Strategic Sale of a Legacy Downtown Bethesda Asset Without Entitlement Risk

Bethesda, Maryland

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PROJECT OVERVIEW

CPG successfully represented the ownership of 4405 East West Highway in the disposition of a premier redevelopment opportunity in the heart of Downtown Bethesda, Maryland.

Rather than pursuing a lengthy and uncertain entitlement process, the Seller elected to capitalize on strong market demand by marketing the property as-is, allowing a developer to acquire a well-located asset with immediate cash flow and exceptional long-term redevelopment potential. The strategy maximized value while eliminating the time, cost, and execution risk associated with obtaining development approvals prior to sale.

The Opportunity

Situated on approximately 1.37 acres in the core of Downtown Bethesda, the property consists of a 65,060-square-foot office building and surface parking across three contiguous parcels. With more than 200 feet of frontage along East West Highway and located less than a five-minute walk from the Bethesda Metro Station, the property occupies one of Montgomery County’s most desirable transit-oriented locations.

At the time of sale, the building was 88% leased, providing stable in-place income while preserving future redevelopment flexibility through leases containing redevelopment termination provisions.

Located within the Bethesda Downtown Plan, the property is zoned Commercial Residential (CR), allowing by-right commercial, residential, medical, retail, and mixed-use development. The zoning permits 1.5 FAR with opportunities to achieve additional density through the Bethesda Overlay Zone, creating significant long-term upside for future ownership.

CPG’s Strategy

Rather than recommending that ownership invest additional time and capital pursuing entitlements, CPG advised the Seller to bring the property to market in its existing condition.

The strategy focused on marketing the property’s intrinsic land value, transit-oriented location, flexible zoning, existing income stream, and redevelopment optionality to a targeted group of sophisticated developers and long-term investors.

By positioning the asset as a covered land opportunity instead of a fully entitled development site, CPG created a competitive process that enabled ownership to monetize the property’s future potential immediately without assuming entitlement risk.

CPG’s Role

Acting as the Seller’s exclusive advisor, CPG managed every aspect of the transaction, including:

• Developing the disposition strategy including architectural renderings & detailed land use analysis
• Positioning the asset as a premier covered land investment
• Preparing comprehensive marketing materials and financial analysis
• Targeting qualified regional and institutional developers
• Coordinating due diligence and confidentiality processes
• Negotiating purchase terms through closing

CPG’s redevelopment expertise allowed prospective buyers to understand both the property’s current income profile and its long-term highest and best use.

Transaction Highlights

Transaction Type	As-Is Sale
Client	Confidential Seller
Representation	Exclusive Seller Representation
Asset Type	Office / Covered Land Redevelopment Opportunity
Location	Downtown Bethesda, Maryland
Building Area	Approximately 65,060 SF
Land Area	Approximately 1.37 Acres
Occupancy at Sale	88% Leased
Zoning	Commercial Residential (CR)
CPG Services	Strategic Advisory, Marketing, Buyer Procurement, Transaction Management, Negotiation

The Result

The Seller successfully completed the disposition without pursuing rezoning, site plan approvals, or other entitlement work, preserving both capital and time while transferring redevelopment risk to the buyer.

The transaction demonstrates that well-located urban assets with strong underlying land fundamentals can command significant value even without fully entitled development plans when marketed to the right audience with the proper strategy.

Why This Matters

CPG understands that maximizing value does not always require years of entitlement work. In many cases, sophisticated developers prefer to control the entitlement process themselves, allowing sellers to capitalize on existing market demand while avoiding the uncertainty, carrying costs, and execution risk associated with development approvals.

The successful sale of 4405 East West Highway highlights CPG’s ability to identify the highest-value disposition strategy for each asset, connect owners with the right development capital, and execute complex transactions that unlock value while minimizing risk. This approach continues to distinguish CPG as a trusted advisor for owners of infill redevelopment opportunities throughout the Washington metropolitan region.