NEWARK, DE-A fully occupied two story retail and office property located on the University of Delaware’s campus has traded for approximately $7.2 million, or $202.44 per sf. Main Street Galleria LLC, a Maryland-based developer sold 45 East Main St. to a Delaware based partnership in a 1031 exchange.

Dean Zang and Mark Taylor of Marcus & Millichap Real Estate Investment Brokerage Co. in Philadelphia represented the seller, who acquired the property at a 7.7% cap rate – an unusually strong rate for the market, according to Zang.

Zang tells that there was high demand for the property, which was a contributing factor. “A typical or similar property could be expected to trade at 7% to 7.2%. But this building is very well located and widely known in the area. You could call it a trophy building for private investors.”

The seller is assuming the buyer’s high interest debt, he adds. “As a result it is netting the seller higher proceeds than originally expected since they don’t have to defease the loan.”

The two-story, 35,498-sf building is fully occupied by a few restaurants, a campus bookstore, the City of Newark, Simon Eye Associates and some small retailers.

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