Single-Tenant Office

Value-Add Office Opportunity

4701 Forbes Blvd, Lanham, MD 20706

Listing Price: $5,500,000

Cap Rate
9.58%
Tenant Name
Leidos
Years Remaining On Lease
0.70
Guarantor
Subsidiary of a Corporation
Rentable SF
43,960
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$12.87

Investment Overview

Marcus & Millichap is pleased to present for sale 4701 Forbes Boulevard in Lanham, Prince George’s County, Maryland. This unique offering consists of a two-story, 43,960 SF office building originally constructed in 1979 as a build-to-suit for Lockheed Martin Corporation. A series of corporate subsidiaries held by Lockheed Martin have occupied the location since its original construction with Leidos as the most recent subsidiary. The property is strategically located along a main commercial corridor on Forbes Boulevard within the Lanham Office Submarket of the Washington DC MSA. Located approximately one mile west of the interchange with US-1-495 (via Route 704), the property provides stellar access to the surrounding suburbs of the National Capital and Alexandria, Virginia. Leidos has committed to fully occupying the building through July of 2021 with no remaining renewal options. Pending outstanding bids for additional government contract work, the tenant may seek to negotiate a new lease to continue occupying the entire building should the bids be awarded and allocated to this facility. However, the most recent amendment to the lease agreement includes a provision for the landlord and tenant to agree to extend the lease and with the tenant downsizing to occupy 18,600 SF. This amendment also provides the landlord with the right to backfill and build out the remaining potentially vacant 25,360 SF of space. Under the lease in place, the tenant is responsible for the direct payment of real estate taxes, direct payment of all non-structural interior and exterior expenses, and reimbursement to the landlord for insurance. The most recent lease amendment provides that expenses paid by the tenant will be amended to a pro-rata share in the event the tenant elects to continue occupying 18,600 SF of building and the landlord elects to lease the remaining space to another tenant. This offering is most suitable for the value-add investor intending to convert the property into a multi-tenanted office or office condominium building and/or negotiate an agreement with Leidos to continue occupying all or a portion of the building. This offering is also suitable for the owner-user who seeks to offset the cost of buildout with the ±$500,000 of passive net income currently in place. This offering appeals to either scenario, given that the investor will have the opportunity to collect gross rent from the tenant at $12.87 PSF (54% of market rent) during the first year of investment.

Investment Highlights

  • State-of-the-Art Facility Occupied 40 Years by Publicly-Traded Defense Contractor
  • Appealing Owner-User or Value-Add Offering Located in Core Office Market
  • Collect +$41K Passive Monthly Income for Nearly 12 Months While Considering Lease-Up, Build-Out or Renewal Options
  • Desirable Access to Surrounding D.C. Markets

Exclusively Listed By

Broker of Record

  • Bryn Merrey

    Senior Managing Director Investments

    License(s): MD: 646476

    Maryland

Single-Tenant Office

Value-Add Office Opportunity

Listing Price: $5,500,000

Cap Rate
9.58%
Tenant Name
Leidos
Years Remaining On Lease
0.70
Guarantor
Subsidiary of a Corporation
Rentable SF
43,960
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$12.87

Investment Highlights

  • State-of-the-Art Facility Occupied 40 Years by Publicly-Traded Defense Contractor
  • Appealing Owner-User or Value-Add Offering Located in Core Office Market
  • Collect +$41K Passive Monthly Income for Nearly 12 Months While Considering Lease-Up, Build-Out or Renewal Options
  • Desirable Access to Surrounding D.C. Markets

Investment Overview

Marcus & Millichap is pleased to present for sale 4701 Forbes Boulevard in Lanham, Prince George’s County, Maryland. This unique offering consists of a two-story, 43,960 SF office building originally constructed in 1979 as a build-to-suit for Lockheed Martin Corporation. A series of corporate subsidiaries held by Lockheed Martin have occupied the location since its original construction with Leidos as the most recent subsidiary. The property is strategically located along a main commercial corridor on Forbes Boulevard within the Lanham Office Submarket of the Washington DC MSA. Located approximately one mile west of the interchange with US-1-495 (via Route 704), the property provides stellar access to the surrounding suburbs of the National Capital and Alexandria, Virginia. Leidos has committed to fully occupying the building through July of 2021 with no remaining renewal options. Pending outstanding bids for additional government contract work, the tenant may seek to negotiate a new lease to continue occupying the entire building should the bids be awarded and allocated to this facility. However, the most recent amendment to the lease agreement includes a provision for the landlord and tenant to agree to extend the lease and with the tenant downsizing to occupy 18,600 SF. This amendment also provides the landlord with the right to backfill and build out the remaining potentially vacant 25,360 SF of space. Under the lease in place, the tenant is responsible for the direct payment of real estate taxes, direct payment of all non-structural interior and exterior expenses, and reimbursement to the landlord for insurance. The most recent lease amendment provides that expenses paid by the tenant will be amended to a pro-rata share in the event the tenant elects to continue occupying 18,600 SF of building and the landlord elects to lease the remaining space to another tenant. This offering is most suitable for the value-add investor intending to convert the property into a multi-tenanted office or office condominium building and/or negotiate an agreement with Leidos to continue occupying all or a portion of the building. This offering is also suitable for the owner-user who seeks to offset the cost of buildout with the ±$500,000 of passive net income currently in place. This offering appeals to either scenario, given that the investor will have the opportunity to collect gross rent from the tenant at $12.87 PSF (54% of market rent) during the first year of investment.

Exclusively Listed By

Broker of Record

  • Bryn Merrey

    Senior Managing Director Investments

    License(s): MD: 646476

    Maryland

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