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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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3
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.
1
273
7
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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5
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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7
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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11
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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15
ANNE ARUNDEL QUEEN ANNE'S
CAPE MAYERY
KENT
HOWARD
KENT
CUMBERLAND
K
CARROLL
BALTIMORE
HARFORD
CECIL
ATLANTIC
SALEM
NEWCASTLE
GLOUCESTER
CAMDEN
DELAWARE
PHILADELPHIA
BURLINGTONYORK
CHESTERLANCASTER
D
Baltimore
Dover
Wilmington
Philadelphia
Trenton
322
206
40
30
30
9
322
322
202222
30
1530
3030
301
1
1
1
1
1
13
1
PENNA
TURN-PIKE
TURN-PIKE
PENNA
TURN-PIKE
276
76
76
295
295
476
95
95
95
95
95
83
70
83
83
695
695
795
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16 Area Overview
1
273
295
495
WilmingtonWilmingtonAirportAirport
Delaware Delaware Memorial BridgeMemorial Bridge
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17
2734
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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19
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
1 2 3 4 5 6
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25
12
3
4
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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
49
48
45
45
601
551
551
630
632
540
540
631
628
631
603
615
614
620
620
605617
295
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141
141
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7
72
273
3758
273
72
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41
48 52
40
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BUS13
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