Exclusive Investment Offering: Condominium Interest - Transwestern

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combined traffic count of over 50,000 cars passing daily.
With the utmost commitment from both communities
to neighborhood revitalization, the Subject Properties
should enjoy significant future gains in patronage.
Premier Demographics; Rapid Population Growth
with High Disposable Income
The success of these dynamic developments is bolstered
by superior demographics in both Falls Church and
McLean. The population in Falls Church is anticipated
to grow 41% by 2025. As of the 2000 Census, the City
ranked 3rd in the state for median household income
and 12th in proportion of households with incomes of
$150,000 or more. Similarly, residents within a one mile
radius of The Palladium boast an average household
income of $158,000, one of the highest in the nation
and nearly triple the state average. Housing values in
McLean have benefited from its affluent residential
base; the average home is valued at $865,000 which has
grown 120% since 2000. Retail tenants at these premier
Properties are both entrenched in neighborhoods
with some of the highest disposable incomes in the
country.
Supply Constrained Retail Markets with High
Barriers to Entry
Retail under-supply is even more profound in McLean,
which records a negligible 0.3% retail vacancy rate.
Despite rampant efforts to consolidate parcels for
redevelopment, retail infill sites are extremely rare
and therefore command above average rents for
Washington D.C. suburban cores. The Shops at the
Palladium are leased well below market with market
rents averaging $48 psf triple net. Market rents have
experienced 4.3% annual growth since 2004.
Given the infill nature of these markets, rent growth is
anticipated to continue to increase at above inflation.
Both the Subject Properties are located within
consistently strong retail submarkets. Each submarket
registers low vacancy rates which perpetuates high
demand and corresponding rent growth. The City of
Falls Church, occupying just 2.0 square miles, has a
retail inventory of 683,000 square feet at a low 1.3%
vacancy. Current rental rates are well below market
as market rents range from $40.00 to $60.00 psf triple
net in the City. Significant revitalization of this affluent
neighborhood has encouraged 7% average annual
rent growth over the past four years.
Aerial view of The Shops at The Palladium
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