KLNB Campagna Center RFP

EXCITING involved

LOCAL changing

unique culture
growing

evolving

desirable

waterfront
rootsFAMILies
intelligent
HISTORY CHILDREN

RESPECTED dHivOerMseE
optimistic COMMUNITY

traditionLOVE

landlord representation
tenant representation
investment sales
CORPORATE advisory services
property management
financing

For almost 50 years, KLNB has exceeded client expectaTions
and set the standard as THE leading commercial real estate FIRM

In the mid-atlantic region.

DOMINAnt

PROVIDER OF
COMMERCIAL
REAL ESTATE
SERVICES

NAI KLNB focuses exclusively on office-user clients, distribution centers, manufacturing facilities,
warehouses and high-tech research facilities. These specialists work with both small clients and
major corporations to fulfill their office/industrial/land requirements in Central Business District,
Suburban Office Markets and Industrial settings with in-depth market information and analysis.

Founded in 1968, KLNB is a dominant provider of commercial real estate services throughout
the Mid-Atlantic Region. The entity serves as the holding company that includes NAI KLNB, a
division that focuses on the sale and leasing of commercial office, industrial and warehouse
properties. Also included within the family of companies are KLNB Retail, KLNB Retail
Investment Sales Group and the Single Tenant Net Lease Group. In 2008, Paragon Commercial
Property Management was founded as a subsidiary of KLNB, LLC and provides full-service
commercial real estate property and asset management services. Arris Realty Capital is a joint
venture between KLNB & ColumbiaNational Real Estate Finance whose sole purpose is to
provide commercial real estate financing options to KLNB clients.

WE CALL

ALEXANDRIA

HOME

about US...

78 founded in 5 OFFICES in the mid-atlantic region

brokerage BALTIMORE $1.47
professionals billion 2015
MARYLAND IN
Baltimore, MD Columbia, MD Washington, DC Tysons, VA Dulles, VA $1
1968 billion 2003

in-house access to
marketing state-of-the-art
and design technology and
team industry databases
Retail Brokers / O ce & Industrial Brokers

transactional volume history
In 2015, KLNB achieved...

transactional 1,032 16.6% $0 1968

volume of leasing increase from
and sales the previous
$1.47 transactions year

BILLION

NAI KLNB provides access through long term relationships with national, regional and local clients. Our
intimate knowledge of Alexandria and its neighborhoods allows us to market and explain the value of
non-traditional sites and projects to a wide variety of prospects.

Let KLNB help make The Campagna Center’s vision a reality.

meet your team

Josh, Jack and Pierce are uniquely positioned and experienced with transactions of the kind The Campagna Center is looking to execute.
All currently residents of Alexandria, our team does a significant portion of their business within the city limits. Throughout Josh’s ten years
of working in the commercial real estate industry, he has completed numerous transactions in Old Town, including upward of $80 million in sales
transactions in the last 3 years alone. Jack’s experience in the industry is unique in the variety of transaction types with which he’s worked and
clients whom he’s represented. His representation of many nonprofits and credit unions provide him a specific insight that will be beneficial to
this specific type of transaction. Born and raised in Alexandria, Pierce has deep ties to the community. Since joining KLNB from Transwestern last
year, Pierce has focused almost entirely in Old Town and has done more than $15 million is sales there in 2016 alone. He’s had success in locating
numerous off-market opportunities for his clients and will be able to provide that skill set to The Campagna Center.

“Bench Players” “Team Owner” PIERCE KReuTZER

Architect, Project Manager, Arris Realty Capital The Campagna Center, Tammy Mann TITLE: associate
college: ohio university
Mayela López Scott hometown: alexandria, va
Director of Marketing
Second generation born
“Power Forward” and raised in alexandria

4 Prior to getting into
real estate, he was a chef
3Pierce Kreutzer in DC and Charleston, SC JOSH SIMON

“Shooting Guard” Has a 200 acre operational TITLE: Principal
farm in Ohio college: miami university
hometown: Potomac, md
he has remodeled 3 homes
with his mother...working on Live Music fanatic. has seen his
their 4th now! favorite band, MOFRO, live 30+ times

Why does he love his job? “The ability to work on all passionate about Skiing. he would
live on a mountain in a heartbeat.
sorts of transaction types, I love working with
historic properties, and I really enjoy watching deals resident of Alexandria for
come together.” 8+ years

1Josh Simon Youngest Partner at KLNB

“Point Guard” Two awesome kids and a lot of
diapers
jack regler
Why does he love his job? “flexibility, never standing
TITLE: associate
college: virginia tech still, and no day is exactly the same ”
hometown: Levittown, pa
5 2
Alexandria resident for 11 years
Real Estate Attorney Jack Regler
& Land Use Counsel “Small Forward” huge Hokie fan!
“Center”
Father of 3 wonderful little girls
“Community & Fans” ages 6, 4 and 1
Go, Team, Go!
married into a family of teachers
born and raised in Alexandria;

looks forward to: Golf trips
with his Dad more than anything

Why does he love his job? “ability to be your own boss,

working with clients of all different business types,
no cap on success”

project team office-flex sales
alexandrIA, VA 2011-2016

1 234 56

5440 CHEROKEE AVENUE 1423 Leslie Avenue 1000 Bernard Street 4226-4228 King Street 515 N. Washington Street 950 N. Washington Street

alexandria, va alexandria, va alexandria, va alexandria, va alexandria, va alexandria, va

Close Date: May 9, 2011 Close Date: November 5, 2012 Close Date: July 31, 2013 Close Date: November 6, 2013 Close Date: December 10, 2013 Close Date: February 18, 2014
Building Size: 44,116 SF Building Size: 11,911 SF Building Size: 16,900 SF Building Size: 7,644 SF Building Size: 25,204 SF Building Size: 28,200 SF
Sale Price: $6,800,000.00 Sale Price: $1,850,000.00 Sale Price: $4,850,000.00 Sale Price: $1,425,000.00 Sale Price: $5,200,000 Sale Price: $4,500,000
($) psf: $154.14 ($) psf: $155.31 psf ($) psf: $286.98 ($) psf: $186.42 ($) psf: 206.32 ($) psf: $159.57
KLNB Represented: Buyer KLNB Represented: Seller KLNB Represented: Both Buyer KLNB Represented: Seller KLNB Represented: Buyer KLNB Represented: Buyer
and Seller

7 8 9 10 11 12

203 S. Union Street 410-420 Calvert Avenue 410-420 Calvert Avenue 216 S. Peyton Street 1605 King Street 1200 N. Henry

alexandria, va alexandria, va alexandria, va alexandria, va alexandria, va alexandria, va

Close Date: January 30, 2014 Close Date: January 2, 2014 Close Date: July 26, 2016 Close Date: October 6, 2016 Close Date: October 14, 2016 Close Date: October 5, 2016
Building Size: 5,960 SF Building Size: 33,582 SF Building Size: 33,582 SF Building Size: 11,363 SF Building Size: 13,058 SF Building Size: 14,000 SF
Sale Price: $1,800,000.00 Sale Price: $2,800,000 Sale Price: $6,078,000 Sale Price: $2,820,000 Sale Price: $3,500,000 Sale Price: $3,850,000
($) psf: $302.01 ($) psf: $83.38 ($) psf: $180.99 ($) psf: $248.17 ($) psf: $268.03 PSF: $275
KLNB Represented: Seller KLNB Represented: Buyer KLNB Represented: Seller KLNB Represented: Seller KLNB Represented: Buyer KLNB Represented: Buyer

THINK 4
GLOBAL
ACT 89

LOCAL 23
12
1 6

5
11
10

7

APPROACH,
PROCESS
AND SCHEDULE

APPROACH 1 APPROACH 2

Our first recommended approach is fairly straightforward. Identify a Buyer for the current property Our second strategic approach is undoubtedly a more challenging structure, in which we would identify
prior to setting in motion plans to relocate. We view this strategy as one with the lowest amount of risk, and potential buyers for 418 S. Washington by virtue of what they can potentially trade us, to perform a “property
then obviously high reward in the hopes we can find a suitable replacement for The Campagna Center. From a swap”. In this scenario we would attempt to identify buyers who also own property in Alexandria that they might
mechanical perspective, the process would look somewhat as follows (note this timeline can be moved as needed be willing to trade for 418 S. Washington Street. The most recent example of this in our market is occurring with
based on TCC’s input). Please also pay attention to the corresponding notes at the bottom of the timeline, as well the FBI headquarters in Washington DC, who requested RFP’s from the Development Community with preference
as the color coding of the dates. Dates in black relate to Disposition of 418 S. Washington, dates in red correspond to any groups who would be willing to trade and then build FBI a new headquarters as a swap for the DC
with Acquisition of The Campagna Center’s new home: location. Clearly this would be a more difficult transaction to contemplate but it is a scenario we can evaluate and
discuss further. See timeline as follows:
November–December..............................Engage a Broker and prepare marketing materials for 418 S. Washington
November–December..............Engage a Broker and prepare marketing materials with RFP for 418 S. Washington
January 1................................................................................................................Launch Marketing/Disposition process January 1................................................................................................................Launch Marketing/Disposition process
March 30.................................Short list RFP to top three Buyers, who would be willing to swap properties for 418
January 1..........................................................................................KLNB/TCC begin surveying and touring the market April 15.....................................................................................Tour Properties and begin evaluation of best fit for TCC
May 15.................................................................................................................Negotiate with best swap Partner/Buyer
February 15...........................................................................................................Call for Offers from Buyers/Developers April 1.............................................................................................................................Finalize LOI and move to Contract
April 15......................................................................................Signed Contract (30 – 60 day Buyer evaluation period)
February 15–24...............................................................................................Identify & Interview Top Three (3) Bidders June 1..........................................................................................................Buyer goes “firm” on Earnest Money Deposit
June 1.............................................................................................TCC goes “firm” on its commitment to new Property
March 3..............................................................................................................................................Best & Final Offers Due August 1............................................................................................................................Simultaneous Settlement occurs
December 1.................................................................................................................................TCC moves into new home
March 3..................................Project Team has Identified 1-2 suitable replacement properties for TCC to Purchase
As discussed in Approach #1, finding a suitable Buyer for 418 won’t be a challenge. The aspect of this
March 10........................................................................................................................Finalize LOI and move to Contract strategic plan that is difficult however, is identifying a Buyer who has property it can trade that is of equal or
greater value than 418 S. Washington.
March 31.....................................................................................Signed Contract (30–60 Day Buyer Evaluation Period)
Our professional opinion is while Approach #2 certainly has its appealing aspects, we can always be open
April 1..............................................................................................................................Negotiate LOI with new Property to this idea while still working through the plan as previously outlined.

Begin architectural evaluation and commerce discussions with Lender/Equity Sources To Summarize...Keep these ideas in mind for potential Buyers but stay committed to the strategic plan outlined
in Approach #1.
May............................................................................................Finalize Purchase and Sale Agreement of new Property

(with expectation that 418 Disposition will occur smoothly)

June 1.........................................................................................................Buyer goes “firm” on Earnest Money Deposit

November 1.........................................................................................................Settlement occurs at 418 S. Washington

December 1..................................................................................................................Settlement occurs at new Property

Identifying a Buyer for The Campagna Center will not be a terribly difficult process. The property will be
highly sought after and will most likely garner the strongest level of interest from the Residential Development
Community. It would not be uncommon, however, to also see “other” developers, notably, from the Senior Living
market segment who has been feverishly trying to identify suitable development sites in Old Town. We’re also
going to receive interest from Users, whether it be Schools, Professional Office groups, Shared Office, or other
secondary uses that want to own their own building in Old Town.

The dates we have set forth are not only achievable, they’re conservative. We can move at a faster pace APPROACH 1 APPROACH 2
if necessary. We want to point out two critical dates, the first being when a buyer goes firm on their deposit.
In commercial sales, Buyers are typically afforded a 30-60 day study period to evaluate a Property. During this easy hard
time they’re digging deeper into the physical nature of the building, lining up financing, and making sure their easy hard
development plans can be implemented. We would recommend pushing for a 5% deposit on the total value of the
sale, for example, a $6M sales price would equate to a $300,000 earnest money deposit. That way, once the Buyer
goes “firm” that money is non-refundable. At that point, we have comfort the Buyer will Settle as they would not
want to lose that capital. This will free us up to really dig into finding a replacement property for The Campagna
Center.

The other date we need to focus on is actual closing. Our view is once the earnest money becomes non-
refundable, giving a Buyer a longer runway to close would be a win-win for both sides. For TCC, the excess time
will allow us to execute a relocation plan. It may be that TCC will need to lease back another 6–12 months after
Closing anyhow, depending on what we’re able to pinpoint as TCC’s new home. So much hinges upon the new
location that it could be possible (worst case scenario) we’re looking at a mid to late 2018 date of Occupancy.
From a Buyer perspective, particularly a residential developer, this additional time to finalize architectural design,
construction documents, and necessary approvals to begin construction, may equate to a slightly higher value on
the sales price since they will not be carrying the Property from a debt perspective.

To Summarize....Perfect world: Fall/Winter 2017 Closing Date on 418 S. Washington > Campagna Center high impact low impact high impact low impact
Purchases new Property shortly thereafter

SELLER/BUYER REPRESENTATION CASE
STUDY
Service Line: Seller/Buyer Representation
Client: Planned Parenthood of Metropolitan Washington
Location: Washington, DC - NoMa

PROJECT OUTLINE
We represented Planned Parenthood of Metropolitan Washington (PPMW) based in Washington, DC. PPMW owned and occupied a 13,000 SF
office building on 16th Street for decades. Built in 1950 and unable to accommodate their growth, the building had become functionally obsolete. In
late 2011, PPMW’s Board of Directors and management team approved a plan to begin the search for a new headquarters facility and the disposition of
their existing building on 16th Street.
The new headquarters needed to remain in the District, having at least 20,000–30,000 SF to accommodate PPMW’s current program and future
expansion requirements. Ideally, the building was to be free standing (non-condo space), within 0.5 miles of the Metro and have ample parking. Due to
the age and location of the 16th Street property, redevelopment was inevitable, leading to a lengthy Study Period in order for a buyer to design a new
building and obtain the proper zoning approvals prior to closing. Identifying and taking occupancy of a facility that could accommodate all of PPMW’s
needs was going to be an extensive process that could have easily taken upward of 2-3 years.

RESULTS
In early 2012, KLNB was retained as exclusive agent to begin the dual track process of marketing PPMW’s existing building on 16th Street and
identifying possible facilities/sites for their new location. In January of 2013, after nearly a year of searching for the right property, we identified an off-
market building in the NoMa submarket of DC. The existing premises was a two-story, 26,000 SF industrial building that was in “shell” condition, with
parking on the roof and only 3 blocks from the NoMa/Gallaudet Metro station. The Purchase & Sale Contract was executed in April of 2013 and PPMW
closed on the site in July 2013 for $6,400,000, with an additional $6,000,000 budgeted for design and construction costs. After a lengthy design,
approval and construction process, PPMW was able to take occupancy their new headquarters in early 2016.

The 16th Street property was placed under contract in January 2014 by a residential developer who planned to convert it to a 28,000 SF mixed
use project containing residential and commercial office space. After a 14 month approval process, the property closed for $4,800,000 in July 2015.

National and regional landlords, major corporations, as well as private
owners and institutions consistently look to KLNB professionals to provide

timely and creative solutions to their real estate needs.

Professional references

capital investment advisors, LLC rooney properties, llc cas riegler companies

alexandria, va arlington, va washington, dc

Rebecca J. Pelino, CEO Jim Lee, President kevin riegler, principal
Stephen Bannister, PResident
4075 WILSON BLVD, SUITE 650 1010 Wisconsin avenue, nw, suite 600
Huntington Avenue, Suite 200 ARLINGTON, VA 22203 washington, dc 20007
Alexandria, VA 22303
Phone: 301-466-2686 Phone: 202-506-5595
Phone: 703-836-1634

compensation
and
representation
agreement

Sell 418 s. move the other KLNB, LLC
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center The Project Team
KLNB = 3% Due at will make personal 1Macintosh HD:Users:mayelalopezscott:Library:Caches:TemporaryItems:Outlook Temp:Campagna Listing Agreement[4].doc
Settlement KLNB likely to receive 2%- commitment to get
4% to be paid by seller involved with The Full Draft Listing Agreement
No outside agent fee (we Campagna Center provided as separate attachment.
will not preclude outside If no fee exists from Seller, moving forward
agents from bringing KLNB will look to TCC for
buyers, however any fee a 1.5% commission, paid at KLNB will participate in
will need to be evaluated closing 2017 via sponsorship level
into overall deal) in one event in with The
If KLNB is paid by Seller, Campagna Center
KLNB will approach we will reimburse 25%
Investors/Buyers directly of commission to TCC at
through it’s robust closing
database and network of
relationships

global solutions For More Information, Please Contact:

LOCAL EXPERTISE

R. Joshua Simon, SIOR Jack Regler Pierson Kreutzer
[email protected] [email protected] [email protected]

571.382.2067 571.382.2080 571.382.2078

8 027 Lees b urg P i ke, S ui te 3 00, Tys o ns , VA 2 21 8 2
571.382.2100

NAIKLNB.com

facebook.com/KLNB @KLNBLLC linkedin.com/company/klnb

While we have no reason to doubt the accuracy of any of the information supplied, we cannot, and do not, guarantee its accuracy. All information should be
independently verified prior to a purchase or lease of the property. We are not responsible for errors, omissions, misuse, or misinterpretation of information
contained herein and make no warranty of any kind, express or implied, with respect to the property or any other matters.