls Elementary, Lexington Park Elementary, George Washington Carver Elementary, Esperanza Middle, and Spring Ridge Middle. Great Mills High, Chesapeake Public Charter, and Fairlead Academy are also close by in neighboring Great Mills.

26 St. Mary's County Multifamily Market Leasing Units Survey 5-Year Avg Inventory in Units Survey 5-Year Avg Vacant Units 288 273 Existing Units 4,765 4,772 Vacancy Rate 6.7% 6.3% 12 Mo. Const. Starts 0 0 12 Mo. Absorption Units -71 12 Under Construction 0 0 12 Mo. Deliveries 0 0

Rents Survey 5-Year Avg Sales Past Year 5-Year Avg Studio Asking Rent $999 $918 Sale Price Per Unit $57,076 $72,591 1 Bed Asking Rent $1,058 $1,020 Asking Price Per Unit $91,241 $109,729 St. Mary's County Multifamily2 Bed Asking Rent Market St. $1,217Mary's County $1,137 MultifamilySales Volume (Mil.) Market $4.8 $19 Leasing Units Survey 5-Year Avg InventoryLeasing3+ Bed Asking Units in Units Rent SurveySurvey$1,2165-Year5-Year $1,174 AvgAvg InventoryCap Rate in Units Survey- 5-Year6.7% Avg Vacant Units 288 273 ExistingVacantConcessions UnitsUnits 4,7653.3%288 4,7723.1%273 Existing Units 4,765 4,772 Vacancy Rate 6.7% 6.3% 12Vacancy Mo. Const. Rate Starts 6.7%0 6.3%0 12 Mo. Const. Starts 0 0 12 Mo. Absorption Units -71 12 Under12 Mo. Construction Absorption Units -710 120 Under Construction 0 0 12 Mo. Deliveries 0 0 12 Mo. Deliveries 0 0 Vacancy Rate Asking Rent Per SF California, MD Multifamily Market Leasing Units Survey 5-Year Avg Inventory in Units Survey 5-Year Avg Rents Survey 5-Year Avg VacantSalesRents Units PastSurvey Year69 5-Year5-Year AvgAvg33 ExistingSales Units Market OverviewPast Year699 5-Year 699Avg Studio Asking Rent $999 $918 VacancySaleStudio Price Asking Rate Per RentUnit $57,0769.9%$999 $72,5914.7%$918 12Sale Mo. Price Const. Per 2Starts Unit $57,0760 $72,5910 1 Bed Asking Rent $1,058 $1,020 12Asking1 BedMo. AskingAbsorptionPrice Per Rent Unit Units $91,241$1,058-44 $109,729 $1,0203 UnderAsking Construction Price Per Unit $91,2410 $109,7290 2 Bed Asking Rent $1,217 $1,137 Sales2 Bed VolumeAsking Rent(Mil.) $1,217$4.8 $1,137$19 12Sales Mo. VolumeDeliveries (Mil.) $4.80 $190 3+ Bed Asking Rent $1,216 $1,174 Cap3+ Bed Rate Asking Rent $1,216- $1,1746.7% Cap Rate - 6.7% Concessions 3.3% 3.1% Concessions 3.3% 3.1% ST. MARY'S COUNTY MULTI-FAMILY MARKET STATS Rents Survey 5-Year Avg Sales Past Year 5-Year Avg Studio Asking Rent - - Sale Price Per Unit - $171,666 Vacancy Rate 1Asking AbsorptionVacancyBed Asking Rent RateRent UnitsPer SF $1,089 $1,152 AskingEffectiveAsking Price Rent RentPer UnitPer Per SF SF - - California, MD Multifamily2 Bed Asking Rent Market California,$1,371 MD $1,316 MultifamilySales Volume (Mil.)Market - $8.2 Leasing Units Survey 5-Year Avg Leasing3+Inventory Bed Asking Units in Units Rent SurveySurvey$1,5605-Year5-Year $1,470 AvgAvg InventoryCap Rate in Units Survey- 5-Year6.4% Avg Vacant Units 69 33 VacantConcessionsExisting Units Units 3.4%69969 3.5%69933 Existing Units 699 699 Vacancy Rate 9.9% 4.7% Vacancy12 Mo. Const. Rate Starts 9.9%0 4.7%0 12 Mo. Const. Starts 0 0 12 Mo. Absorption Units -44 3 12Under Mo. ConstructionAbsorption Units -440 30 Under Construction 0 0 12 Mo. Deliveries 0 0 12 Mo. Deliveries 0 0 Vacancy Rate Asking Rent Per SF

Rents Survey 5-Year Avg RentsSales PastSurvey Year5-Year 5-Year AvgAvg Sales Past Year 5-Year Avg Studio Asking Rent - - StudioSale Price Asking Per Rent Unit -- $171,666- Sale Price Per Unit - $171,666 1Absorption Bed Asking Rent Units $1,089 $1,152 1EffectiveAsking AbsorptionBed Asking Price Rent PerRent Units Unit Per SF $1,089- $1,152- AskingEffective Price RentPer Unit Per SF - - 2 Bed Asking Rent $1,371 $1,316 2Sales Bed AskingVolume Rent (Mil.) $1,371- $1,316$8.2 Sales Volume (Mil.) - $8.2 3+ Bed Asking Rent $1,560 $1,470 3+Cap Bed Rate Asking Rent $1,560- $1,4706.4% Cap Rate - 6.4% Concessions 3.4% 3.5% Concessions 3.4% 3.5% 7/3/2018 Copyrighted report licensed to NAI KLNB - 11496. CALIFORNIA, MD MULTI-FAMILY MARKET STATS

Vacancy Rate AskingAbsorptionVacancy Rent Rate Units Per SF EffectiveAsking Rent Rent Per Per SF SF

7/3/2018 7/3/2018 Copyrighted report licensed to NAI KLNB - 11496. Copyrighted report licensed to NAI KLNB - 11496.

Absorption Units EffectiveAbsorption Rent Units Per SF Effective Rent Per SF

7/3/2018 Copyrighted report licensed to NAI KLNB - 11496. 27

7/3/2018 7/3/2018 Copyrighted report licensed to NAI KLNB - 11496. Copyrighted report licensed to NAI KLNB - 11496. 2 Market Overview EXISTING MULTI-FAMILY - CALIFORNIA, MD

ABBERLY CREST APARTMENTS APARTMENTS OF WILDEWOOD • Developer: HHHunt (still owned and operated by HHHunt) • Developer: Thomas Builders Inc. (still owned and operated by Thomas • Delivery Date: 2005 Builders) • Units: 650 (class B) • Delivery Date: 2008 »»One-bedroom: 157 units (avg. SF 808) • Units: 365 (class B) »»Two-bedrooms: 402 units (avg. SF 1,159) »»One-bedroom: 149 units (avg. SF 807) »»Three-bedrooms: 91 units (avg. SF 1,262) »»Two-bedrooms: 216 units (avg. SF 1,133) • Rents: • Rents: »»One-bedroom: $1,343 »»One-bedroom: $937 »»Two-bedrooms: $1,538 »»Two-bedrooms: $1,360 »»Three-bedrooms: $1,464 SETTLERS LANDING APARTMENTS APARTMENTS OF WILDERIDGE • Developer: The Dolben Company (still owned and operated by The • Developer: Thomas Builders Inc. (still owned and operated by Thomas Dolben Company) Builders) • Delivery Date: 2012 • Delivery Date: 2003 • Units: 240 (class B) • Units: 84 (class B) »»One-bedroom: 84 units (avg. SF 759) »»One-bedroom: 71 units (avg. SF 828) »»Two-bedrooms: 114 units (avg. SF 1,093) »»Two-bedrooms 13 units (avg. SF 800) »»Three-bedrooms: 42 units (avg. SF 1,311) • Rents: • Rents »»One-bedroom: $1,132 »»One-bedroom: $1,271 »»Two-bedrooms: $1,125 »»Two-bedrooms: $1,433 »»Three-bedrooms: $1,577

28 Aerials/Market Overview 42 Site Plans California St. Mary’s County | Maryland APARTMENTS OF WILDEWOOD

365 UNITS ThThree Notch Rd. - Google Earth Pro - r December 2016 Aerial Photograph 1,000 AVG. SF ee No t While we have no reason to doubt the accuracy of ch R any of the information supplied, we cannot, and do d. not, guarantee its accuracy.

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#240 UNITS n An iing l t 1014 AVG. SF l SSt o R

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#84 UNITS 820 AVG. SF

Apartments of FDRFDR BOULEVARDBOULEVARD Wildridge

,00 Patuxent River (2017 ADT) Naval Air Station 20,000+ Employees 59,970 (2016 ADT)

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29 2 Market Overview California St. Mary’s County | Maryland

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Apartments of Wildridge

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30 St. Mary's County Retail Market Availability Survey 5-Year Avg Inventory Survey 5-Year Avg NNN Rent Per SF $15.50 $12.33 Existing Buildings 410 399 Vacancy Rate 3.9% 5.5% Existing SF 5,166,785 5,000,681 Vacant SF 203,308 273,930 12 Mo. Const. Starts 89,791 49,016 Availability Rate 4.8% 6.8% Under Construction 0 31,992 Available SF 249,144 340,551 12 Mo. Deliveries 98,817 53,012 Sublet SF 0 2,957 Months on Market 18.7 24.4 Market Overview

Demand Survey 5-Year Avg Sales Past Year 5-Year Avg 12 Mo. Absorption SF 102,415 83,0572Sale Price Per SF $211 $139 12 Mo. Leasing SF 148,580 90,772 Asking Price Per SF $264 $240 Sales Volume (Mil.) $21 $28 RETAIL MARKET OVERVIEW Cap Rate 7.0% 6.5% Located just off the fully lighted intersection of Route 235 (Three Notch Road) ST. MARY'S COUNTY RETAIL MARKET STATS and Old Rolling Rd, and directly behind South Plaza ( which boasts Best Buy, Old Navy, Petco as anchor tenants), the subject property is within the prime Vacancy Rate NNN Asking Rent Per SF retail corridor in California, MD that is Three Notch Road (Route 235).

The subject property benefits from the traffic count on Three Notch Road that is 60,000 cars per day.

The Property will benefit dramatically to the access to the newly developed California, MD Retail Market FDR Boulevard via Old Rolling to the south. For more information on FDR Availability Survey 5-Year Avg Inventory Survey 5-Year Avg NNNNet RentAbsorption Per SF $30.27 $21.18 ProbabilityExisting Buildings of Leasing in Months 73 66 Boulevard, see the attached link (insert link to FDR Boulevard Project) Vacancy Rate 4.7% 3.4% Existing SF 1,930,596 1,797,783 Vacant SF 89,955 61,920 12 Mo. Const. Starts 79,151 50,399 Availability Rate 5.6% 5.2% Under Construction 0 34,206 Available SF 107,758 95,474 12 Mo. Deliveries 79,151 64,144 The California, MD retail market is an extremely strong submarket with just Sublet SF 0 0 under 2 million square feet of retail and a vacancy rate of approximately 4.5%. Months on Market 18.7 23.4 The main retail corridor in California MD runs from Wildewood Shopping Demand Survey 5-Year Avg Sales Past Year 5-Year Avg Center to the West to Millison Plaza near Pax River Naval Base. 12 Mo. Absorption SF 45,637 30,652 Sale Price Per SF $335 $155 12 Mo. Leasing SF 110,278 60,251 Asking Price Per SF $348 $398 Sales Volume (Mil.) $6.5 $14 St. Mary’s Marketplace is a brand new shopping center that opened in 2018 Cap Rate 7.4% 6.4% with Harris Teeter as the anchor, and other Tenants such as; Mod Pizza, Café CALIFORNIA, MD RETAIL MARKET STATS 6/29/2018 Rio, Starbucks, Panda Express. Other new Tenants that recently opened or Copyrighted report licensed to NAI KLNB - 11496. signed leases are; Hobby Lobby, Planet Fitness, Petsmart, Home Goods, Vacancy Rate NNN Asking Rent Per SF and Ulta.

St. Mary’s County was ranked the 14th wealthiest county in the nation with a median income of $88,444 per the 2010 census. The median income skyrocketed from about $72,000 in 2009 to more than $88,000 in 2010, which is a 22% increase and one of the highest increases in the country.

Pax River Naval Station is the primary employer in St Mary’s County, and Net Absorption Probability of Leasing in Months employs 20,000 military and civilian personnel. Other large employers are Calvert Cliffs Nuclear Power Plant, St Mary’s Airport, Higher Education Center, Dominion Energy Cove Point Natural Gas Plant.

31 6/29/2018 Copyrighted report licensed to NAI KLNB - 11496. 2 Market Overview California First Colony Center St. Mary’s County | Maryland

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,00 Patuxent River (2017 ADT) Naval Air Station California 20,000+ Employees

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Scale #650 UNITS

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32 Aerial

Aerials / Site Plans

3 33 Aerials / 3 Site Plans Site Plan

34 CHESAPEAKE BAY Aerials / Site Plans UNITED STATES 3 LEXINGTON PARK NAVAL BASE

FDRFDR BOULEVARDBOULEVARD

FDR BOULEVARD

THREETHREE NOTCHNOTCH ROADROAD

OLD ROLLING ROAD

35 Aerials / 3 Site Plans

59,970 (2016 ADT)

THREE NOTCH ROAD

FDRFDR BOULEVARDBOULEVARD

OLD ROLLING ROAD

36 Aerials / 3 Site Plans

FDRFDR BOULEVARDBOULEVARD

OLDOLD ROLLINGROLLING ROADROAD

37 Aerials/Aerials / 43 Site Plans

APARTMENTS OF WILDEWOOD 365 UNITS 1,000 AVG. SF

SETTLERS LANDING 240 UNITS THREE NOTCH ROAD 1,014 AVG. SF

FDRFDR BOULEVARDBOULEVARD

59,970 (2016 ADT)

WILDE RIDGE APARTMENTS OLD ROLLING ROAD 365 UNITS 1,000 AVG. SF

38 Josh Weiner KLNB 8065 Leesburg Pike, Suite 700 Tysons, VA 22182 tel 703 268 2715 | fax 703 268 2700 [email protected] klnb.com