3720 FARRAGUT AVENUE EXCLUSIVE OFFERING - LoopNet
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EXCLUSIVE
OFFERING
Urban Infill Office 3720 FARRAGUT AVENUE
Current Income +
KENSINGTON, MARYLAND
Long-term Upside
Close-in Washington, D.C.
Metro Location
A MetCap Advisors Exclusive Offering
Investment Sales Contacts For Financing Quotes
Joe Friedman Eric Hynek
Managing Director Director
301.657.7974 240.743.4178
joef@metcapadvisors.com erich@metcapadvisors.com
TABLE OF
Kelly Lawrence Office
Senior Associate Metropolis Capital Advisors LLC
CONTENTS
240.534.2230 4630 Montgomery Ave, Ste 600
kellyl@metcapadvisors.com Bethesda, Maryland 20814
metcapadvisors.com
Annie Merkel
Marketing Coordinator
240.752.9712 04 Investment Highlights
amerkel@metcapadvisors.com
14 Property Overview
24 Market Overview
30 Financial Overview
INVESTMENT INVESTMENT HIGHLIGHTS
HIGHLIGHTS
URBAN INFILL, HIGH-PROFILE LOCATION WITH LONG-TERM REDEVELOPMENT POTENTIAL
Office Parcel
0.86 Acres / 37,500 SF
E
3720 Farragut Avenue is a high-profile, Zoning: CRT 1.5. C-1.0, R-1.0, H-45 T AV
GU
urban infill office asset located in an Max Density: 56,250 SF R RA
FA
emerging Washington, DC submarket. Residential Parcel
The five-story, small-suite professional/ 0.34 Acres / 15,000 SF
medical office building is 85% leased Zoning: R-60
and offers current income and long-term
residual value upside.
UN
IVE
RSI
TY
BLV
D
55,802 ADT
E
AV
T
N
PO
U
D
CO
NN
EC
T
CO
ICU
NC
OR
TA
DS
T
VE
4 METROPOLIS CAPITAL ADVISORS | 3720 FARRAGUT AVENUE METROPOLIS CAPITAL ADVISORS | 3720 FARRAGUT AVENUE 5
Rockville 28
200
270
Ro
ck
vil
le
586 95
Pik
INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS
e
Ve
355 108 irs
Mi Wheaton- e Calverton
ll R 97 Pik
189 d Glenmont bia
Gaithersburg Redland 190 97 Red Line Metro Stations PATH OF DEVELOPMENT AND GROWTH Co
lum
North
Bethesda
Future Purple Line Stations
370
185
Major Purple Line Development Projects
200 Anscroft Farragut Avenue 1 Apex Building
Shady Grove 355
198
460 residential units, 360,000 SF office, 15,000 SF retail
Beltsville
Burtonsville 650 Est. Delivery 2020
Kensington
Potomac
28
e Rd
2 StonebridgeCarras Bethesda Tower
Grov
ck R
d 29
North e
dy
Norb 400,000 SF office, 225-room hotel
Sha
Potomac
Rockville 28
Est. Delivery 2021
Rockville 200
2 miles
1
270
Riv 495 3 JBG Smith Headquarters
er R Woodside/
5 Silver $600 million, 700,000 SF office, 238-room hotel
Ro
d 16th Street
ck
vil
Spring Est. Delivery 2022
le
586 95 Lyttonsville
Pik
Twinbrook Glenmont
4
e
Ve Connecticut
irs
Mi
97
Wheaton-
Pik
e Calverton
Avenue 7 6
Chevy Chase Lake College
ll R
189 d Glenmont bia Silver Spring 4
lum
Farragut Avenue
Library
Connecticut Ave
190 Co
North White Flint Silver Spring 530 residential units,Park
70,000 SF retail
Bethesda Transit Center Construction to begin 2018
185 2
A
BI
Wheaton
CO D
M
Bethesda
OF LAN
355
LU
Beltsville
Bethesda Elizabeth Square
Y
650
5
AR
Grosvenor
Cabin
M
Kensington
e
Av
Potomac 1 29 907 residential units, 45,000 SF community use
CT
John
ire
RI
16th St NW
3
ST
Construction to begin 2018
psh
DI
Forest Glen 495
am
wH
1
6 The Blairs Redevelopment
Ne
Silver
Riv
er R
d Hyattsville
Medical Center Spring 190 2,800 residential units, 125,000 SF retail, 200,000 SF
Silver Spring
office, 200-room hotel
7 College
Seven phases delivered from 2017-2037
Connecticut Ave
Park
Washington, DC
A
BI
Bethesda
CO D
M
OF LAN
Metro Plaza 295
LU
7
Y
495
AR
Bethesda Future Purple Line Stations
M
Cabin
522 residential units, 14,000 SF retail
CT
e
Takoma
RI
Av
John 29
ST
ire
16th St NW
DI
123 Construction to begin in 2020
psh
am
190
355
wH
Ne
Friendship Heights
Hyattsville 1
Washington, DC Purple Line and Significant County Development Will Bring More People, More Jobs and More Amenities
7
495 Tenleytown
Fort Totten
McLean 295
123
355
Van Ness-UDC
The 16.2 mile, long-anticipated Purple Line, connecting New Carrollton and Downtown Bethesda, officially broke ground August 2017
Cleveland Park
Brookland-CUA
1
and has since spurred tremendous progress on major proposed development projects along the Suburban Maryland corridor. The highest
McLean concentration of large-scale projects currently underway are located west of Silver Spring to Downtown Bethesda and will bring over 5,000
Woodley Park-Zoo
Rhode Island Ave
residential units and an abundance of retail amenities to the immediate area. Farragut Avenue, located just two miles from the future
Connecticut Avenue station, will be greatly impacted both economically and socially by the Purple Line. With service expected to begin
TRANSPORTATION POPULATION CENTERS in 2022, the light rail will support and grow local businesses and provide better access to both education and employment opportunities
Connecticut Avenue < 100 feet
with significant potential to make the corridor’s labor market even stronger. Future demand forecasts project that office occupancy levels
Wheaton 1 mile 48,284
will increase by nearly 25% by the early 2020’s across the corridor, and with thousands of proposed residential units in the pipeline
Capital Beltway (I-495) 2 miles Chevy Chase 2.5 miles 2,989 offering some of the most cost-effective options inside the beltway, demand will only continue to increase.
Wisconsin Avenue (355) 2 miles North Bethesda 2.5 miles 46,738
Grosvenor Metro 2.5 miles Urban Infill, High-Profile Location with Long-Term Redevelopment Potential in Emerging DC Submarket
Bethesda 3.5 miles 60,858
Route 29 4.5 miles Farragut Avenue benefits from a high-profile location at the intersection of Connecticut Avenue and University Boulevard (55,000 ADT) that
Silver Spring 3.5 miles 71,452
will remain competitive and desirable long-term through its strategic, highly-visible location. The Property is located just 3.5 miles from
I-270 5.5 miles Rockville 5.5 miles 66,940 the District of Columbia line in the emerging Kensington submarket that is being transformed into a pedestrian-friendly, amenity-rich
ICC (200) 5.5 miles destination for high-profile tenants and residents alike. 3720 Farragut Avenue was identified in the approved 2012 Town of Kensington
Potomac 8.5 miles 44,965
I-95 8 miles
DC 10 miles 681,170
Sector Plan to be upzoned to Commercial Residential Town (CRT) to allow greater density and promote mixed-use development. As a result
of the Sector Plan, the Property’s by-right density was increased to 1.50 and 45’ maximum height and offers the potential as a covered land
Total Population 1,023,396
play for future redevelopment.
6 METROPOLIS CAPITAL ADVISORS | 3720 FARRAGUT AVENUE METROPOLIS CAPITAL ADVISORS | 3720 FARRAGUT AVENUE 7
WASHINGTON DC
355
BETHESDA
CHEVY CHASE
495
Y
LTWA
AL BE
495 CAPIT NORTH
355
BETHESDA
SILVER ROCKVILLE
CO
SPRING
N
N
EC
TI
CU
T
AV
E
Kensington Shopping Center
SU
M
Kensington
M
IT
Antique Row
AV
E
Future Extension of
Summit Avenue
55,082 ADT
Future Senior Housing Future Mixed-Use
+5,000 SF Retail Development
UN
IVE
CO
NN
RSI
2012 Kensington Sector Plan Town EC
TIC
TY
Center Development Zone
UT
BLV
AV
E
D
INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS
INVESTMENT HIGHLIGHTS TENANT OCCUPANCY SUMMARY
Unique Office Asset with Minimal Near-Term Capital
Requirements Farragut Avenue benefits from a diversified mix of Professional/Medical office tenants and
Farragut Avenue is a unique opportunity to own a 20,350-square well-designed, small suite sizes averaging 1,500 SF that are ideal for a wide range of small
foot professional/medical office building that recently underwent businesses.
major capital improvements including a new roof installed in
2017 with a 20-year warranty, newly re-striped parking lot and
TENANT SF LEASED % OF PROPERTY Industry
remodeled restrooms. The Property features an abundant 3.24 per
1,000 SF parking ratio which provides plentiful surface parking for Fairweather Insurance
1,050 5.2% Insurance
the professional, medical office, and first floor retail tenants and Agency (Allstate)
customers alike.
Kensington Jewelers &
In-Place Rents 50% Below “A” Destinations Precious Metals
1,225 6.0% Consumer Goods
In-place rents at Farragut Avenue are 50% below achievable
market rents for similar Class B/C office product in Bethesda/Chevy Kensington Dental Care 950 4.7% Healthcare
Chase averaging over $34 per square foot. As new developments
throughout Downtown Bethesda, Silver Spring and along the
future Purple Line continue to transform, the discrepancy between Angela Moore 656 3.2% Healthcare
in-place and achievable replacement rents will continue to widen.
This will ultimately attract tenants and businesses to the Kensington
Senior Beacon of
area who are interested in relocating from these “A” destinations to 2,425 11.9% Government
Greater Washington
escape premium rents for more affordable options.
Significant Discount to Replacement Cost and Recent Office Sales in Montgomery County Holy Cross Health 3,813 18.7% Healthcare
The asset can be acquired at significant discount to replacement cost and well-below the 2017 $426 average sale price per SF of Class B/C
product in Bethesda, and $205 average sale price per SF in Montgomery County. Marylanders for
2,060 10.1% Government
Richard Madaleno
Montgomery County Democratic
1,350 6.6% Government
Average Gross Asking Rent PSF Montgomery County Sales Volume and Price Per SF Central Committee
$36 $500
$34
Norman R. Hines 425 2.1% Insurance
$34.00 $450
$32
$400
$31.50 Affiliated Financial
$30 432 2.1% Financial Services
$350 Services
$28
$300
$26 Huff-N-Puff
2,939 14.4% Cleaning
$250 Cleaning Services
$24
Farragut Avenue In-Place Avg Rents
$22 $21.60 $200
OCCUPIED 17,325 85.1%
$20 $150
07 08 09 10 11 12 13 14 15 16 17 VACANT 3,025 14.9%
Bethesda B/C Office Medical Office 3 Mile Radius Bethesda B/C Office Montgomery County Office Sales
TOTAL 20,350 100%
10 METROPOLIS CAPITAL ADVISORS | 3720 FARRAGUT AVENUE METROPOLIS CAPITAL ADVISORS | 3720 FARRAGUT AVENUE 11
GEORG
IA AVE
NORTH BETHESDA
ROCKVILLE WHEATON
INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS
Westfield Mall
CO
N BLVD
N
EC RS ITY
E
TI
CU 21,740 ADT UNIV
T
AV
E
SILVER SPRING
Future Extension of
Summit Avenue
55,082 ADT ILL
R SM
E
PLY
Future Mixed-Use
Development
Future Senior Housing
+5,000 SF Retail
CON
NEC
TICU
T AV
BETHESDA Kensington
CHEVY CHASE
E
Antique Row
WASHINGTON DC
12 METROPOLIS CAPITAL ADVISORS | 3720 FARRAGUT AVENUE METROPOLIS CAPITAL ADVISORS | 3720 FARRAGUT AVENUE 13INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS
EXCEPTIONAL DEMOGRAPHICS AND POPULATION GROWTH FORECASTS SITE PLAN
With over 1 million affluent residents, Montgomery County is expected to maintain its status as the second largest county in terms of
people and households in the Washington region over the next 30 years. Since 2000, the number of residents that live and work in the 185
County has grown to 50% and is expected to continue trending upward due to a strong development pipeline of high-density Metro
T AVE
oriented developments. Projects along the future purple line from Silver Spring to Bethesda, and around White Flint and Shady Grove
stations of the redline, are estimated to bring over 20,000 new residential units and an abundance of Class A retail amenities.
ECTICU
FARRAGUT AVE
CONN
Population will Households will Employment will grow
WOOD FENCE
By 2045 grow 20% to
1,223,300
grow 30% to
461,900
by 30% and add
158,500 new jobs
DRIVE
LANE
UNDER
BUILDING
193
1 Story
5 Story
Farragut Avenue Demographic summary
WOOD FENCE
VD
BL
3 MILE 5 MILE 10 MILE
TY
SI
DRIVE
ER
LANE
UNDER
IV
BUILDING
UN
Total Population Total Population Total Population
WOOD FENCE
178,437 459,643 1,521,735 3.24/1,000 SF
0.86 Acres
WOOD FENCE
Total Households Total Households Total Households 0.34 Acres
66,804 179,404 600,156
3717
Dupont
WOOD FENCE
Ave 3715
Median Household Income Median Household Income Median Household Income Dupont
Ave
$98,599 $97,725 $96,758
DUPONT AVE
CONCORD ST
14 METROPOLIS CAPITAL ADVISORS | 3720 FARRAGUT AVENUE METROPOLIS CAPITAL ADVISORS | 3720 FARRAGUT AVENUE 15FINANCIAL OVERVIEW
Investment Sales Contacts For Financing Quotes
Joe Friedman Eric Hynek
Managing Director Director
301.657.7974 240.743.4178
joef@metcapadvisors.com erich@metcapadvisors.com
Kelly Lawrence Office
Senior Associate Metropolis Capital Advisors LLC
240.534.2230 4630 Montgomery Ave, Ste 600
kellyl@metcapadvisors.com Bethesda, Maryland 20814
metcapadvisors.com
Annie Merkel
Marketing Coordinator
240.752.9712
amerkel@metcapadvisors.com
48 METROPOLIS CAPITAL ADVISORS | 3720 FARRAGUT AVENUEYou can also read
