Overview
Hyatt Commercial is pleased to present the exclusive offering of Lakefront at Washingtonian, a 103,360-square-foot, five-story trophy office asset prominently positioned within Rio Lakefront in Gaithersburg, Maryland. Widely regarded as one of the most desirable suburban office destinations in the Washington, D.C. region, the property offers a rare combination of institutional-quality tenancy, assumable below-market financing, and a premier walkable mixed-use environment.
Situated directly on the waterfront within Rio Lakefront — Maryland's most-visited open-air shopping center and a nationally recognized top-25 lifestyle destination — the asset benefits from immediate access to more than 760,000 square feet of high-end retail, dining, entertainment, hospitality, and residential uses. The destination attracts approximately 7.5 million visitors annually and serves a dense, affluent trade area with average household incomes exceeding $140,000 within a five-mile radius.
The offering includes a $13.81 million non-recourse assumable loan at a fixed 4.41% interest rate through 2032, providing a highly attractive in-place financing structure relative to current debt markets. Launch Workplaces anchors the property with 45,281 square feet under a long-term agreement through 2033, while approximately 22,850 square feet of vacancy and near-term rollover provide a defined value-add lease-up opportunity. Stabilization at market rents of $35–$40/SF FSG is projected to increase NOI from approximately $1.39 million to more than $2.5 million annually.
Investment Highlights
ASSUMABLE BELOW-MARKET DEBT — Existing $13.81M first mortgage at 4.41% fixed, maturing March 2032, non-recourse, with one-time transfer right at 1.00% assumption fee. Coupon is materially below current 2026 office debt market and represents the most accretive financing structure available.
TROPHY LAKEFRONT POSITIONING — Direct frontage on the lakefront within Rio Lakefront mixed-use destination; pedestrian connectivity to Copper Canyon Grill, True Food Kitchen, Yard House, Dave & Buster's, Kings Bowl, AMC Theatres, Whole Foods, REI, and 50+ retailers and restaurants.
UNIQUE ANCHOR TENANCY — Launch Workplaces (TBC-Gaithersburg Offices LLC) occupies 45,281 SF (43.8% of building) - as a coworking platform with a proven 12-year track record at this location. Launch has a lease running through December 2033, structured as a management agreement that delivers landlord net operating income (after building opex- effectively NNN lease rate) of $1.36M in 2025 (3.4× the 2018 baseline) — AND they would be open to a straight lease at $25 per SF Full Service if a prospective purchaser preferred stability over the revenue sharing model.
LEASE-UP RUNWAY — Three vacant suites totaling 19,856 SF plus Suite 330 rolling 6/30/2026 (2,994 SF) provides 22,850 SF (22.1%) of value-add re-leasing opportunity at attainable $35–$40/SF FSG market rents. Full stabilization scenario detailed in Cash Flow Pro Forma.
MXD-ZONING OFFERING FLEXIBILITY — Permitted uses include commercial office, medical office, research/laboratory, telecommunications, and personal-service businesses — broadening the buyer/user pool well beyond traditional office-only investors.
MASTER-LEASED GROUND-FLOOR RETAIL — Washingtonian Lake Retail LLC (Peterson Companies affiliate) holds a long-dated 18,174 SF ground-floor master lease auto-renewed through 5/15/2031 with 10 remaining 5-year renewal options — a stable, long-term income foundation.
