Chesapeake Lighthouse Foundation€¦ · Chesapeake Lighthouse Foundation • Hanover, MD 3 Investment Highlights Successful Operator Chesapeake Lighthouse Foundation (CLF) is a leading

Chesapeake Lighthouse Foundation 7321 Parkway Drive South, Hanover, MD

Offering Memorandum

Chesapeake Lighthouse Foundation • Hanover, MD 2

Confidential Disclaimer

Offered byThis Confidential Memorandum has been prepared by Stan Johnson Company (“SJC”) and is being furnished to you solely for the purpose of your review of the commercial property located at 108 Greensburg Road Lower Burrell, PA 15068 (the “Property”). The material contained in this Offering Memorandum shall be used for the purposes of evaluating the Property for acquisition and shall not be used for any purpose or made available to any other person without the express written consent of Stan Johnson Company (“Broker”).

By accepting the Confidential Memorandum, you acknowledge and agree that: (1) all of the information contained herein and any other information you will be receiving in connection with this transaction, whether oral, written or in any other form (collectively, the “Materials”), is confidential; (2) you will not reproduce the Confidential Memorandum in whole or in part; (3) if you do not wish to pursue this matter, you will return this Confidential Memorandum to SJC as soon as practicable together with all other materials relating to the Property which you may have received from SJC; and (4) any proposed actions by you which are inconsistent in any manner with the foregoing agreements will require the prior written consent of SJC.

This Confidential Memorandum has been prepared by SJC, based upon certain information pertaining to the Property and any information obtained from SJC to assist interested parties in making their own evaluation of the Property is offered on a no representation or warranty provision other than customary warranties of title and is sold on an “as-is, where-is” basis and with all faults. The material and transaction does not purport to be all inclusive. This Confidential Memorandum contains descriptive materials, financial information and other data compiled for the convenience of parties interested in the Property. The Materials are being delivered by SJC to prospective investors with the understanding that it is not all inclusive and that it is qualified in its entirety by independent investigation by prospective investors of those matters which they deem appropriate in evaluating this offering without reliance upon SJC, the Broker or any of their respective affiliates or any of the information set out in the Materials. Neither SJC, the Broker, nor any of their respective affiliates have independently verified any of the information contained herein or in any of the Materials, and no representations or warranties as to the accuracy or completeness thereof or of any other kind whatsoever are made or intended and none should be inferred.

SJC, for itself and its affiliates of the Property, expressly disclaim any and all liability for statements or representations, express or implied, contained herein or for omissions from the Materials or for any other written, oral or other format of communication transmitted to a prospective investor in the course of its evaluation of the proposed transaction. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. The terms and conditions described herein are subject to change without notice.

This Confidential Memorandum does not constitute an offer to accept any investment proposal but is merely a solicitation of interest with respect to the investment described herein. The Confidential Memorandum does not constitute an offer of security. The investment described herein may be financed or withdrawn from the market, without prior notice. By accepting this Confidential Memorandum you agree to release SJC and hold it harmless from any kind of claim, expense, or liability arising out of your discovery or purchase of the Property. SJC reserves the right to request the return of the Materials at any time. Ownership of the Property reserves the right to negotiate with one or more prospective investors at any time.

Stan Johnson Company 180 Madison Avenue | Suite 1500 New York, NY 10016 P: +1 646.778.5560

7702 E Doubletree Ranch Road | Suite 300 Scottsdale, AZ 85258 P: +1 480.607.4365 stanjohnsonco.com

John Rotunno Associate [email protected]

Maryland Broker #642840

Brad Richardson [email protected]

Clint [email protected]

In Association with:

Zachary Harris Maryland Broker #656021


Investment HighlightsSuccessful Operator

Chesapeake Lighthouse Foundation (CLF) is a leading charter school

operator in Maryland with five (5) schools currently and one planned to open

in Fall 2018. CLF benefits from their charter relationship with Anne Arundel

and Prince George’s counties’ strong credit ratings (S&P: AAA).

Strong Track Record

Chesapeake Science Point (CSP) is one of the most accomplished charter

schools in Maryland and was recognized as the 2010 Charter School of the

Year. The school is continuously at maximum enrollment of 463 students with

a current waiting list of 581 students. In 2016, there were 650 applicants for

61 spots.

Long Term Commitment to Site

Chesapeake Science Point (CSP) has operated at this site for almost ten (10)

years and most recently extended their lease two (2) years early for ten (10)

years until August 2029 demonstrating a strong commitment to the site.

Additionally, at their own cost, they recently expanded the building with the

addition of a new gymnasium at a cost of $1.2 million.

Attractive NN Lease

The lease has over eleven (11) years remaining on the base term and boasts

large annual increases of 2.25%. The lease features a NN structure with

minimal landlord responsibilities.

Excellent Location

The property is well situated with excellent access to major highways north-

south (BWI Parkway - VPD +/-99,810) and east-west (Hwy 100 – VPD +/-

53,225) as well as close proximity to the BWI Airport, Amtrak and MARC rail

lines.

Investment Summary

Stan Johnson Company is pleased to offer for sale to qualified investors, the opportunity to purchase an office building that is 100% leased to Chesapeake Lighthouse Foundation’s Chesapeake Science Point Middle School & High School. The property is located in Anne Arundel County’s unincorporated community of Hanover, Maryland.

Chesapeake Lighthouse Foundation (CLF) was established in 2005 and currently operates five (5) charter schools in the state of Maryland. Chesapeake Science Point (CSP) public charter school, CLF’s first school, opened in 2005. CSP has earned a reputation as one of the most accomplished charter schools in Maryland. In 2010, CSP was recognized as the Charter School of the Year in Maryland.

The property is a 52,175 square foot facility consisting of offices, classrooms and a recently added gymnasium. Chesapeake Science Point has been operating at this facility since 2009 under a long-term lease with over eleven (11) years of term remaining, expiring in August 2029. The NN lease features generous rental increases of 2.25% annually with minimal landlord responsibilities.

The property is well located at the interchange of two main highways with traffic counts over 150,000 vehicles per day. The area is a popular suburb to Baltimore and Washington D.C. just minutes from the state of Maryland’s largest airport, shopping center and employer. The market continues to attract significant development projects including, most recently, the addition of the Maryland Live! Casino & Hotel.

Asking Price: $12,050,000 Cap Rate: ±6.85%


Lease Abstract

7321 Parkway Drive South, Hanover, MD

Tenant Chesapeake Science Point

Guarantor Chesapeake Lighthouse Foundation

Lease Commencement April 2009

Remaining Term 11 years and 8 months

Lease Expiration August 1, 2029

Annual Increases 2.25% annually

Expenses NN (Roof & structure)

Rent $825,089 (eff. 8/15/2018)

Rent per SF $15.81 (eff. 8/15/2018)

Property Summary

7321 Parkway Drive South, Hanover, MD

Property Type Office

Land Area 3.42 Acres

Building Area 52,175 SF

Year Built/ Renovated 1984/2010

Ownership Fee Simple

Parking Spaces 175 spaces (4.12 per 1000)

Fire Safety 100% sprinklered

Security Cameras and card key access

Foundation 6” concrete slab

Construction Steel column, hung brick exterior

Rent Schedule Lease Year Rent/SF Annual Rent

8/15/2017 - 8/14/2018 $15.47 $806,934

8/15/2018 - 8/14/2019 $15.81 $825,089

8/15/2019 - 8/14/2020 $16.17 $843,653

8/15/2020 - 8/14/2021 $16.53 $862,653

8/15/2021 - 8/14/2022 $16.91 $882,045

8/15/2022 - 8/14/2023 $17.29 $901,890

8/15/2023 - 8/14/2024 $17.67 $922,183

8/15/2024 - 8/14/2025 $18.07 $942,932

8/15/2025 - 8/14/2026 $18.48 $964,148

8/15/2026 - 8/14/2027 $18.89 $985,842

8/15/2027 - 8/14/2028 $19.32 $1,008,023

8/15/2028 - 8/1/2029 $19.75 $1,030,704


The Chesapeake Lighthouse Foundation (CLF) was established in 2003 and currently operates five (5) charter schools in the state of Maryland with another school planned for Fall of 2018. The Foundation is made up of a Governing Board consisting of nine (9) members with responsibility to oversee the daily operations and business practices at each of the schools. In partnership with the Anne Arundel and Prince George’s County school districts, CLF operates each school by providing a rigorous, technology-integrated curriculum with an emphasis on mathematics, science, and information technologies.

Their mission is accomplished by implementing an innovative curriculum that incorporates technology into instruction while covering Common Core Standard and utilizing hands-on, inquiry-based teaching methods that create an active learning environment and a student centered educational system. CLF schools strive for excellence and have been very successful in state mandated MSA (Maryland School Assessment) tests. In 2013, CLF schools received higher scores than the district and the state in all grade levels and all subjects!

CLF operates one school in Anne Arundel County, Chesapeake Science Point Middle School & High School in Hanover and four schools in Prince George’s County: (1) Chesapeake Math and IT (CMIT) High School in Laurel; (2) CMIT Middle School in Laurel and (3) CMIT Elementary in Laurel; and (4) CMIT Academy South Middle School & High School in Upper Marlboro.

The CLF Chesapeake Science Point (CSP) public charter Middle School & High School in Anne Arundel County is in Hanover, Maryland. This school was CLF’s first school opened in 2005. Since its opening it has been regarded as one of the most successful public schools in the county as well as having a reputation as one of the most accomplished charter schools in Maryland.

As a public charter school, CSP accepts students residing anywhere in Anne Arundel County and is funded by Anne Arundel County Public Schools (S&P Rating: AAA). To maintain this relationship, CSP is responsible for adhering to all county, state and federal laws.

At CSP, the goal is to offer much more than a typical public-school experience. Each student shoulders high expectations coupled with the support of the CSP instructional staff and their families to reach and exceed personal academic, social, and career goals. CSP believes education

Tenant Overview

Presient Obama at Chesapeake Math & IT Academy

CSP’s Keys to High Student Performance:

• Provides intense individualized instruction in science, math, and technology

• Engages students through one-on-one tutoring and peer study group

• Prepares all students for college admittance

• Provides after school program and extracurricular activities

• Provides opportunities for internships, projects, science fairs, and participation in competition

• Maintains high expectations for students, parents, teachers, and the community

is most successful when there is a partnership between the school, students, parents/guardians, and community. CSP prepares each student to follow a college or career path following graduation. CSP boasts that 100% of the students graduate and 100% are accepted to 2- or 4-year colleges.

A Superior Design for a Superior School Designing a school presents several unique challenges: working under limited budgets, securing construction approvals, and meeting environmental & health standards. This process can take years to complete, but to meet their timeline CSP had only 8 months. CSP embarked on this goal, taking a creative approach to converting an old government office building into a school while simultaneously anticipating and meeting all code and engineering challenges. See story on CSP’s design here>>

CSP continues to flourish at all levels. It has one of the best math and science teams in the state, and its students regularly score in the 90th percentile in state proficiency tests in math and reading. The school serves a 55% minority population from a wide variety of socio-economic backgrounds, working to ensure that every student graduates and moves on to higher education.

best charter school in the

country

160thon the waiting list

(463 maximum enrollment)

581applicants for

61 spots in 2016

650

http://www.ariumae.com/chesapeake-science-point/




CSP’s accomplishments and recognitions:

• Maryland Charter School of the Year

• Top 30 middle schools in the Maryland, D.C., and Northern Virginia Region by the Washington Post

• Top 10 Middle School in the state of Maryland by GreatSchools.Net

• Best Middle School in Maryland by SchoolDigger, a top rated school ranking agency. SchoolDigger utilized data from 299 middle schools in Maryland

• Top Performing Middle School in Anne Arundel County Public Schools (AACPS) with 100% Passing Rate at High School Assessment

• Highest percentage of Middle School students that passed the High School Assessment (HSA) for Algebra

Tenant Overview (continued)

Chesapeake Science Point School Among Most Challenging in Maryland HANOVER, MD — Many students can skate by in high school with good grades when they choose less challenging courses. But more challenging courses, such as Advanced Placement classes, are what really help teens grow and learn and even earn college credits. With that in mind, the Washington Post recently released its 2017 list of the Most Challenging High Schools in the U.S.

South River High School in Edgewater ranks as number 262 on the national list. Also on the list just one spot higher is Chesapeake Science Point School in Hanover, a county charter school.

The Washington Post ranks schools through an index formula that’s a simple ratio: the number of Advanced Placement, International Baccalaureate and Advanced International Certificate of Education tests given at a school each year, divided by the number of seniors who graduated that year, according to the Washington Post. A ratio of 1.000 means the school had as many tests as graduates. For more on the article and rankings click here>>

Chesapeake Science Point - In High Demand Founded in 2005, the Chesapeake Science Point Public Charter School (CSP) is currently one of the most accomplished charter schools in Maryland. In fact, CSP had the second highest math and fifth highest reading scores among the 314 public middle schools in the State of Maryland School Assessment (MSA) tests.

The school continues to be in high demand by local families, especially those working in high tech and national security jobs. The local population made up of highly educated professionals recognize the benefits of a strong education with a special emphasis on math and science.

A testament to CSP’s success and attractiveness is the high level of student enrollment. The school has been at the maximum enrollment of 463 students for years now and there is a waiting list of 581 students. In 2016, there were 650 applicants for 61 available spots.

CSP has the largest alternative school enrollment and is filled to capacity.

In 2017, CSP ranked better than 88.9% of Middle Schools in Maryland.

In 2017, CSP ranked better than 84.5% of High Schools in Maryland.

The student/teacher ratio at CSP is 14.4: 1.

Source: SchoolDigger.com

https://patch.com/maryland/odenton/chesapeake-science-point-school-among-most-challenging-maryland

https://patch.com/maryland/odenton/chesapeake-science-point-school-among-most-challenging-maryland


N

Hanover, Maryland is a community in northwestern Anne Arundel County. It is located at the intersection of Maryland State Highway 100 and the Baltimore-Washington Parkway and is part of the Baltimore-Washington Metropolitan Area.

Anne Arundel County has a strong and diverse economy with high household incomes, low unemployment, and a strong housing market. With a population of approximately 570,000, Anne Arundel County covers 415 square miles and is strategically located near Washington, D.C., and Baltimore. It is the fifth largest jurisdiction in Maryland and 114th largest in U.S.

Several critical statewide and national assets located in Anne Arundel County include:

• Annapolis (Maryland’s state capital) • BWI Thurgood Marshall Airport • Maryland Live! (the nation’s 3rd largest casino) • Fort George G. Meade (Army Base) • The National Security Agency • U.S. Cyber Command • U.S. Naval Academy

The county boasts a $36 billion economy, the 26th highest median household income in the U.S. and an unemployment rate below 4%. Businesses benefit from the county’s highly educated workforce.

Location Overview

(Continue to next page)

STATE HWY 100 (53,2250 VPD)

BALTIM

ORE WASHIN

GTON PKW

Y (99,8

10 V

PD)

ARUNDEL MILLS MALL

Anne Arundel Community

College

Peapod

Owens & Minor

Express Global Systems

Oceaneering Advanced Tech

Allegis Group

Stryker Orthopaedics

Advantage Flooring Inc.

Delsey Luggage

Lockheed Martin

L-3 Communications

Mantech

Latitude

Code 3 Security & Protection Services Inc

KSI Maryland

Church of Philippi

Broadcast Sports, Inc

General Electric International, Inc.

Allegis Group


Location Overview

Anne Arundel County is a premier location for businesses that need to move products nationally, particularly along the eastern seaboard and to the Midwest. The county’s extensive multi-modal transportation network benefits commerce and serves the region’s workforce. One of the Mid-Atlantic’s busiest airports, BWI Airport, is located in the Anne Arundel County and the Port of Baltimore benefits commercial enterprises. The area’s roads and rail system provides excellent transportation options that serve thousands of people daily.

Approximately 52,000 businesses are located in Anne Arundel County from government,

technology, healthcare, construction, hospitality and retail to agriculture. The area’s largest employment center, Fort George G. Meade, is situated in west Anne Arundel County near Hanover, MD. The Fort Meade area is home to the nation’s premier defense agencies such as the National Security Agency, Defense Information Systems Agency (DISA) and the U.S. Cyber Command. The area is the heart of Maryland’s robust technology ecosystem,

Employer Summary

Public Sector Employer Employees

Fort George G. Meade 53,733

Anne Arundel County Public Schools 14,000

State of Maryland 12,132

BWI Thurgood Marshall Airport 9,717

Anne Arundel County Government 5,190

U.S. Naval Academy 2,340

Anne Arundel Community College 1,849

U.S. Postal Service 600

U.S. Coast Guard Yard 598

City of Annapolis Government 550

Private Employer Employees

Northrop Grumman 7,725

Anne Arundel Health System 4,000

Southwest Airlines 3,500

Maryland Live! Casino 3,000

Univ of MD Baltimore Washington 2,901

Booz Allen Hamilton 2,100

Allegis Group 1,500

CSC 1,229

Lockheed Martin 925

Rockwell Collins ARINC 750

boasting a diverse business mix of top defense contractors and growing innovative companies.As a result of recent expansive development on Fort Meade and highly intensive, transit oriented, mixed-use developments within a four mile radius, this area continues to grow at a fast pace.

From government entities such as Fort Meade to private sector businesses like Northrop Grumman, Southwest Airlines and Maryland Live! Casino, Anne Arundel County is home to some of Maryland’s top employers.

Jobs Establishments

39,011 3,066RETAIL

32,141 3,791HEALTHCARE

26,812 1,412FOOD SERVICE

21,916 489MANUFACTURING

Businesses & Jobs

Educational Attainment

Where the majority of the population has a high school degree and almost 50% have a college degree.

ASSOC DEGREE

7.55%BACH DEGREE

23.12%GRAD DEGREE

16.17%

4IN THE COMMUNITY

77WITHIN 50 MILES

Colleges

Offer Associate’s Degree or Certificate

3IN THE COMMUNITY

77WITHIN 50 MILES

Universities

Offer Bachelor’s Degree or Higher


FORT MEADE

FORT GEORGE G. MEADE • One of the largest economic engines in Maryland, generating more than $20 billion in economic activity. • More than 55,000 employed personnel, with an additional 83,000 supported by Fort Meade facilities and services. Fort Meade is the largest employer in the state and has the third-largest workforce of any Army installation. • 5,400-acre installation and 116 partner organizations (e.g. federal agencies). • More than $1.8 billion in construction underway. • U.S. Cyber Command/NSA first phase expansion includes 1.8 million square feet of construction, with long-term plans for 5.8 million square feet of space for 6,500 personnel. • U.S. Cyber Command, currently under STRATCOM, will become its own unified command, which could increase the number of personnel and the influence of Fort Meade. • Fort Meade, the nation’s preeminent center for information, intelligence and cyber operations, celebrated its 100th birthday in 2017.

LIVE! CASINO/ARUNDEL MILLS • Arundel Mills Mall and Live! Casino draw 18 million visitors a year – Maryland’s #1 tourist destination. • Live! Casino, the state’s most exciting gaming and entertainment experience, opened in June 2012. The $500 million multi-use complex spans 12 acres, and includes slot machines, a full range of table games, a poker room, nationally acclaimed restaurants, an entertainment venue and other first-class amenities. • The Cordish Companies recently broke ground on a $200 million flagship Live! Hotel at Live! Casino. The 350,000-square-foot complex will feature a 17-story hotel tower, making it the tallest building in Anne Arundel County. The complex will feature 310 luxury guest rooms, an event center, meeting spaces, new dining options, and a day spa/salon. • Live! generated more than $20 million in gaming revenues for Anne Arundel County in fiscal year 2016. • Arundel Mills Mall itself is a value-shopping destination with 17 anchors and more than 225 specialty stores that feature outlet, discount and specialty retailers, themed restaurants and entertainment covering just over 1.5 million square feet.

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DOWNTOWN ANNAPOLIS 25.7 MILES

DOWNTOWN BALTIMORE 13.2 MILES

DOWNTOWN WASHINGTON D.C. 28.2 MILES

TIPTON AIRPORT

BALTIMORE INTERNATIONAL THURGOOD MARSHALL

AIRPORT


BALTIMORE WASHINGTON INTERNATIONAL AIRPORT

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PARKWAY DRIVE SOUTH


Demographics 7321 Parkway Drive South, Hanover, MD 0 - 1 mi. 0 - 3 mi. 0 - 5 mi.

Population

2017 Population 3,627 53,203 140,277

2022 Population 4,347 58,717 151,238

2010-2017 Annual Rate 5.69% 2.75% 1.77%

2017-2022 Annual Rate 3.69% 1.99% 1.52%

Households

2017 Total Households 1,435 17,829 47,748

2022 Total Households 1,718 19,778 51,464

2010-2017 Annual Rate 5.79% 2.92% 1.74%

2017-2022 Annual Rate 3.67% 2.10% 1.51%

2017 Average Household Income $109,637 $115,076 $113,725

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Floor Plan

going beyond

The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.

John RotunnoAssociate [email protected] Broker #642840

Brad Richardson [email protected]

Clint [email protected]

Stan Johnson Company 180 Madison Avenue | Suite 1500 New York, NY 10016 P: +1 646.778.5560

7702 E Doubletree Ranch Road | Suite 300 Scottsdale, AZ 85258 P: +1 480.607.4365 stanjohnsonco.com

In Association with: Zachary Harris Maryland Broker #656021

Documents

Chesapeake Lighthouse Foundation€¦ · Chesapeake Lighthouse Foundation • Hanover, MD 3 Investment Highlights Successful Operator Chesapeake Lighthouse Foundation (CLF) is a leading