Service. Success. Perfected.

Service. Success. Perfected.
Spotlight on Alexandria Retail
June 2014
Old Town Alexandria
With its close proximity to Washington, D.C. and its strategic location
within the I-495 Capital Beltway, Alexandria, Virginia offers the best of
urban living and economic opportunity. It is nationally recognized as one
of the “Top 10 Best Communities for Young People” by America’s Promise
Alliance and ranked among the “Top 10 Downtowns” by Livability.com.
Founded in 1749, Alexandria highlights its past in Old Town, where historic
buildings, upscale boutiques, and art galleries line the cobblestone streets
overlooking the scenic Potomac River. King Street, crossing the heart
of the historic district, was named one of the “Top 10 Great Streets in
America” by the American Planning Association.
Alexandria’s desirability is highlighted by a remarkable population boom
with 14% growth over the past 14 years bringing total population to more
than 148,500. The affluent highly educated residents, with a median
household income of $82,748, enjoy easy access to a vast federal job
market, including the U.S. military, federal contractors or federal civil
service, and regional technology centers. The abundance of opportunity
helps drive the extremely low 4.1% unemployment rate. In addition to
more than 8,000 thriving businesses, Alexandria is home to the U.S. Trade
and Patent Office, the Institute for Defense Analysis, the Center for Naval
Analysis, and the Pentagon Federal Credit Union. Major private employers
include ABM Industries, Inova Hospital, GSI, and several nationally ranked
patent law firms. Alexandria’s residents conveniently access the region’s
resources with four Metro Stations and 24 bus lines. Major highways
include the Capital Beltway (I-95/495), I-395 crossing the West End, and
north-south access from U.S. 1 and the George Washington Memorial
Parkway.
The imminent relocation of the National Science Foundation (NSF) to
Alexandria promises a significant economic boost. An independent
federal agency with a budget of over $7 billion, the NSF is projected
to add $50 million in new tax revenue, 4,273 new jobs, and $83 million
annually in spending, while spurring the development of a 235-room hotel
and 260,000 square feet of new office space.
Among the burgeoning developments shaping Alexandria is the
Potomac Yard project, one of the largest developable areas in the city
© 2014 Greysteel Company LLC. All rights reserved.
and the region. The 290-acre site will ultimately offer four million square
feet of office space, 3,000 residential units, and one million square feet
of retail space, capitalizing on the proposed addition of a new Metro
Station. The northern section of Potomac Yard, a 69-acre tract, is under
phased construction of retail and residential space by developer JBG
Companies. The Exchange, a joint venture of MRP and JBG Companies,
envisions nine buildings surrounding a town square serving as the
central commercial hub of Potomac Yard. In the West End, The Howard
Hughes Corporation has submitted plans for redevelopment of Landmark
Mall, to provide 300,000 square feet of retail and 350 apartments.
The Pentagon
The Hoffman Town Center, a large mixed-use suburban shopping center
and office complex is undergoing high-density mixed-use redevelopment
to include 3.5 million square foot Class A office space in 10 buildings and
1.5 million square feet in four residential towers.
Median retail vacancy rate is 3.3% for community and neighborhood
centers. Average allowances offered to new tenants are $17.75 per square
foot for improvements and seven months of free rent. Asking rents for
anchor tenants range from a low of $13.40 per square foot to a high of
$28.70. In-line asking rates range from a low of $19.40 per square foot to a
high of $56.00, with an average of $40.60 per square foot.
Service. Success. Perfected.
Spotlight on Alexandria Rent Comparables
THE SHOPPES OF FOXCHASE
ALEXANDRIA COMMONS
4600 Duke Street
Alexandria, VA 22304
3199 Duke Street
Alexandria, VA 22314
GLA: Year Built/Renovated:
Occupancy:
Anchor Asking Rent: In-Line Asking Rent: Tenants: 128,848 SF
1960/2006
96%
$56.00
Harris Teeter,
Movie Theater,
Rite Aid, Video Palace
GLA: Year Built:
Occupancy:
Anchor Asking Rent: In-Line Asking Rent: Tenants: 202,850 SF
1990
92%
$26.00
$50.00
Giant Food, Staples,
Baja Fresh, GameStop,
Suntrust Bank, Quiznos,
Starbucks
VILLAGE AT SHIRLINGTON
FAIRLINGTON CENTRE
2774 South Arlington Mill Drive
Arlington, VA 22206
1701 Centre Plaza
Alexandria, VA 22302
GLA: Year Built/Renovated:
Occupancy:
Anchor Asking Rent: In-Line Asking Rent: Tenants: GLA: Year Built/Renovated:
Occupancy:
Anchor Asking Rent: In-Line Asking Rent: Tenants: 370,00 SF
1944/1999
99%
$28.50
$44.00
Harris Teeter,
Book-A-Million,
Carlyle Grand Café,
Lowes Cineplex,
Curves, Honey
Baked Ham, Subway
MT. VERNON VILLAGE
SEMINARY PLAZA
3811 Mt. Vernon Avenue
Alexandria, VA 22304
4604 Kenmore Avenue
Alexandria, VA 22304
GLA: Year Built/Renovated:
Occupancy:
Anchor Asking Rent: In-Line Asking Rent: Tenants: © 2014 Greysteel Company LLC. All rights reserved.
June 2014
59,000 SF
1949/2002
100%
$22.50
MOM’s Organic
Market, Fashion K,
H&R Block, Subway,
McCormicks Paint
GLA: Year Built:
Occupancy:
Anchor Asking Rent: In-Line Asking Rent: Tenants: 46,000 SF
1947/1986
100%
$33.50
CVS, Ramparts,
Baskin-Robbins,
Great Harvest Bread
Company
92,177 SF
1964
98%
$18.00
$22.00
CVS, Suntrust Bank,
Planet Fitness,
Quiznos, 7-Eleven
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Service. Success. Perfected.
Mid-Atlantic Retail Sales Comparables
June 2014
The report below featured a sampling of properties sold or contracted to sell within the last two months in 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.
PLAZA AMERICA
5185 MACARTHUR BOULEVARD, NW
11600 Plaza America Drive
Reston, VA 20190
5185 MacArthur Boulevard, NW
Washington, D.C. 20008
GLA: 164,998 SF
Year Built:
1995
Occupancy:
93%
Sale Date:
June 2014
Price:$97,500,000
Price/SF: $591
Buyer: TIAA-CREF
Seller:
Angelo Gordon/
Atlantic Realty Companies
Tenants:
Whole Foods, CVS, Staples,
Michaels, Gold’s Gym
GLA: 43,000 SF
Year Built:
1998
Occupancy:
95%
Sale Date:
June 2014
Price:$14,925,000
Price/SF: $347
Buyer: LaKritz-Adler
Seller:
Rock Creek Property Group
Tenants:
Starbucks Coffee, UPS
Store, MAC Market
LAKESIDE CROSSING
TYSON’S CORNER – CVS
3901 Old Forest Road
Lynchburg, VA 24501
8117 Leesburg Pike
Vienna, VA 22182
GLA: 66,906 SF
Year Built:
2013
Occupancy:
100%
Sale Date:
June 2014
Price:$19,800,000
Price/SF: $296
Buyer:
Inland REIT
Seller:
Lakeside Crossing
Lynchburg LLC
Tenants:
The Fresh Market, Mattress
Warehouse, Panera, U.S.
Cellular, Massage Envy,
Zoe’s Kitchen
GLA: 11,643 SF
Year Built:
2013
Occupancy:
100%
Sale Date:
May 2014
Price:$24,700,000
Price/SF: $2,121
Buyer:
Rappaport Co.
Seller:
Regency Centers/
J. Donegan Co.
Tenants:
CVS Pharmacy
DULLES 606 RETAIL CENTER
BROOKLAND RETAIL
23520 Overland Drive
Sterling, VA 20166
3500–3520 12th Street, NE
Washington, D.C. 20017
GLA: 56,996 SF
Year Built:
2006
Occupancy:
68%
Sale Date:
May 2014
Price:$8,300,000
Price/SF: $146
Buyer:
Daata 606 LLC
Seller:
Buchanan Partners
Tenants:
Subway, Sweet Cakes
Bakery, Dulles Kabob
GLA: 23,756 SF
Year Built/Renovated: 1935/2002
Occupancy:
77%
Sale Date:
May 2014
Price:$5,214,000
Price/SF: $219
Buyer:
Miller Development
Seller:
Monroe of Newtown LLC
Tenants:
Providence Opticians
© 2014 Greysteel Company LLC. All rights reserved.
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Service. Success. Perfected.
About Greysteel
June 2014
Built for today’s market:
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•
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Local Expertise
Collaborative, Interdisciplinary Team
Transparent, Real-time Communication
State-of-the-Art Technology and Infrastructure
Institutional-Grade Marketing & Buyer Selection Process
About Greysteel Retail. Our core focus is on relationships with high
net worth “private client” and “middle market” investors ensuring
each engagement benefits from best-in-class market intelligence
and exposure to the largest pool of active and qualified investors;
through a highly targeted process leveraging the segment’s most
comprehensive proprietary database.
Our founders’ vision is that successful outcomes must always be
linked to respect for people. That’s why we’ve created a tightly
integrated, integrated, collaborative, conflict-free platform that
aligns your interests with those of our firm and its professionals.
This exacting care and approach, along with our stellar track record
and lasting relationships with private and institutional investors,
provides the perfect foundation to build an enduring organization.
We constantly evaluate and refine our approach to develop dynamic
working practices that help our clients achieve unexpected success.
Whether you are seeking to maximize yield or to drive efficiency
into balance sheet performance, we focus on one thing and one
thing only: your success. At Greysteel, that’s indistinguishable from
our own.
Greysteel’s mid-Atlantic Retail Investment Group is one of the most
active in the Mid-Atlantic, United States, providing customized
advisory and transactional services to owners of anchored and
unanchored shopping centers and urban retail. Through diligent
planning, positioning and marketing of all retail asset classes,
including some famously “out-of-the-box” successes, the team
works as a trusted and tenacious advocate to develop solutions
that optimize asset and portfolio value.
TRANSACTION TEAM
CAPITAL MARKETS
Gil Neuman
Managing Director
Henry Schuldinger
Senior Associate
Don Atchison
Director
Aaron Loeb
Investment Associate
Joyce Swain
Research Associate
Mark Bittenbender
Director
Yassi Farzaneh
Production Manager
Kelli Battista
Graphic Designer
Matt Schwartz
CEO
7735 Old Georgetown Road
Suite 301
Bethesda, MD 20814
P. 202.280.2722
[email protected]
www.greysteel.com
Service. Success. Profected
D.C. License No: LL98371301
MD License No: 636050
VA License No: 0226023703
Washington, D.C. • Dallas-Fort Worth, TX • Baltimore, MD
© 2014 Greysteel Company LLC. All rights reserved.
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