Real Estate Journal — Financial Digest — Appraisal — September 15 - 28, 2017 — 7A
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M id A tlantic
A ppraisal
By Jay L. White, MAI, CRE, Apex Realty Advisory Delaware Commercial Real Estate Market – Midyear 2017 Update R eal estate fundamen- tals in the First State are strong and healthy ments with 680 units in New- ark selling for $52.5 million in May
in 2017. The NewCastle Coun- ty commercial real estate markets are operating at the following metrics according to CoStar and brokerage sup- plied figures. Of the four property sectors, the retail market seems to be performing the strongest, especially in light of the tu- multuous road landlords have had to endure in terms of store closures (i.e., Best Buy and hhgregg) and bankruptcies (i.e., Radio Shack and Sports Authority). In addition, its net absorption rate is very strong compared to the past three- years. Major trades year-to- date include the following retail centers: • The 46,000 s/f Kirkwood Square in Wilmington selling in January for $6.6 million • The 138,000 s/f Christiana Crossing inWilmington selling for $29.3 million in February • The 18,000 s/f Mariner’s
• The Apartments at Pike Creek with 264 units selling in April for $41 million • The 15-story high rise with 231 units at 1303 Delaware Ave. selling in July for $29.25 million The commercial real estate market in Delaware is healthy and expanding across all sec- tors. Year-to-date transaction activity is robust with many multi-million dollar deals. Lending is competitive but un- derwriting remains disciplined. The outlook for the second half of 2017 is for a continuation of positive momentum, especially as the state transitions from its historical large corporation driven economy to more of growth in technology, health- care and small entrepreneurial businesses. Jay L. White, MAI, CRE is president of Apex Realty Advisory in Wilmington, DE. n
Plaza in Lewes selling in March for $4.7 million In light of its vacancy rate being the highest, local office space is expanding thanks to new corporate head quarter facilities built by CSC Corpo- ration and Incyte Corporation. Good news for this sector is Chemours’ decision to keep its headquarters in 250,000 s/f in downtown Wilmington, but HSBC has announced it will close its Churchman’s Center call center in 2018. Major office building trades so far year-to- date include the following: • The sale leaseback of Astra Zeneca’s North Campus sell- ing in July for a reported $50 million • 802 Delaware Ave. in the
Wilmington CBD selling in May for $34 million • 1007 N. Market St. in the Wilmington CBD selling in April for $32 million The local industrial market fundamentals have improved thanks to the removal of the former Avon manufacturing plant in Newark which is be- ing demolished for a mixed use redevelopment and the 3.2 million s/f former GM Boxwood plant which is under contract to a local developer. Major trades of local industrial buildings so far year-to-date include the following: • The 180,000 s/f indus- trial building at 300 Executive Drive selling for $6.5 million in May
• Forum 2000 and 3000 to- taling 112,800 s/f in Newark selling in June for $5.2 million • 20 Davidson Lane, 148,000 s/f in Wilmington selling in April for $6.7 million The little darling of the com- mercial real estate sector con- tinues to be the multifamily apartment market. New devel- opment is on-going in Wilm- ington, the Riverfront, Bear, Newark, and inMiddletown. A pipeline of about an additional 2,000 units is planned by de- velopers in Wilmington, Bear, Middletown and Dover. Local deals of multifamily assets continue to occur throughout 2017 with several of the larg- est summarized below. • Hunters Crossing Apart-
D elaware
N ew J ersey
Jay L. White MAI, CRE® 101 Brandywine Boulevard Wilmington, DE 19803 P: 302-479-5300 F: 302-397-2403 www.apexrealtyadvisory.com
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