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Project Summary

Diversified Lending Solutions ("DLS") has been retained by Calvary Community Development Corporation (the ""Sponsor") to obtain financing for the $2M acquisition of the former Prince Georges Community College building and campus (the, Property") to be used as their proposed site for the Breath of Life Community Center in Upper Marlboro, Maryland. The Property, located at 9101-9109 Westphalia Road, consists of a 23K SF industrial building most recently used as a trade school, plus a total of 21 acres of land. The Property already includes spaces that will wok for the Sponsor's intended uses as a sanctuary, fellowship hall, kitchen, offices, and community gathering and programming spaces. The location in the Westphalia area of Prince George’s County and in the Military Installation Overlay for Joint Base Andrews is along the same corridor for which the Sponsor has been completing predevelopment work for another land parcel they intended to develop as a community center.
The Property is being acquired at a significant discount to the $3.5M listing price and $2.4M assessed value, respectively. The Sponsor's similarly-zoned 5-Acre land parcel, which is located on the same street, was appraised for $1.6M in 2023 so the inclusion of 21 Acres of developable land along with sale of the campus building will enable the sponsor to benefit from significant day-one equity. The attractive cost basis will also enable the Sponsor to pursue its longstanding community development plans at a much lower cost, significantly accelerated timeline, and gives the Sponsor more options with navigating its future programming and community development vision. Along with the acquisition of the Property, the Sponsor intends to list its other development site for sale in order to unlock the roughly $1M of equity while also removing the carry costs related to the underlying land loan.
The Sponsor expects that the tenants who pre-leased space at their other development site, will similarly remain interested in transitioning their leases to the Subject Property if there is space to accommodate the organizational programming, respectively. The Property's existing layout will work for 3 of the 5 tenants (Calvary Chapel Breath of Life Church, The Hope Center Church, and Bodie Blast by Roxie) but utilization by the Boys and Girls Club and Parks & Recreation Department will require a separate Phase 2 development of a gymnasium space after the acquisition of this Property as the hub of community programming and worship services.

Sponsor

The Calvary Community Development Corporation is a non-profit entity wholly owned by the Calvary Chapel, a non-denominational church that was founded in 1997 and provides fellowship meetings, bible study classes, and Sunday service to its growing congregation. The Calvary Community Development Corporation focuses exclusively on the community-based services and development that fall outside of the core spiritual focus of the Calvary Chapel.

Desirable Residential Community Experiencing Sustained Growth

The Subject’s proximity to the Capital Beltway and Route 4 makes it extremely accessible to the market area (20 minute drive to DC). The immediate submarket is experiencing substantial population and household growth. The population and number of households within a 1-mile radius of the Subject is projected to grow 21.2% and 21.7%, respectively, annually through 2025. This is substantially higher than projected growth rates for Prince George's County (0.5%), Washington DC (1.0%), and the state of Maryland (0.5%) for the same period. Existing housing stock is dominated by owners versus renters (87.4% within a 1-mile radius as of 2020) with a median household income of $76k, signaling a critical mass of stable, middle-income families.
Prince George's County is a diversified economy, and reflects similar distributions by industry to Washington DC metro and Maryland overall. The major industries include Services (52%), Public Administration (14%), Construction (10%), and Retail Trade (8%). Major employers in the county include the University System of Maryland, Joint Base Andrews Naval Air Facility, U.S. IRS, U.S. Census Bureau, UPS, and NASA. 4.5 miles from the Subject is the Suitland Federal Center, a 226-acre campus supporting 7,000-8,000 employees across several government agencies. The Subject is also less than a mile south of Joint Base Andrews, which includes the Branch Avenue Metrorail Station and commercial corridors along Auth Road, Suitland Parkway, Branch Avenue, and Allentown Road.
Westphalia Town Center is a multi-phase mixed use community under development minutes from the Subject. It is poised to become a walkable hub with residential, office, hotel and retail offerings alongside a town center. Phase I alone will be home to over 700 residences, 150 hotel rooms, and up to 500,000 SF of retail.

Strong Demand For Recreational Services

As the county has over 117k households with children and experienced sustained growth, there is strong demand for family-friendly, recreational, and junior sports activities. There are over 90 AAU (Amateur Athletic Union) basketball clubs alone within 15-miles of the Subject. Despite this fact, Upper Marlboro suffers from a lack of modern recreational facilities, contributing to the strong year-round demand for gym space. To participate in competitive sports activities, most families need to travel outside of their immediate neighborhood. Rapid population growth in Westphalia makes the unmet demand even more acute. Popular gyms are routinely booked, generally charging $120 per hour, with state of the art facilities exceeding $200 per hour.