Commercial real estate sales volumes in Delaware during the first half of 2024 was at $87 million – a 65 percent drop compared to the same time frame in 2023. Fortunately, the market seems to be bottoming out as investors have gained a more optimistic outlook with lowering inflation and the Fed decreasing rates. Industry fundamentals remain on good footing with positive rent growth despite a restricted amount of new supply.
Below is a snapshot of larger (>$4.5M) commercial real estate trades located throughout Delaware that occurred from April through mid-October 2024. The investment sale cap rates ranged from 5.10 to 10.45 percent with a median of 6.76 percent. The largest sale, not listed due to confidentiality, is Incyte’s acquisition of 517,307 square feet of office space in downtown Wilmington at Bracebridge I & III in May.
- 3703-3705 Kennett Pike – in Centerville is a total of 15,982 square feet of office space known as The Holladay House and The Harrington House that were built in 1902 and sold in April $6.0 million, or $375.42 per square foot.
- Moove in Self Storage – at 32244 Nassau Road in Lewes is a 3-story, 99,000 square foot, 611 unit self-storage facility that was built in 2016 on 2.45 acres that sold in April for $11,730,000, or $118.48 per square foot.
- Wawa – at 20983 Dupont Blvd in Georgetown is a 5,100 square foot building that was built in 2023 on a 1.3 acre ground lease that sold in June for $4.9 million, or $960.78 per square foot.
- Parson Thorne Apartments – is a two-story, 100-unit garden apartment complex on 7.4 acres in Milford that sold in June for $13.5 million, or $135,000 per unit.
- Cannon Mill and the Village of Westover – is a two property portfolio containing a total of 228-units in Dover that sold in July for $45.8 million, or $200,877 per unit.
- Fairfield Inn & Suites – in New Castle is a 4-story, 72-room hotel that was built in 2015 on 1.58 acres that sold in July for $12.7 million, or $176,389 per room.
- Seachase Apartments – in Greenwood, Sussex County is an 80-unit garden style apartment complex built in 2003 on 9.55 acres that sold in July for $10.9 million, or $136,250 per unit.
- 2055 Limestone Rd – is a 2- part 3-story, 37,000 square foot office building built in 1982 on 2.81 acres that sold in July for $4.6 million, or $113 per square foot.
- 948 Middletown Warwick Road – is a 50,232 square foot Shone Lumber on 11.39 acres of 23C-3 zoned land that sold in August for $8,045,160, or $160 per square foot.
- 220 Lake Drive – is a 183,235 square foot industrial warehouse built in 1992 on 8.95 acres that sold in August to the in-place tenant for $25 million, or $136.44 per square foot.
- GFP Business Park – in Newark is an eight building, 47,711 square foot, multi-tenant industrial flex compound on 4.55 acres sold in September for $6.35 million, or $133.09 per square foot.
- First Capital Center (aka, Duncan Center) – is a 6-story, 66,346 square foot office located in Dover that is 38 percent occupied by 12 tenants that sold via auction in September for $4,540,750, or $68.44 per square foot.
- 710 American Boulevard – or Lot L in the Commerce Center in Bear is 31.177 acres of industrial zoned land approved for a 361,770 square foot warehouse that sold in September for $10.2 million, $327,133 per acre or $28/FAR.
- Riverview Place Apartments – is a two-story, 88-unit, HUD garden apartment complex on 7.4 acres in Wilmington that sold in September for $6.3 million, or $71,591 per unit.
- HarborChase of Wilmington – is a two-story, 135,128 square foot, 96 bed assisted living & memory care facility built in 2018 on 8.42 acres that sold in October for $45 million, $333 per square foot or $468,750 per bed.
- PAM Health Rehabilitation Hospital of Georgetown – sold in October as part of two property portfolio. It is a 46,443 square foot building that was built in 2022 with 34 beds. Its allocated price was $26,621,882, equivalent to $782,996/bed.