corporate landing business park office building

CORPORATE LANDING BUSINESS PARK OFFICE BUILDING1732 Corporate Landing Pkwy • Virginia Beach, VA 23454

Offering Memorandum

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N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and

should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified

information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due

diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the

future projected financial performance of the property, the size and square footage of the property 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. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable;

however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters

and makes 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

SPECIAL COVID-19 NOTICE

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary,

especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on

behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus &

Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other

professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma

financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections,

analyses, and decision-making.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name

is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or

commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

CORPORATE LANDING BUSINESS PARK OFFICE BUILDING

Virginia Beach, VA

ACT ID ZAB0600030

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INVESTMENT

OVERVIEW


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OFFERING SUMMARY

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EXECUTIVE SUMMARY

VITAL DATA

Price $3,950,000

All Cash*

31,033

$127.28

To Be Delivered Vacant

2009

3.5 acre(s)

Loan Type

Total SqFt

Price/SF

Occupancy

Year Built

Lot Size

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2019 Estimate Pop 9,191 48,474 124,567

2010 Census Pop 9,153 46,652 119,761

2019 Estimate HH 3,267 15,842 45,218

2010 Census HH 3,243 15,204 43,329

Median HH Income $65,914 $86,755 $71,788

Per Capita Income $30,773 $35,426 $34,153

Average HH Income $86,572 $106,442 $92,791

* Please contact agent for financing or SBA Loan options available


OFFERING SUMMARY

▪ 31,033 SF Class A Office Building in Corporate Landing Business Park

▪ Building is located within an Opportunity Zone

▪ Ideal for a Corporate Office, Multi-tenant Office, or Light Industrial Use

▪ Convenient Access to Naval Air Station OCEANA

▪ Within 1-Mile of Two Major Centers: Red Mill Commons & Landstown Commons

▪ 127,000+ 5-Mile Population | 17 Miles to Norfolk International Airport

▪ New Mid-Atlantic Hub for intercontinental subsea fiber optics

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to present for sale a 31,033 square foot, two-story, Class A office building located within Corporate Landing Business Park in Virginia

Beach, VA. Corporate Landing Business Park is a 325-acre, Class A office, light-industrial, research & development and mixed-use setting. Corporate Landing is home

to a variety of major regional and corporate headquarters including the headquarters for JES and regional headquarters of GEICO, Lockheed Martin, and New Real

Brewing. Corporate Landing is within one mile of two major retail power centers: Red Mill Commons and Landstown Commons. It has a campus-like setting with high

quality buildings integrated into a naturally landscaped setting and is a on its way to being the future hot bed for corporate offices and data centers in the region.

The Virginia Beach MSA has significant government/military and corporate business presence. Its home to the largest active-duty military population in the U.S., as well

as 9 major military installations representing all branches of the U.S. Armed Forces, and home to hundreds of corporate, North American and regional headquarters,

including two Fortune 500 company headquarters: Dollar Tree (rank: 180) and Huntington Ingalls (rank: 378). With a low corporate income tax rate, affordable office

space and a well-educated workforce, Virginia Beach is particularly attractive to companies looking for a headquarters or major office location.

Virginia Beach and Corporate Landing Business park represent the new Mid-Atlantic hub for intercontinental subsea cables. In partnership with Microsoft and Facebook,

Telefonica (a Spanish telecom company) has constructed a 24,000-square-foot cable landing station at Corporate Landing Business Park to support two new ultra-high

speed transatlantic fiber optic telecommunication cables. In 2018, Google announced its Dunant cable, which will connect Virginia Beach to France with record-breaking

capacity and be operational in Q3 of 2020.

INVESTMENT OVERVIEW

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SUBJECT PHOTO

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SUBJECT PHOTO

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SUBJECT PHOTO

Entrance Lobby

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SUBJECT PHOTO

Private Offices

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Estimated Potential Cash Flow Projections

PROFORMA ANALYSIS

Purchase Price: 3,950,000$

Down Payment: 1,185,000$

Year 1 (2021) CAP 10.21%

10 Year IRR 21.42%

Average Cash on Cash Return (10 Years) 18.05%

Tenant % GLA Square Feet Pro Rata Rent/SF 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

TBD 31,033 100.00% $13.00 $403,429 $413,515 $423,853 $434,449 $445,310 $456,443 $467,854 $479,550 $491,539 $503,828

Total 100% 31,033 100.00% $13.00 $403,429 $413,515 $423,853 $434,449 $445,310 $456,443 $467,854 $479,550 $491,539 $503,828

NOI $13.00 $403,429 $413,515 $423,853 $434,449 $445,310 $456,443 $467,854 $479,550 $491,539 $503,828

TOTAL TI's | LC's $1.50 $416,358 $0.00 $0.00 $0.00 $0.00 $119,960.69 $0.00 $0.00 $0.00 $0.00

Annual Debt Service $184,425 $184,425 $184,425 $184,425 $184,425 $184,425 $184,425 $184,425 $184,425 $184,425

Net Cash Flow After Debt Service -$197,354 $229,089 $239,427 $250,024 $260,885 $152,057 $283,429 $295,125 $307,114 $319,402

DCR 2.19 2.24 2.30 2.36 2.41 2.47 2.54 2.60 2.67 2.73

Cash on Cash Return -16.65% 19.33% 20.20% 21.10% 22.02% 12.83% 23.92% 24.91% 25.92% 26.95%

Annual Cash Flows for IRR Calculation

Down Payment -$1,185,000

Annual Cash Flows -$197,354 $229,089 $239,427 $250,024 $260,885 $152,057 $283,429 $295,125 $307,114 $319,402

Disposition (8.5% CAP) $5,927,383

Loan Balance (December 31, 2031) -$2,009,007

Net Cash Flows -$1,185,000 -$197,354 $229,089 $239,427 $250,024 $260,885 $152,057 $283,429 $295,125 $307,114 $4,237,778

Assumptions

Assumes a new lease commences at close of sale. Absolute NNN lease starting at $13/SF with 2.5% annual increases

Landlord pays $10/SF for TI for new tenant in 2021

Landlord Pays 5% leasing commission for a 5 year lease at $13/SF NNN Beginning 2021

Landlord Pays 5% leasing commission for 5-year renewal at the 2026 projected rate of $14.70/SF NNN

Year 10 Exit Cap Rate of 8.5%

Financing Assumptions: LTV: 70% ; 25 Year Term ; 4.50% Interest Rate

REGIONAL MAP


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AERIAL PHOTO


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NAS OCEANA

LOCAL MAP


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AERIAL PHOTO


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PROXIMITY WITHIN VIRGINIA BEACH


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CORPORATE LANDING INFORMATION

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Corporate Landing Business Park is located on the southwestern side of the NAS Oceana and is a 325-acre Class A office,

research, data center and light-industrial business park. The park is located only 5 miles from I-264 via four-lane, divided

arterial roads, with a campus-like setting in an opportunity zone and it is development ready with all utilities stubbed to the

site.

Telxius, a subsidiary of Telefónica, has constructed a 24,000-square-foot cable landing station to support two new ultra-high

speed transatlantic fiber optic telecommunication cables linked at Corporate Landing. The first one MAREA, owned by

Microsoft, Facebook, and Telefónica, brought the first ultra-high-speed 200 terabit fiber optic cable from Bilbao, Spain to

Corporate Landing. BRUSA, owned by Telefónica , brought the second cable from Rio de Janeiro, Brazil to Virginia Beach in

Q4 2018. The landing station provides high capacity, reliable connectivity options to carriers, data center and colocation

facility operators. MAREA and BRUSA, are the newest and fastest ultra high-speed transatlantic fiber optic telecommunication

cables in the world.

Corporate Landing Business Park Overview

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20-Minute Drive Time StatsPopulation: 287,125Median Age: 35


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MARKET

COMPARABLES


SALES COMPARABLES MAP

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CORPORATE LANDING BUSINESS PARK

OFFICE BUILDING

(SUBJECT)

Corporate Woods Business

Center

1632 Corporate Landing

Union Bank

555 S Independence Blvd

Lynnhaven Corporate

Center II

Park West

SALES COMPARABLES

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3

4

5

6

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PROPERTY NAMECORPORATE LANDING BUSINESS PARK OFFICE BUILDING

SALES COMPARABLES

Avg. $130.78

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00

$200.00

1732CorporateLandingPkwy

CorporateWoods

BusinessCenter

1632CorporateLanding

Union Bank 555 SIndependence

Blvd

LynnhavenCorporateCenter II

Park West

Average Price Per Square Foot

SALES COMPARABLES SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


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SALES COMPARABLES

Asking Price $4,500,000

Price/SF $145.01

Year Built 2009

Occupancy 0%

Parking Ratio 4.65/1,000sf

1732 CORPORATE LANDING PKWY1732 Corporate Landing Pkwy, Virginia Beach, VA, 23454

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Close of Escrow 9/24/2019

Sales Price $4,155,000

Rentable SF 35,295

Price/SF $117.72

Year Built 1987

CORPORATE WOODS BUSINESS CENTER5040 Corporate Woods Drive, Virginia Beach, VA, 23462

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Rentable SF 9,712

Price/SF $180.19

Year Built 1996

1632 CORPORATE LANDING1632 Corporate Landing, Virginia Beach, VA, 23462

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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SALES COMPARABLES

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Rentable SF 20,733

Price/SF $149.52

Year Built 1985

UNION BANK641 Lynnhaven Pky, Virginia Beach, VA, 23462

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Rentable SF 61,528

Price/SF $138.15

Year Built 2013

555 S INDEPENDENCE BLVD555 S Independence Blvd, Virginia Beach, VA, 23462

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Rentable SF 39,516

Price/SF $96.80

Year Built 1985

LYNNHAVEN CORPORATE CENTER II760 Lynnhaven Pky, Virginia Beach, VA, 23462

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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SALES COMPARABLES

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Rentable SF 66,000

Price/SF $102.27

Year Built 1989

PARK WEST2877 Guardian Ln, Virginia Beach, VA, 23462


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MARKET

OVERVIEW

MARKET OVERVIEW

VIRGINIA BEACHOVERVIEW

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Hampton Roads, also known as the Virginia Beach-Norfolk-Newport News

metropolitan area, is recognized for its miles of waterfronts and beaches,

military presence, harbors, shipyards and coal piers. The metro is composed

of James, Gloucester, Mathews, York and Isle of Wight counties in Virginia,

and Gates and Currituck counties in North Carolina, as well as the cities of

Virginia Beach, Williamsburg, Chesapeake, Norfolk, Newport News,

Hampton, Poquoson, Portsmouth and Suffolk. Approximately 1.8 million

people reside in the market, roughly 460,000 of whom are in Virginia Beach,

the market’s most populous city.

MARKET OVERVIEW

METRO HIGHLIGHTS

MILITARY CONCENTRATION

The metro has the second-largest concentration of

military personnel in the U.S. with nine military

installations providing numerous jobs.

HOSPITALITY AND TOURISM

Visitors are drawn to Williamsburg and the multiple

beaches and resorts, which have activities for

everyone.

SKILLED WORKERS

Technical knowledge learned in the military helps to

provide a highly educated and skilled labor force.


MARKET OVERVIEW

ECONOMY▪ The local economy is best known for tourism and defense, but advanced manufacturing,

maritime and logistics, cybersecurity and biomedical technology are growing sectors.

▪ Fortune 500 headquarters include Norfolk Southern, Dollar Tree and Huntington Ingalls

Industries. Other companies headquartered locally include Gold Key PHR, Amerigroup, Anthem

and Stihl.

▪ The large military presence includes Naval Station Norfolk, Joint Expeditionary Base Little

Creek-Fort Story, Naval Air Station Oceana Dam Neck Annex, Joint Base Langley-Eustis,

Norfolk Naval Shipyard and Coast Guard Base-Portsmouth.

MAJOR AREA EMPLOYERS

Huntington Ingalls Industries Inc.

Sentara Healthcare

Naval Medical Center Portsmouth

Norfolk Naval Shipyard

Riverside Health System

The Colonial Williamsburg Foundation

Joint Expeditionary Base Little Creek-Ft. Story

GEICO General Insurance Co.

Naval Air Station Oceana-Dam Neck

Nasa Langley Research University* Forecast

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SHARE OF 2019 TOTAL EMPLOYMENT

MANUFACTURING

7%GOVERNMENT

HEALTH SERVICES

EDUCATION AND

+OTHER SERVICES

5%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

16%

AND UTILITIES

TRADE, TRANSPORTATION CONSTRUCTION

PROFESSIONAL AND

BUSINESS SERVICES

1%INFORMATION

15%

5%

20% 12% 5%

14%

MARKET OVERVIEW

DEMOGRAPHICS

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

▪ The metro is projected to expand by 60,800 people through 2024, resulting in the

formation of 26,800 households during this period.

▪ Median home prices that are above the U.S. level contribute to a homeownership rate

of 56 percent, which is slightly below the national rate of 57 percent.

▪ Approximately 30 percent of residents age 25 and older hold a bachelor’s degree; of

those residents, 12 percent also have earned a graduate or professional degree.

Known for its beaches and water recreation, the region has much to offer by way of outdoor

activities and entertainment. Busch Gardens Williamsburg, Colonial Williamsburg, the USS

Wisconsin and the Virginia Aquarium are prominent attractions that draw tourist and locals

alike. Cultural activities are available at the Virginia Museum of Contemporary Art, Virginia

Aquarium & Marine Science Center and Virginia Beach Amphitheater. Sports teams play at

the Virginia Beach Sportsplex, Harbor Park and Scope Arena, while the Kingsmill

Championship is held here as a part of the LPGA Tour. Universities include the College of

William & Mary, Old Dominion University, Virginia Wesleyan College, Hampton University,

Christopher Newport University and Norfolk State University.

QUALITY OF LIFE

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* Forecast

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s

Analytics; U.S. Census Bureau


2019 Population by Age

0-4 YEARS

6%5-19 YEARS

19%20-24 YEARS

8%25-44 YEARS

28%45-64 YEARS

25%65+ YEARS

14%

36.1

2019MEDIAN AGE:

U.S. Median:

38.1

$64,900

2019 MEDIAN HOUSEHOLD INCOME:

U.S. Median:

$60,800

1.8M

2019POPULATION:

Growth2019-2024*:

3.4%

660K

2019HOUSEHOLDS:

4.1%

Growth2019-2024*:

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2019 Experian

Created on August 2020

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2024 Projection

Total Population 9,154 49,646 127,742

▪ 2019 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Current Daytime Population

2019 Estimate 8,176 43,466 120,769

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2024 Projection

Total Households 3,287 16,340 46,616

▪ 2019 Estimate


Average (Mean) Household Size 2.83 2.92 2.66

▪ 2010 Census


▪ 2000 Census


HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2019 Estimate

$200,000 or More 4.32% 5.47% 5.08%

$150,000 - $199,999 5.32% 9.81% 6.81%

$100,000 - $149,000 15.94% 24.32% 19.05%

$75,000 - $99,999 18.19% 19.85% 16.68%

$50,000 - $74,999 21.08% 18.21% 19.75%

$35,000 - $49,999 12.68% 9.08% 12.23%

$25,000 - $34,999 8.65% 5.40% 7.75%

$15,000 - $24,999 7.73% 3.85% 5.91%

Under $15,000 12.31% 11.31% 12.95%

Average Household Income $86,572 $106,442 $92,791

Median Household Income $65,914 $86,755 $71,788

Per Capita Income $30,773 $35,426 $34,153

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2019 Estimate Total Population 9,191 48,474 124,567

Under 20 28.10% 28.56% 25.68%

20 to 34 Years 24.93% 22.28% 26.05%

35 to 39 Years 8.06% 7.13% 7.28%

40 to 49 Years 13.89% 14.29% 13.26%

50 to 64 Years 17.31% 18.68% 17.80%

Age 65+ 7.73% 9.10% 9.93%

Median Age 33.23 34.40 33.90

▪ Population 25+ by Education Level

2019 Estimate Population Age 25+ 5,902 30,384 82,100

Elementary (0-8) 1.23% 0.66% 1.21%

Some High School (9-11) 5.27% 2.92% 4.71%

High School Graduate (12) 27.98% 21.50% 22.70%

Some College (13-15) 28.87% 26.95% 27.66%

Associate Degree Only 10.55% 12.10% 11.31%

Bachelors Degree Only 16.53% 23.25% 21.19%

Graduate Degree 8.10% 11.97% 10.34%

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Income

In 2019, the median household income for your selected geography is

$65,914, compare this to the US average which is currently $60,811.

The median household income for your area has changed by 45.57%

since 2000. It is estimated that the median household income in your

area will be $75,988 five years from now, which represents a change

of 15.28% from the current year.

The current year per capita income in your area is $30,773, compare

this to the US average, which is $33,623. The current year average

household income in your area is $86,572, compare this to the US

average which is $87,636.

Population

In 2019, the population in your selected geography is 9,191. The

population has changed by 0.37% since 2000. It is estimated that the

population in your area will be 9,154.00 five years from now, which

represents a change of -0.40% from the current year. The current

population is 48.01% male and 51.99% female. The median age of the

population in your area is 33.23, compare this to the US average

which is 38.08. The population density in your area is 2,923.54 people

per square mile.

Households

There are currently 3,267 households in your selected geography. The

number of households has changed by 9.63% since 2000. It is

estimated that the number of households in your area will be 3,287

five years from now, which represents a change of 0.61% from the

current year. The average household size in your area is 2.83

persons.

Employment

In 2019, there are 4,221 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

57.17% of employees are employed in white-collar occupations in this

geography, and 43.04% are employed in blue-collar occupations. In

2019, unemployment in this area is 2.72%. In 2000, the average time

traveled to work was 24.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

72.58% White, 13.29% Black, 0.19% Native American and 4.65%

Asian/Pacific Islander. Compare these to US averages which are:

70.07% White, 12.87% Black, 0.19% Native American and 5.66%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 10.21% of the current year

population in your selected area. Compare this to the US average of

18.17%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $249,743 in 2019,

compare this to the US average of $212,058. In 2000, there were

2,093 owner occupied housing units in your area and there were 887

renter occupied housing units in your area. The median rent at the

time was $631.

Source: © 2019 Experian

DEMOGRAPHICS

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DEMOGRAPHICS

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corporate landing business park office building

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