REAL ESTATE SERVICES PROPOSAL 14041 Worth Avenue Prepared For: Alliance Partners HSP, LLC Mr. Paul Stanton Prepared by: Mr. Joe Credit George Galloway Ray Schupp Andrew Rose TABLE OF CONTENTS Section I – Executive Summary Who is Next Realty? Strategy & Approach Section II – Site Analysis Location Map Site Aerial Property Highlights S.W.O.T. Analysis Section III – Competitive Analysis Section IV - Marketing Plan Merchandising Plan Single Tenant Building Timing Multi-Tenant Building Timing Demographic Comparison Section IV - Professional Profile Team Member Profiles References / Significant Clients 2 WHO IS NEXT REALTY MID-ATLANTIC, LLC? • Next Realty Mid-Atlantic founded by George Galloway in 1999, with corporate office in Chicago. • DC office has six professionals and a full marketing and administrative staff based in McLean, Virginia. • Full service real estate services and brokerage firm specializing in the leasing of retail shopping centers and mixed-use projects, tenant representation and development. • Next Realty will provide the technical expertise, integrity and professionalism necessary to execute a successful project leasing program. • We take a long term view of Landlord relationships; how long and how often our clients return to Next Realty for assistance in the leasing of their assets. 3 WHO IS NEXT REALTY MID-ATLANTIC, LLC? • Next Realty has worked for many Landlords with their leasing strategies including: 4 STRATEGY AND APPROACH • Next Realty is equipped with the local market knowledge, the retail- tenant and broker contacts, and the deal-making experience to identify, negotiate and secure tenants for Alliance Partners HSP, LLC and 14041 Worth Avenue. • Start to finish, Next Realty will: – Perform a comprehensive market and trade area analysis. – Propose a merchandising and leasing strategy consisting of the full-range of tenant-prospects that should be contacted. – Design an effective property marketing campaign. – Contact, qualify and follow-up with all potential prospects. – Draft and negotiate proposals for interested tenant-prospects. – Assist Alliance Partners HSP, LLC in all lease negotiations. – Provide continual follow-up throughout the entire leasing process, from proposal generation to store-opening. 5 STRATEGY AND APPROACH Next will produce the following to give 14041 Worth Avenue the most possible coverage in the retail market, including the following: ● Next Realty Mid-Atlantic Leasing Signage On Site, Several Locations ● Property Brochure ● Dedicated Property Website (http://www.nextrealty.com/lease/DC/14041worthave.html or www.14041worthave.com) ● Digital Media Communication (5,000 + retail oriented recipients) ● Retail Listing Services (Co-Star & Loopnet) 6 IF YOU HIRE NEXT REALTY • We will endeavor to find Alliance Partners HSP, LLC the best possible tenant at the highest possible rent. • We will pound the pavement and leave no stone left unturned – we will be industrious, creative, and responsive. • At all times we will represent Alliance Partners HSP, LLC with the highest level of professionalism. • We will leverage our networks and contact every retailer that makes sense for your space. • We will work your project as if it is only opportunity we will get to work with Alliance Partners HSP, LLC. In fact, it is, if we do not live up to your expectations. • No one will work harder for you than Next Realty! 7 LOCATION MAP 8 SITE AERIAL 9 14041 WORTH AVENUE PROPERTY HIGHLIGHTS ● Approximately 155,112 square foot building located peripheral to Potomac Mills Mall in Woodbridge, VA. ● Prime location at Northeast corner of Worth Avenue, the main entrance to Potomac Mills from Prince William County Parkway, and Potomac Mills Circle (mall ring road). ● Site possesses good visibility to the mall - situated directly across Worth Avenue from a newly-expanded Wal-Mart Supercenter and Sam’s Club as well as the exterior entrances of JC Penney, Burlington Coat Factory as well as future Christmas Tree Shops at Buy Buy Baby. ● Easily accessed location within a very successful, super-regional trade area. 10 14041 WORTH AVENUE PROPERTY HIGHLIGHTS 73 Parking Spaces 220 Parking Spaces 354 Parking Spaces ● Multiple access points and ample parking provide for a strong retail site. ● Site serviced by full-movement, lighted intersection off of Worth Avenue as well as two full- movement entrances off the mall ring road and an additional right-in/right-out on Worth Avenue. ● 735 parking spaces dedicated for retail use with access to 220 additional spaces across the street, at the mall by right. 11 14041 WORTH AVENUE PROPERTY HIGHLIGHTS DEMOGRAPHICS 3 Mile 5 Miles 10 Miles POPULATION 118,441 219,556 436,438 HOUSEHOLDS 38,426 71,101 142,773 MEDIAN HH INCOME $81,414 $93,599 $109,186 DAYTIME POPULATION 62,560 103,314 203,518 DEVELOPMENT FACTS PROPOSED RETAIL SPACE 155,112 SF LOT SIZE ~12.50 Acres ZONING B-1 CEILING HEIGHT 24 Feet ON-SITE PARKING PROVIDED 735 Spaces OFF-SITE PARKING PROVIDED 220 spaces 12 S.W.O.T. ANALYSIS Helpful Harmful to achieving the objective to achieving the objective • Centrally located within the regional retail node of • Previously occupied for office/flex will add to Dale City, on the Mall ring road. conversion costs • Multiple full-movement access points and a traffic •Façade changes need to be created to controlled intersection. accommodate retail storefronts. •Parking field on multiple sides of the building • Large space may require splitting to accommodate provides greater potential for a split scenario. prospective tenants which may prove costly • Multiple loading docks to accommodate multiple • Good exposure to mall traffic but some retailers will tenants if space is split. prefer visibility to Prince William Parkway or • Shape of building lends well to splitting for Smoketown Road. Internal Origin Internal multiple users. (attributes of the property) S W • High ceiling space • Super-regional trade area with strong, national- • Deed restrictions with mall limits prospect pool, credit co-tenancy. could be a challenge working with Simon. • Types of neighboring retailers provide for daily • Pool of tenants for the entire building could be trips past site providing significant exposure. limited based on retailers’ expansion plans. • Adjacent to Potomac Mills Mall, the largest • Fairly mature regional trade node, most national discount retail outlet destination in Virginia. retailers and virtually all categories are already • Road network equipped to handle significant present within the market. traffic and provides for relatively easy access to • Special Exception required for tenants over 80,000 site. square feet. External Origin • Proven trade Oarea for most tenants and • Multiple sites with vacancyT competing for tenants. (attributes of the environment) categories 13 COMPETITIVE ANALYSIS – POTOMAC MILLS MALL Property: Potomac Mills Mall Address: 2700 Potomac Mills Circle Retail SF: 1,519,000 SF Parking: 7,445 spaces Tenants: AMC Theatres, Bloomingdale's-Outlet, Costco, H&M, jcpenney, Last Call by Neiman Marcus, Modell‘s, Nike Factory Store, Nordstrom Rack, Off Broadway Shoes, Saks OFF 5TH Notes: Adding Cheesecake Factory, Bobby Flay, Christmas Tree Shops, Buy Buy Baby 14 COMPETITIVE ANALYSIS – PARKWAY CROSSING WEST Property: Parkway Crossing West Address: 2542 Prince William Parkway Anchor Space 25,240 SF Available: (Roomstore) Asking Rent: $16 p.s.f. / $3.00 NNN Parking Provided: 128 spaces Tenants: Target, Value City Furniture Notes: Stand-alone former RoomStore Furniture store available. 15 COMPETITIVE ANALYSIS – POTOMAC TOWN CENTER Property: Potomac Town Center Address: I-95 Between Opitz & Dale Boulevards Retail SF: 550,000 SF Rent Comps: •Golfsmith (18,414 SF): $17 p.s.f. •REI (26,000 SF): $26 p.s.f. Tenants: Wegman’s, Old Navy, REI, ULTA, DSW, Golfsmith, PF Changs, Travinia, Firebirds, White House Black Market, Chicos, Ann Taylor Loft Notes: Commercial Office (500,000 SF) 500 Residential Units 16 COMPETITIVE ANALYSIS – SMOKETOWN STATION Property: Smoketown Station Address: Prince William Parkway & Worth Avenue Retail SF: 494,506 SF Anchor Space Available: •12,593 SF (Ulta) •12,000 SF (Fashion Bug) Asking Rent: •Ulta: $25 p.s.f. / $5.45 NNNs •Fashion Bug: $17 p.s.f. / $4.60 NNNs Rent Comps: •LA Fitness (47,328 SF): $17.50 p.s.f./$50 p.s.f. TI •Dick’s Sporting Goods (57,437 SF): $15.50 p.s.f./$55 p.s.f. TI Tenants: Dicks Sporting Goods, LA Fitness, Best Buy, PetSmart, Shoppers Food Warehouse 17 COMPETITIVE ANALYSIS – POTOMAC FESTIVAL SHOPPING CENTER Property: Potomac Festival Shopping Center Address: Potomac Mills Road & Opitz Blvd Retail SF: 337,649 SF Rent Comps: •Savers (29,761 SF): $10.73 p.s.f. / $5 NNNs •Everest College (35,402 SF): $19 p.s.f. / $5 NNNs •Swim Kids (10,200 SF): $11 p.s.f. / $5 NNNs •Paul Mitchell (9,685 SF): $17 p.s.f. / $5 NNNs Tenants: HH Gregg, Savers, Everest College, David’s Bridal, Staples, Outback, Sakura, Hard Times Café Notes: Significant shop-space vacancy still remains. 18 COMPETITIVE ANALYSIS – PRINCE WILLIAM SQUARE SHOPPING CENTER Property: Prince William Square Shopping Center Address: 14200 Smoketown Road Retail SF: 232,957 SF Anchor Space Available •55,000 SF: Mid-Teens & Asking Rent: p.s.f. / $3.71 NNNs •32,120 SF (Conway): Low-Teens p.s.f. / $3.71 NNNs Rent Comps: •JoAnn Fabrics (23,840 SF): Low-to-Mid Teens p.s.f. / $3.71 NNNs Tenants: Ashley Furniture, Harbor Freight Tools, JoAnn Fabrics, Conway, Rainbow, Dairy Queen Notes: 55,000 SF medical office space & Conway space coming available. 19 SINGLE TENANT BUILDING TIMING (Likely best case