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Commercial Real Estate Insider Only Kent County News

Eastern States buys Dover warehouse for $8M

Katie Tabeling
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The 112,000 square-foot warehouse at 155 Commerce Way was sold to Eastern States as a latest investment in Kent County | PHOTO BY KATIE TABELING

DOVER — A multi-faceted developer and leasing company has acquired an industrial building in the Enterprise Business Park along Route 15 for $8.1 million, according to county land records.

Eastern States Group bought the 112,453 square-foot warehouse at the end of 2021, making it the latest addition to its warehouse portfolio. Founded in 1953 as a construction company, Eastern States has since branched out into home building, leasing, self-storage, construction and development sectors in Delaware and the surrounding region.

The sale represents a rare industrial building purchase in Kent County for Eastern States. Many of the company’s assets are in Bear, Newark, New Castle or Wilmington.

“The purpose of the acquisition was to expand our presence in the Dover market where we have existing properties and projects,” Eastern States President Amelia Wyant said. “We’ve always liked the broader Dover and Kent County markets, where we have several storage facilities and new home communities.”

Eastern States also manages Sentinel Self Storage — which oversees 21 self-storage buildings in Pennsylvania, Maryland and Delaware — and Benchmark Builders, which has built scores of homes in the Middletown and Kenton areas.

The deal translates to $72 per square foot, up from $34.68 when it was sold in 2017, showing the rising value in warehouse and industrial space in Kent County.

The building at 155 Commerce Way is fully leased with tenants like Crossfit Dover, Gym Starz, BFPE International and a distribution center for Goodman air conditioners and heaters.

“The building has a strong portfolio of tenants, which we hope will remain in the building,” Wyant added.

Enterprise Business Park has five buildings, with tenants like Easterseals, Kent County Department of Elections, Capitol Uniform and Linen, Bayhealth’s fleet services, among others.

R&R Commercial Realty broker Charles Rodriguez closed the deal with Eastern States, noting the sale was the latest in growth for the business park, as the $10 million Enterprise Plaza building was added in 2018.

“There’s a lot of potential in this particular area,” Rodriguez  said. “These types of properties have seen a surge in demand in Kent and Sussex counties in the last two years. It’s true that developers might be facing some strain from rising construction costs, but we don’t expect to see the overall trend change too much this year.”

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