belair edison

BELAIR EDISON
CROSSING
Confidential
Offering Summary
2401-2801 BELAIR ROAD
BALTIMORE CITY, MARYLAND
Dense Urban
Infill High
Traffic Location
Investment Highlights
Urban Infill Community Shopping Center. A unique opportunity to
Renovations and Below Replacement Cost. Current ownership has
acquire a fully leased 204,000 square foot urban grocery anchored retail
spent over $650,000 on capital improvements over the past three years,
center in the dense heart of Baltimore City, Maryland. Constructed in
including roof replacement over 65% of the center. Investors have the
1962 on sixteen acres, the center’s superb visibility and access draw
unique opportunity to acquire a well maintained fully leased center
steady consumer traffic to nine national and regional discount-oriented
sustained by a dense urban population at a price point significantly
tenants.
below replacement cost.
Ninety-Nine Year Grocer Operations. B. Green & Company, a family
High Traffic/Limited Competition/Dense Demographic. 22,500 cars
owned food distributor, wholesaler and retailer in Baltimore City since
daily drive the Belair Road/Route 1 corridor which links Baltimore
1915, operates the 50,000 square foot grocery Food Depot and 33,000
County’s booming commercial and industrial employment districts and
square foot wholesale store B. Green Cash & Carry. Both are triple-net
the I-695 Baltimore Beltway to the north and downtown Baltimore just
leased with nine remaining years of term. Consistent high sales volume
south. The center faces limited area grocery anchored competition in an
and low cost-to-occupancy ratios indicate long term staying power. In
extremely dense infill trade area comprised of 32,000 residents within
2013 the Baltimore Business Journal ranked B. Green & Co. as the 25th
a one mile radius, 280,000 within three miles and more than 556,000
largest private company in the Baltimore Metro Area with more than 500
within five.
employees and $140 million in revenues.
Discount Oriented Retailers. Strong stable discount department stores
flank Food Depot serving as additional anchors. Maxway, is a subsidiary
of Variety Wholesalers, one of the largest private retailers in the United
States. Steadily expanding 30 year old chain Forman Mills, occupies
55,000 square feet. Dollar General (NYSE:DG) with six years remaining
on their lease, is the largest discount retailer in the United States by both
revenue and number of stores. Additionally, the federal government
operates one of the Social Security Administrations 13,000 field offices
in 6,800 square feet at the center.
Value Add Potential. A significant portion of the center’s tenants currently
either pay below market rent and/or do not fully reimburse operating
expenses. Upon expiration, including during Year 1 of ownership, new
owners may significantly increase cash flow by raising rents to market
rates and/or converting all tenants to triple-net reimbursement. An
additional opportunity exists to lease an as-yet-undeveloped prominent
0.7-acre pad site fronting Belair Road/Route 1.
© 2014 Greysteel Company LLC. All rights reserved.
Location Highlights
A densely populated Northeast Baltimore City neighborhood, Belair-
of the 140,000 square foot Earl G. Graves School of Business and
Edison has more than 8,000 homes and 19,814 people per square
Management, expected to deliver in summer 2014.
mile. Centrally located near the Baltimore City-County Line, the
neighborhood sits amidst Baltimore’s major employment centers and
attractions. Primary north/south artery Belair Road (U.S. Route 1) on
which Belair Edison Crossing Shopping Center lies runs parallel to
I-95, with direct access to the I-695 Baltimore Beltway and Baltimore’s
Central Business District.
The Belair-Edison Neighborhood, Inc. (BENI) is a twenty year old
nonprofit organization which sustains the local community by aiding
residents, business owners and stakeholders feel confident investing
their time, energy, and money locally. The organization has facilitated
the area’s growth and vitality by providing community marketing and
outreach, homeownership counseling and small business development
Two miles south of Belair-Edison lies the world renowned Johns
programs. In 2012, BENI provided 487 families with counseling and
Hopkins Hospital, one of numerous top regional employers located
financial structure to become successful homeowners. Also during
within Belair-Edison’s immediate vicinity. U.S. News & World Report has
2012, the area saw the results of an economic partnership between
recognized Johns Hopkins as the “Best Overall Hospital in America”
BENI and Baltimore City which provided a $26 million dollar stimulus
for 22 of the last 23 years. The massive Baltimore Campus is comprised
for remodeling foreclosed homes into energy efficient and affordable
of 60 buildings housing both the Hospital and Johns Hopkins University
investments.
School of Medicine, which collectively draw from more than 1,700
doctors and 30,000 employees daily. A recent study by Johns Hopkins
Demographic Profile Report
showed that 5,400 of its employees live in the six surrounding zip
codes which include Belair-Edison. New campus mega-redevelopment
BELAIR EDISON CROSSING
projects have spurred the regional economy, including the recent $1.1
Total Residential Population
Total Employees
billion construction of two new hospital towers which created more
than 4,700 construction jobs.
Median Age
1 MILE
3 MILES
5 MILES
31,539
280,115
556,816
12,890
127,999
259,730
35.8
33.6
34.9
INCOME
1 MILE
3 MILES
5 MILES
A short drive north lies Morgan State University with nearly 8,000
Average Household Income
$46,186
$56,572
$60,835
students and 2,000 employees on a 143-acre campus. As part of
Median Household Income
$36,417
$39,070
$60,514
phenomenal growth and construction Morgan State has in recent years
AVERAGE DAILY TRAFFIC
CARS
completed the state-of-the-art 220,000 square foot Earl S. Richardson
Belair Road at Sinclair Lane
22,538
Library, a new Research Center and Communications Building and
Belair Road at Woodlea Avenue
24,196
major renovations to the school’s central “quad”. A new $72 million
campus expansion plan has already begun with the construction
© 2014 Greysteel Company LLC. All rights reserved.
Data Note: Income is expressed in current dollars.
Source: U.S. Census Bureau, Census 2010 Data.
7735 Old Georgetown Road, Suite 301
Bethesda, MD 20814
P. 202-280-2722
www.greysteel.com
MD License No: 636050
CONTACT:
CAPITAL MARKETS:
Gil Neuman
Managing Director
gneuman@greysteel.com
P. 202.499.4077
Don H. Atchison
Director
datchison@greysteel.com
P. 202.280.2824
TRANSACTION TEAM:
Gil Neuman
Managing Director
Henry Schuldinger
Senior Associate
© 2014 Greysteel Company LLC. All rights reserved.
Aaron Loeb
Investment Associate
Joyce Swain
Research Associate
Richard Seybolt
Research Analyst
Yassi Farzaneh
Production Manager