5301 Connecticut Avenue, NW Washington, DC

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5301 Connecticut Avenue, NW Washington, DC 5301 Connecticut Avenue, NW Washington, DC Confidential Offering Memorandum Newly built residential development Offering Memorandum 5301 Connecticut Avenue, NW Washington, DC Table of contents 01. Executive Summary 3 02. Property Overview 5 03. Location Overview 13 04. Financial Analysis 19 05. Market Overview 27 Avison Young Capital Markets Group | Confidential Offering Memorandum 22 Offering Memorandum 01. Executive Summary 5301 Connecticut Avenue, NW Washington, DC The Offering Avison Young, as exclusive advisor to the owner, is pleased to present the opportunity to acquire 5301 Connecticut Avenue, NW (“5301 Connecticut” or the “Property”), a newly constructed, luxury Class-A apartment building located in Chevy Chase, DC. The Property, to be delivered in first quarter 2021, has 19 luxurious units, a mix of studio, 1-bedroom, and 2-bedroom units, averaging approximately 564 square feet per unit. Ideally located, in the Chevy Chase neighborhood of Washington, DC, the property offers residents numerous walkable amenities and neighborhood attractions in a vibrant and family-friendly community. Project Summary 5301 Connecticut Avenue NW Address Washington, DC 20015 Zoning RA-2 Gross Building Area 14,000 SF Stories 4 Delivery Q1 2021 Number of Units 19 Bedrooms 24 Net Rentatble Area 10,709 SF Average Unit Size 564 SF Avison Young Capital Markets Group | Confidential Offering Memorandum 33 Offering Memorandum 01. Executive Summary | Investment Highlights 5301 Connecticut Avenue, NW Washington, DC Limited Supply of New, Class A Product in Immediate Area In the Connecticut Avenue Northwest Submarket, there are only a handful of luxury, Class-A multifamily properties. The brand-new construction and luxury unit finishes with high ceilings and large windows will separate 5301 Connecticut from its competition. Stable Renter’s Market Consistently, the renter’s market in Upper Northwest DC is stable. The long-term average vacancy rate over the past decade stands at 5.9%. With the median single-family home price over $1.2 Million in Chevy Chase, DC, renting is an attractive and affordable option for individuals and families looking to live in this desirable neighborhood. Precise Blue-Print Robotics Construction The property is constructed with Blueprint Construction’s pre-fabricated panels, which offer exceptional precision during construction and a foundation that is well above builder grade standards. Opportunity to Place Accretive Debt at Historically Low Rates Ideal Property for DC Voucher Program 5301 Connecticut presents an incredible opportunity to take advantage of the highly stable Voucher market, and participate in the program that the Washington DC Housing Authority offers. The program provides quality affordable housing to extremely low through moderate-income households, fosters sustainable communities, and cultivates opportunities for residents to improve their lives. The program is attractive to landlords because the government guarantees rent payments at attractive rental rates. Also, the retention rate among tenants at the properties that participate in the program is incredibly high, reducing annual leasing costs for landlords. 4 Offering Memorandum 01. Executive Summary | Investment Highlights 5301 Connecticut Avenue, NW Washington, DC Retailers Exceptional Public Transportation Options Buses run consistently up and down Connecticut Avenue from Chevy Chase Circle to Downtown DC. Residents at 5301 Connecticut have multiple bus stop options to access the Connecticut Avenue Bus line (L1/L2). These bus lines have a direct shot down Connecticut Avenue to Dupont Circle and Downtown DC, making the commute downtown from the property seamless. 5301 Connecticut is located less than a 15 minute walk to the Friendship Heights Metro Station, giving residents direct access to the Redline. From the Friendship Heights Station, it takes approximately 8 minutes to get to the Downtown Bethesda Metro Station, and 12 minutes to get to Metro Center in Downtown DC, making it simple and fast for residents to commute to work anywhere in the Metropolitan DC area. Walkable Retail Amenities There are retail amenities to both the North and South of the property on Connecticut Avenue. A five-minute walk north of the property is Chevy Chase Circle, where there is a three-block stretch of retail including a Safeway. Two blocks south Schools of the property there is a collection of locally owned restaurants, cafes, and shops, giving residents a variety of options when it comes to dining and shopping in the Janney Alice Deal Woodrow M.S. Wilson H.S. Outstanding Public and Private Schools in the Area E.S. Living at 5301 Connecticut gives residents access to some of the top public schools in the Metro DC area. Additionally within walking distance of the property, there are exceptional private schools and preschools including, CCBC Children’s Center, A- A A Montessori School of Chevy Chase, Blessed Sacrament, and All Saints. 5 Offering OfferingMemorandum type 5301 Connecticut Avenue,Address NW Washington,Address DC 02. Property Overview Offering Memorandum 02. Property Overview 5301 Connecticut Avenue, NW Washington, DC Detailed Unit Mix Unit Type # of Units SF per Unit % of Units Units Studio 4 414 21% 102, 202, 302, 402 1 Bed+1 Bath 1 552 5% 001 1 Bed+1 Bath 1 480 5% 002 1 Bed+1 Bath 1 534 5% 101 1 Bed+1 Bath 3 557 17% 201,301,401 1 Bed+1 Bath 4 599 21% 104, 204, 304, 404 2 Bed+1 Bath 1 844 5% 003 2 Bed+2 Bath 4 644 21% 103, 203, 303, 403 Total/Avg. 19 564 100% Construction & Mechanical Detail Utility Providers Foundation Poured concrete Utility Utility Provider Pre-fabricated panels Basic Structural System Blueprint Robotics Electricity Pepco Exterior Walls 2x6, zip sheathing, Water/Sewer DC WASA Rigid insulation, TPO Trash Tenleytown Trash with additional TPO Roof Cover slip sheet, 4’’ green roof Interior Walls 2x4, 2x6 sheer, double Ceiling Heights 9’8 Heating and Cooling System Central electric, heat Plumbing Fixtures Hansgrohe Electric Meters Square D Security Features Cameras, intercom 7 Offering Memorandum 02. Property Overview | Unit Features 5301 Connecticut Avenue, NW Washington, DC - Modern kitchens, quartz countertops, white cabinets, and stainless steel GE appliances - Modern bathrooms feature tile flooring, vanities with quartz countertops, large mirrors and wood cabinets with white and gray finishes - Central heating and air conditioning - Large windows - 9’8 ceiling height 8 Offering Memorandum 02. Property Overview | Exterior Rendering 5301 Connecticut Avenue, NW Washington, DC 9 Offering Memorandum 02. Property Overview | Floor Plans 5301 Connecticut Avenue, NW Washington, DC 2 Bed+1 Bath Average Size: 844 SF 10 Offering Memorandum 02. Property Overview | Floor Plans 5301 Connecticut Avenue, NW Washington, DC 1 Bed+1 Bath Average Size: 544 SF 11 Offering Memorandum 02. Property Overview | Floor Plans 5301 Connecticut Avenue, NW Washington, DC Studio Average Size: 414 SF 12 Offering Memorandum 02. Property Overview | Floor Plans 5301 Connecticut Avenue, NW Washington, DC 2 Bed+2 Bath Average Size: 644 SF 13 Offering OfferingMemorandum type 5301 Connecticut Avenue,Address NW Washington,Address DC 03. Location Overview 02. Location Overview Offering Memorandum 5301 Connecticut Avenue, NW Washington, DC Chevy Chase Circle The Brittany Apartments The Livingston Chevy Chase House La Reine Apartments Garfield of Chevy Chase The Kenmore Friendship Heights Metro 5333 Connecticut Chevy Chase Tower Subject Site Connecticut Avenue, NW 5301 Connecticut Ave. NW Regency House Sulgrave Manor 5100 Connecticut 15 02. Location Overview Offering Memorandum 5301 Connecticut Avenue, NW Washington, DC The Livingston La Reine Apartments The Kenmore 5333 Connecticut Chevy Chase Tower Connecticut Avenue, NW The Brittany Subject Site Chevy Chase House 5301 Connecticut Ave. NW Garfield of Chevy Chase Chevy Chase Pediatric Center Regency House 16 CHEVY CHASE / 03. Location Overview Offering Memorandum FRIENDSHIP HEIGHTS 5301 Connecticut Avenue, NW Washington, DC 0-½ mi 0-1 mi 0-3 mi Retail/Restaurant Arts/Tourism Education Government Great Street Main Street BID Area POPULATION Population 9,365 28,695 180,373 Male 44% 45% 46% Female 56% 55% 54% High School Graduate + 99% 98% 97% Bachelor’s Degree + 83% 85% 83% Subject Site Graduate / 53% 56% 54% Professional Degree 5301 Connecticut Ave. NW HOUSEHOLDS Households (HH) 4,785 13,275 81,291 Average HH Size 1.9 2.1 2.2 Owner-occupied 54% 58% 55% Renter-occupied 46% 42% 45% Median HH Value $871,438 $953,172 $951,008 ½ MILE RADIUS INCOME AVALONLO THEATERE Average HH $176,456 $209,590 $200,006 CCVSVS Median HH $119,975 $148,333 $136,159 SSAFEWAYAFEWAY BREAD & CHOCOLATECO HH Income <$50k 18% 16% 17% BARSTONSMORRISONSTONSTONSRRISONRISON CHILD'SCHILDCHIL ST 'S S PLAY CORECORE 7272 HH Income $50–$75k 14% 9% 11% MMACONACON HH Income $75k+ 68% 75% 72% LIVINGSTON STT Average HH Disposable $108,391 $122,747 $117,828 LEGATION ST AGE M Friendship Heights MILITARY RD Age < 20 15% 19% 20% WHOLE FOODS CHEESECAKE FACTORY EMBASSY SUITES Age 20–34 21% 18% 22% KANAWHA ST AMC J. CREW NEIMAN MARCUS WORLD MARKET Age 35–64 36% 38% 38% SAKS FIFTH AVENUE OLD NAVY JOCELYN ST TJ MAXX NORDSTROM RACK Age 65+ 28% 25% 20% DSW Median Age (years) 47.0 45.7 40.9 LORD & JENIFER ST TAYLOR 17 TERN AVE MICHAELS RE S NO CONSUMER EXPENDITURES ($ thousands) WE RD Apparel $20,759 $67,279 $398,485 HARRISON ST Child Care $5,411 $18,140 $105,926 Computers & Accessories $1,940 $6,281 $37,294 MARYLAND Entertainment & Recreation $30,312 $99,487 $581,668 T T T T T S S ST - Pets $5,732 $18,596 $107,979 H T TH TH T T T S 9 1 8 3 4 3 3 3 Food at Home $46,656 $149,367 $888,730 FESSENDEN ST Food away from Home $35,281 $113,758 $673,684 RIVER Health Care $50,983 $164,741 $964,641 RD - Medical Care $17,148 $55,284 $322,357 ELLICOTT STT GEORGETOWN DAY Home Improvement $23,884 $80,940 $455,234 LOWER/MIDDLE SCHOOL DEAL MIDDLEIDDLE SCHOOL Household Furnishings $19,448 $63,442 $372,904 DAVENPORTT ST GEORGETOWN Personal Care Products $8,251 $26,710 $157,467 DAY SCHOOL 42NDST Vehicle Maint.
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