Dover Office Portfolio Trades for $27M

DOVER, DE—A private buyer has acquired a seven-asset office portfolio here for $26.6 million. There are six buildings located at 800-861 Silver Lake Rd., comprising 170,696 square feet. Then, two miles to the south at 100 Enterprise Pl, there is a seventh building that is 55,050-square feet. All together, the 225,746-square foot portfolio is 97% occupied. Most of that space—80%--is utilized by various Delaware state agencies.

David Dolan, Michael Margolis, Joseph Sklencar Sr. and Brett Segal of Newmark Grubb Knight Frank Capital Markets in Philadelphia marketed the properties, along with Neal Dangello based in Wilmington, DE.

The Silver Lake campus is located on the western shore of Silver Lake. It also includes a six-acre site that has been approved for an additional 60,000 square feet of office space development.

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. Other tenants also include the Department of Insurance in 27,877 square feet at 841 Silver Lake Rd., and the Department of Family Services in 24,228 square feet at 821 Silver Lake Rd. 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 and the Kent County Department of Elections also are tenants.

"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," Dolan says in a prepared statement.

The portfolio also offered recently replaced roofs feature solar panels and 20-year transferable warranties.