Service. Success. Perfected. Spotlight on Towson, Maryland | Retail July 2016

Downtown Towson

Towson, county seat of Baltimore County–Maryland’s second largest the downtown streetscape is the new lease by CVS Pharmacy at job center–is the state’s 13th most populous city with over 55,000 Towson Commons. MFI Realty and Woodmont Properties, owners residents and 2,600 businesses in a rapidly growing mix of urban of the 115,000-square-foot retail portion of the development, have and suburban neighborhoods. Conveniently located along the undertaken to revitalize the long-vacant retail space. I-695 Baltimore Beltway and the north/south Interstate 83, Towson’s vibrant downtown office district contributes to an increase of 56,000 people in the city’s daytime population. The community, bolstered by a large population of students at Towson University and Goucher College, enjoys a low unemployment rate of 4.4% and an average household income of $79,692. Towson’s commuter friendly location, immediately north of Baltimore City and only eight miles from the Inner Harbor, allows easy access to and from several major area employers, including the Baltimore County Government, Black and Decker World Headquarters, General Dynamics IT, MileOne, Remedi SeniorCare, Saint Joseph Medical Center, Greater Baltimore Medical Center, and Sheppard Pratt Health System. Among the larger Towson employers is Towson University with a staff of 3,476. Its more than 21,000 students make it the second largest university in Maryland. To accommodate its growing student body, the university is set to Towson University begin a major project next summer with the construction of a $184 million science building, featuring outdoor classrooms, as well as a In response to the rising demand, there are currently 3,000 new greenhouse and planetarium. residential units open or under construction in Towson. Federal Realty Towson is home to abundant shopping including the major luxury Investment Trust has broken ground on The Flats at 703, a new 105- regional mall Towson Town Center, anchored by Nordstrom and unit apartment project slated for delivery in 2017. Evergreene Homes Macy’s, which serves as a key regional draw from the densely is constructing Towson Mews, 34 luxury townhomes to be built on populated surrounding counties. Retail Properties of America is two acres. These developments are part of $1 billion in recent private redeveloping nearby Towson Circle, adding a residential component investment in downtown Towson, according to the county. to the 117,000-square-foot retail property. The company also owns the adjacent Towson Square, anchored by Cinemark Theaters with This report includes six established shopping centers in Towson. nationally-known restaurants Bobby’s Burger Place and Bonefish The current retail vacancy rate is 5.5% for the submarket and is Grill. Towson Row, by Caves Valley Partners, is a $350 million, expected to finish 2016 at 4.5%. Over the past 12 months, asking mixed-use project to be comprised of high-rise towers for offices, rents have increased by a total of 3.6%. Average allowances offered apartments, and student housing, plus restaurants, retail shops, and to new tenants are $20.53 per square foot for improvements and a hotel. A Whole Foods grocery store at the five-acre site is expected 5.1 months of free rent. Asking rents for anchor tenants range from to be completed by 2018. Greenberg Gibbons has begun work on $12.00 to $31.15 per square foot, with an average of $16.27. In-line a $20 million renovation to The Shops at Kenilworth, a landmark asking rates range from $18.25 to $36.85 per square foot, with an shopping destination, originally built in 1979. Another boost to average of $31.77.

DULANEY PLAZA RAVENWOOD SHOPPING CENTER 830 Dulaney Valley Road 8100 Loch Raven Boulevard Towson, MD 21204 Towson, MD 21286

GLA: 65,500 SF GLA: 93,328 SF Year Built: 1960 Year Built: 1959 Occupancy: 85% Occupancy: 99% Anchor Asking Rent: $23.00 Anchor Asking Rent: $20.00 Inline Asking Rent: $32.00 Inline Asking Rent: $34.00 Tenants: Fresh Market, Tenants: Giant Food, Domino’s Ann Taylor Loft, Pizza, Starbucks, Starbucks, Chico’s, T-Mobile, Omaha Steaks, Chen’s Kitchen, Smoothie King Bank of America

ANNESLIE SHOPPING CENTER YORK ROAD PLAZA 6325 York Road 6300 York Road Baltimore, MD 21212 Baltimore, MD 21212

GLA: 175,745 SF GLA: 96,100 SF Year Built: 1954 Year Built: 1967 Occupancy: 100% Occupancy: 100% Anchor Asking Rent: $21.00 Inline Asking Rent: $31.00 Inline Asking Rent: $24.00 Inline Asking Rent: $36.00 Tenants: Petco, M&T Bank, Little Tenants: Giant Food, Boston Caesars, Party City, Market, Starbucks, Panera Bread Firestone, Subway, Chipotle, Gamestop

GOUCHER COMMONS TOWSON COMMONS RETAIL 801 Goucher Boulevard 1 W. Pennsylvania Avenue Towson, MD 21286 Towson, MD 21204

GLA: 154,612 SF GLA: 115,000 SF Year Built: 1983 Year Built: 1992 Occupancy: 100% Occupancy: N/A Anchor Asking Rent: N/A Mezzanine & Lower Level $25.00–$30.00 Inline Asking Rent: $34.00 Street Level $50.00 Tenants: hhgregg, Staples, Tenants: Redevelopment; Home Goods, CVS Pharmacy Golf Galaxy, Chipotle, Sleepy's

The report below features a sampling of properties sold within the last two months in Maryland, Virginia, and Washington, D.C. 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.

3 FOOD LION ANCHORED CENTERS NEW RIVER VALLEY CENTER 77 Callohill Drive, Lovingston, VA 22949 782 New River Road 322 W. Broaddus Avenue, Bowling Green, VA 22427 Christiansburg, VA 24073 46 Madison Plaza Drive, Madison, VA 22727 GLA: 164,663 SF Year Built: 2007 GLA: 135,811 SF Sale Date: July 2016 Year Built: 1999, 1994, 2003 Price: $23,800,000 Sale Date: July 2016 Price/SF: $145 Price: $10,050,000 Occupancy: 97% Price/SF: $74 Buyer: Blackstone Occupancy: 92%, 100%, 87% Seller: RioCan Buyer: Private Tenants: Best Buy, Staples, Note: Part of portfolio Seller: Slate Retail REIT Note: Shadow-anchored by Ross Dress For Less, consisting of five Food Lion Tenants: Food Lion a mall Petsmart, anchored centers Bed Bath and Beyond

SOUTHPARK SQUARE WOODLAWN SHOPPING CENTER 1821–1869 Southpark Boulevard 8724–8762 Richmond Highway Colonial Heights, VA 23834 Alexandria, VA 22309

GLA: 71,509 SF GLA: 109,690 SF Year Built: 1989 Year Built: 1990 Sale Date: July 2016 Sale Date: June 2016 Price: $9,500,000 Price: $13,750,000 Price/SF: $133 Price/SF: $125 Occupancy: 97% Occupancy: 90% Buyer: MCB Real Estate Buyer: Woodmont Properties Seller: Kimco Realty Corporation Seller: MTH Management Corp. Tenants: Ashley Home Furniture, Tenants: 2nd Ave Value Store, Books-A-Million, Chipotle, Family Dollar Jimmy John’s

NORTHWAY SHOPPING CENTER 1065 WISCONSIN 670 Old Mill Road 1065 Wisconsin Avenue, NW Millersville, MD 21108 Washington, D.C. 20007

GLA: 95,227 SF GLA: 7,020 SF Year Built: 1987 Year Built: 1982 Sale Date: June 2016 Sale Date: June 2016 Price: $10,800,000 Price: $7,250,000 Price/SF: $113 Price/SF: $1,033 Occupancy: 88% Occupancy: 0% Buyer: MBF Real Estate Holdings Buyer: Cascade Realty Partners Seller: Angelo, Gordon & Co. Seller: Private Tenants: Shoppers, Goodwill, Tenants: N/A Little Caesar’s Pizza, Hair Cuttery

Sources: Costar, REIS, and independent research © 2016 The Greysteel Company LLC. All rights reserved. 7735 Old Georgetown Road, Suite 301 Bethesda, MD 20814 P. 202.280.2722 [email protected] www.greysteel.com

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