NGKF Capital Markets is pleased to announce it has sold a seven-building office portfolio in the Delaware capital city of Dover. The assets comprise 170,696 square feet of office space in six buildings at 800-861 Silver Lake Road, as well as a 55,050-square-foot office building two miles to the south at 100 Enterprise Place. The private buyer closed at a purchase price of $26.6 million.
Total occupancy at the 225,746-square-foot portfolio is 97 percent, with various State of Delaware agencies occupying more than 80 percent of the space. The Silver Lake campus, on the western shore of Silver Lake, includes a six-acre site with approvals in place to develop an additional 60,000 square feet of office space.
“This was an excellent opportunity for an investor to take over a professionally managed state-leased asset with no deferred maintenance, new roofs on six of the seven buildings and an in-place solar panel system providing tenants in Silver Lake with a green energy source,” said David Dolan, senior managing director at NGKF Capital Markets in Philadelphia. Mr. Dolan marketed the properties with Senior Managing Directors Michael Margolis and Joseph Sklencar Sr. and Director Brett Segal, in cooperation with local NGKF Senior Managing Director Neal Dangello based in Wilmington, Del.
The State of Delaware carries credit ratings of AAA or the equivalent from the major rating agencies, underscoring the stability of the office portfolio’s rent roll. The largest agency among the portfolio’s tenants is the Office of Management and Budget and its divisions, which occupy more than 22,000 square feet on Silver Lake Road and more than 17,000 square feet on Enterprise Place.
Large tenants also include the Department of Insurance in 27,877 square feet at 841 Silver Lake Road, and the Department of Family Services in 24,228 square feet at 821 Silver Lake Road. Additional state agencies on the tenant roster are the Department of Finance, Veterans Affairs, Criminal Justice, Department of Treasury, Division of Accounting, Department of Natural Resources and Environmental Control, Public Service Commission, and Professional Regulations. The Kent County Department of Elections occupies 14,304 square feet at 100 Enterprise Place.
“The agencies located here are core to the state government, and have demonstrated their satisfaction with these buildings by growing their occupancy from 20 percent of the portfolio 15 years ago to 80 percent today,” Mr. Dolan said. “The varying expiration dates and the state’s AAA credit made this a rare opportunity for a buyer seeking exceptional returns from an institutional-quality portfolio.”
Both campuses offer excellent local and regional access with proximity to Dupont Highway (Route 13) and Route 1, the chief arterials serving the area. Recently replaced roofs feature solar panels and 20-year warranties that are transferable to the buyer.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,000 professionals operate from more than 320 offices in established and emerging property markets on five continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company primarily servicing the wholesale financial and real estate markets. For further information, visit www.bgcpartners.com.