Richmond Highway and Russell Road Alexandria, VA 22309 Richmond Highway and Russell Road

OFFERING MEMORANDUM EXCLUSIVELY PRESENTED BY:

Real Estate Services Since 1987

DEBRA ARNETT ED CAVE Direct: 703-537-3312 Mobile: 703-919-2149 [email protected] Direct: 703-537-3311 [email protected]

CONFIDENTIALITY STATEMENT

The material contained in the Offering Memorandum is confidential, furnished solely for the purpose of considering the opportunity to develop the Property described herein, and is not to be used for any other purposed or made available to any other person without the express written consent of McEnearney Commercial Inc. (“Broker”). The information contained herein has been obtained from sources that we deem to be reliable, and we have no reason to doubt its accuracy. However, no warranty or representation, expressed or implied, is made by the Seller or Broker or any related entity as to the accuracy or completeness of the information. Prospective purchasers should make their own investigation, projections, and conclusions. It is expected that prospective purchasers will conduct their own independent due diligence concerning the Property, including such engineering inspections as they deem necessary to determine the condition of the property and the existence or absence of any potentially hazardous materials. McEnearney Commercial Inc., represents the Seller in this transaction and makes no representations, expressed or implied, as to the foregoing matters. Table of Contents

Executive Summary 4

Premier Loacation 5

Property Analysis 11

Market Analysis 15 Executive Summary The Opportunity

8306, 08, 12 Richmond Hwy McEnearney Commercial Inc., as exclusive agent, is pleased to offer the opportunity Street Addresses 8226 Russell Road to acquire 2.05 acres on the Richmond Highway Corridor in Alexandria, . The Alexandria VA Project located at the signalized intersection of Richmond Highway and Russell Road, Map-Block-Lot # 1014 01 0005B offers a combined land area of 89,285 square feet with an approximately 2,679 square 1014 04 0014B foot Seven Eleven store currently occupied. An additional structure of approximately 5,151 square foot bank building with drive through which is currently vacant. Zoning C-8 / Highway Commercial District The Project, located in the Planning District, Area IV of the Fairfax County Comprehensive Plan are recommended as Alternative Uses and currently Land Area 89,285 Total zoned C-8/Highway Commercial District.

Road Frontage Richmond Hwy 186' The Fairfax County Comprehensive Plan envisions transportation improvements to Russell Road 194' include easy access by bus, Metrorail, pedestrian/bicyclist services to the City of FAR .50 (by right) Alexandria. The Mount Vernon District known for its recent and dramatic growth .70 (with approval) of commercial businesses is also the historic heart of Fairfax County which includes Fort Hunt Park, Huntley Meadows Park, George Washington’s Mount Vernon Estate Current Condition Retail, wooded lot and Gardens, the Frank Lloyd Wright designed Pope-Leighey House, River Farm and Woodlawn Plantation.

Portions of the Richmond Highway corridor have been designated as one of the six Community Business Centers (CBC). The corridor Business Center areas are: Beacon/ Groveton, Hybla Valley, North Gateway, Penn Daw, South County and Woodlawn.

The dramatic growth along the Richmond Highway Corridor in development of multi-family, hotel, retail and pharmacy projects make this site a prime location for development of convenience with gas, pharmacy store, major restaurant or retailer, child care or hotel.

PAGE 4 Premier Location Richmond Highway Corridor

Located in the southeastern portion of Fairfax County, the Richmond Highway corridor extends from the City of Alexandria boundary, south along Richmond Highway (U.S. Route 1) to . This corridor enjoys easy access to the Capitol Beltway (Interstates 95 and 495), and contains the terminus for the Metrorail Yellow Line at Huntington.

The corridor is dominated by retail development--nearly 4 million square feet, more than 1 million square feet of office space and nine hotels with more than 1,000 rooms. In addition, the Department of the Army and its contractors at 8,700-acre Fort Belvoir occupy 10 million square feet of office space on-post.

Fort Belvoir, one of the largest employers in Fairfax County and home to more than 40,000 civilian and military personnel in nearly 100 agencies, is the site of the second-largest action resulting from the national 2005 Base Realignment and Closure Act (BRAC), producing expansion of healthcare services and the Warrior Clinic.

Major employers in the corridor include the Defense Contract Audit and Defense Logistics agencies, Inova Mount Vernon Hospital, the Department of the Army and USA Mobility.

This market also contains numerous points of historical interest and natural beauty, including Fort Hunt Park, Huntley Meadows Park, George Washington’s Mount Vernon Estate and Gardens, the Frank Lloyd Wright designed Pope-Leighey House, River Farm and Woodlawn Plantation.

As one of the first commercial districts in Fairfax County, the Richmond Highway corridor has its own economic development agency, Southeast Fairfax Development Corp (SFDC). Portions of the Richmond Highway corridor have been designated as one of the six Community Business Centers. The corridor Business Centers are comprised of Beacon/Groveton, Hybla Valley, North Gateway, Penn Daw, South County and Woodlawn.

Richmond Highway’s close proximity both to leading visitor attractions like Old Town Alexandria, George Washington’s Mount Vernon Estate, Woodlawn Plantation, and , along with the expansion of Fort Belvoir, have combined to make the corridor an attractive investment for hospitality developers. Since 2009, six new hotels have been built, representing more than 27 percent of all hotel rooms on the corridor.

The corridor in addition to the growth in hospitality has experienced substantial development in multi-family with three projects completed totaling 943 units, one under construction with 400 planned units and two in final planning totaling 559 units. The corridor is also home to three new pharmacy sites and three new financial institutions.

PAGE 5 Premier Location South County Community Business Center (CBC)

Statement of Copyright

Copyright© by the Government of Fairfax County, Virginia (“Fairfax County”). Except as provided herein, all rights are reserved. This material may be used in the conduct of business with Fairfax County by any purchaser of this information. Authorization to reproduce material for internal or personal use by any purchaser of this information is granted by Fairfax County. However, no part of this material may be published or reproduced by ay means for commercial sale or use without prior written permission of Fairfax County. For further information, please contact the Fairfax County Department of Information Technology, Enterprises Services Division, eographic Information Systems and Mapping Services Branch, 12000 Government Center Parkway, Suite 117, Fairfax, Virginia 22035-0010. Phone (703) 324-2712.

Map Disclaimer

The maps contained herein are NOT to be construed or used as a “legal description”. It is not a survey product and not to be used for the design, modification or construction of improvements to real property or for flood plain determination. Fairfax County does not provide any guaranty of accuracy or completeness regarding the map information. Any errors or omissions should be reported to the Fairfax County Geographic Information Services Brach of the Department of Information Technology. In no event will Fairfax County be liable for any damages, including but not limited to loss of data, lost profits, business interruption, loss of business information or any other pecuniary loss that might arise from the use of this map or information it contains.

PAGE 6 Premier Location South Country Community Business Center (CBC)

PAGE 7 Premier Location

PAGE 8 Page 8 Premier Location

1. Aldi 2. Safeway 3. Mt Vernon Plaza Shoppers Home Depot Bed Bath and Beyond Pier 1 Michael’s Crafts 4. Lowes 5. Costco 4 6. Walmart 3 3

5 5 1. McDonald’s 2. Taco Bell 3. Roy Rogers 4. SubWay 5. Wendy’s 6. Five Guys 4 7. Popeye’s 2

1. Candlewood Marriott 1 2. Hampton Inn and Suites 6 3. Spring Hill Marriott 3 4. Towne Place Suites Marriott 5. Fairfield Inn and Suites Marriott 6 5 1 7 1 1. Belvoir Square Project Site 2. Beacon at Groveton 3. The Shelby Apartments Engleside 4. Towns of South Alexandria Center 5 5. Novus Kings Crossing 2 2 1 4 3 4

2 1

1 PAGE 9 Premier Location Embark Richmond Highway

Embark Richmond Highway (Embark) is a multi-year effort involving land use, transportation planning, design and construction, which will result in a bus rapid transit system to operate primarily on dedicated lanes along Richmond Highway. The stations will run initially from the Huntington Metrorail Station to Fort Belvoir and will include a possible future extension of the Metrorail Yellow Line to Hybla Valley. Embark is focused on creating a multimodal future for Richmond Highway Corridor where residents, workers, and visitors can walk, bike, or drive to the places they want to go. This effort responds to recommendations from the Route 1 Multimodal Alternatives Analysis, conducted by the Virginia Department of Rail and Public Transportation (DRPT) and intends to assess and refine the recommendations from the study by providing more detailed guidance in the Comprehensive Plan for the implementation of transit in the corridor. Embark Richmond Highway also includes coordination with the Virginia Department of Transportation (VDOT) and federal agencies to conduct Environmental Assessments (EAs). THE COMPONENTS OF THE EMBARK RICHMOND HIGHWAY PROJECT INCLUDE:

COMPREHENSIVE PLAN AMENDMENT

The Comprehensive Plan Amendment process is considering planning goals and objectives for the corridor, land use density and mix for the areas in the vicinity of the proposed BRT stations between Huntington and Fort Belvoir.

Corridor-wide transportation systems, urban design, public facilities.

ROAD WIDENING

Richmond Highway is planned to be widened from four to six lanes. The Virginia Department of Transportation (VDOT) is in the design phase of the Richmond Highway Corridor Improvements project, which will widen Richmond Highway from Jeff Todd Way to Napper Road.

BRT SYSTEM

The goal of the BRT system is to increase transit ridership along the Richmond Highway Corridor and ultimately lead to the future Metrorail extension to Hybla Valley.

It recommends major transportation improvements along Richmond Highway to be phased over the next 10 to 25 years. They include the implementation of a median-running Bus Rapid Transit (BRT) system, a consistent six-lane cross section for Richmond Highway, pedestrian/bicycle improvements, and additional local street connections along the corridor, from Huntington to Woodbridge (Prince William County). Construction of these improvements is proposed to occur in three phases. A three-mile extension of the Metrorail Yellow Line from Huntington to Hybla Valley is recommended as a fourth phase of transit implementation. The Alternatives Analysis recommends prioritizing phases by areas that have greater numbers of people and jobs needed to support transit ridership and that connect to the regional transit network. The analysis suggests Phases I and II could be completed by 2028. The phases are contingent upon robust coordination among many local, state, and federal agencies; the adoption of updates to local, state, and regional plans; and, funding to support implementation of each phase.

The greatest amount of planned development is envisioned to be concentrated in the areas closest to the BRT stations, generally within one-quarter to one-half mile of the station platform and to the future Metrorail stations. Beyond the immediate station areas and in between stations, the amount of planned development is envisioned to transition to neighborhoods and lower density development. The current Comprehensive Plan guidance reflects a similar concept of concentrating development and including buffers and transitions to neighborhoods that surround these development areas. The form a development takes, including the recommended building height, may vary depending on many factors such as proximity to the BRT station, the size of the site, the provision of open space, topography, and existing uses surrounding the site.

The cost for the roadway widening, from Route 235 to Napper Road, recently has been estimated at $214 million. The cost to construct BRT, from Huntington to Fort Belvoir, is estimated at approximately $500 million.

PAGE 10 Property Analysis Income Producing Retail

Income and Expenses

$74,400.00 Annual income through March 2021

$81,840.00 Annual income April 2021 through March 2026

$90,024.00 Annual income April 2026 through March 2031

Pass Through Expenses Prorated taxes, maintenance of paving, curbing and landscaping. All repairs, maintenance and replacement both structural and non-structural, internal and external, full replacement if destroyed

Lease Term Existing Term through March 2021

1st Option April 2021-March 2026

2nd Option April 2026-March 2031

PAGE 11 Property Analysis Zoning

The Project is Zoned C-8 / Highway Commercial District. Fairfax County defines as the following:

Purpose

The C-8 District is established to provide locations on heavily traveled collector and arterial highways for those commercial and service uses which (a) are oriented to the automobile, or (b) are uses which may require large land areas and good access, and (c) do not depend upon adjoining uses for reasons of comparison shopping or pedestrian trade. The regulations of this district are designed to accommodate such uses in a manner that will minimize interference with through traffic movements and insure a high standard in site layout, design and landscaping. Uses should be encouraged to group in preplanned concentrations, and where possible, a minimum distance of three (3) miles should be encouraged between such concentrations.

Zoning Overlay Districts

There are two overlay zoning districts in the Richmond Highway Corridor – a Commercial Revitalization District (CRD) and a Highway Corridor (HC) District. The CRD designation is applied to each of the six CBCs only; it is not applied to the areas in between the CBCs. The HC district extends along Richmond Highway the entire distance from the to Fort Belvoir at a width of 1,000 on either side of the centerline. The CRD designation confers unique regulations that provide flexibility in the development and redevelopment of properties and allows for expedited review and concurrent processing of planning and development review. The HC designation imposes additional regulations on certain automobile- oriented, fast-service or quick turn-over uses in order to prevent or reduce traffic congestion and associated dangers.

Permitted Uses

Alternative Lending Institution, limited by the provisions of Sect. 805, Automobile-oriented uses, limited by the provisions of Sect. 805, Bowling alleys, Business service and supply service establishments, Churches, chapels, temples, synagogues and other such places of worship, Colleges, universities, Contractor’s offices and shops, Commercial swimming pools, tennis courts and similar courts, indoor, Community clubs, centers and meeting halls, Cultural centers, museums, Drive-in financial institutions, limited by the provisions of Sect. 805, Drive-through pharmacy, limited by the provisions of Sect. 805, Eating establishments, Fast food restaurants, limited by the provisions of Sect. 805, Financial institutions, Funeral homes, Garment cleaning establishments, Health clubs, Hotels, Motels, Indoor archery ranges, fencing and other similar indoor recreational uses, Kennels, limited by the provisions of Sect. 805, Miniature golf courses, indoor, Mobile and land based telecommunication facilities, subject to the provisions of Sect.2-514, New vehicle storage, limited by the provisions of Sect. 805, Offices, limited by the provisions of Sect. 805, Parking, commercial off-street, as a principal use, Personal service establishments, Private clubs and public benefit associations, Private schools of general education, private schools of special education, Public uses, Quasi-public athletic fields and related facilities, limited by the provisions of Sect. 805, Quick-service food stores, limited by the provisions of Sect. 805, Repair service establishments, Retail sales establishments, Retail sales establishments-large, limited by the provisions of Sect. 805, Skating facilities, indoor, Telecommunication facilities, Theaters, Vehicle light service establishments, limited by the provisions of Sect. 805, Vehicle transportation service establishments, limited by the provisions of Sect. 805, Veterinary hospitals, Wholesale trade establishments.

PAGE 12 Property Analysis Zoning

Special Permit Uses

Group 3 - Institutional Uses, limited to: A. Churches, chapels, temples, synagogues and other such places of worship with a child care center or nursery school B. Convents, monasteries, seminaries and nunneries, Group 4 - Community Uses, limited to: A. Marinas, docks and boating facilities of a private, nonprofit nature B. Swimming clubs and tennis clubs/courts, Group 5 - Commercial Recreation Uses, limited to: A. Billiard and pool halls B. Commercial recreation parks, including mechanical or motorized amusement rides/devices C. Commercial swimming pools, tennis courts and similar courts, outdoor D. Dance halls E. Indoor firing ranges F. Miniature golf courses, outdoor G. Skating facilities, outdoor H. Any other similar commercial recreational use, Group 8 - Temporary Uses, Group 9 - Uses Requiring Special Regulation, limited to: A. Auction establishments.

Special Exception Uses

Category 1 - Light Public Utility Uses, Category 3 - Quasi-Public Uses, limited to: A. Alternate uses of public facilities B. Child care centers and nursery schools C. Churches, chapels, temples, synagogues and other such places of worship with a child care center or nursery school D. Conference centers and retreat houses, operated by a religious or nonprofit Organization E. Dormitories, fraternity/sorority houses, rooming/boarding houses, or other residence halls F. Medical care facilities G. Quasi-public parks, playgrounds, athletic fields and related facilities H. Sports arenas, stadiums as a principal use, Category 4 - Transportation Facilities, limited to: A. Bus or railroad stations B. Electrically-powered regional rail transit facilities C. Helistops D. Regional non-rail transit facilities, Category 5 Commercial and Industrial Uses of Special Impact, limited to: A. Automobile-oriented uses B. Baseball hitting and archery ranges, outdoor C. Car washes D. Commercial off-street parking in Metro Station areas as a temporary use E. Commercial recreation restaurants F. Drive-in financial institutions G. Drive-in motion picture theaters H. Drive-through pharmacy I. Fast food restaurants J. Golf courses, country clubs K. Golf driving ranges L. Marinas, docks and boating facilities, commercial M. Mini-warehousing establishments N. Offices O. Pawnshops P. Quick-service food stores Q. Retail sales establishments- large R. Service stations S. Service station/mini-marts T. Truck rental establishments U. Vehicle light service establishments V. Vehicle major service establishments W. Vehicle sale, rental and ancillary service establishments X Establishments for scientific research and development to include assembly, integration and testing of experimental prototype products as an incidental use.

FAR:

Maximum floor area ratio: 0.50, provided however an increase to 0.70 may be permitted by the Board of Supervisors

Height:

Maximum building height: 40 feet, subject to increase as may be permitted by the Board Supervisors

Lot Size:

Minimum lot area: 40,000 sq. ft., Minimum lot width: 200 feet, minimum lot size requirements may be waived by the Board Supervisors

Open Space:

15% of the gross area shall be landscaped open space

PAGE 13 Property Analysis Site Map

PAGE 14 Market Analysis

Major Employers Unemployment Rate

Company Employees 3.5% 4.1% Fort Belvoir 40,000 October 2017 October 2017 US Patent & Trade Office 9,000 Virginia Nationwide US Department of Defense 7,500

Demographics City of Alexandria 2,500 Transit 1,400 Population 1 Mile 3 Mile 5 Mile 2017 Total Population: 24,809 94,440 198,149 2022 Population: 25,143 96,757 203,938 Pop Growth 2017-2022: 1.35% 2.45% 2.92% Public Transportation Average Age: 34.8 36.8 37.4 Commuter Rail Drive Distance Households Huntington Metro 15 min 5.7 mi 2017 Total Households: 8,155 33,738 75,850 Lorton Commuter Rail (Fredericksburg Line) 13 min 6.9 mi HH Growth 2017-2022: 1.25% 2.37% 2.86% Franconia-Springfield Commuter Rail Median Household Inc: $67,369 $93,584 $102,925 (Fredericksburg Line) 15 min 7.5 mi Avg Household Size: 3 2.8 2.6 2017 Avg HH Vehicles: 2 2 2 Airport Drive Distance Housing Ronald Reagan Washington National Airport 26 min 10.3 mi Median Home Value: $388,893 $513,658 $478,219 Washington Dulles International Airport 44 min 36.2 mi Median Year Built: 1974 1974 1979

Population Profile

RESIDENTS % WITH BACHELOR’S HOUSEHOLDS MEDIAN HOUSEHOLD DEGREE OR HIGHER INCOME* 115,825 48.3% 43,439 91,200

*Average of the median incomes for the combined ZIP Codes within the market Sources: Fairfax County Department of Housing and Community Services, Housing and Population Estimates 2016, American Community Survey (ACS) 2015 Five-Year Estimates

PAGE 15 Market Analysis Land Sales Comparables

Walgreen Site Candlewood Suites Site Beacon of Groveton Site E Lee Center Site

7629 Richmond Hwy 8847 Richmond Hwy 6870 Richmond Hwy 2923 E Lee Ave Address Alexandria VA Alexandria VA Alexandria VA Alexandria VA Size 26,550 64,857 199,949 sf 9,583 Property Type Pharmacy Hotel Apartment Development Retail Center Sale Price $1,800,000 $2,050,000 $9,512,000 $500,000 Price PSF $67.80 $31.61 $47.57 $52.18 Close Date 3/14/2007 1/17/2007 9/10/2004 5/1/2009

PAGE 16 Market Analysis Sales Comparables

6250 Interparcel Road 2923 E Lee Ave Mount Vernon Square South Valley Plaza

6250 Interparcel Road 2923 E Lee Ave 7451-7475 Richmond Hwy 7609-7611 Richmond Hwy Address Alexandria VA Alexandria VA Alexandria VA Alexandria VA Building Size SF 5,470 6,000 70,617 18,278 Lot Size SF 51,836 9,583 321,037 56,192 Property Type Retail Center Retail Center Retail Center Retail Center Sale Price $4,012,400 $2,838,000 $14,420,000 $5,720,000 Price PSF $733.55 $473.00 $204.20 $312.94 Year built 2016 2006 1989 Close Date 7/25/2017 12/22/2016 1/25/2017 2/22/2017

PAGE 17 Market Analysis Active Lease Properties

Mount Vernon Square E Lee Ave Center Huntington Gateway Woodlawn Shopping Center Belvoir Square

2901-2919 Arlington Dr 2923 E Lee Ave 5940-5990 Richmond Hwy 8724-8762 Richmond Hwy 9142 Richmond Hwy Address Alexandria VA Alexandria VA Alexandria VA Alexandria VA Alexandria VA Size 1,980 2,418 4,866 1,250 10,555 Status Marketing Marketing Marketing Marketing Marketing Rent / SF $30.00 $42.20 $35.00 $28.00 $36.00 Lease Type NNN NNN NNN NNN NNN

PAGE 18 510 King Street, Suite 515 Alexandria, VA 22314

Main: 703-683-2700 www.mcenearneycommerial.com

ED CAVE DEBRA ARNETT Mobile: 703-919-2149 Direct: 703-537-3312 Direct: 703-537-3311 [email protected] [email protected]