July 2022 – Did You Know?

A volatile stock market combined with rising interest rates, elevated gas prices and a 40-year high inflation have impacted all of us over the past six months.  However, even with current macro-economic uncertainty, commercial real estate fundaments remain on good footing.  Current market uncertainty is causing developers & investors to recalibrate their strategies.  The good news is that lenders have discipline and investors have long-term faith in the market. 

Below is a snapshot of larger commercial real estate sales activity located throughout Delaware that occurred from January thru June 2022.  The extracted cap rates ranged from 4.6 to 7.03 percent with a median of 5.82 percent.

  • Atlantic Oceanside Motel – is a 59-room motel in Dewey Beach that sold in January for $8 million, or $135,593/room. 
  • Christina Mills Apartments – in Newark is a 228-unit apartment complex on 18.48 acres that was built in 1992 and renovated in 2014 that sold in January $49,000,000, or $214,912 per unit.
  • 750 Otts Chapel Road – in Newark is a 63,545 square foot building built in 1983 that was used as a church before being converted to a school.  It sold in January for $6.0 million, or $94.42 per square foot. 
  • Blue Hen Corporate Center – this is the sale of the north and south ends of this complex in Dover totaling 176,194 square feet.  It sold in January for $17,000,000, $96.48 per square foot. 
  • Foxwood Apartments – in Newark is a 414-unit apartment complex on 27-acres that was built in 1970 and renovated in 2014 that sold in February for $73.6 million, or $177,778 per unit.
  • Pebble Hill Apartments – in Wilmington is a 143-unit apartment complex on 4.01-acres that was built in 1971 that sold in February for $22.24 million, or $155,524 per unit.
  • Hillside Pointe Apartments – in Claymont is a 206-unit apartment complex on 11.01-acres that was built in 1985 that sold in February for $38 million, or $184,466 per unit. 
  • Dorjul Apartments – in Wilmington is a 71-unit complex built in 1966 that sold in April for $8,500,000, or $119,718 per unit.  It included the adjacent two-story, 7,560 square foot, office/retail building for $1,200,000 ($158.73 per square foot).  
  • Colonial East & West + Colonial East – are two modular home parks located in Lewes and Rehoboth that total 692 lots that sold in April for $88.8 million, or $128,323 per lot.
  • Cranston Hall Apartments – located in Wilmington is a 169-unit apartment complex built in 1955 and renovated in 2017 on 9.08 acres that sold in April for $22.7 million or $134,320 per unit.
  • SafStor Self-Storage – is a four-story, 200,000 square foot climate-controlled facility in Newark that was built in 2021.  It sold in April for $19.7 million or $98.50 per square foot.
  • 399 & 411 Churchmans Rd – are two, cold-storage warehouses that total 242,798 square feet that sold in May for $28.4 million ($116.97 per square foot).    
  • One Easton – is a 5-story, student housing project with 440-beds in Newark that was built in 2015 and sold as part of three-property portfolio in April for $73.7 million, or $167,500 per bed. 
  • Arbors at New Castle Rehab Center – located in New Castle is a 39,827 square foot building built in 1990 on 4.82 acres that sold in May as part of a five-property portfolio for $9.62 million, or $241.54 per square foot. 
  • North Dover Center – is a 191,973 square foot community shopping center with 16 stores on 15.79 acres that sold in May for $28,750,000, or $149.76 per square foot.
  • Coastal Villages Residential Subdivision – this is the Phase 1 bulk takedown of 178 single family and 100 duplex lots on 120 acres located off Lighthouse Road in Selbyville.  It sold in May for $12,351,000, or $44,428 per lot. 
  • Extra Storage – is a two-story, 84,100 square foot climate-controlled facility in New Castle that was built in 2019.  It sold in April for $27.9 million or $331.75 per square foot.   
  • 321 – 345 Auto Park Drive – in Middletown is seven, vacant commercial parcels totaling 39.47-acres that sold in May for $15,450,000, equivalent to $391,437 per acre. 
  • 550 S. Bay Road – in Dover is a sale leaseback of a 24,756 square foot, Class A office building built in 2019 on 4.16-acres that sold in June for $8.9 million, or $359.51 per square foot.

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