landlord representation - EDGE Commercial Real Estate

We Commit. We Deliver.
Statement
of Qualifications
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Table of Contents
Company Overview
Our Services
Landlord Representation
Tenant Representation
EDGE BIOReal Estate
Investment Sales
Acquisitions
Management Services
Management Bios
References
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THE COMPANY
CORPORATE PROFILE
Company(s)
EDGE Commercial, LLC (“EDGE”)
Headquarters
6931 Arlington Road
Suite 450
Bethesda, Maryland 20814
(p) 301.222.0200
(f) 301.222.0218
www.edgecre.com
Principals
Joseph A. Sutton, Jr. – Managing Partner
Melvin D. Booth – Chairman, EDGE BIOReal Estate
Kenneth E. Fellows – Senior Partner
Marc C. Balamaci – Principal
Scott Mendelson - Principal
Robert E. Pugh – Principal
Formation
EDGE was formed in 2007 as a merger of Sutton & Associates, Inc.,
Fellows Commercial Realty Advisors, and the addition of Marc
Balamcai and Scott Menderson, formerly of Scheer Partners.
Business
EDGE is a real estate advisory and investment firm engaged in
serving the needs of real estate consumers.
Services
EDGE offers a complete line of real estate services including:
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Landlord Representation
Tenant Representation
EDGE BIOReal Estate
Investment Sales
Acquisitions
Property & Asset Management
Construction Management
Consulting
Syndication & Joint Ventures
1031 Exchange Fulfillment
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THE COMPANY
EDGE COMMERCIAL is a locally owned and operated, fully integrated commercial
real estate investment and advisory company. As owners of commercial real estate ourselves, our
services have been developed from a Principle Perspective to maximize productivity, efficiency and
most importantly…results!
The company is comprised of three disciplines that include: MANAGEMENT SERVICES tailored for
commercial real estate owners; ADVISORY SERVICES for commercial real estate consumers; and
INVESTMENTS SERVICES for our partners and lenders. Our mission is to serve as a highly
accessible, efficient, productive, and RESULTS ORIENTED local commercial real estate operating and
advisory arm to our partners and clients. Our senior staff offers over 180 years of commercial real
estate experience, having completed many of the regions most noteworthy transactions totaling over
$6 billion.
Specializing in large, highly complex real estate transactions, EDGE represents clients ranging from
corporate and institutional companies down to local start-up professional firms. Our transactions
have included Sale/Lease Backs, Structured Financings, Tax Structuring, Bondable Leases, Credit
Lease Transactions, Build to Suits, TIC Structures, Syndications, 1031 Fulfillment, Joint Ventures,
and more.
Our MANAGEMENT SERVICES include:
• Asset management
• Property management
• Construction management
• Development
Our ADVISORY SERVICES include:
• Tenant Representation
• Landlord Representation
• Seller Representation
• Buyer Representation
• Non-Transactional Consulting
• EDGE BIOReal Estate
Our INVESTMENT SERVICES include:
• Investment Identification & Acquisitions
• Dispositions
• Build To Suit Development
• Joint Ventures
• Syndication
• Finance (Debt & Equity)
• Underwriting
• Market Research
• Due Diligence
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THE COMPANY
Landlord Representation
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LANDLORD REPRESENTATION
Edge Commercial understands the issues that are important to owners of real estate, and brings
perspective and expertise to the challenging task of maximizing property value. We enjoy a
reputation for superior performance in our ability to pre-lease and "spec" lease a property. By
thinking and acting like an owner, we apply our insight, expertise and resources to enhance the value
of every property we represent.
As your advisor, our role is to analyze your particular requirements and property, identify a thorough
plan of action, and implement that plan to assure that your objectives are met.
The objective of EDGE’s marketing and leasing program is:
1. To understand, anticipate and manipulate the market forces in order to deliver
creditworthy tenants in a timely manner with acceptable business terms;
2. To create a proactive, coordinated marketing program that results in securing leases
with users that fit into the long range leasing strategy for the project;
3. To assist in competitive property research and analysis and provide up-to-date
accurate market data to help you make the most advantagious business decisions.
Our landlord representation services are generally divided into the following four phases.
1. Site Evaluation and Recommendations
• Determine the strengths and weaknesses of a particular site
• Perform a detailed market analysis to determine the competition
• Make economic recommendations based upon market conditions
2. Development of a detailed 180 day marketing plan
3. Marketing Implementation
• Development of high quality collateral materials
• Executive level networking
• Direct prospect mailings
• Working with state & local economic development agencies
• Relationships within the local brokerage community
• Development of a site specific website, as needed
• Physical canvassing
4. Transaction Management
• Proposals
• Lease review
• Negotiation
• Weekly / Bi-weekly status reports as needed
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LANDLORD REPRESENTATION
LANDLORD REPRESENTATION - EXPERIENCE
Patriot Business Park – Atlantic Realty / Washington Property
2 Office Buildings – 168,000 sq. ft.
„ Pre-leased approximately 70% of Patriot West to the Bozzuto Company
in a submarket with a 20%+ vacancy rate. The initial rental rate was $6
to $7 above market rates.
„ Pre-leased 50% of Patriot East to the University of Phoenix and the John
Starulakis Company in the same high vacancy rate environment.
„ Was awarded the NAIOP “Best New Suburban Office
Development”
Metro East Office Park – Advance Realty Group
9 Office / Flex Buildings – 600,000 sq. ft.
„ Increased rental rates from $19.95 to $23.73 (19%) over an 18 month
period
„ Backfilled 8301 Professional Place. A 137,000 sq. ft. single tenant
building converted to multi-tenant within 18 months. AAA Credit
tenants include Giant/Stop & Shop, Mitre Corporation, Mirant and The
Epilepsy Foundation
„ Rehired in October 2007 to backfill 80,000 square feet being vacated by
Merkle
Traville Research Campus – BioMed Realty Trust
Life Science Development – ~450,000 sq. ft.
„ Sold the site to BioMed Realty Trust as part of the Human Genome
Sciences world headquarters sale / leaseback
„ Selected by BioMed to handle the leasing and marketing of this world
class life science development site located in the heart of the I-270
Corridor
„ Attracted a “high-end” hotel user to potentially kick off the site
development
University Town Center – University Town Center, LLC
Mixed Use Project – 1.2M sq. ft. Office
„ Largest mixed use project in Prince George’s County
„ Hired to lease over 250,000 square feet – largest block available in the
County
„ Created and implemented marketing plan to bring awareness to the
property
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LANDLORD REPRESENTATION
LANDLORD REPRESENTATION - EXPERIENCE
Alexandria Technology Park – Alexandria Real Estate Equities
Three building flex project – 190,000 sq. ft.
„ Landlord’s exclusive leasing agent for over 9 years
„ Took property to 100% leased on three occasions
„ Award winning project
Colewood Centre – Manor Care
Medical Office Building – 73,000 sq. ft.
„ 73,000 sq. ft. office building designed as expansion for Manor Care
„ During construction, Manor Care decided not to occupy the property.
The property was marketed to third party tenants, and was delivered
60% pre-leased and 100% leased within 6 months of delivery
„ Sold on behalf of Manor Care to Moore and Associates for $7.6M
„ Continued leasing on behalf of Moore and Associates
„ Sold on behalf of Moore & Associate to Zalco Realty for $10.5M
Maryland Corporate Center - Praedium
Four Building office complex – 220,000 sq. ft.
„ Repositioned project as low cost alternative to firms near the beltway
„ Increased occupancy rates from 65% to 86% in 18 months in down
market
„ Negotiated 50,000 square foot renewal with Lockheed Martin
Harkins Building – Realty Investment
Four story office building – 34,000 sq. ft.
„ Represented Realty Investment in purchase of Building
„ Leased 30,000 s.f. in 12 months
„ Sold fully leased building 12 months later to Rockville Fuel and Feed
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LANDLORD REPRESENTATION
Tenant Representation
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TENANT REPRESENTATION
Reducing real estate costs. Mitigating risk. Providing flexibility. These principals are the cornerstone
of all of EDGE’s tenant advisory projects, large and small, local or national. We understand that
exploring space changes can create a number of uncertainties and challenges for organizations. Our
integrated resources and local market expertise allow our tenant advisory team to develop complete
workplace strategies for the changing business landscape.
Helping you to align your real estate strategy with your business goals and operational objectives, we
develop timeless solutions, generating value for the long term. Each client receives results-driven
service. As ambassadors for our clients, we always place the needs of clients and their business
above all other factors. Acting as trusted partners, we develop strong, lasting client relationships
built on uncompromising values.
From strategic planning to site selection to final negotiations; EDGE clients are up-and-running, on
schedule and under budget. We drive increased profits by way of reduced costs both in occupancy
and time-savings. Clients see savings in overhead costs, the value of world-class service remains
unquantifiable.
The following represent the services that EDGE’s tenant representatives provide their clients:
• Strategic Planning and Needs Analysis
• Employee Mapping, Demographic and Drive-time studies
• Market Research and Analysis
• Site Selection
• Financial Analysis
• Document Management and Negotiation
• Project Management
• Lease Administration
• Multi-market Portfolio Management
• Operating Expense Review
• Disposition Services
• State and Local Municipal Incentives Negotiations
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TENANT REPRESENTATION
TENANT REPRESENTATION - EXPERIENCE
PulseComm
140,000 sq. ft. – Herndon, Virginia
„ Represented PulseComm in a sale lease-back of its 12.5 acre headquarters
facility at 2900 Towerview Road
„ Negotiated a five year lease with multiple renewal and
expansion/contraction options to maintain flexibility
„ Increased efficiency of its entire manufacturing space by reducing it from
80,000 square feet to 35,000 square feet
MVLE
54,000 sq. ft. – Alexandria, Virginia
„ Delivered a comprehensive market analysis evaluating both buy and lease
scenarios
„ Negotiated two long term leases on behalf of this Alexandria based non
profit including a 28,000sf expansion and extension of 26,000sf.
„ Provided construction management services to ensure their tenant
improvement allowance was used efficiently
Prince George’s County Police Training Center
62,500 sq. ft. – Lanham, Maryland
„ Tenant was an extensive growth mode and required a building capable of
future expansion.
„ Relocated Tenant from Upper Marlboro
„ Secured a below market rate under a long term lease..
InvestorPlace Media (formerly Phillips Publishing)
45,000 sq. ft. – Rockville, Maryland
„ Relocated InvestorPlace Media from 30,000 sq. ft. at 9420 Key West
Avenue to 45,000 sq. ft. at 9201 Corporate Boulevard
„ Negotiated a buyout of the tenant’s remaining two-year lease liability in
order to effect an immediate relocation
„ Transitioned from a hard office to open space plan environment in order
to achieve greater overall efficiency and synergy between business units
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TENANT REPRESENTATION
TENANT REPRESENTATION - EXPERIENCE
Medifacts International
29,000 sq. ft. – Rockville, Maryland
„ Relocated and expanded tenant form 1401 Rockville Pike to 2101
Gaither Road
„ Negotiated aggressive terms
„ Relationship spans over 14 years
A&T Systems
20,000 sq. ft. – Silver Spring, Maryland
„ Relocated and expanded tenant from 12510 Prosperity Drive to 12200
Tech Road
„ Negotiated very favorable terms including strong tenant improvement
package
„ Client for over 10 years
Central Wholesalers
110,000 sq. ft. – Laurel, Maryland
„ Assembled four parcels for build to suit
„ Assembled team consisting of developer, land use attorney and architect
„ Client for over 18 years
Dimensions International
45,000 sq. ft. – Alexandria, Virginia
„ Delivered a comprehensive multiple market analysis that identified
relocation alternatives for a successful and rapidly growing government
contractor
„ Negotiated a short term sublease that automatically converted to a long
term prime lease well below the current market rates
„ Obtained exterior building signage, no security deposit, as well as an
above market tenant improvement allowance
„ Client for more than 5 years
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TENANT REPRESENTATION
EDGE BIOReal Estate
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EDGE BIOR
Combining Life Science and Real Estate Expertise
EDGE BIOReal Estate is unlike any other real estate provider in the industry today. Our “Top Down”
strategy for developing real estate solutions was designed to bridge the longstanding gap that has
existed between life science companies and their real estate providers. Our advisory team offers an
unprecedented combination of executive-level real estate and life science experience to deliver real
estate solutions tailored to the unique, mission-critical facility needs of the life science industry.
Our Mission is to provide our clients with executive level real estate professionals that have
“stepped in your shoes”. With over 60 years of executive level life science experience, our
advisors have navigated major life science companies through their life cycles just as you are
today. The difference between EDGE BIOReal Estate and other real estate providers is that “we
speak your language” and not only provide real estate expertise, but also the strategic and
financial understanding of the life science industry necessary to derive the most advantageous
solutions for your needs. Our advisors understand how real estate needs – and financing
alternatives – can vary significantly for different types of companies within the life science industry
(e.g. therapeutic, diagnostic, contract research, etc.) and/or their stage of development (e.g. preclinical, clinical, commercial). This first-hand knowledge gives EDGE the unique ability to more
effectively understand and evaluate our client’s real estate requirements – not just from an
operational standpoint, but from a strategic and financial perspective as well.
The following sets forth a general outline of the services performed by EDGE BIOReal Estate:
Our Primary Services:
• Needs determination
• Space programming
• Cost modeling and budget development
• Market analysis
• Site selection
• Physical building review/comparative analysis
• Transaction management (proposals, lease/contract review and negotiation support)
• Construction/design review and support
• Financial guidance (financing, state & local incentives)
Additional Services (may have additional cost):
• Project/construction management (design oversight, permitting, construction /
reconfiguration)
• Furniture, fixture & equipment procurement & installation
• IT/security procurement & installation
• Move coordination & set-up management
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EAL ESTATE
EDGE BIOR
EAL ESTATE
LIFE SCIENCE TRANSACTIONS
MedImmune – Gaithersburg, Maryland
„ Spearheaded a national headquarters site selection process
„ Negotiated the acquisition of a 22 acre site with development potential of
over 750,000 sq ft. from Quadrangle Development
„ Negotiated state and county incentives in excess of $3M
„ Was awarded Washington Business Journal’s “Best Office Lease –
Suburban”
Human Genome Sciences – Rockville, Maryland
„ Spearheaded a site selection process for a pilot plant facility
„ Negotiated the acquisition of a 30 acre site from Johns Hopkins and
Montgomery County
„ Was awarded Washington Business Journal’s “Best Industrial
Transaction of the Year”
Large Scale Biology (LBSC) – Germantown, Maryland
„ Lead the headquarters site selection process
„ Negotiated the leasing, financing, and build-out of a 50,000 sq. ft. high-
throughput analytical facility
„ Negotiated a “cash neutral” sublease with Advancis Pharmaceuticals (now
Middlebrook Pharmaceuticals) after a corporate consolidation
Osiris Therapeutics – Baltimore, Maryland
„ Lead an intrastate corporate relocation from Cleveland, Ohio to
Baltimore, MD
„ Oversaw construction of the company’s new state-of-the-art stem cell
research facility
„ Secured full financing for over $4M build-out at below market rates
through MIDFA financing. Secured over $300,000 in grants and equity
investments from the State of Maryland.
American Type Culture Collection (ATCC)– Manassas, Virginia
„ Lead a national site selection for a new corporate headquarters and
research facility
„ Negotiated the acquisition of three properties to act as interim
headquarters
„ Negotiated an incentive package of over $20M with Prince William
County and the Commonwealth of Virginia
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EDGE BIOR
EAL ESTATE
LIFE SCIENCE TRANSACTIONS
National Institutes of Health (NIH) – Rockville, Maryland
„ Represented Alexandria Real Estate Equities in a 50,000 sq. ft. lease with
National Institutes of Health
„ Negotiated the lease between tenant, buyer and seller while the property
was under contract
„ Overcame a Solicitation for Offers (SFO) that was written for new space
even though the space leased was second generation
„ Worked with NIH to expedite the construction process due to the
delivery time mission critical equipment
Scientific Laboratories – Columbia, Maryland
„ Represented Scientific Laboratories in leasing 75,500 sq. ft. at 10150 Old
Columbia Road in Columbia, MD
„ Negotiated a favorable purchase option for the tenant
„ Scientific Laboratories later exercised their purchase option at a price well
below market allowing the tenant to substantially decrease occupancy
costs
Medifacts International – Rockville & Gaithersburg, Maryland
„ Represented Medifacts International in a lease at 1401 Rockville Pike for
their corporate headquarters
„ Relocated the corporate headquarters to 30,000 sq. ft. on Gaither Road in
Gaithersburg, MD
Intronn – Gaithersburg, Maryland
„ Represented Aetna Insurance in the leasing of 9,375 sq. ft. of laboratory
space
„ Implemented a “shared services” concept that included shared RO/DI
water, glasswasher, autoclave, and back-up generator
„ Enabled Intronn to mitigate their start-up costs by not having to purchase
equipment that was proportionally expensive due to minimal use
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EDGE BIOR
Investment Sales
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EAL ESTATE
INVESTMENT SALES
In today’s ever-fluctuating economy it is critical that investors place their trust in the hands of a
company that is dedicated to providing the highest level of commercial real estate investment
advisory and marketing services.
EDGE Commercial has proven time and time again that we will exceed your expectations. We are
committed to providing innovated investment opportunities and solutions within the commercial
real estate marketplace. Our thorough understanding of this complex industry and specific market
knowledge, acquired over the years of dedicated service to our clients, provides us with a unique
ability to serve your investment needs. The size and complexity of the transactions we have
completed are an example of the results we deliver.
Above all, we place a premium on our ability to perform and achieve optimal results for our clients.
Our demonstrated ability to evaluate a property’s worth, analyze specific market conditions, develop
an appropriate strategy, and execute a plan in a timely and effective manner has earned our company
several “Transaction of the Year” awards and multiple repeat-client transactions.
Our investment sales services are generally divided into the following four phases.
1. Property Review
2. Due Diligence
• Lease review & abstract
• Financial review & audit
• Operating expense review & audit
• Loan document review – if assumption is considered
• Collection and review of plans and property studies (if available)
3. Marketing Implementation
• Development of high quality collateral materials
• Direct mail & e mail campaign to database of over 1,500 qualified investors
• Property tours
4. Transaction Management
• Collection of proposals
• Call for final offers
• Contract negotiation
• Oversight of due diligence
• Closingh
• Weekly / Bi-weekly status reports as needed
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INVESTMENT SALES
INVESTMENT SALES - EXPERIENCE
Human Genome Sciences – Rockville, Maryland
„ Culmination
of a comprehensive real estate monetization and
consolidation program implemented over a three year period
„ Long term sale leaseback of HGSI’s 600,000 sf headquarters and 289,000
sf large scale manufacturing (LSM) facility
„ Total lease and sale value of $1.385 Billion – one of the largest
transactions ever in Maryland
„ Awarded GWCAR’s “Sales and Finance Transaction of the Year –
MD”
National Geographic Headquarters - Gaithersburg, Maryland
„ Purchased from National Geographic by Manor Care for their new
headquarters for $22 million and was named GWCAR’s Sales
Transaction of the Year
„ Sold by Manor Care two years later to an offshore investor for $55 million
(a $20 million dollar gain after renovation costs) after Manor Care’s merger
with Health Care and Retirement Corporation of Toledo, Ohio
„ Represented the new owner in a 342,000 sq. ft. bondable lease with
General Electric Information Services (GEIS)
„ Subdivided the property on behalf of the new owner. Sold the office and
warehouse components to two separate investors for a total sales value of
$76 million.
Choice Centre - Silver Spring, Maryland
„ Represented Manor Care in leases with Choice Hotels International
(135,000 sf), Sunburst Hospitality (30,000 sf) and Prospect Associates
(40,000 sf) – all negotiated while the property was for sale
„ Negotiated over $4 million of improvements to the property (tenant
construction and construction of a new parking garage) – all negotiated
while the property was for sale.
„ Sold to Moore & Associates / Allegis Realty for $24.6 million. The
transaction was awarded GWCAR’s Sales Transaction of the Year
Triad Technology Center – Baltimore, Maryland
„ Represented Johns Hopkins University in the sale of this 101,000-sq. ft.
laboratory facility
„ Enabled Johns Hopkins to take this asset “off balance sheet”
„ Sold to Wolverine Holding Company for $21,500,000 ($212psf)
„ Highest psf price paid in Baltimore City to date
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INVESTMENT SALES
INVESTMENT SALES - EXPERIENCE
Human Genome Sciences – Rockville, Maryland
„ Advised Human Genome Sciences (HGS) in the sale of this 318,000-sq.
ft. laboratory complex in the Shady Grove Life Science Center
„ Negotiated “swap” of existing financing, lease with NIH, and leaseback
with HGSI during the sale process.
„ Sold for $92,500,000 and was awarded Washington Business Journal’s
Best Office Sale – Suburban Washington
American Express / Balcor - Beltsville, Maryland
„ Represented Chicago-based Balcor (the real estate arm of American
Express) in the leasing of 274,000 sq. ft. office & flex development in
Beltsville, MD
„ Balcor’s top producing leasing representative in the country
„ Sold to Washington Real Estate Investment Trust (WRIT) for
$13,500,000 and was awarded Washington Business Journal’s Best
Existing Industrial Sale –Washington Metro Area
Tech Park 270 – Gaithersburg, Maryland
„ 184,000-sq. ft. office/flex building purchased in June 2002 for $19,525,000
„ Repositioned a portion of the building to laboratory space and renewed
anchor tenant, Fusion UV Systems (78,000 sq. ft.), for 10 years at a market
rate
„ Sold to Alexandria Real Estate Equities in December 2004 for $33,000,000
BioReliance – Rockville, Maryland
„ Represented The Buccini / Pollin Group in the sale of the leasehold
interest in this 58,733 sq. ft. biopharmaceutical manufacturing facility
„ Complex transaction involving a ground lease, sub ground lease and
building lease to a single tenant, BioReliance Corporation
„ Sold for $8,500,000. Sales price was $3.5M higher (170%) than an
unsolicited offer prior to our involvement
MeadWestVaco - Laurel, Maryland
„ Represented MeadWestVaco in the sale of 75,000 square feet office/lab
building on 34.88 acres
„ Sold to Johns Hopkins Applied Physics Lab
„ Able to achieve an above market price
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INVESTMENT SALES
Acquisitions
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ACQUISITIONS
Given the competitive nature of investing in real estate in the Washington Metro Area, it is
imperative that investors receive guidance from an investment advisor who is intimate with the
nuances of this market. With over 160 years of commercial real estate experience in this market, the
advisors at EDGE Commercial have assisted a variety of clients in investing in commercial real
estate in the Washington Metro Area. In addition to advising our third party clients on acquisition
opportunities, EDGE also participates in acquisitions on a principal level. This principal
involvement provides an investment vehicle to our clients and further strengthens our commitment
to providing the most comprehensive real estate advisory service in this market.
By relying on advisors with intimate market knowledge, our clients and partners can assure
themselves that no stone is left unturned when evaluating investment opportunities in this market.
To date, the principals of EDGE have acquired over $125 million of real estate and syndicated
equity totaling over $36 million.
Following are among the services performed by EDGE’s acquisition professionals:
Joint Ventures & Syndication
As part of EDGE's acquisition discipline, we have extensive experience with equity syndication and
joint venture structuring for real estate acquisitions. EDGE principals have syndicated equity
through both private investors and institutional equity partners.
Tax Structuring
Realizing that an acquisition or disposition is often driven by factors beyond the physical real estate,
EDGE has developed an expertise in developing transaction structures to meet the objectives of
various buyers and sellers. This has been accomplished through multiple structures including: 1031
exchanges, partnership restructuring, sale/leasebacks, synthetic leases, joint ventures and more.
Due Diligence
By combining the expertise of our Acquisition, Disposition, Advisory and Management practices,
EDGE Commercial has established protocols and implementation procedures for the financial
underwriting, physical evaluation and lender due diligence of acquisition and investment sales
opportunities. By working closely with the underwriting departments of many of Wall Street's
leading financial institutions, EDGE principals have established underwriting criteria that ensure
that "no stone is unturned" and all possible lender issues are addressed before the question is asked.
In addition to financial and physical due diligence, EDGE can provide complete market analysis for
acquisition opportunities in the Washington Metro Area. By combining our in-house market
research and third party services, we can ensure that our clients and partners are fully informed as to
the historical performance and future trends of any particular submarket.
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ACQUISITIONS
ACQUISITIONS - EXPERIENCE
Tech Park 270 - Gaithersburg, Maryland
„ Value-add acquisition
„ Acquired through 20-year relationship with seller – not marketed
„ 184,000-sq. ft. office/flex building purchased in June 2002 for
$19,525,000
„ Repositioned a portion of the building to laboratory space and
renewed anchor tenant, Fusion UV Systems (78,000 sq. ft.), for 10
years at a market rate
„ Sold to Alexandria Real Estate Equities in December 2004 for
$33,000,000; 31% IRR to equity
Bradley Arlington Office Park- Bethesda, Maryland
„ Core asset / tax driven acquisition
„ Acquired through 20-year relationship with seller – not marketed
„ 150,000-sq. ft., two-building office park purchased from The
Harvey Companies for $26,400,000
„ Major capital improvements completed during the first 18 months
of ownership
„ Aggressive leasing program increased rents to market rate
„ Currently exceeding pro-forma by 20% and on track for a +22%
IRR to equity
Deer Park Office Centre - Gaithersburg, Maryland
„ Value-add / repositioning acquisition
„ Acquired off market from a notoriously difficult seller
„ 52,000-sq. ft., two-building office park acquired for $3,000,000 in
July 2004
„ $6,000,000 “gut” renovation and office condominium conversion
„ Condominium sales are significantly exceeded pro-forma and
yielded a +400% net cash on cash return
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ACQUISITIONS
ACQUISITIONS - EXPERIENCE
6245 Leesburg Pike - Falls Church, Virginia
„ Core asset acquisition
„ Acquired through 15-year relationship with seller – not marketed
„ 96,501-sq. ft. office building acquired for $20,541,000 in
February 2005
„ Acquired under a Tenants in Common (TIC) structure
„ The property is fully leased to Fairfax County Government
through September 2011
„ Anticipated average net cash on cash return is 9.09% over a
10 year holding period
One Town Center - Bowie, Maryland
„ Core asset acquisition
„ Acquired through a competitive bid process
„ 101,657-sq. ft. office building acquired for $23,500,000 in
September 2005
„ Acquired under a Tenants in Common (TIC) structure
„ Class A multi-tenant office building
„ Anticipated average net cash on cash return is 10.12% over
a 10 year holding period
Fairview Building - Gaithersburg, Maryland
„ Value-add / repositioning acquisition
„ Acquired off market through 3rd party broker relationship
„ 66,964-sq. ft. office building acquired for $11,000,000 in June
2006
„ $4,265,000 in building renovations
„ A portion of the building will be converted to office
condominiums and sold, while a portion of the building will be
retained for lease
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ACQUISITIONS
Management Services
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MANAGEMENT SERVICES
PROPERTY MANAGEMENT
In today's increasingly competitive real estate world, low cost operations and operational excellence
are essential. The goal of Edge Commercial's Property Management Group is to generate the highest
yield for a property while providing an exceptional level of service. While our management portfolio
has more than doubled in less than two years, we view the properties we manage as significant
investments whose values must be protected and maximized. We analyze efficiency and maximize
value, while reducing costs.
Full Service
We're equipped to handle all property related issues such as leasing, tenant management,
maintenance, and construction. Our in-house maintenance staff handles many typical tenant calls
and property needs within 24-48 hours which is why we consistently maintain high tenant
satisfaction ratings occupancy levels for our clients year after year.
Reduced Tenant Turnover
The management team is focused on reducing tenant turnover by providing detailed tenant
screening services and unmatched attention before and after move in which maximizes income and
reduces turnover costs for our clients; our tenant surveys ensure tenant's needs are properly
addressed on an ongoing basis to further reduce the likelihood that a tenant would want to relocate.
Preventative Maintenance
Our detailed preventative maintenance inspections help ensure properties are kept in top condition
and keep owners up to date. For specialized needs, out maintenance team can custom engineer
solutions for any tenant requirement. All of these steps result in higher rents and increased demand
for our managed properties. We have seen many cases of buildings sitting vacant immediately next
to our managed properties while tenants move into our buildings because of our comprehensive
methods.
PROPERTY MANAGEMENT
While our property management team deals with the "ground level" day-to-day operations of our
commercial real estate assets, our asset management team focuses on maximizing the potential of
each of our assets. We tailor the strategy of each asset to perform to meet the needs and objectives
of our clients and partners with specific emphasis on the debt and equity structure. We treat each
asset as a separate business unit. A thorough knowledge of profits, yields, returns, leverage, working
capital and lines of credit is only part of our expertise. Our asset management team develops cash
flow projections for each asset and creates leverage models to project and continually update the
total return on equity. We stay in close contact with the capital markets and institutional financing to
develop creative solutions for maximizing equity returns. Our principle goal is to creatively leverage
to increase internal rates of return while managing risk.
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MANAGEMENT SERVICES
CONSTRUCTION MANAGEMENT
Facilities construction and renovation projects require specialized skills and knowledge to control
costs and minimize impact to ongoing operations. EDGE’s Construction Management staff
provides the expertise to plan and complete projects, minimizing disruptions and the need for
supervision. The features and benefits of EDGE’s Construction Management Services are:
Features
Benefits
Client's representative
Increases Client's productivity and ability to focus on core
responsibilities.
Budgeting and RFP development
Controls overall project cost up-front by integrating professional
facilities design and construction expertise.
Analyzes multiple site options and construction methods to
Site/Facilities construction expertise secure the most efficient and appropriate building at the least
cost in the least amount of time.
Contractor/Sub and consultant
selection and management
Maintains project quality and schedules, controls project budget
and minimizes variances to overall plan.
Contract negotiation
Incorporates best of class practices reducing exposure and total
project cost and delivery time frames.
Project schedules
Reduces project duration and manages project cost by defining
and communicating the process for all involved parties.
Project reporting
Improves communication quality/consistency and provides
project audit log.
Cost analysis and value engineering
Integrates cost and alternatives analysis into the overall project
delivery system to identify cost savings.
Construction management
Provides professional, fully integrated, turnkey project delivery
solution.
Project troubleshooting
Decreases exposure to delays, cost overruns, change orders and
other unplanned or unbudgeted events.
Move coordination
Insures minimum disruption to ongoing business operations.
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MANAGEMENT SERVICES
MANAGEMENT SERVICES - EXPERIENCE
One Town Center - Bowie, Maryland
„ Class A multi-tenant office building
„ 106,000 sq. ft. with 27 tenants
„ EDGE provides property, construction and asset management
services
6245 Leesburg Pike - Falls Church, Virginia
„ Class A single-tenant office building
„ 96,501-sq. ft. leased to Fairfax County Government
„ EDGE provides property, construction and asset management
services
Bradley Arlington Office Park - Bethesda, Maryland
„ Class A, three-building office park with structured parking garage
„ 151,000 sq. ft. with >50 tenants
„ EDGE provides construction and asset management services
Deer Park Office Center - Gaithersburg, Maryland
„ Class A, two-building office condominium
„ 52,000 sq. ft. with 36 condominium units
„ $5.7M “complete gut” renovation
„ EDGE provides property & construction management services
Fairview Building - Gaithersburg, Maryland
„ Class A Multi-tenant office condominium
„ 70,000 sq. ft. with 12 tenants and 18 office condominium units
„ Recent $5M renovation
„ EDGE provides property, construction and asset management
services
- 28 -
MANAGEMENT SERVICES
Management Bios
- 29 -
MANAGEMENT BIOS
JOSEPH A. SUTTON, JR., MANAGING PARTNER
Joseph A. Sutton, Jr. began his 22 year commercial real estate career in 1985 as a leasing agent for
the Maryland branch of Shannon and Luchs Commercial. In 1991, Mr. Sutton branched off with
Robert Scheer to form Scheer Partners (SPI). As a leasing agent, Mr. Sutton focused on landlord
and tenant representation and quickly aggregated the largest office and flex portfolio (4mm sf)
within the organization. During the real estate downturn of the early 90's, investment sale activity
slowed causing many of the top investment sales brokers in the region to leave the industry. Mr.
Sutton recognized that the broker flight created opportunity and in 1994 launched the Investment
Sales Group at SPI. Remarkably, during his first year as an investment sales advisor, Mr. Sutton
completed more investment sale transactions in Maryland than any of his local and national
competitors and since then has earned several industry “Top Broker” and “Transactions of the
Year”. Mr. Sutton formed Sutton & Associates in 1997 to continue his real estate investment and
advisory work. Again seeing opportunity in 2002 and having an interest to buy and own real estate
for his own account, Mr. Sutton acquired in excess of $150 million of highly successful commercial
real estate assets.
Over the years, Mr. Sutton has completed over $3 billion of real estate transactions. The
transactions have included highly complex Sale/Lease Backs, Structured Financings, Synthetic
Leases, Tax Structuring, Bondable Leases, Credit Lease Transactions, Build to Suits, TIC Structures,
Syndications, 1031 Fulfillment, and Joint Ventures. He has also written articles published in such
journals such as Black’s Guide, Washington Business Journal, and Washington Office Magazine.
Mr. Sutton (49) holds a Masters in Petroleum Geology from West Virginia University and resides in
Potomac, Maryland with his wife Nazzie of 15 years and his two boys, Jake (13) and Hunter (11). As
an avid outdoorsman and bicyclist, his greatest pleasure is his family.
KENNETH E. FELLOWS, SENIOR PARTNER
Kenneth E. Fellows began his commercial real estate career with the Polinger Company in 1988.
He then joined Scheer Partners in 1992 and has successfully completed commercial real estate
transactions for over three million square feet of office, medical, R&D and warehouse space during
his tenure. With a primary focus on suburban Maryland, Mr. Fellows has leased and/or sold over
300,000 square feet of office space each year.
In early 2000, Mr. Fellows was involved in the opening of the Greenbelt, Maryland, branch office of
Scheer Partners, overseeing a staff of seven. Under Mr. Fellows’ leadership, the Greenbelt office
consistently performed beyond expectations in terms of growth and revenue, and was awarded
“Small Business of the Year” by the Prince George’s Chamber of Commerce in 2003. In early 2004,
Mr. Fellows was promoted to Executive Vice President. By 2006, Mr. Fellows increased the size of
the office to 12 people.
In January 2007, Mr. Fellows together with Robert Pugh and Brent Prossner opened up a new firm,
Fellows Commercial Realty Advisors, which later merged with Sutton & Associates to form EDGE
Commercial. Mr. Fellows and his team are currently responsible for a leasing portfolio of over 3
million square feet in Suburban Maryland.
- 30 -
MANAGEMENT BIOS
MELVIN D. BOOTH, CHAIRMAN – EDGE BIOReal Estate
Melvin D. Booth serves as Chairman of EDGE BIOReal Estate. During his career, Mr Booth has
established unparalleled relationships within the biotechnology industry on local, national and
international levels. Over the years, he was actively involved in expanding two of the most
prominent Biotech companies in the Washington Metropolitan Area, Human Genome Sciences and
MedImmune. Mr. Booth has extensive experience negotiating business incentives (local and state
level) as well as creative financing and venture capital solutions.
Mr. Booth was President and Chief Operating Officer of MedImmune, Inc. from 1998 to 2004 and
a member of the Board of Directors for MedImmune, Inc. from November 1998 through March
2005. The company is one of the largest and most successful biotechnology companies in the
world. Dedicated to advancing science and medicine to help people live better lives, MedImmune
(acquired by AstraZeneca PLC on June 2007) is focused on pediatric infectious diseases, cancer and
inflammatory diseases with approximately 3,000 employees worldwide and is headquartered in
Maryland.
Prior to joining MedImmune, Mr. Booth was President and Chief Operating Officer of Human
Genome Sciences, Inc. where he was also a member of the Executive Committee and Board of
Directors. From 1975 to 1995, he was employed at Syntex Corporation. He held a variety of
positions, including President of Syntex Laboratories, Inc., President of Syntex, Inc., Canada and
Vice President of Syntex Corporation.
Mr. Booth has been active in U.S. pharmaceutical industry organizations and is a past Chairman of
the Pharmaceutical Manufacturers Association of Canada. He currently serves on the Strategic
Advisory Committee for Genstar Capital, as a Director on the board of Ventria BioScience, as Lead
Director of Millipore Corporation and Chairman of the Boards of Prestwick Pharmaceuticals, Inc.
and PRA International, Inc.
Mr. Booth graduated with honors and holds an honorary Doctor of Science degree from Northwest
Missouri State University. Mr. Booth is a Certified Public Accountant.
- 31 -
MANAGEMENT BIOS
ROBERT J. WALDEN, MANAGING PARTNER – EDGE BIOReal Estate
Robert J. Walden brings to EDGE BIOReal Estate over 25 years executive level experience in
Maryland-based, life science companies. He has accumulated considerable strategic, financial and
operating knowledge of rapidly growing life science companies, whose activities span basic and preclinical research, clinical development, manufacturing and international sales. Bob has experience
raising both public and private capital, as well as negotiating and executing major facility
development and relocation programs encompassing significant state and local incentives.
Bob was Chief Financial Officer of the American Type Culture Collection (ATCC) from 1986 to
1995. Operating since 1925, the ATCC preserves and annually distributes tens of thousands of
different biological specimens world-wide – and is widely regarded as a unique and irreplaceable
national resource serving the international scientific community. Prior to leaving the ATCC, Bob led
a multi-year facility development effort that entailed three site acquisitions followed by a nation-wide
search for suitable relocation options – an effort successfully concluded by securing one of the
largest relocation incentive packages for a life science company in the Washington metropolitan
area.
Subsequent to ATCC, Bob joined Osiris Therapeutics, Inc. as the Chief Financial Officer from 1995
through 1996. Upon joining Osiris, Bob led the facility development and relocation of the company
from Cleveland, Ohio to its new, 30,000 square foot state-of-the-art stem cell research facility in
Baltimore, Maryland. Leveraging the company’s new location in an economic development zone,
Bob worked with various state and local agencies to secure full project financing and a two-tier lease
structure tailored to mitigate key construction and occupancy risks.
Bob next joined Large Scale Biology Corporation (LSBC), a “proteomics” company involved in
protein discovery and expression. During Bob’s tenure with the company from 1996 through 2004,
he held the position of Chief Financial Officer and, subsequent to a merger and IPO, Divisional
President. Bob led the leasing and custom build-out of the company’s 50,000 square foot research
and high-throughput analytical facility in Rockville, Maryland, and was successful in negotiating a
cash-neutral sublease for the entire facility following consolidation to the company’s headquarters.
After LSBC, Bob held the position of Executive Director of Finance at GenVec, Inc. from 2004
through 2007. While at GenVec, Bob gained additional experience regarding late stage clinical
development programs and performed detailed analyses on various options for securing cGMP
manufacturing facilities.
Bob is a graduate of the University of Maryland where he obtained his Bachelor’s of Science degree
in finance.
- 32 -
MANAGEMENT BIOS
MARC C. BALAMACI, PRINCIPAL
Marc C. Balamaci’s primary focus is tenant advisory services which include strategic guidance, site
selection, financial analysis, and contract negotiation for companies in the Washington D.C.
Metropolitan Area including Suburban Maryland and Northern Virginia. Prior to EDGE, Marc was
a Top Producer at Scheer Partners for four years and at Insignia/ESG for three years where he was
involved in developing a proprietary tenant database for the entire Washington D.C. region. Over
the last three years Marc has completed over 1 million square feet of transactions with a cumulative
value of over $150 Million Dollars.
Marc is on the Board of Directors for the Alzheimer's Association and is involved in a number of
other charities including Head Injury Rehabilitation and Referral Services.
Prior to Insignia/ESG, Marc was with Booz-Allen & Hamilton where he held a Top Secret security
clearance and worked on numerous classified contracts within their National Security Team. He
currently resides in Potomac, Maryland with his wife and two sons.
SCOTT A. MENDELSON, PRINCIPAL
Scott A. Mendelson helped form EDGE Commercial in September of 2007 as one of the
Principals of the newly formed company. Scott's primary focus is on developing corporate advisory
services for companies in the Washington DC Region. He was most recently with Scheer Partners in
which he helped open their Northern Virginia office almost 5 years ago and in addition was one of
their top producers. Prior to Scheer Partners, Scott was with USI Real Estate Advisors, now
Johnson Controls, for almost 4 years where he was integrally involved in developing the Tenant
Services Practice Group and was also at Insignia/ESG now CBRE for almost 6 years prior to USI.
In addition to providing strategic guidance, his expertise includes site selection, financial analysis,
market knowledge, and contract negotiation. Scott has been involved in helping his clients across the
country including such cities as Boston, Orlando, Chicago, El Segundo, Hanahan SC, and New
York.
Scott has been successful establishing and maintaining effective and long-term relationships with
clients. His commitment and willingness to provide quality customer service, in this service industry,
is one of the true strengths Scott brings to EDGE Commercial and his clients.
- 33 -
MANAGEMENT BIOS
ROBERT E. PUGH, PRINCIPAL
During his career as a commercial real estate broker he has successfully leased over 2 million square
feet of commercial space. Robert’s range of expertise includes landlord and tenant representation,
build-to-suits, investment sales, acquisitions, condo conversions, 1031 fulfillment, sale/leasebacks,
and office, flex, retail, and industrial leasing.
In September 2007 he helped launch EDGE Commercial through the merger of Fellows
Commercial Realty Advisors, where he was a principal, and Sutton & Associates. Prior to forming
FCRA Robert was Vice President at Scheer Partners, Inc., where he earned several, “top producer”
awards and was involved in some of the company’s largest transactions. He has also been selected as
an expert in his field by various national commercial real estate organizations such as NAIOP and
GWCAR. He currently represents more than 3.2 million square feet in suburban Maryland.
- 34 -
REFERENCES
References
- 35 -
REFERENCES
LANDLORD REPRESENTATION
Mr. William Carbaugh
Senior Vice President
Guardian Realty Investments
(301) 770-5930
Mr. Lawrence J. Diamond
Vice President – Asset Services
Alexandria Real Estate Equities
(301) 947-1770
Mr. David Fisher
Regional Managing Director
Advance Realty Group
(301) 429-1170
Mr. Chris Hanessian
Sr. Vice President
Prince George’s Metro Center
(301) 779-4800
Mr. Charles K. Nulsen
President
Washington Property Company
(240) 482-8110
Mr. William Singer
Partner
Kenwood Management
(301) 656-7790
Mr. David L. Bishop
Chief Financial Officer
Investorplace Media
(301) 279-4201
Ms. April Pinch Keeler
President
MVLE
(703) 569-3900
Mr. Chris Neubauer
Senior Vice President
MCR
(703) 506-4600
Mr. Anthony Sudler
Chief Executive Officer
Alzheimer’s Association
(703) 359-4440
John Dietel
Vice President
Eastern Research Group
(781)674-7222
Gary Pearson
President
BSI Management Systems
(703) 437-9000
Mr. John D. Fowler, Jr.
Vice Chairman, Healthcare
Deutsche Bank Securities, Inc.
011 44 (0) 207 545 2995
Mr. David W. Edgerley
Secretary
Maryland Business & Economic
Development
(410) 767-6300
Mr. Michael Lincoln
Partner
Cooley, Godward, Kronish, LLP
(703) 456-8022
Mr. Arthur M. Mandel
Director
Prestwick Pharmaceuticals
(202) 296-1400
Mr. Tim Regan
Senior Vice President
Whiting-Turner
(443) 463-2484
Mr. Randall Turner
Vice President
MedImmune, Inc.
(301) 389-458
TENANT REPRESENTATION
EDGE BIOREAL ESTATE
- 36 -
REFERENCES
INVESTMENT SALES
Mr. David H. Bralove, Esq.
Trustee
REII Gaithersburg
(301) 469-3901
Mr. Robert Buccini
President
The Buccini Pollin Group
(302) 691-2100
Ms. Linda Chang
Vice President
Human Genome Sciences
(301) 309-8504
Mr. Brian B. Dembeck
Executive Director
Johns Hopkins Real Estate
(410) 997-3737
Mr. Weldon Humphries
Sr. Vice President (Retired)
Choice Hotels International
(865) 458-3924
Mr. Steven C. Mayer
(Former) Chief Executive Officer
Human Genome Sciences
(240) 821-9020
Mr. Peter S. Atwood
Managing Director
Aetna Life Insurance Company
(860) 273-1781
Mr. Tal Bar-Or
Vice President
CitiGroup Global Markets
(212) 816-7894
Mr. Kenneth Gentzel
Managing Director
Nortmarq Capital
(301) 654-6949
Mr. Kevin Kane
Senior Vice President
Column Financial/Credit Suisse
(301) 564-3280
Mr. Paul K. Talbot
Principal
Newmark Capital Group
(212) 372-2356
Mr. Richard Van Steenbergen
Senior Vice President
Hartford Investment Mgmt.
(860) 297-6478
Mr. Rowland Dutcher
Board Member
Deer Park Condominium Assoc.
(301) 590-0387
Dr. Alfred Greenberg
Principal
Monteverde, LLC
(301) 983-3131
Mr. Rick Heger
Manager
Harvey Property Management
(301) 656-0465
Mr. Robert L. Morgan
Leasing Manager
Fairfax County Government
(703) 324-2820
Mr. Herb Palm
President
Palm Facility Services
(301) 656-4990
Mr. Ronald D. Paul
Chairman & CEO
Eaglebank.
(301) 951-7222
ACQUISITIONS
MANAGEMENT SERVICES
- 37 -
EDGE Commercial, LLC
6931 Arlington Road,
Suite 450
Bethesda, Maryland
20814
(p) 301.222.0200
(f) 301.222.0218
www.edgecre.com