Service. Success. Perfected. Spotlight on Reston, Virginia | Retail February 2016

Reston Town Center

Reston, Virginia, located in Fairfax County, is world-renowned as Communications, Tier Technologies, and Oracle. General Dynamics the first master-planned community in America, having successfully Corporation has filed plans with the county for development of a balanced a strong employment base with a high quality of life and 190,000 square foot headquarters building along with underground varied housing opportunities. Founded by Robert E. Simon in 1964, parking. In addition to its office market, Reston also boasts 1.7 million Reston lies in the Dulles Technology Corridor between Tysons and square feet of retail development and almost 500,000 square feet Dulles International Airport, offering convenient access to residents of industrial/flex space. Much of this is centered around the Reston and workers with the Dulles Toll Road and Fairfax County Parkway. In Town Center, a mixed-use development of 360,000 square feet of addition to its status as one of the County’s largest business centers, retail and 2.1 million square feet of office space. Offering more than Reston’s amenities include 1,300 acres of open space, more than 60 50 shops,30 restaurants, and a multi-screen cinema, the Town Center miles of trails, numerous recreational facilities, and two golf courses. Its has become one of the most popular shopping and entertainment affluent and highly educated residents, 66% of whom hold a bachelor’s centers in Northern Virginia. degree or higher, benefit from a low unemployment rate of 3.6% and a median household income of $105,775. With the town organized around five villages, the population of Reston stands at 60,553. The development and extension of the Washington D.C. Metro Silver Line has been a major impetus to the dynamic economic climate in Reston. Phase One of the Silver Line extension brought the opening of a Metro station at the Wiehle Avenue/Dulles Toll Road interchange in Reston East in 2014. Ridership during the first year exceeded projections with more than 14,000 daily weekday users. Presently there are eight developments underway or planned which would increase residential units by 3,000 near the station. Projects include the 1.5 million square foot mixed-use project at Comstock Partners’ Reston Station and the development by JBG Companies at Reston Heights, consisting of almost 600 apartments, 65,000 square feet of retail, a 191-room hotel, and a 140,000 square foot office Dulles International Airport building to be constructed in two phases. A second station at the Reston Parkway/Dulles Toll Road interchange is expected to open in This report features six shopping centers in Reston. The Suburban 2018, while a third station is planned for the Herndon/Reston border County submarket has seen asking rents rise for the past five slated for completion by 2020. consecutive months with an increase in December, 2015 of 0.8%, Reston is the second largest office market in Fairfax County with bringing the quarter total up to 1.7%. Average allowances offered almost 19.7 million square feet of space and also one of the largest to new tenants are $14.68 per square foot for improvements and 5.4 employment centers with the highest concentration of large firms months of free rent. Asking rents for anchor tenants range from a employing more than 100. Reston is home to major companies low of $11.36 per square foot to a high of $44.44, with an average of such as BAE Systems, Lockheed Martin, NII Holdings, Sprint, $25.88. Inline asking rates per square foot range from a low of $30.00 Northrup Grumman, Raytheon, Carahsoft, Leidos, VeriSign, Nextel per square foot to a high of $83.42, with an average of $44.52.

SPECTRUM AT RESTON TOWN CENTER PLAZA AMERICA 11846 Spectrum Center 11648 Plaza America Drive Reston, VA 20190 Reston, VA 20190

GLA: 270,000 SF GLA: 165,000 SF Year Built: 1996 Year Built: 1995 Anchor Asking Rent: $44.44 Anchor Asking Rent: $31.46 Inline Asking Rent: $83.42 Inline Asking Rent: $34.41 Tenants: Harris Teeter, Best Buy, Tenants: Whole Foods, Capital One Bank, CVS/pharmacy, Office Depot, Michael’s, Modell’s, Starbucks, PetSmart, Gold’s Gym, Sprint, Men’s Wearhouse UPS Store

HOME DEPOT CENTER NORTH POINT VILLAGE CENTER 1651 Reston Parkway 1452 North Point Village Center Reston, VA 20190 Reston, VA 22094

GLA: 134,000 SF GLA: 153,000 SF Year Built: 1976 Year Built: 1993 Anchor Asking Rent: $30.20 Anchor Asking Rent: $35.36 Inline Asking Rent: $45.00 Inline Asking Rent: $42.18 Tenants: Home Depot, Tenants: Giant Food, GNC, Hibuscus Thai Restaurant, Boston Market, Merchant’s Tire, Chick-fil-A, Starbucks, Presidential Bank, Payless ShoeSource, Angel Nails Hair Cuttery, Gamestop

HUNTERS WOODS VILLAGE CENTER SOUTH LAKES SHOPPING CENTER 2336 Hunters Woods Plaza 11120 South Lakes Drive Reston, VA 22091 Reston, VA 20190

GLA: 120,075 SF GLA: 109,527 SF Year Built/Renovated: 1972, 1998 Year Built: 1984 Anchor Asking Rent: $17.64 Anchor Asking Rent: $19.08 Inline Asking Rent: $41.67 Inline Asking Rent: $50.00 Tenants: Safeway, Rite Aid, Tenants: Safeway, Starbucks, Dunkin’ Donuts, CVS /pharmacy, Ledo’s Pizza, SunTrust Bank, Wells Fargo Bank, Pet Valu, Subway Edible Arrangements, BB&T Bank, Jersey Mike’s Subs Hair Cuttery

The report below features a sampling of properties recently sold in Maryland and Virginia. Please note the different locations and adjust comparisons accordingly. Also note that sales comparables provide a snapshot of recent transactions and are not a perfect predictor of future market movement and behavior. FEDERAL HILL STATION RIVERDALE PLAZA SHOPPING CENTER 1024–1030 Light Street 1056–1088 W. Mercury Boulevard Baltimore, MD Hampton, VA

GLA: 11,450 SF GLA: 237,748 SF Year Built: 1900 Year Built: 1962 Sale Date: February 2016 Sale Date: February 2016 Price: $2,963,000 Price: $24,900,000 Occupancy: 100% Occupancy: 67% Buyer: Private Buyer: Southeastern Development Associates Seller: KL Light Street LLC Seller: Riverdale Plaza Shopping Center LLC Tenants: Yoga Works, Blue Moon Too, Tenants: Office Depot, Jo-Ann Fabrics, Himalayan Bistro United States Postal Service Notes: Greysteel exclusively listed Notes: Slated for redevelopment

REISTERSTOWN SHOPPING CENTER WESTGATE PLAZA 11905–11915 Reisterstown Road 8139 Sudley Road Reisterstown, MD Manassas, VA

GLA: 168,073 SF GLA: 172,000 SF Year Built: 2009 Year Built: 1964 Sale Date: February 2016 Sale Date: February 2016 Price: $34,500,000 Price: $42,500,000 Occupancy: 95% Occupancy: 97% Buyer: Greenberg Gibbons Buyer: Sterling Organization Commercial Corporation Seller: Katz Properties Seller: Chesapeake Realty Partners Tenants: Giant Food, CVS/Pharmacy, Tenants: Mars Supermarket, Planet Fitness, Barnes and Noble, Advance Auto Parts, Dollar Tree, Panera Bread Big Lots VICTORY VILLA TOWSON COMMONS GROUND LEVEL 105–119 Beacon Road 1 W. Pennsylvania Avenue Middle River, MD Towson, MD

GLA: 23,014 SF GLA: 115,000 SF Year Built: 1999 Year Built: 1992 Sale Date: January 2016 Sale Date: November 2015 Price: $3,600,000 Price: $4,500,000 Occupancy: 100% Occupancy: 0% Buyer: Private Buyer: Woodmont Properties/ Maryland Seller: Private Financial Investors Realty Seller: Garrison Investment Group LP Tenants: Papa John’s Pizza, Dollar General Tenants: Vacant

SHOPPES AT HAGERSTOWN MERRIFIELD II 17995–18085 Garland Groh Boulevard 2960 Gallows Road Hagerstown, MD Falls Church, VA

GLA: 113,000 SF GLA: 138,000 SF Year Built: 2007 Year Built: 1972 Sale Date: January 2016 Sale Date: January 2016 Price: $27,000,000 Price: $45,700,000 Occupancy: 93% Occupancy: 88% Buyer: Retail Properties of America Inc. Buyer: Retail Properties of America Inc. Seller: Uniwest Commercial Realty Inc. Seller: Uniwest Commercial Realty Inc. Tenants: Best Buy, Party City, Dollar Tree, Tenants: Gold’s Gym, Starbucks Great Wall Supermarket, Unique Thrift Store Sources: Costar, REIS, and independent research Notes: Slated for redevelopment © 2016 The Greysteel Company LLC. All rights reserved. Spotlight | Featured Listings - Available Soon February 2016

CHARTLEY PARK & LANDMARK SHOPPING CENTER 501 Main Street Reisterstown, Baltimore County, MD 21136

Type: Community Retail Center GLA: 144,029 SF (combined) Tenants (41): Brick Bodies, M&T Bank, Family Dollar, Metro PCS, Citgo…

CATONSVILLE PLAZA 5447 Baltimore National Pike Catonsville, Baltimore County, MD 21229

Type: Grocery Anchored Community Center GLA: 279,585 SF Tenants (16): Shoppers Food Warehouse, Dollar General, Merchant’s Tire, Dunkin’ Donuts, DaVita, Planet Fitness, Foreman Mills…

PINE HEIGHTS MEDICAL CENTER 1001 Pine Heights Avenue Baltimore City, MD 21229

Type: Hospital Campus Medical Office Building GLA: 27,214 SF Tenants (11): St. Agnes Hospital, Physicians Eye Care, Center for Vein Restoration...

AUTOZONE 5316 York Road Baltimore City, MD 21212

Type: NN Single Tenant GLA: 10,300 SF Tenants (1): AutoZone, Inc. (corporate)

STERLING PLAZA II RETAIL CENTER 22405 Sterling Boulevard, Sterling, Loudoun County, VA 20614

Type: Retail Center GLA: 22,500 SF Tenants (6): Goodwill, Carquest, Little Caesars...

TRANSACTION TEAM: CAPITAL MARKETS:

Gil Neuman Matt Hutton Mark Bittenbender Service. Success. Perfected. Managing Director Senior Analyst Director 7735 Old Georgetown Road Suite 301 Joyce Swain Brittany Wismer Daniel Kashfian Bethesda, MD 20814 Junior Investment Associate Junior Investment Associate Sr. Finance Associate P. 202.280.2722 Yassi Farzaneh Anne Elizabeth Martin Matt Schwartz [email protected] Production Director Senior Production Associate CEO www.greysteel.com

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