ANNAPOLIS MARYLAND ACTUAL SITE EXCLUSIVELY MARKETED by Reciprocal Broker: David Wirth, SRS Real Estate Partners-Northeast, LLC | MD License No
SINGLE TENANT Investment Opportunity
2401 SOLOMONS ISLAND ROAD ANNAPOLIS MARYLAND ACTUAL SITE EXCLUSIVELY MARKETED BY Reciprocal Broker: David Wirth, SRS Real Estate Partners-Northeast, LLC | MD License No. 5000356
ANDREW FALLON JONATHAN W. HIPP Executive Managing Director Principal, Capital Markets SRS National Net Lease Group - Washington, D.C. Head of US Net Lease Group
D 202.286.1542 T 703.787.4725 [email protected] C 571.926.2009 VA License No. 0225193951 [email protected]
2 REPRESENTATIVE PHOTO NATIONAL NET LEASE GROUP CONTENTS 5 9 INVESTMENT SUMMARY PROPERTY OVERVIEW Offering Summary | Investment Highlights Aerials | Site Plan | Location Map 16 18 AREA OVERVIEW FINANCIALS Demographics Rent Roll | Brand Profile
3 ACTUAL SITE NATIONAL NET LEASE GROUP PROPERTY PHOTO
4 ACTUAL SITE NATIONAL NET LEASE GROUP INVESTMENT SUMMARY
SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in a NN leased, freestanding, Office Depot investment property located in Annapolis, MD. The tenant, Office Depot, Inc., recently signed a 10-year lease renewal with 4 (5-year) options to extend, demonstrating their commitment to the site. The lease features 10% rental increases at the beginning of each option period, growing NOI and hedging against inflation. The lease is NN with landlord responsibilities limited to roof, structure, and CAM reconciliation.
The Office Depot is located at the signalized, hard corner intersection of Solomons Island Road / State Highway 2 and Forest Drive, with a combined 46,300 vehicles passing by per day. Solomons Island Road / State Highway 2 is a major retail thoroughfare serving the city of Annapolis and provides direct access to U.S. Highway 301 & 50 approximately .50 miles north of the property. The Office Depot is situated near four shopping centers, totaling more than 2.75 million square feet. The largest of the four is Annapolis Towne Center, a 2.1 million square foot mixed-use center with anchor tenants Target, Whole Foods, 24-Hour Fitness, and Bed Bath & Beyond. Annapolis Towne Center also has several apartment and condo buildings within the center, totaling to more than 560 units. Located across from the asset is Forest Plaza (193,000 SF) and Festival at Riva Shopping Center (300,000 SF), both featuring national tenants such as Giant, TJ Maxx, The Home Depot, and Dollar Tree, further increasing consumer traffic to the trade area. The site is also near Annapolis Harbour Center (280,000 SF) which is anchored by Nordstrom Rack, DSW, Old Navy, and Barnes & Noble. The 5-mile trade area is supported by more than 108,500 residents and nearly 90,000 employees with an affluent average household income of $138,200.
5 ACTUAL SITE NATIONAL NET LEASE GROUP PROPERTY PHOTOS
6 ACTUAL SITE NATIONAL NET LEASE GROUP OFFERING SUMMARY Offering
PRICING $7,910,000
NET OPERATING INCOME $593,222
CAP RATE 7.50%
GUARANTY Corporate
TENANT Office Depot
LEASE TYPE NN
LANDLORD RESPONSIBILITIES Roof, Structure, & CAM Reconciliations
Property Specifications
RENTABLE AREA 16,708 SF
LAND AREA 1.17 Acres
PROPERTY ADDRESS 2401 Solomons Island Road Annapolis, MD 21401
YEAR BUILT / REMODELED 1969 / 2011
PARCEL NUMBER 06-000-08576615
OWNERSHIP Fee Simple (Land & Building)
Parcel Map
7 REPRESENTATIVE PHOTO NATIONAL NET LEASE GROUP INVESTMENT HIGHLIGHTS
Brand New 10-Year Lease Renewal | Options To Extend Dense Surrounding Residential Consumer Base | Retail Corridor | Corporate Guaranteed Lease Annapolis Towne Center (2.1 Million SF) • Office Depot recently renewed their lease for an additional 10 years, • Surrounded by a number of master planned communities within the suburbs demonstrating their commitment to the site of western Annapolis • Corporate guaranteed by Office Depot, Inc. • More than 42,000 households within a 5-mile radius, providing a residential • Lease features 10% rental increases at the beginning of each option period, consumer base from which to draw growing NOI and hedging against inflation • Located directly across from Annapolis Towne Center, a 2.1 million square foot mixed-use development, featuring: NN Lease | Fee Simple Ownership | • Strong national/credit tenant lineup with Target, Whole Foods, 24-Hour Limited Landlord Responsibilities Fitness, and Bed Bath & Beyond • Several apartment and condominium complexes, with more than 560 units • Tenant pays for CAM, taxes, insurance and maintains most aspects of the • Positioned near several other shopping centers, including Forest Plaza premises (193,000 SF), Festival at Riva Shopping Center (300,000 SF), and Annapolis • Landlord responsibilities limited to roof, structure, and cam reconciliation Harbour Center (280,000 SF) • Strong tenant synergy and residential base promotes crossover shopping to Signalized, Hard Corner Intersection | the site Excellent Visibility & Access • The asset is located at the signalized, hard corner intersection of Solomons Strong Demographics In 5-mile Trade Area | Six Figure Incomes | Island Road / State Highway 2 and Forest Drive, with a combined 46,300 High Barrier To Entry Submarket vehicles passing by daily • Dense population with more than 108,500 residents and nearly 90,000 • Office Depot has excellent visibility from both cross streets and benefits from employees support the 5-mile trade area its large parapet and monument signage • Residents boast an affluent average household income of $138,200 • Site has multiple points of ingress/egress along Forest Drive • Dense, infill trade area with extremely high barriers for new development
8 NATIONAL NET LEASE GROUP PROPERTY OVERVIEW
Location Access Traffic Counts Improvements Located in Forest Drive Solomons Island Road/ There is approximately Annapolis, MD 2 Access Points State Highway 2 16,708 SF of existing Anne Arundel County 35,300 Cars Per Day building area
West Street/State Highway 450 34,400 Cars Per Day
Parking Parcel Year Built Zoning There are approximately Parcel Number: 1969 B2 33 parking spaces 06-000-08576615 on the owned parcel. Acres: 1.17 Year Remodeled Square Feet: 50,965 SF 2011
9 NATIONAL NET LEASE GROUP GATEWAY VILLAGE
WESTFIELD ANNAPOLIS PLAZA ANNAPOLIS 105,600 CARS PER DAY
59,800 CARS PER DAY JENNIFER SQUARE
FESTIVAL AT RIVA SOLOMONS ISLAND RD./STATE HIGHWAY 2 FOREST PLAZA SHOPPING CENTER ANNAPOLIS TOWNE CENTRE 35,300 CARS PER DAY
FOREST DR.
11,000 CARS PER DAY ARUNDEL PLAZA SHOPPING CENTER 10,000 CARS PER DAY
STATE HIGHWAY 393
10 NATIONAL NET LEASE GROUP ANNAPOLIS HIGH SCHOOL
SO LO 10,000 MO CARS PER DAY NS IS FOREST PLAZA LA ND R ANNAPOLIS HARBOUR CENTER STATE HIGHWAY 393 D./ ST AT E H IG HW AY 2 11,000 35,300 CARS PER DAY CARS PER DAY
FOREST DR.
11 NATIONAL NET LEASE GROUP STATE HIGHWAY 178 ANNE ARUNDEL MEDICAL WESTFIELD CENTER ANNAPOLIS GATEWAY VILLAGE ANNAPOLIS PLAZA 105,600 CARS PER DAY U.S. HIGHWAY 301 & 50
JENNIFER SQUARE
ANNAPOLIS TOWNE CENTRE 34,400 MONARCH CARS PER DAY ACADEMY STATE HIGHWAY 450 ANNAPOLIS
11,000 CARS PER DAY FOREST DR. STATE HIGHWAY 393 WALTER S. MILLS-PAROLE ELEMENTARY SCHOOL FOREST PLAZA
FESTIVAL AT RIVA 10,000 SHOPPING CENTER CARS PER DAY
ANNAPOLIS HARBOUR CENTER
ANNAPOLIS TECHNOLOGY PARK STATE HIGHWAY 665
59,800 CARS PER DAY 35,300 SOLOMONS ISLAND RD./STATE HIGHWAY 2 CARS PER DAY
12 NATIONAL NET LEASE GROUP 11,000 CARS PER DAY
FOREST DR.
35,300 SOLOMONS ISLAND RD./STATE HIGHWAY 2 CARS PER DAY
ARUNDEL PLAZA SHOPPING CENTER
STATE HIGHWAY 393 10,000 CARS PER DAY
13 NATIONAL NET LEASE GROUP 11,000 CARS PER DAY
MONUMENT SIGN FOREST DR.
SOLOMONS ISLAND RD.
35,300 CARS PER DAY
RAYMOND'S HAIRSTYLIST LASH MOI ANNAPOLIS 10,000 ARUNDEL PLAZA CARS PER DAY
14 NATIONAL NET LEASE GROUP LOCATION MAP
BALTIMORE 38 min 32 miles
2019 ESTIMATED POPULATION 1 Mile 9,201 ANNAPOLIS 3 Mile 62,809 5 Mile 108,573 WASHINGTON 2019 AVERAGE HOUSEHOLD INCOME 46 min 35 miles 1 Mile $115,033 3 Mile $126,541 5 Mile $138,273 2019 ESTIMATED TOTAL EMPLOYEES 1 Mile 31,798 3 Mile 74,186 5 Mile 89,687
15 NATIONAL NET LEASE GROUP AREA OVERVIEW Annapolis, Maryland Annapolis is the capital of the State of Maryland. Annapolis is part of the Baltimore-Washington metropolitan area. The City of Annapolis had a population of 40,194 as of July 1, 2019. As compared to the U.S. regional economies, the City of Annapolis enjoys a stable economic environment. The City’s tourism industry has evolved as the most important component of the area’s economy. As home to the U.S. Naval Academy, the Anne Arundel County seat, the State capital, a registered National Historic District, and 17 miles of waterfront, Annapolis attracts an estimated five million visitors a year. Principal employer of the city are United States Naval Academy, ARC of the Central Chesapeake Region, St. John’s College, Rams Head Tavern, Inc, Annapolis Marriott Waterfront Hotel/Pussers Restaurant, Buddy’s Crabs & Ribs, Inc., TeleCommunication Systems, Inc, Federal Catering, Severn Bancorp and Loews Annapolis Hotel. Annapolis has many arts and entertainment offerings of its own, as well as providing easy access to the rich cultural and entertainment offerings of nearby Baltimore, and Washington DC. Some of the more significant attractions in Annapolis include The Annapolis Chorale, The Annapolis Maritime Museum, The Annapolis Opera, The Annapolis Summer Garden Theatre, The Annapolis Symphony Orchestra, The Ballet Theatre of Maryland, The Bay Theatre Company, The Colonial Players of Annapolis, The Maryland State Archives, The Old Treasury Building. For the sports minded, Annapolis residents have easy access to all of the professional sports offerings of nearby Baltimore and Washington DC, which includes: Major League Baseball’s Baltimore Orioles and Washington Nationals, Major League Soccer’s D.C. United, the National Basketball Association’s Washington Wizards, the National Hockey League’s Washington Capitals, the National Football League’s Baltimore Ravens and Washington Redskins, and the United Soccer League’s W-League Washington Freedom. Education is provided by the Board of Education of Anne Arundel County. The nearest major airport is Baltimore/Washington International Thurgood Marshall Airport. This airport has international and domestic flights from Baltimore, Maryland and is 26 miles from the center of Annapolis, MD.
16 NATIONAL NET LEASE GROUP AREA DEMOGRAPHICS
1 MILE 3 MILES 5 MILES
2019 Estimated Population 9,201 62,809 108,573 2024 Projected Population 9,751 64,931 112,041 2010 Census Population 8,135 58,765 102,422 Projected Annual Growth 2019 to 2024 1.17% 0.67% 0.63% Historical Annual Growth 2010 to 2019 1.84% 0.73% 0.64%
2019 Estimated Households 3,345 24,061 42,097 2024 Projected Households 3,568 24,884 43,372 2010 Census Households 2,907 22,742 40,136 Projected Annual Growth 2019 to 2024 1.30% 0.67% 0.60% Historical Annual Growth 2010 to 2019 2.26% 0.62% 0.53%
2019 Estimated White 50.77% 71.49% 77.56% 2019 Estimated Black or African American 34.00% 18.69% 14.70% 2019 Estimated Asian or Pacific Islander 2.93% 2.85% 2.62% 2019 Estimated American Indian or Native Alaskan 0.26% 0.32% 0.33% 2019 Estimated Other Races 13.02% 8.00% 5.83% 2019 Estimated Hispanic 20.68% 16.33% 12.54%
2019 Estimated Average Household Income $115,033 $126,541 $138,273 2019 Estimated Median Household Income $88,970 $93,892 $102,733 2019 Estimated Per Capita Income $44,022 $49,488 $54,349
2019 Estimated Total Businesses 1,930 5,373 7,061 2019 Estimated Total Employees 31,798 74,186 89,687
17 NATIONAL NET LEASE GROUP RENT ROLL
Lease Term Rental Rates SQUARE LEASE LEASE RECOVERY TENANT NAME BEGIN INCREASE MONTHLY PSF ANNUALLY PSF OPTIONS FEET START END TYPE Office Depot, Inc. 16,708 Jan. 2020 Dec. 2029 Current - $49,010 $2.93 $588,122 $35.20 NN 4 (5-Year) (Corporate Guaranty) 10% Increase at Each Option Period Office Building $425 1$5,100 (Additional Ground Rent) Total $49,435 $593,222
1The parcel also contains 0.187 acres improved by a 2-story office building that generates additional ground rent of $5,100 annually
FINANCIAL INFORMATION Price $7,910,000
Net Operating Income $593,222
Cap Rate 7.50%
Lease Type NN
PROPERTY SPECIFICATIONS Year Built/Remodeled 1969 / 2011
Rentable Area 16,708 SF
Land Area 1.17 Acres For financing options and loan quotes: Please contact our SRS Debt & Equity team at [email protected]. Address 2401 Solomons Island Road Annapolis, MD 21401
18 ACTUAL SITE NATIONAL NET LEASE GROUP BRAND PROFILE Office Depot officedepot.com
Office Depot, Inc. (NASDAQ:ODP) is a leading provider of business services and supplies, products and technology solutions through its fully integrated B2B distribution platform of approximately 1,300 stores, online presence, and dedicated sales professionals and technicians to small, medium and enterprise businesses. Through its banner brands Office Depot, OfficeMax, CompuCom and Grand&Toy, as well as others, the Company offers its customers the tools and resources they need to focus on their passion of starting, growing and running their business.
COMPANY TYPE 2018 EMPLOYEES 20XX REVENUE Public (NASDAQ: ODP) 44,000 $11.02 B
20XX NET INCOME 20XX ASSETS 20XX EQUITY $104.00 M $6.17 B $2.13 B
19 REPRESENTATIVE PHOTO NATIONAL NET LEASE GROUP SRS NATIONAL NET LEASE GROUP IS THE EXCLUSIVE NET LEASE CAPITAL MARKETS TEAM OF SRS REAL ESTATE PARTNERS.
275+ 25+ #1 1500+ $2.6B
RETAIL OFFICES LARGEST REAL ESTATE RETAIL LISTINGS TRANSACTION PROFESSIONALS SERVICES FIRM in 2018 VALUE in North America in 2018 exclusively dedicated to retail
This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.
*Statistics are for 2018
ACTUAL SITE SRSRE.COM/NNLG