10C — July 28 - August 10, 2017 — Brokerage Directory — M id A tlantic Real Estate Journal
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B rokerage D irectory
By Greg Ellis, CCIM, Patterson-Woods Commercial Properties/CORFAC International Tough Times and Vacancy Lead to a Reset and Investment Opportunities
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atterson-Woods Com- merc ial Proper t i es / CORFAC Internation-
ing at $14-$16 psf may seem low for a property in a densely populated Central Business District location, however, the lower price point supports an emerging trend in the down- town Wilmington market. Lower priced office build- ings, auctions and foreclosures are allowing new investors to come in with a lower basis, new capital, and therefore, an abil- ity to price to the market and meet market needs. A recently purchased retail/ office/multifamily building in the 400 block of Market St. provided an investor an
opportunity to buy a histori- cally renovated building for a fraction of the initial redevel- oper’s cost. By purchasing the property significantly below replacement cost, the investor now has a more competitive lease pricing advantage. The same can be said for 405–411 N. Market St. The investment includes a structurally defi- cient building that allows the investor to tear it down and redevelop it into a modern, usable structure priced to market. Patterson-Woods has been retained as the exclusive broker for the leasing of both of these projects. At these lower rates, build- ings can be affordably redevel- oped into nicer office buildings, or converted into other uses, such as apartments, condos or hotels. The repurposing of older or abandoned office/retail build- ings into residential apart- ments has surged over the past couple of years due to the demand of millennials and professionals who want to live in Market Street’s “live, work, play” environment. It also al- lows them to be near rail trans- portation and rapidly growing neighborhood entertainment. Over 1,783 units have been re- cently or are about to be added to the market. As for hospitality, Delaware saw around 8.5 million visitors in 2015, with 1.69 million of them business travelers. This lends an opportunity for hotel conversions such as the new Marriott Suites at 1300 N. Market St. and the planned upgrades to the Hotel DuPont. Additionally, there are sev- eral incentives and support for new development/conver- sion from local municipalities. Delaware has been providing upfront capital and on-going tax incentives for new develop- ments and renovation projects in Wilmington. Wilmington has seen its share of tough times and va- cancies within the last 10 years. However, these condi- tions have led to opportunities for investors to clear out the dead wood and lead to new growth. Greg Ellis, CCIM, Prin- cipal at Patterson-Woods Commercial Properties/ CORFAC International, has been involved in com- mercial, corporate and investment real estate for 22 years. n
a l recent l y brokered an auction of a 71,852 s/f of- fice building in downtown Wilmington, DE, at 913 N . Ma r k e t St. for $15.34
Greg Ellis
per s/f. A neighboring 14-story, 121,206 s/f office building, 901 N. Market, recently sold at auction for $14.73 psf. Pur- chasing a high-rise office build-
Patterson-Woods Commercial Properties/CORFAC International recently brokered an auction of this 71,852 s/f office building at 913 N. Market St. in downtown Wilmington, DE.
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