OFFERING MEMORANDUM 1517 - 1525 ROCK SPRING ROAD | FOREST HILL, MD - Capital Markets
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
EXECUTIVE SUMMARY
1517 - 1525 ROCK SPRING ROAD | FOREST HILL, MD
OFFERING MEMORANDUM
1
EXECUTIVE SUMMARY
HFF, as exclusive advisor is pleased to offer for sale the 100% fee simple interest in Bel Air North Village (the “Property”), a 56,644 square foot
shopping center located approximately 30 miles north of Baltimore in Forest Hill, Maryland. Forest Hill, and neighboring Bel Air, are affluent
bedroom communities of Baltimore that boast their own economic drivers – namely the nearby Aberdeen Proving Ground, Upper Chesapeake
Health System, and Harford Community College. The Property is conveniently located near the confluence of two of the area’s major arterial
roads – Rock Spring Road (Route 24) and Route 1, which boast traffic counts north of 30,000 VPD and 23,000 VPD, respectively. Completed
in 2007, the Property sits on nearly 14 acres (including a 1.31 acre vacant pad site) and is 82.0% leased to a strong mix of local, regional, and
national tenants including CVS, Susquehanna Bank, Celebree Learning Center, and MedStar Health Center. Bel Air North Village offers a unique
opportunity to acquire a center with both long-term, stable cash flows and viable upside potential.
PROPERTY OVERVIEW
Byn
um
1517 - 1525 Rock Spring Road Ro
Address ad
Forest Hill, MD 21050 (4,7
65
VP
D)
GLA (SF) 56,644
Lot
6
Lot
Occupancy 82.0% 4
Mayfields
Year Built 2007 Lot
1
Diva Nails
Site Size (Acres) 13.70 acres Lot
3
Lot
2 Lot
1.31 acres
5
Vacant Pad Site (Acres) Organic Dry Cleaners
Parking Ratio 7.04 spaces per 1,000 SF 24 Rock Spring Road (30,841 VPD) 24
Rock Spring Road (Route 24) - 30,841 VPD
Traffic Counts
Route 1 - 23,097 VPD
In-Place NOI $1,232,705
Year 3 NOI (Stabilized) $1,458,791 Projected
2
EXECUTIVE SUMMARY
INVESTMENT HIGHLIGHTS
Drugstore & Bank Anchored Center Providing Stable Cash Flows.
Bel Air North Village is anchored by CVS ($275,000 annual rent) and Susquehanna Bank
($253,500 annual rent) with 17.3 and 12.0 years remaining on their current lease terms,
respectively. These two tenants alone account for approximately 40% of the center’s
income. In addition to providing long-term, stable cash flows, CVS and the Bank ($31.3
million in deposits as of June, 2014 – up 67.3% since June, 2009) extend the center’s
trade area and draw significant traffic to the Property. The nearest drug store and
Susquehanna Bank branch to the west of the Property outside of the Forest Hill retail
clusters are 10+ and 20+ miles away, respectively. This extended trade area benefits all
tenants at Bel Air North Village.
Established Retail Market. Remaining Lease
REMAINING Term
LEASE (Years)
TERM (YEARS)
Harford County’s retail submarket comprises over 11.7 million square feet of retail
20.0
and boasts an occupancy rate of 96.9%. The affluent demographic and strong pull
18.0 Total Average Weighted
from surrounding communities (Bel Air is the county seat of Harford County and easily 16.0 Lease Term: 8.0 Years
accessed via I-95 and Route 1) has attracted strong national retailers to the area. 14.0
Larger centers in the market include the Harford Mall (Macy’s, Macy’s Furniture Gallery, 12.0
Sears), Festival at Bel Air (Shop Rite, Marshalls, Kohl’s, Rite Aid), The Boulevard at Box 10.0
Hill (Wegmans, JCPenney), Tollgate Marketplace (hhgregg, Michaels, TJ Maxx), and 8.0
Bel Air Plaza (Bed Bath & Beyond, Ross, Target). The area’s extremely low vacancy rate 6.0
and marquee retailers is evidence of the maturation of the region and the healthy, 4.0
2.0
long-term prospects of Bel Air and surrounding communities.
0.0
CVS Susquehanna Bank All Other In-Line Tenants
All Other In-Line
Affluent & Growing Demographic.
Tenants
Forest Hill and Bel Air have experienced tremendous population growth since 2000
as families have been drawn to the area to take advantage of the high quality of life DEMOGRAPHICS OVERVIEW
and lower cost of living that the area offers – including excellent public schools, ample POPULATION 1-mile radius 3-mile radius 5-mile radius
recreational and entertainment activities, and manageable commute to Baltimore’s 2015 Estimate 12,763 48,251 86,425
major job centers. This influx of affluent residents has resulted in an estimated Projected Growth 2015-2020 5.7% 3.9% 3.5%
population within 5-miles of Bel Air North Village of over 85,000 people with an 2015 Est. Average Household Income $106,217 $110,969 $115,445
average household income exceeding $115,000. Additionally, as Bel Air continues to
fill out, more residents are moving northwest to Forest Hill to newer single-family and
apartment communities.
3
EXECUTIVE SUMMARY
Excellent Access via Two Main Arterial Roads.
Bel Air North Village is located near the confluence of Bel Air’s two main arterial roads – Rock Spring Road (Route
24; 30,841 VPD) – and Route 1 (23,097 VPD). The Property also benefits from a signalized intersection immediately
off of Rock Spring Road (Route 24) and can be easily accessed by both vehicles as well as pedestrian traffic from the
adjacent communities.
COMPONENT BREAKDOWN
Size % of Total Remaining Lease Rental % of Rental
Occupancy
(SF) GLA Term (Yrs) Revenue Revenue
Lot 1 13,600 24.0% 88.2% 4.6 279,385 21.6%
- Chopsticks 4,800 8.5% 5.1 118,263 9.2%
- David’s Natural Market 2,400 4.2% 5.6 117,922 9.1%
- Mayfield’s 2,400 4.2% 1.5 43,200 3.3%
Lot 2 3,031 5.4% 100.0% 12.0 253,500 19.6%
- Susquehanna Bank 3,031 5.4% 12.0 253,500 19.6%
Lot 3 8,000 14.1% 80.0% 2.7 202,916 15.7%
- Fox & Fern 1,600 2.8% 2.4 28,800 2.2%
- Diva Nails 1,400 2.5% 2.3 62,000 4.8%
- Great Clips 1,400 2.5% 2.3 50,150 3.9%
- Organic Drycleaners 2,000 3.5% 3.5 61,966 4.8%
Lot 4 19,000 33.5% 63.2% 3.0 281,248 21.8%
- Celebree Learning Center 8,000 14.1% 2.6 191,048 14.8%
- MedStar Health Center 4,000 7.1% 3.8 90,200 7.0%
Lot 5 13,013 23.0% 100.1% 17.3 275,000 21.3%
- CVS 13,013 23.0% 17.3 275,000 21.3%
Lot 6 (1.31-Acre Vacant Lot) - - - - - -
Total 56,644 100.0% 82.0% 8.0 1,292,050 100.0%
Flexible Disposition Strategy.
The Property is currently subdivided into 6 separate tax parcels enabling future ownership to take advantage of a
Parcelization exit strategy. CVS, Susquehanna Bank, and the vacant pad site are each on separate tax parcels. The
triple-net lease market is highly liquid and presents investors with a variety of options upon exit.
Unencumbered Transaction.
Bel Air North Village will be sold unencumbered, providing the purchaser with maximum capitalization flexibility and
the ability to take advantage of today’s robust capital markets.
4
Holliday Fenoglio Fowler, L.P. (“HFF”) a Maryland licensed real estate broker. ©2014 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. John Owendoff Christopher Munley Jordan Lex Chris Horning Holliday Fenoglio Fowler, L.P. Holliday Fenoglio Fowler, L.P. Holliday Fenoglio Fowler, L.P. Holliday Fenoglio Fowler, L.P. Managing Director Managing Director Director Analyst 1775 Pennsylvania Ave, NW 202.777.2302 484.532.4207 202.533.2517 202.777.2312 5th Floor | Washington, DC 20006 jowendoff@hfflp.com cmunley@hfflp.com jlex@hfflp.com chorning@hfflp.com 202-533-2500 | hfflp.com
You can also read
