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3701 Koppers Street - JLL Property Koppers Road...Washington, DC 20006 +1 202 719 5000 3701 Koppers...
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Long-term GSA Investment Offering 3701 Koppers Street Baltimore, MD
Transcript of 3701 Koppers Street - JLL Property Koppers Road...Washington, DC 20006 +1 202 719 5000 3701 Koppers...
Long-term GSA Investment Offering
3701 Koppers StreetBaltimore, MD
Property Summary
Address 3701 Koppers StreetRentable Area 75,980Renovated / Year Built 2013 / 1982GSA Lease Expiration November 20, 2028Parking 4.0 per 1,000 SFSite 8.06 acresIn-Place NOI $703,532Stabilized NOI (Year 3)* $970,984
*Includes lease-up of available data center space
OfferingJLL’s Mid-Atlantic Capital Markets Group is pleased to present the exciting opportunity to acquire 3701 Koppers Street, a 75,980 rentable square foot, two-story office building with a newly signed 15-year lease to the U.S. General Services Administration (GSA), on behalf of the U.S. Citizenship and Immigration Services (USCIS). The Property is located in southwest Baltimore, Maryland, with immediate access and proximity to Interstate 95 and the Baltimore Beltway (I-695). 3701 Koppers serves as Maryland’s only USCIS field office. The GSA occupies 45,867 square feet of the building and has signaled its long-term commitment through a $4.0 million ($87/SF) renovation funded 60% by the GSA. The remainder of the building consists of a former Verizon data center, with the valuable infrastructure still in place. The combination of the asset’s investment-grade tenancy, recent multi-million dollar renovation, and value through additional lease-up provides investors with secure, predictable cash flow along with upside potential rarely found in today’s investment market.
Investment Attributes• 14 years of remaining lease term with government credit• GSA-leased on behalf of USCIS as their only Maryland facility• Secure campus-type environment with ample parking (4 spaces/1,000 SF)• Excellent accessibility to the Washington-Baltimore Corridor • Located 1/2 mile away from access ramps to Interstate 95, and 1.5 miles from the Baltimore Beltway (I-695) • $4.0 million in recent capital improvements • Built to LEED Commercial Interior status, the benchmark for green design and construction of tenant improvements • Additional upside through the lease-up of existing vacancy• Located within the Baltimore City Enterprise Zone with available real property tax credits.
Significant GSA Investment & Long-Term LeaseThe The US Citizenship and Immigration Services (USCIS) has invested heavily in the property with a $4.0 million improvement project in 2013, of which $2.3 million was GSA capital. The USCIS signaled its long-term interest in the facility by signing a 15-year (10 years firm) lease on November 21, 2013. A future owner can expect to receive stable bond-like cash flows through their investment horizon.
U.S. Citizenship and Immigration ServicesThe USCIS is a decade-old organization under the administration of the Department of Homeland Security. Charged with processing immigrant visa petitions, naturalization petitions, and other immigra-tion-related functions, USCIS carries on the same functions as the former Immigration and Naturalization Service (INS). 3701 Koppers functions as the State of Maryland’s only field office, providing case-workers, customer services and space for naturalization ceremonies.
90% Renewal ProbabilityUSCIS is a first generation lease at 3701 Koppers. First generation federal leases enjoy statistically high renewal probabilities of 90%+. In addition, GSA tenants often expand after taking occupancy of a space for the first time. 3701 Koppers’ new owner can expect near-certain renewal in 2028 upon GSA rollover, particularly with the GSA’s significant investment into the property’s infrastructure and the high potential of future expansion with the ability to accommodate the GSA’s future needs.
Value-Enhancement Opportunity3701 Koppers offers the opportunity to capitalize on additional value gained through the continued lease-up of the partially unoccupied data center space coupled with the Government, credit-backed cash flow. The existing infrastructure in the lower level makes it an excellent candidate for the installation of a data center. Moreover, this space features a UPS room, full generator back-up/redundancy, automatic transfer switch (ATS) with dual electric feeds, Liebert cooling system, and raised floors throughout.
Location and Market SummarySouthwest Baltimore/I-95 Corridor MarketSituated in southwest Baltimore, the Property straddles the line between Southwestern Baltimore County and the urban City of Baltimore. Its immediate access to I-95 and the Baltimore Beltway allows for convenient commuter access from both suburban and city settings. Major employers in the immediate vicinity include Kaiser Permanente, St. Agnes Hospital, Alcoa, and Tesst College of Technology.
Office Park Setting3701 Koppers is part of the Caton 95 Office Park, a secure, campus-type environment with ample on-site parking. Caton 95 Park generates high levels of interest due to its convenient location, transportation access from all major roadways, free parking, and high rental rates relative to other comparable assets inside the Baltimore Beltway.
Positive Leasing ActivityNeighboring St. Agnes Hospital continues to be a major driver of growth in the area as the campus undergoes a $220 million transformation project. Over the past three years, properties within close proximity to the hospital have seen over 200,000 square feet of positive absorption; major new tenants include healthcare giants Kaiser Permanente and BASYS (30,000 square feet at the adjacent property). 3701 Koppers’ location in the Baltimore City Enterprise Zone benefits the owner with abated real estate taxes and tenants with income and employment tax credits. The lower-level vacancy presents the prospect of signing a healthcare industry tenant intent on locating nearby St. Agnes.
Bill PruttingSenior Managing Director+1 202 719 [email protected]
Mark LevyManaging Director+1 443 452 [email protected]
Mid-Atlantic Capital Markets Group
500 East Pratt StreetSuite 1250Baltimore, MD 21202+1 443 451 2600
1801 K Street, NWSuite 1000Washington, DC 20006+1 202 719 5000
3701 Koppers Street
2 miles
4 miles
Jim MolloyExecutive Vice President+1 202 719 [email protected]
Jay Wellschlager Managing Director+1 443 452 [email protected]
Marc Rampulla Executive Vice President+1 202 719 [email protected]
Brian SaalGSA LeasingVice President+1 202 719 [email protected]
Paul SpellmanExecutive Vice President+1 202 719 [email protected]
Jason DeWittVice President+1 202 719 [email protected]
Leasing AdvisorsTerri HarringtonOffice LeasingSenior Vice President+1 443 931 [email protected]
Map by Stamen Design
