Mixed-Use Redevelopment Opportunity

Office, Retail, Residential

North Bethesda, MD

Future Rendering

EX E C U TIVE S U MMA R Y

The
North
Bethesda
Portfolio

Executive Summary
Phase II

As the exclusive representative for the Owner, Holliday

Fenoglio Fowler, L.P. (HFF) is pleased to present the
opportunity to acquire the North Bethesda Portfolio (the
Property or the Site). Comprised of four existing office/
retail buildings on 3.8 acres and a leasehold interest in

Phase I

an adjacent 5.4 acre surface parking lot (450 parking

spaces), The North Bethesda Portfolio is a mixed-use,
Metro-accessible redevelopment opportunity located on
Rockville Pike in North Bethesda, Maryland.

Redevelopment plans consist of three phases

totaling 740,528 SF:
Up to 464 residential units;
Up to 200,000 SF of commercial space (office & retail);
Parking for 632-720 vehicles;
Existing Office
Phase III

Continued use of an existing 63,650 SF, Class A

office asset constructed in 2004.

Located just one block south of the White Flint Metro Station (Red Line), the North

Investment Highlights

Bethesda Portfolio is situated in the heart of the White Flint Sector Plan, one of

Significant development upside consisting of a fully entitled,

North Bethesda Market, featuring a 52,000 SF Whole Foods, the North Bethesda

3.8 acre mixed-use development site prominently located on

Portfolio is also in close proximity to transformative projects such as Federal

Rockville Pike in North Bethesda, MD, complete with approved

Realty Investment Trusts recently delivered Pike & Rose, as well as LCORs North

plans with a potential for 740,000 SF of mixed-use development.

Bethesda Center and Lerner Enterprises redevelopment of White Flint Mall.

Montgomery Countys most vibrant retail districts. In addition to being adjacent to

Secure land basis with strong property cash flow consisting of four
office/retail assets, anchored by build-to-suit tenant Georgetown

Reflecting broader trends nationwide, office tenants and apartment dwellers

University Medical Center (31,052 SF, LED: April 2019).

alike have shown a strong preference for Metro-proximate properties, which

Excellent access to Metro with the White Flint Metro Station (Red
Line) less than a quarter mile from the Site.
Located adjacent to the successful North Bethesda Market
development, home to a 52,000 SF Whole Foods and a 55,000 SF
LA Fitness, as well as an array of upscale restaurants and retailers,
including Seasons 52, Arhaus and Brio Tuscan Grille, which offer
the North Bethesda Portfolio a strong and immediately accessible
amenity base.

is exhibited on Rockville Pike by the strong outperformance of office and

residential assets within a half-mile radius of the White Flint, Twinbrook, and
Rockville Metro Stations. This subset of Metro-accessible office assets has
an occupancy rate of 92%, reflecting vacancy that is half that of the broader
North Bethesda/Potomac and Rockville submarkets. In concert with buildto-suit, anchor tenant Georgetown University Medical Centers long-term
commitment to the North Bethesda Portfolio, the existing office/retail assets
provide strong cash yields through the redevelopment period.
This unique offering presents the opportunity for an investor to acquire an
entitled, Metro-accessible, mixed-use redevelopment that can be phased over
time, while enjoying reliable cash flow from the existing commercial assets. The
ongoing transformation and redevelopment of White Flint ensures an investor
considerable upside over the long-term and a yielding land play until that time.

Property Overview
NORTH BETHESDA PORTFOLIO PROPERTY OVERVIEW
11420
Rockville Pike

11426-11428
Rockville Pike

5640
Nicholson Lane

CR-4

CR-4

CR-4
1.41 acres

0.60 acres

5.43 acres

Class B Office

Class B Office/Retail

Class B Office/Retail

Class A Office/Retail

Surface Parking Lot

Year Built/Renovated:

1963/2004

1965/2005

1963/2004

2004

N/A

Rentable Area (RSF):

40,742

56,145

42,663

63,650

N/A

4*

4*

4*

N/A

10,200

14,000

9,800

21,750

N/A

9%

41%

58%

91%

N/A
Ground Lease - 2062 LED

Property Address:
Alternate Address(es):

Zoning:

Floors:
Floorplate (RSF):
Occupancy:
Wtd Avg Remaining Lease Term:

1.76 acres

0.6 yrs

0.9 yrs

Total

CR-3

CR-3
9.20 acres

203,200

2.5 yrs

4.7 yrs

Phase II

Existing/Phase III**

Condominium

Residential

Commercial

Residential

85,000 GFA

407,000 GFA

67,260 GFA

492,000 GFA

70 units/10 MPDU

335 units/49 MPDU

(existing)

405 units/59 MPDU

Phase I
Development Potential:

Lutrell Lot

5650 Nicholson Lane

Total Land Area:

Property Type:

11333
Woodglen Drive

Retail

Retail

Commercial

75,000 GFA

25,000 GFA

100,000 GFA

67,260 GFA

67,260 GFA

(existing)

(existing)

* Includes one below-grade level.

** Yet to be designed Phase III offers up to 90,000 SF of density to be added to 11333 Woodglen Drive.

WHITE FLINT
METRO STATION
<0.25 MILES

LUTRELL LOT

Executive Summary
Phase I Retail & Residential Rendering

Cash Flowing Redevelopment Opportunity

Amenity Base

The North Bethesda Portfolio presents rare flexibility to redevelop under

A new vision for North Bethesda is coming into focus. Similar

the most ideal timing and economic scenario due to its existing, cash-

to the expansion that occurred in the Rosslyn-Ballston corridor,

flow yielding office/retail assets.

the redevelopment of North Bethesda Portfolio will continue the

A thoughtfully phased redevelopment plan has been approved which

allows future investors to reap the benefits of the regions overall
revitalization while mitigating development and supply risks.
The planned mix of apartments, condominiums, office and retail will
further advance Rockville Pikes vision for a more dense, walkable and
transit-oriented area.

transformation of Rockville Pike into an attractive, walkable district

appealing to both residents and office users.
The North Bethesda Portfolio is at the doorstep of a considerable
existing amenity base comprised of over 13 million SF of retail space
within a five-mile radius of the Property.
Immediately adjacent to North Bethesda Portfolio, North Bethesda
Market offers convenient grocery and retail shopping and dining, while

Accessibility

also cultivating a walkable urban area that will complement the North

The North Bethesda Portfolio is located within walking distance of the White

the existing adjacent Whole Foods and LA Fitness locations.

Flint Metro Station (Red Line), enabling convenient access for future residents

Pike & Rose, Federal Realty Investment Trusts new mixed-use

and existing office users to the broader Washington metropolitan area,

development just a few blocks north of the North Bethesda Portfolio,

including Walter Reed National Military Medical Center, National Institutes

offers an array of upscale dining and retail to Rockville Pike, including a

of Health (NIH), Washington, DCs CBD and Union Station. The North Bethesda

luxury movie theater and bowling alley.

Portfolio is also convenient to several of the regions major roadways.

The Capital Beltway (I-495) is minutes south of the North Bethesda
Portfolio via Rockville Pike, connecting the Property to the entire MidAtlantic region.
I-270 is less than two miles southwest of the Property by way of Old
Georgetown Road and creates a vital corridor between several of the
regions largest biotechnology employers along northern I-270 and NIH
in North Bethesda.
4

Bethesda Portfolio by providing a shadow anchor for retail tenants with

Located directly across Rockville Pike from White Flint Mall, which is
slated for transformative redevelopment that will further enhance the
urbanization of the area.

James A. Meisel

Stephen Dek Potts Jr.

Andrew M. Weir

Stephen C. Conley

Holliday Fenoglio Fowler, L.P.

Holliday Fenoglio Fowler, L.P.

Holliday Fenoglio Fowler, L.P.

Holliday Fenoglio Fowler, L.P.

Senior Managing Director

202.533.2505
jmeisel@hfflp.com

Senior Managing Director

202.533.2528
dpotts@hfflp.com

Senior Managing Director

202.533.2504
aweir@hfflp.com

Executive Managing Director

202.533.2533
sconley@hfflp.com

Matthew T. Nicholson

Multi-Housing:
David R. Nachison

Multi-Housing:
Alan Davis

Financing:
Susan B. Carras

Holliday Fenoglio Fowler, L.P.

Holliday Fenoglio Fowler, L.P.

Holliday Fenoglio Fowler, L.P.

Holliday Fenoglio Fowler, L.P.

Associate Director
202.533.2502
mnicholson@hfflp.com

Senior Managing Director

202.533.2536
dnachison@hfflp.com

Senior Managing Director

202.533.2508
adavis@hfflp.com

Senior Managing Director

202.533.2526
scarras@hfflp.com

WHITE FLINT
METRO STATION
<0.25 MILES

NICHOLSON LANE
5640 NICHOLSON LANE

RO
LE

VIL

CK

WOODGLEN

11426-11428 ROCKVILLE PIKE

PIK

DRIVE

11333 WOODGLEN

11420 ROCKVILLE PIKE

Holliday Fenoglio Fowler, L.P. (HFF) a Maryland licensed real estate broker.
2014 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading
provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate
HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement,
advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.
HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property
[properties] described herein has been obtained from sources other than HFF and we make no representations or warranties, express or
implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and
any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only
and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers
should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.

1775 Pennsylvania Avenue, NW | 5th Floor

Washington, DC 20006
202.533.2500 | www.hfflp.com