5801-5805 Silver Hill Rd, District Heights, MD 20747-2115

Marcus & Millichap, on behalf of Ownership, is pleased to present The Shops at Silver Hill, a 28,378 square foot neighborhood retail center located in the Washington, DC submarket of District Heights, Maryland (the "Offering"). The Property is 97% leased to a mix of service-oriented retailers complemented by a forthcoming, creditworthy medical tenant under a new 10 year lease in the property's one outparcel building. The Offering benefits from staggered lease rollover, a compound annual growth rate (CAGR) near 3%, and a weighted average remaining lease term (WALT) of six years, providing investors with stable in place cash flow and reduced near term rollover risk.

The Shops at Silver Hill will immensely benefit from the execution of a new 15-year lease with a highly sought-after, creditworthy regional medical use that will effectively anchor the Offering's rent roll in the property's outparcel. The tenant is the largest health system in the state of Maryland by hospital count, with an additional 150 urgent care, primary care, outpatient, and specialty medical facilities across 13 counties statewide. It maintains an "A" debt rating, or investment grade from the S &P Global rating. Ownership will deliver this tenant as part of the Offering, with the tenant expected to open in Fall 2026. It should be noted that with the opening of the pad user, new ownership could seek to parcelize and spin-off the pad as part of its value-add strategy.

It is notable that The Shops at Silver has performed exceptionally well since its development in 2008. This is driven by four points of access across two separate roadways, a dense 3 mile population of 136,396 residents, and strong retail synergies with neighboring Wells Fargo Bank ($78 million in deposits) and Walgreens, which generates 324,000 annual visits (Placer.ai) and ranks in the top 70% of the chain statewide (both not part of the offering). Additionally, the Suitland Metro Station on Washington, DC's Green Line is located just 1.6 miles away and averages 3,524 riders per day. Approximately half of the tenant roster has been in place for nearly a decade, contributing to an average occupancy period over 9 years. This longterm tenancy, together with recent renewals and leasing activity, demonstrates continued momentum at the property.

New ownership will have multiple opportunities to add value, in addition to lease-up of the final remaining vacancy. As retail rental rates in the submarket have grown, the ability to turn over older or underperforming tenants remains an opportunity. On Time Tag and Title occupies a 1,643 SF space for $14.48 PSF net with no renewal options and an expiration in early 2028. At rollover, new ownership will have the opportunity to reset rents to market, effectively doubling the existing rent rate and increasing NOI by nearly $30,000 annually. Additional value-add potential includes the potential spin-off sale of the new credit medical building. This parcel has not yet been subdivided, but cap rate arbitrage exists if one pursues this strategy.

The Property is prominently located on Silver Hill Road (19,853 VPD) and Old Silver Hill Road (10,000 VPD) which provides access to the southern side of the property. Directly across Silver Hill Road are two established shopping centers, Silver Hill Plaza, home to Tiger Mart, a recently opened international grocery store, and Penn Station Shopping Center. Across Pennsylvania Avenue is a Kimco-owned Giant-anchored shopping center featuring esteemed brands like Chick-fil-A. Several smaller neighborhood retail centers are located within one-half mile of the site, and all have high occupancy rates.

The Property is uniquely bracketed by Old Silver Hill Road and Silver Hill Road, which is just one-quarter mile from the intersection with Pennsylvania Avenue, which has exceptional traffic counts (37,000+ VPD), and serves as a major feeder to this retail node. Supported by a one mile population of nearly 20,000 residents and meaningful barriers to new development, the market offers little-to-no opportunity for new retail development.