Actual Site
OFFERING MEMORANDUM
Andrew FallonExecutive Managing Director703.787.4733 | [email protected]
MONTGOMERY VILLAGE MARKETPLACE Gaithersburg, MD
Jonathan W HippPresident & CEO703.787.4725 | [email protected]
Asset SummaryAnnual Base Rent $312,161
Rent/Month $26,013.42
Rentable SF 12,718+/- SF
Land Area 1.74+/- Acres
Ownership Type Fee Simple
Lease Type NN
Landlord Responsibilities Roof & Structure
Year Built 2011
Investment Highlights
• High barrier to entry location
• Structured rent increases throughout primary lease term & options
• Located in the heart of Montgomery Village; a planned suburban community of Washington, DC
• Adjacent to new revitalization project approved and underway; completion estimated for summer 2020
• Dense retail corridor includes CVS, SunTrust, McDonald’s, and more with combined traffic counts of 58,000 VPD
• Montgomery County is the most populous and highest income county in MD
Asking Price$4,995,000
Cap Rate 6.25%
9991 Stedwick Road Gaithersburg, MD 20886
Tenant Annual Rent Monthly Rent SF Rent $/SF Lease Term
RemainingLease
Expiration Increases Options
Montgomery Dentist $38,520 $3,210.00 1,926+/- $20.00 6+ Years 7/31/2025 3% Annually One (1), Five (5) Yr
Jerry’s Subs & Pizza $26,268 $2,189.00 1,194+/- $22.00 10 Years TBD 12% Every 5 Yrs Two (2), Five (5) Yr
Master Lease* $25,162 $2,096.83 1,094+/- $23.00 TBD TBD TBD TBD
Eddie’s Carry Out $43,329 $3,610.75 1,100+/- $39.39 3 Years 2/28/2022 3% Annually One (1), Six (6) Yr
The Village Pharmacy $31,556 $2,629.66 1,352+/- $23.34 6+ Years 5/31/2025 3% Annually N/A
Sparkle Cleaners $18,184 $1,515.33 1,008+/- $18.04 7+ Years 7/31/2026 3% Annually One (1), Five (5) Yr
Senshi Karate $32,320 $2,693.33 1,616+/- $20.00 5 Years 10/31/2023 $1.00/SF Every 2 Yrs One (1), Five (5) Yr
Village Nail Salon $39,351 $3,279.25 1,000+/- $39.35 4 Years 12/1/2022 3% Annually One (1), Five (5) Yr
Splash and Dash $33,843 $2,820.25 1,450+/- $23.34 2 Years 1/31/2021 3% Annually One (1), Five (5) Yr
T-Mobile $23,628 $1,969.00 978+/- $24.16 7 Years 2/28/2026 3% Annually N/A
Total $312,161 $26,013.42 12,718+/-
*Seller to credit buyer at closing one (1) year of master lease.Calkain Companies | 2
Montgomery Village Marketplace | Financial Summary
Hollywood
Baltimore, MD
Washington, DC
Reston, VA
66
70
Frederick, MD
Harpers Ferry, WV
Gaithersburg, MD
Winchester, VA
81
Montgomery Village
Rockville, MD
Columbia, MD
Herndon, VA
270
Rockville, MD 8 miles
Washington, DC 23 miles
Frederick, MD 24 miles
Reston, VA 29 miles
Columbia, MD 30 miles
Baltimore, MD 45 miles
Subject Site
Calkain Companies | 3
Location Overview
Distance To
Montgomery Village
Montgomery Village is a 2,435-acre
planned community that was created
in 1965 based on “new town” principles
and the County’s General Plan, which
identified the Gaithersburg area as a
“corridor city. Montgomery Village is
located in the center of Montgomery
County, east of I-270 and north of I-370,
adjacent to the City of Gaithersburg.
Montgomery Village is served by
several roadways, including its Main
Street, Montgomery Village Avenue
and is a well-establish community
with 40,000 residents. The Village is
primarily a residential community with
several locally serving retail centers.
One of its most unique aspects is the
extensive recreational opportunities,
which are available to all Montgomery
Village residents by virtue of automatic
membership in the Montgomery Village
Foundation. Prior to 2015 all applications
for rezoning were explicitly prohibited.THE VISIONDuring the course of the Master Plan, four themes emerged from the community as the most prevalent and compelling issues. These four themes, summarized below, represent the Plan’s vision. The Montgomery Village community and this plan seek to:• Preserve the character of the Village• Maintain the public recreation and open spaces• Encourage reinvestment• Enhance connectiviy
Subject Site
GMC Nail & Spa
SparkleCleaners
Eddie’s Carry Out
Montg
omer
y Vi
llage
Ave
nue 3
7,00
0 VPD
Calkain Companies | 4
Montgomery Village
Revitalization Overview
Montgomery Village Revitalization Projects
Atlantic Realty Companies
(ARC) purchased the Village
Center in December 2015 and
has been busy planning for the
future of the site.
On April 26, the planning
board approved Atlantic Realty
Companies’ (ARC) plans to
renovate and add some retail
density and new housing to the
18-plus acre property. This plan
includes 49 townhouses, 34 two-over-two condos and 32 condos/apartments,
but only the 32 condos/apartments are included in the Site Plan, for which ARC
received approval from the Planning Board. The remaining housing units will be
included in a future Site Plan for the property.
The retail redevelopment will be phased in and will include the creation of three
new pad sites on the front of the property and the extension of Centerway Road
through to Watkins Mill Road, which creates a connection between the residential
development and new retail.
Atlantic Realty Companies (ARC) recently received their Certified Site Plan
to proceed to building permit to build new pad sites along Montgomery Village
Avenue, perform façade improvements, extend Centerway access road to the rear
of the shopping center, build apartments above the retail across from the rear of
the McDonalds and build the public green space at the rear of the shopping center.
The county has informed MVF that ARC has applied for a minor amendment to
the preliminary plan and site plan to allow for minor changes to the foot prints
of the pad site buildings to accommodate tenants needs. Bank of America will be
relocating to the old Village Café location while a new pad site is constructed for
them, and it has been reported that Aldi will be the grocery store anchor for the
site and be located next to Big Lots.
New Retail
It has been reported that Aldi will be the grocery store anchor for the site.
ARC is looking for a high-end coffee shop and other healthy and convenient
establishments that would boost the center’s clientele. Suggestions from the
community at the meeting included a 5 Guys Burger and Fries, Starbucks and a
bike shop.
Timeframe (Project Completion Summer 2020)
While ARC is excited to get renovations started, Ross noted the reality of the
process involved to make that happen. He said they are hopeful to be done sooner,
rather than later, but the overall timeframe for the project will be dictated by
ARC’s work with tenants, the community, the county and resources available. In
closing the presentation, Ross said, “ARC saw an opportunity, similar to Hunter’s
Woods, to be part of change and help revitalize an aging facility—we can provide
the support this center needs. The bones of the center are good, but the time is
now to fix the face and move forward for the community. WRIT wanted to sell;
we’re not property holders, we’re motivated to make this a success.”
Learn More >>
Calkain Companies | 5
Calkain Companies | 6
Revitalization Renderings
l-270 162,000 VPD Lakeforest Mall
Keep all map content (except background) above this margin for website cropping purposes
58 ACRE MONTGOMERY VILLAGE CENTER
• Approximately 190,000 sf of retail
• Approximately 158,000 sf of office
• Montgomery Village Healthcare Center
• 3 gas stations • Car Wash • US Post Office
270
Subject Site
GMC Nail & Spa
SparkleCleaners
Eddie’s Carry Out
Gaithersburg Shopping
Mon
tgom
ery V
illag
e Av
e 37
,000
VPD
Watkins Mill Road 12
,000 V
PD
9991 Stedwick Road | Gaithersburg, MD
Location Highlights
Accessible from I-270
37,000 VPD Pass the Site
Located in Montgomery Village Center
C
lick fo
r Street View
Keep all map content (except background) above this margin for website cropping purposes
58 ACRE MONTGOMERY VILLAGE CENTER
Stedwick Rd 9,000 VPD
Wat
kins M
ill Rd
12,0
00 V
PD
Mon
tgom
ery
Villa
ge A
ve 3
7,00
0 VP
D
Montgomery Village Middle School
Stedwick Elementary
School
Centerway Road 9,000 VPD
Club House Rd 5,000 VPD
Subject Site GMC Nail & Spa
SparkleCleaners
Eddie’s Carry Out
9991 Stedwick Road | Gaithersburg, MD
Stedwick Rd 9,000 VPD
GMC Nail & Spa
Eddie’s Carry
Out
SparkleCleaners
Former Capital One Not For Sale
Future Pad DevelopmentNot For Sale
Calkain Companies | 9
Site Plan
Montgomery Dental MD (1,926+/- SF)At Montgomery dental clinic, Dr. Nayudu and his friendly staff of dental professionals offer excellent service and personalized care in variety of dental procedures. Montgomery Dental offers an enhanced experience that outshines conventional dentistry. They provide comprehensive general and cosmetic dental care from regular cleaning, deep cleanings, fillings, root canals, crowns, bridges, veneers, extractions and dentures. At the core of the practice is a commitment to arming and empowering patients with the information they need to make informed decisions about their treatment options. The latest in diagnostic technologies combine with a passion for patient education to result in dental exams of the highest caliber. With state-of-the-art technology and high customer service standards they succeed in providing refreshing experiences in comprehensive dental care.
Rent Schedule Term Increases Annual Rent Monthly Rent $/SF
8/1/2018 - 7/31/2019 $38,520.00 $3,210.00 $20.00
8/1/2019 - 7/31/2020 3% $39,675.60 $3,306.30 $33.48
8/1/2020 - 7/31/2021 3% $40,865.87 $3,405.49 $34.49
8/1/2021 - 7/31/2022 3% $42,091.84 $3,507.65 $35.52
8/1/2022 - 7/31/2023 3% $43,354.60 $3,612.88 $36.59
8/1/2023 - 7/31/2024 3% $44,655.24 $3,721.27 $37.68
8/1/2024 - 7/31/2025 3% $45,994.89 $3,832.91 $38.81
8/1/2025 - 7/31/2030* 3% $47,374.74 $3,947.90 $39.98
Jerry’s Subs & Pizza (1,194+/- SF)Jerry’s has been famous for ‘The World’s Best Cheesesteaks’ and NY Style Pizza since 1954. The original roast beef sub with Jerry’s Secret Sauce has people traveling miles to taste it. Coupled with thier delicious New York style pizza, Jerry’s is famous throughout the DE, MD & VA region.
Recently Jerry’s has introduced “Delivery” to their business model, and are excited to bring this dynamic new business building feature to their brand. 6,000,000 new businesses are founded each year.
Rent Schedule Term Increases Annual Rent Monthly Rent $/SF
Year 1 - $26,268.00 $2,189.00 $22.00
Year 2 - $26,268.00 $2,189.00 $22.00
Year 3 - $26,268.00 $2,189.00 $22.00
Year 4 - $26,268.00 $2,189.00 $22.00
Year 5 - $26,268.00 $2,189.00 $22.00
Year 6 12% $29,420.16 $2,451.68 $24.64
Year 7 - $29,420.16 $2,451.68 $24.64
Year 8 - $29,420.16 $2,451.68 $24.64
Year 9 - $29,420.16 $2,451.68 $24.64
Year 10 - $29,420.16 $2,451.68 $24.64
Year 11 - Year 15 *1st Option Period
12% $32,950.58 $2,745.88 $27.60
Year 16 - Year 20 *2nd Option Period
12% $36,904.65 $3,075.39 $30.91
*One (1), Five (5) Year Option
Calkain Companies | 10
Tenant Overview
Eddie’s Carry Out (1,100+/- SF)Eddie’s Carryout is located at 10001 Stedwick Rd in Montgomery Village, MD - Montgomery County business serving Szechuan, Seafood, Chicken & Chinese Food. Established in 1955.
Rent Schedule Term Increases Annual Rent Monthly Rent $/SF
3/1/2018 - 2/28/2019 - $43,329.00 $3,610.75 $39.39
3/1/2019 - 2/28/2020 3% $44,628.87 $3,719.07 $40.57
3/1/2020 - 2/28/2021 3% $45,967.74 $3,830.64 $41.79
3/1/2021 - 2/28/2022 3% $47,346.77 $3,945.56 $43.04
3/1/2022 - 2/28/2028 *Option Period
3% $48,767.17 $4,063.93 $44.33
The Village Pharmacy (1,352+/- SF)Pharmacy is the science and technique of preparing and dispensing drugs. It is a health profession that links health sciences with chemical sciences and aims to ensure the safe and effective use of pharmaceutical drugs.
The scope of pharmacy practice includes more traditional roles such as compounding and dispensing medications, and it also includes more modern services related to health care, including clinical services, reviewing medications for safety and efficacy, and providing drug information. Pharmacists, therefore, are the experts on drug therapy and are the primary health professionals who optimize use of medication for the benefit of the patients.
Rent Schedule Term Increases Annual Rent Monthly Rent $/SF
6/1/2018 - 5/31/2019 3% $31,556.00 $2,629.67 $23.34
6/1/2019 - 5/31/2020 3% $32,502.68 $2,708.56 $24.04
6/1/2020 - 5/31/2021 3% $33,477.76 $2,789.81 $24.76
6/1/2021 - 5/31/2022 3% $34,482.09 $2,873.51 $25.50
6/1/2022 - 5/31/2023 3% $35,516.56 $2,959.71 $26.27
6/1/2023 - 5/31/2024 3% $36,582.05 $3,048.50 $27.06
6/1/2024 - 5/31/2025 3% $37,679.51 $3,139.96 $27.87
Eddie’s Carry Out
Calkain Companies | 11
Tenant Overview
Rent Schedule Term Increases Annual Rent Monthly Rent $/SF
8/1/2018 - 7/31/2019 - $18,184.00 $1,515.33 $18.04
8/1/2019 - 7/31/2020 3% $18,729.52 $1,560.79 $18.58
8/1/2020 - 7/31/2021 3% $19,291.41 $1,607.62 $19.14
8/1/2021 - 7/31/2022 3% $19,870.15 $1,655.85 $19.71
8/1/2022 - 7/31/2023 3% $20,466.25 $1,705.52 $20.30
8/1/2023 - 7/31/2024 3% $21,080.24 $1,756.69 $20.91
8/1/2024 - 7/31/2025 3% $21,712.65 $1,809.39 $21.54
8/1/2025 - 7/31/2026 3% $22,364.03 $1,863.67 $22.19
8/1/2026 - 7/31/2031 *Option Period
3% $23,034.95 $1,919.58 $22.85
Organic dry cleaners. Dry cleaning is any cleaning process for clothing and textiles using a chemical solvent other than water. It is used to clean fabrics that degrade in water, and delicate fabrics that cannot withstand the rough and tumble of a washing machine and clothes dryer. It can eliminate labor-intensive hand washing.
SparkleCleaners
Senshi Karate (1,616+/- SF)Senshi Karate is a Traditional Family Martial Arts Academy. We offer a Traditional program for all ages teaching Character and Discipline from day one. We strive to build champions in life. Our team of Instructors are a credited Black-belts, Olympic Coaches & Referees. We invite you to explore our website and find out how our programs can benefit you and your family.
Rent Schedule Term Increases Annual Rent Monthly Rent $/SF
11/1/2018 - 10/31/2019 - $32,320.00 $2,693.33 $20.00
11/1/2019 - 10/31/2020 $1.00/sf $33,936.00 $2,828.00 $21.00
11/1/2020 - 10/31/2021 - $33,936.00 $2,828.00 $21.00
11/1/2021 - 10/31/2022 $1.00/sf $35,552.00 $2,962.67 $22.00
11/1/2022 - 10/31/2023 - $35,552.00 $2,962.67 $22.00
11/1/2023 - 10/31/2028 *Option Period
$1.00/sf $37,168.00 $3,097.33 $23.00
Sparkle Cleaners (1,008+/- SF)
Calkain Companies | 12
Tenant Overview
GMC Nail and Spa (1,000+/- SF)The experienced staff is dedicated to bringing the very best services in a warm friendly atmosphere. They know the life you lead is hectic, so they want the time you spend with them to be as enjoyable and relaxing as possible.
GMC Nail & Spa
Rent Schedule Term Increases Annual Rent Monthly Rent $/SF
1/1/2018 - 12/31/2018 - $39,351.00 $3,279.25 $39.35
1/1/2019 - 12/31/2019 3% $40,531.53 $3,377.63 $40.53
1/1/2020 - 12/31/2020 3% $41,747.48 $3,478.96 $41.75
1/1/2021 - 12/31/2021 3% $42,999.90 $3,583.33 $43.00
1/1/2023 - 12/31/2028 *Option Period
3% $45,618.59 $3,801.55 $45.62
Splash and Dash (1,450+/- SF)There’s a reason why your pets are referred to as “Mans Best Friend.” Pets bring warmth to homes, joy to families, and companionship to morning runs.
That’s why there are so many “pet parents” who want to treat their pets like a family member. They spoil them… pamper them… and provide them with comforts and luxuries that most humans would be envious of.
Splash and Dash offers designer clothes, posturepedic beds, meal replacement bars, and pamperings like Blueberry Facials and “Pawdicures.”
Believe it or not, there’s actually a term to describe this culture’s love of animals. It’s called “Anthromorphization.” That’s a big word that simply means… Splash and Dash thinks and talks about pets as if they’re human beings. And guess what? The pet phenomenon is propelling projected industry earnings of over $73 Billion.
Rent Schedule Term Increases Annual Rent Monthly Rent $/SF
2/1/2018 - 1/31/2019 3% $33,843.00 $2,820.25 $23.34
2/1/2019 - 1/31/2020 3% $34,858.29 $2,904.86 $24.04
2/1/2020 - 1/31/2021 3% $35,904.04 $2,992.00 $24.76
2/1/2021 - 1/31/2026 *Option Period
3% $36,981.16 $3,081.76 $25.50
Calkain Companies | 13
Tenant Overview
Metro by T-Mobile (978+/- SF)As America’s Un-carrier, T-Mobile US, Inc. (NASDAQ: “TMUS”) is redefining the way consumers and businesses buy wireless services through leading product and service innovation.
The Company’s advanced nationwide 4G LTE network delivers outstanding wireless experiences for customers who are unwilling to compromise on quality and value. Based in Bellevue, Wash, T-Mobile US, Inc. provides services through its subsidiaries and operates its flagship brands, T-Mobile and Metro by T-Mobile.
New T-Mobile will intensify competition as the entrenched leaders of the wireless industry will finally have to contend with a disruptive rival able to compete head to head! Metro will compete vigorously for all customers and competition will increase across all price points in the market. As the 5G era accelerates, this consumer obsessed company will deliver innovation that customers demand and bring its disruptive nature to video, IoT enterprise and in-home broadband to force change for consumers everywhere.
Rent Schedule Term Increases Annual Rent Monthly Rent $/SF
3/1/2018 - 2/28/2019 3% $23,628.00 $1,969.00 $24.16
3/1/2019 - 2/28/2020 3% $24,336.84 $2,028.07 $24.88
3/1/2020 - 2/28/2021 3% $25,066.95 $2,088.91 $25.63
3/1/2021 - 2/28/2022 3% $25,818.95 $2,151.58 $26.40
3/1/2022 - 2/28/2023 3% $26,593.52 $2,216.13 $27.19
3/1/2023 - 2/28/2024 3% $27,391.33 $2,282.61 $28.01
3/1/2024 - 2/28/2025 3% $28,213.07 $2,351.09 $28.85
3/1/2025 - 2/28/2026 3% $29,059.46 $2,421.62 $29.71
Master Lease (1,094 +/- SF)Term Increases Annual Rent Monthly Rent $/SF
1 Year - $25,162.00 $2,096.83 $23.00
Calkain Companies | 14
Tenant Overview
1 Mile 3 Miles 5 MilesPopulation2018 Population 25,172 141,099 285,243
2023 Population 26,271 147,259 301,937
2018 Median Age 36.8 35.3 36.5
Households2018 Total Households 9,377 48,176 100,525
2023 Total Households 9,705 49,945 105,889
Median Household Income2018 Median HH Income $73,857 $82,552 $98,547
2023 Median HH Income $84,310 $94,855 $108,260
Average Household Income2018 Average HH Income $91,638 $102,359 $119,696
2023 Average HH Income $106,644 $118,815 $137,774
Population 285,243
Median Age 36.5
Avg HH Income $119,696
Total Businesses 9,237
Total Employees 137,400
Net Worth $193,427
5 Mile Radius | Demographics
Location Overview 1/3/5 Miles
Calkain Companies | 15
Gaithersburg, MD
With over 69,000 residents located in the heart of Montgomery County,
Gaithersburg is one of the largest cities in Maryland. In Gaithersburg you’ll find
an excitingly diverse population living in a mixture of housing types in warm,
welcoming neighborhoods. Gaithersburg combines a respect for its heritage,
demonstrated by the revitalization efforts in our Olde Towne residential and
commercial district, with thoughtful planning for new communities.
Gaithersburg has undergone significant changes in recent years. The City is now
an urban area and a suburb of Washington, D.C. It has become a major regional
location for high-technology companies while commercial agriculture is close to
non-existent. The rolling fields of wheat are now roads, housing developments and
commercial enterprises, but at the same time a number of historic communities
and traditions have been preserved. In the 21st century Gaithersburg continues
to grow while retaining many of the qualities of a small town that cherishes its rich,
diverse heritage.
Gaithersburg is conveniently located along I-270, which connects I-495 (the
Washington Beltway) to the south with I-70 to the north. The City is also
bisected by Rt. 355, known as Frederick Avenue in Gaithersburg, which runs
from Washington, DC to just beyond Frederick, Maryland. MD Rt. 200 (toll),
the InterCounty Connector, links I-270 to the busy I-95 corridor near Laurel,
Maryland.
5 Mile Population
285,243
Calkain Companies | 16
Market Overview
About UsCalkain Companies LLC is a boutique commercial real estate investment banking firm that provides consulting and brokerage services to both private and institutional clientele with a focus on single tenant net lease investments. We pride ourselves on being an innovative leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, debt and equity placement and wealth management.
Calkain has built solid, lasting relationships that have been the cornerstone of how we do business. Calkain approaches each assignment with an eye toward each client’s individual needs. Whether private or institutional investors, Calkain delivers real estate solutions that maximize value while building wealth for all of our clients.
At Calkain, our foresight and innovation are leading the net lease investment industry.
Building a solid foundation for your investment portfolio
calkain.com
Disclaimer: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
$12 Billion in Closed Transactions
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in Active Listings
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