FOR SALE WOODLAWN PROFESSIONAL CENTER 1502 WOODLAWNW DR. BALTIMORE ALTIMORE,, MD 21227 Offer Price: $1,875,000.00 For more information or a tour, contact Chad Tyler: Chad@tylerco.com or 301-370-3611 or 240.436.6432
TABLE OF CONTENTS 1) SUMMARY OF OFFERING 2) BUILDING/PROPERTY DESCRIPTION 3) LOCATION MAP 4) FINANCIAL METRICS/ESTIMATED RETURN 5) RENT ROLL 6) TEN YEAR CASH FLOW PROJECTION 7) DESCRIPTION OF TENANTS 8) PICTURES
SUMMARY OF OFFERING OFFER PRICE: $1,875,000.00 BUILDING SIZE: 14,685 SF OFFICE/FLEX SPACE ANNUAL ESTIMATED NET INCOME: $140,166.00 CAP RATE: 7.5% OCCUPANCY: 89% CO-OPERATING BROKER FEE: 2%
BUILDING/PROPERTY DESCRIPTION The Woodlawn Professional Center is comprised of two freestanding buildings totaling 14,685 sq. ft. Building One totals 13,026 sq. ft., with approximately 10,003 sq. ft. on the first level, and 3023 sq. ft. on the second level. Building Two totals 1659 sq. ft. The two buildings are joined by a covered breezeway. The buildings are well constructed with brick façades, structural steel, and concrete. The complex is well located directly across the street from the Social Security Administration Headquarters, with great access to I 695 (the Baltimore Beltway) and I 70 (less than 5 minutes away). There are currently six tenants in the building and one vacancy of 1,646 sq. ft. The anchor tenant is Schnabel Engineering. Schnabel occupies 8302 sq. ft. and has just renewed with a seven year lease term (expires 11/30/22). They have 6643 sq. ft. of office space in Building One, and the balance 1,659 sq. ft. is lab space in Building Two. The separation of the two spaces is ideal for the nature of their business (geotechnical engineering, soil compaction, and concrete testing). Schnabel has been a tenant in the building since November 1999 (17 years). This location is one of 17 locations for Schnabel which are mainly located throughout the mid- Atlantic area. The company provides specialized expertise and design for geotechnical, tunnel and dam engineering projects across the US and worldwide. It s an employee owned company with in excess of 300 professionals. Schnabel is among the top 250 U.S. engineering firms, according to Engineering News Record (ENR).
LOCATION MAPS
FINANCIAL METRICS/ESTIMATED RETURN ASSUMPTIONS: Sale price $1,875,000 $127.68 PSF Equity contribution of 20% $375,000.00 CAP Rate 7.50% Closing & Loan costs at 2.5% $46,875.00 Initial Est. Cash on Cash Return 9.51% Annual escalations Rents escalated 2-3%, expenses at 2%
RENT ROLL TYLER-DONEGAN, INC. 1502-1504 WOODLAWN DRIVE Apr-16 Unit # Sq. Ft. Tenant Terms # Years Left Deposit Rent Cam Taxes Total 2nd flr. Ste 4 304 CertaPro Painters 5/1/2015-4/30/2018 3 years $450 incl. incl. $450 Suite 1 8,302 Schnabel Engineering** 12/1/15-11/30/22 7 years $10,700 $11,300 $11,300 Suite 103 1,175 CECF 9/1/2014-8/31/2017 $1,350 $1,425 $1,425 1st floor 1,065 Ikon Realty 1/1/16-12/31/18 1 year $2,744 $1,119 $1,097 1st floor 1,120 Trulife Health Services 10/1/13-9/30/17 1 year $700 $1,273 $1,273 2nd floor 1,646 vacant Suite 3 UL 656 Creative 1 Photography 6/1/15-5/31/17 2 years $875 $875 incl incl $875 core area/stairs 417 Totals 14,685 $16,442 $16,420
TEN YEAR CASH FLOW PROJECTION EFFECTIVE EST. RENT AFTER 7% MKT VACANCY $225,485 $232,119 $238,950 $245,983 $253,224 $260,680 $268,357 $276,261 $284,399 $292,778 LESS OPERATING EXPENSES: Interior Cleaning $12,000 $12,240.00 $12,484.80 $12,734.50 $12,989.19 $13,248.97 $13,513.95 $13,784.23 $14,059.91 $14,341.11 Lawn and Landscaping $7,500 $7,650.00 $7,803.00 $7,959.06 $8,118.24 $8,280.61 $8,446.22 $8,615.14 $8,787.45 $8,963.19 Common area electric & water $7,000 $7,140.00 $7,282.80 $7,428.46 $7,577.03 $7,728.57 $7,883.14 $8,040.80 $8,201.62 $8,365.65 Trash removal $3,000 $3,060.00 $3,121.20 $3,183.62 $3,247.30 $3,312.24 $3,378.49 $3,446.06 $3,514.98 $3,585.28 Snow removal $6,500 $6,630.00 $6,762.60 $6,897.85 $7,035.81 $7,176.53 $7,320.06 $7,466.46 $7,615.79 $7,768.10 Property insurance $2,500 $2,550.00 $2,601.00 $2,653.02 $2,706.08 $2,760.20 $2,815.41 $2,871.71 $2,929.15 $2,987.73 Property management fee (@4% net rent) $9,019 $9,285 $9,558 $9,839 $10,129 $10,427 $10,734 $11,050 $11,376 $11,711 HVAC maintenance $8,000 $8,160.00 $8,323.20 $8,489.66 $8,659.46 $8,832.65 $9,009.30 $9,189.49 $9,373.28 $9,560.74 Building repairs miscellaneous $7,500 $7,650.00 $7,803.00 $7,959.06 $8,118.24 $8,280.61 $8,446.22 $8,615.14 $8,787.45 $8,963.19 Property taxes $22,300 $22,746.00 $23,200.92 $23,664.94 $24,138.24 $24,621.00 $25,113.42 $25,615.69 $26,128.00 $26,650.56 Total expenses $85,319 $87,111 $88,941 $90,809 $92,719 $94,669 $96,660 $98,695 $100,774 $102,897 NET OPERATING INCOME $140,166 $145,009 $150,010 $155,174 $160,506 $166,012 $171,696 $177,566 $183,625 $189,882 Less Principle & Interest ($1,500,000 yr amort, 4.5%) -$100,049.85 -$93,796.73 -$93,796.73 -$93,796.73 -$93,796.73 -$93,796.73 -$93,796.73 -$93,796.73 -$93,796.73 -$93,796.73 Net Operating Income $40,116 $51,212 $56,213 $61,377 $66,709 $72,215 $77,900 $83,769 $89,829 $96,085 Cash on Cash Return (on $421,875 Invested) 9.51% 12.14% 13.32% 14.55% 15.81% 17.12% 18.47% 19.86% 21.29% 22.78%
DESCRIPTION OF TENANTS Suite 4, 2 nd Floor: CertaPro is a residential and commercial painting contractor and light remodeling. Suite 1, 1 st Floor: Schnabel Engineering: this location is one of 17 locations for Schnabel which are mainly located throughout the mid-atlantic area. The company provides specialized expertise and design for geotechnical, tunnel and damn engineering projects across the US, and worldwide. It s an employee owned company with an excess of 300 professionals. Schnabel is among the top 250 U.S. engineering firms, according to Engineering News Record (ENR). Suite 103, 2 nd Floor: CECF is a nonprofit organization. The mission of Civilizations Exchange and Cooperation Foundation (CECF) is to foster cooperation rather than confrontation among people of different religions and cultures. CECF focuses on the factors that have led to the rise and fall of previous civilizations and how people of this millennium can benefit from lessons of the past in a world literally changing to a global village. Suite 100, 1st Floor: Ikon Realty/Smart Computers: This suite houses two businesses; one is a real estate firm and the other is a website design service. Suite 103, 1st Floor: Trulife Health Services: Trulife Health Services is a residential service agency dedicated to serving those in need and in desire of skilled nursing and personal care services. In-home personal care and skilled nursing services provide care that enables its clients continue to live in the comfort of their own home with varying degrees of independence. Suite 3, 2 nd Floor: Creative 1 Photography: marketing. Professional photography studio focused on business
Front elevation PICTURES
Schnabel entrance
East side of building
Building adjacent to 1502-1504 Woodlawn Drive
Neighboring building, two buildings over from 1502-1504 Woodlawn Dr.