300 North Wakefield Marketing Book - v4 · New Castle County’s strategic location along the...
Transcript of 300 North Wakefield Marketing Book - v4 · New Castle County’s strategic location along the...
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NEWARK, DELAWARE
MARKETING PACKAGE
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FOR FURTHER INFORMATION, PLEASE CONTACT:
LOCAL MARKET EXPERTS:
Neal F. Dangello, MCRSenior Managing [email protected]
Wills EllimanSenior Managing [email protected]
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EXECUTIVE SUMMARY 2 PROPERTY OVERVIEW 6 AREA OVERVIEW 14 MARKET OVERVIEW 20
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EXECUTIVE SUMMARY
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Strategic Location: The Property benefi ts signifi cantly from its location within a mile from the full Interstate 95 Interchange with Route 273. Route 273 (Christiana Road) provides quick access to US Route 1 and Delaware Routes 4, 896 and 72 (Chapman Road). The Property is also within a mile of two large shopping centers, including Christiana Mall, that provide multiple retail and dining choices. The Residence Inn is adjacent to the Property, along with other nearby hotels.
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WilmingtonWilmington CBD CBD
Philadelphia CBDPhiladelphia CBD
Route to I-95 from the
Route to I-95 from the
Property (0.9 miles)
Property (0.9 miles)
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4 Executive Summary
Strong Local Demographics: Population density is high with over 8,300 residents within one mile and over 96,000 within three miles. Median Household Income is $79,000 within one mile and $65,000 within 3 miles. Both population and median family income are projected to grow at over a 3% growth rate between 2014 and 2019.
Rapidly improving market area: The Southern New Castle County Class A Offi ce submarket has the lowest vacancy rate of the four New Castle submarkets at 7.58% versus the entire market at 15.45%. Additionally, the submarket covering all classes of offi ce buildings has recognized substantial positive net absorption in eight of the last nine quarters, which is one of the many factors that has driven rental rates to increase 4.5% year-over-year.
The building would be attractive to other dense users: The Property’s 630 parking spaces, or a 5.45/1,000 square foot parking ratio, is attractive to other dense users. The current improvements are mostly large open areas with few demised offi ces, which is common today for modern build-outs. The building’s two electric feeds, electrical capacity and multi-generator back-up would attract call center type users.
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University PlazaACME MarketsWalgreensBoston MarketWendy’s
Christiana Town CenterRed RobinBertucci’sFamous Dave’s BBQBed Bath + Beyond
Christiana MallAppleBRIOThe Cheesecake FactoryChick Fil-AExpressMacy’s
Barnes + NobleCabela’sCoachJC PennyNordstromCostcoTarget
OakleyMichael KorsLoftSaks Off 5thZoup!
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PROPERTY OVERVIEW
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Address300 North Wakefi eld DriveNewark, Delaware 19702
Property Type Class A Offi ce Building
Parcel Number 0903400054
Building Size 115,664 SF
Floors Two
Year Built/Renovated 1996
Gross Site Area 11.07 Acres
Parking 630 Spaces (5.45/1,000 SF)
Zoning District OR - Offi ce Regional
PROPERTY DESCRIPTION
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8 Property Overview
CONSTRUCTION
FoundationSteel beams and columnsFloors: Pre-cast conrete plank/raised fl oors on fi rst fl oorRoofs: Pre-cast concrete plank
Exterior Walls Pre-cast concrete panels
Roof Flat, single-ply EPDM membrane, internal drains
Flooring - Specialty25,000 SF of 18" raised fl ooring on a depressed slab plus an additional 10,000 SF in data center with 64 watts/SF
Column Spacing 40' by 40'
Ceiling Height 9' on fi rst fl oor / 10' on second fl oor
MECHANICAL/ELECTRICAL
Electrical
Underground line to pad-mounted transformers. Dual service from Delmarva Power (Line 755/P13 and Line 252/P66). 13,200 V each - 480/277V three phase, four wire, alternating current. Three (3) 1,000 KW Detroit Diesel Generators with three (3) Diesel tanks at 2,000 gallons each. UPS System: 750 KVA - Two modules - One system.
Elevators Two 2,500-pound capacity hydraulic passenger elevators
HVAC
Electric rooftop packaged units; one (1) 25 ton unit with heat coil for cafeteria, three (3) 90 ton and one (1) 75 ton alternating current only.Leibert units; three (3) 30 ton units for fi rst fl oor under fl oor supply, six (6) 30 ton units for computer data center, and two (2) 15 ton units for UPS area. Eighty (80) VAV boxes with electric heating coils.
Fire Protection
Wet pipe, automatic sprinkler system with fl ow switches pull sations and alrm horn/wet standpipes. Siamese connections central alarm panel, strobe light alarms. FM 200 fi re suppression system in computer room. Dry chemical extinguishing system with fi re suppression heads located above the cooking areas in commercial kitchen.
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SITE PLAN
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12 Property Overview
FLOOR PLANSFIRST FLOOR
1st Floor
Floor Gross 59,535 SFFloor Core 1,019 SF
Floor Usable 48,176 SFFloor Rentable 54,333 SF
Floor Common 2,209 SFBuilding Common 7,591 SF
BOMA AREA CALCULATIONS
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FLOOR PLANSSECOND FLOOR
Floor Gross 58,437 SFFloor Core 1,288 SF
Floor Usable 54,964 SFFloor Rentable 61,331 SF
Floor Common 2,184 SFBuilding Common 0 SF
BOMA AREA CALCULATIONS
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AREA OVERVIEW
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ANNE ARUNDEL QUEEN ANNE'S
CAPE MAYERY
KENT
HOWARD
KENT
CUMBERLAND
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CARROLL
BALTIMORE
HARFORD
CECIL
ATLANTIC
SALEM
NEWCASTLE
GLOUCESTER
CAMDEN
DELAWARE
PHILADELPHIA
BURLINGTONYORK
CHESTERLANCASTER
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Dover
Wilmington
Philadelphia
Trenton
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PENNA
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795
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16 Area Overview
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WilmingtonWilmingtonAirportAirport
Delaware Delaware Memorial BridgeMemorial Bridge
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University of Delaware University of Delaware
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18 Area Overview
NEW CASTLE COUNTY OVERVIEWNew Castle County, Delaware is bordered by Pennsylvania to the north, the Delaware River to the east, Kent County to the south, and Maryland to the west. While part of the Philadelphia, Pennsylvania combined metropolitan statistical area (MSA), New Castle County is a major employment center with a diverse economy all of its own. With its strategic location in the Mid-Atlantic, New Castle County off ers easy access to the region’s major metropolitan centers, including New York, Philadelphia, Wilmington, Baltimore, and Washington, DC. The Wilmington/New Castle area is located at the center of the most prosperous, densely populated megalopolis in America. More than 25% of the US population lives within a 300 mile radius. As of the 2010 Census, the population of the county was up 7.6% at 538,779 and it continues to grow.
ECONOMYDelaware has arguably the most comprehensive incorporation services of any state. More than half a million business entities have their legal name in Delaware, including more than 50% of all Fortune 500 companies. Businesses choose Delaware because of the progressive services the state makes available to businesses, including modern and fl exible corporate laws, the highly respected Court of Chancery, business-friendly State Government, and the customer service-oriented staff of the Delaware Division of Corporations.
Thousands of businesses have offi ces in the county, ranging from single person fi rms to some of the largest companies in their respective industry. New Castle County’s employers include an array of banks and fi nancial service companies, plus chemical, pharmaceutical and technology fi rms. Some of the largest employers include: Bank of America, Christiana Care Health, AstraZeneca, University of Delaware, J.P. Morgan Chase & Co., Citicorp, Wilmington Trust Company, Verizon of Delaware, Inc., PNC Bank, Household International, and Valero.
EDUCATION AND HEALTH SERVICESNew Castle County provides proximity to executive homes and a highly educated employee population base. As of the 2010 Census, 32.1% of the county population age
25+ had achieved a Bachelor’s Degree or higher. Companies have taken advantage of this highly skilled workforce by brining jobs to the county. After peaking at 9.4% near the beginning of 2010, the unemployment rate in New Castle County has declined to 4.3%. This decrease in unemployment has partially been due to the consistent growth of the Education and Health Services sectors of the local economy. This industry in particular has enjoyed a consistent annual growth rate of 3.25% over the last decade in Delaware, as the number of jobs has increased from 42,400 in 2003 to 70,600 currently. Jobs in health care currently represent 14% of the total job market and the industry shows little sign of slowing growth.
TRANSPORTATIONNew Castle County’s strategic location along the eastern seaboard helps to drive economic activity in the region.
Highways: Interstates 95, 295, and 495 all pass through New Castle County, connecting the state and county to major metropolises such as New York, Washington, D.C., Philadelphia, Baltimore, and Wilmington.
Public Transportation: The Delaware Transit Corporation provides bus transportation, while SEPTA and Amtrak handle passenger rail service.
Nearby Airports: New Castle County Airport (10 miles), Philadelphia International Airport (34 miles), Baltimore-Washington International Airport (67 miles), Atlantic City International Airport (86 miles), Ronald Reagan Washington National Airport (100 miles).
Freight Rail: CSXT, NS
Port of Wilmington is a full-service deep-water port and marine terminal that handles about fi ve million tons of imports/exports each year. It has been ranked as the top North American port for fruit and juice products, and has one of the largest dock-side cold-storage facilities on the continent.
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SUPERIOR AREA AMENITIESDelaware is ranked among the country’s leaders in a number of key quality-of-life indicators. The state is known for its focus on world-class education and job creation, tax-free shopping, and a variety of leisure-time options. Easy access to New York City, Philadelphia, Baltimore, and Washington, D.C. provide local residents with a variety of options for cultural tourism, though Delaware has its own pristine and protected state parks, attracting thousands of visitors each year. New Castle County is also home to the Delaware Technology Park, a leading East Cost non-profi t research park that provides development-stage life science, information technology, advanced materials, and renewable energy companies with investment and resources in order to accelerate their growth and success.
The southern quadrant of Newark has grown rapidly in recent years, spawning new areas like Churchman’s Crossing with its mix of shopping, healthcare, dining, entertainment, and business centers. Older neighborhoods are popular for their charm and ambiance, blending bungalows and ranches with colonials and Tudors. Among the new developments are homesites along gently rolling hills, communities that feature superb recreational amenities, or those with spacious lots that border White Clay State Park.
NEWARKNewark has a total area of 8.9 square miles. It is located directly east of the Maryland state line, adjacent to the unincorporated community of Fair Hill, and is less than a mile south of the tri-point where Delaware, Maryland, and Pennsylvania meet, known as the Twelve-Mile Circle. Situated in northern Delaware just 14 miles from Wilmington, Newark’s population of 31,454 increases by 18,000 when the University of Delaware opens its doors for another academic year. The university off ers programs in a broad range of subjects, though it is best known for its business, science, and engineering programs. These programs draw strength from the presence of some of the nation’s premier chemical and pharmaceutical companies located in the state of Delaware. The university is also a cultural, educational, and economic asset that infuses vitality into the community through renowned educators, brilliant students, retail revenue, and fi rst-rate performing arts venues. Newark has managed to balance its residential, educational, commercial, and industrial sectors, adding major distribution centers and corporate headquarters to its tax base. Even the colorful Main Street corridor is undergoing a fl urry of new construction and revitalization.
DEMOGRAPHICSDistance from Property: 1 Mile 3 Mile 5 Mile
Population: 8,344 96,314 196,262
Total Households: 3,074 36,560 73,830
Median Household Income: $79,249 $64,723 $63,803
# of Businesses: 361 3,960 9,095
# of Employees: 7,494 51,959 51,959
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MARKET OVERVIEW
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NEW CASTLE COUNTY SOUTHThe New Castle County South submarket consists of almost 4.7 million square feet of offi ce inventory with 73% classifi ed as Class B product. Class A properties account for almost 1.2 million square feet of the submarket’s offi ce inventory and reported a 5.0% vacancy rate in the second quarter of 2018. Christiana Executive Campus, a premier offi ce park within the New Castle County South submarket, is over 94% leased. In November, 14,694 square feet will be returned to the market when Strayer University leaves 240 Continental Drive. As a result, tenants seeking premium space have few options.
Class B vacancy rose 300 basis points, quarter-over-quarter, to 15.5% and reported 104,944 square feet of negative absorption. During the second quarter, HSBC vacated 95,581 square feet at 90 Christiana Road. The bank relocated 400 jobs from that site outside of Delaware. In addition, ETI vacated 12,000 square feet at White Clay Center 100.
At the beginning of the third quarter, Comcast Corporation announced that it signed a 10-year lease for the 150,000-square-foot 400 Commerce Drive. Comcast will consolidate two call centers at the Class B property and occupy sometime in 2019 after the property undergoes renovation.
The average direct asking rental rate for Class B space fell $1.13/SF over 90 days to $21.10/SF. This was mostly attributed to 90 Christiana Road, which is asking a below-average rental rate of $15.00/SF triple net. Over the same period, the Class A average direct asking rental rate climbed $0.27/SF to $23.55/SF.
There is currently one speculative project under construction, the 120,000-square-foot The Tower at STAR Campus. As of the end of the second quarter, only 20,000 square feet of offi ce space remained available at the trophy property.
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22 Market Overview
New Castle County Total Wilmington CBD Northern New Castle County Southern New Castle County Western New Castle County
Number of Buildings
Class A 74 21 25 17 11
Class B 150 13 38 68 31
Class C 11 4 2 4 1
Total 235 38 65 89 43
Rentable Building Area
Class A 9,064,674 4,974,724 2,145,644 1,182,781 761,525
Class B 8,686,252 2,258,121 1,769,660 3,455,171 1,203,300
Class C 444,248 289,572 50,100 86,576 18,000
Total 18,195,174 7,522,417 3,965,404 4,724,528 1,982,825
Vacant Space
Class A 1,314,114 908,712 155,396 58,897 191,109
Class B 1,145,526 204,673 208,188 535,927 196,738
Class C 158,844 150,252 4,590 4,002 -
Total 2,618,484 1,263,637 368,174 598,826 387,847
Vacancy Rate
Class A 14.5% 18.3% 7.2% 5.0% 25.1%
Class B 13.2% 9.1% 11.8% 15.5% 16.3%
Class C 35.8% 51.9% 9.2% 4.6% 0.0%
Total 14.4% 16.8% 9.3% 12.7% 19.6%
2Q18 Net Absorption
Class A 120,941 63,933 (2,295) 18,983 40,320
Class B (171,303) (6,201) (10,362) (104,944) (49,796)
Class C 2,070 - - 2,070 -
Total (48,292) 57,732 (12,657) (83,891) (9,476)
NEW CASTLE COUNTY OFFICE MARKET STATISTICS
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New Castle County Total Wilmington CBD Northern New Castle County Southern New Castle County Western New Castle County
YTD Net Absorption
Class A 103,312 56,994 (1,851) 6,759 41,410
Class B (93,807) (9,698) (9,051) (36,435) (38,623)
Class C 3,430 - - 3,430 -
Total 12,935 47,296 (10,902) (26,246) 2,787
Weighted Average Rent
Class A $27.08 $27.46 $25.32 $23.55 $27.40
Class B $22.18 $22.71 $25.07 $21.10 $22.46
Class C $16.92 $15.71 $22.00 $16.50 -
Total $24.81 $26.07 $25.14 $21.29 $25.76
Under Construction
Class A 126,000 - - 100,000 26,000
Class B - - - - -
Class C - - - - -
Total 126,000 - - 100,000 26,000
Sublease Space
Class A 70,738 11,234 56,654 - 2,850
Class B 15,351 2,280 1,337 11,734 -
Class C - - - - -
Total 86,089 13,514 57,991 11,734 2,850
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24 Market Overview
Building Address: 242 & 248 Chapman RoadNewark, DE
200 Commerce DriveChristiana Corporate Center
Brookside, DE
2600 Glasgow AvenueNewark, DE
400 Commerce DriveChristiana Corporate Center
Newark,DE
3 Beaver Valley RoadWilmington, DE
1800 Concord PikeWilmington, DE
Class: B A B A A B
Building Size: 143,941 SF 68,034 SF 109,000 SF 154,086 SF 263,503 SF 340,000 SF
Sale Price: $15,550,000 $15,500,000 $13,300,000 $18,439,466 $61,800,000 $44,000,000
Sale Price PSF: $108 $228 $122 $120 $233 $129
Sale Date: Aug-16 Feb-16 Jan-16 Apr-15 Mar-15 May-14
Year Built: 1990 1998 1929 1998 1995 2003
COMPARABLE SALES
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FOR FURTHER INFORMATION, PLEASE CONTACT:
LOCAL MARKET EXPERT:
Neal F. Dangello, MCRSenior Managing [email protected]
Wills EllimanSenior Managing [email protected]
Beckett
Swedesboro
CarneysPoint
PennsGrove
Pedricktown
Pennsville Woodstown
Auburn
Deepwater
PennBeach
Welchville
Sharptown
Yorktown
NewCastle
Glasgow
Farnhurst
Christiana
McClellandville
Hockessin Cuba
Wooddale
Bellevue
Greenville
Bridge
MilfordCrossroads Drummond
Hill
Ogletown
Milltown
PleasantHill
RedLion
Porter
Bear
y
Bellefonte
Newport
Elsmere
TyboutsCorner
DayettStation
CoochsBridge
Wilmington
Newark
295
130
551
553
620
620
620
666
605
130
130
40
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48
45
45
601
551
551
630
632
540
540
631
628
631
603
615
614
620
620
605617
295
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BUS13
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