Milford, DE —The McClellan Team at SVN | Miller Commercial Real Estate recently sold a 30,000 square foot fully leased industrial warehouse on McColley Street in Milford, Delaware.
The property, which housed nine different leases, underwent a meticulous lease stabilization process over the past few years. Kelly Jeter and John McClellan worked closely with ownership to adjust rental rates closer to market value and converting leases into triple net agreements, making the asset that much more attractive to a potential investor.
As a result of these efforts, the warehouse successfully transacted at a 9% cap rate, providing ownership with a substantial return on their initial investment. Notably, one of the existing tenants recognized the long-term value of the property and seized the opportunity to take an ownership stake, ensuring continued operations in a familiar and advantageous location.
The sellers said, “We appreciate The McClellan Team’s efforts and guidance in both the restructuring of our leases, as well as in the ultimate sale of the property. Through their market knowledge, tenant follow up, and attention to detail, we were able to increase the value of the property and realize a strong return. We look forward to continuing to work with The McClellan Team.”
“This transaction exemplifies the power of proactive asset management, strategic lease structuring, and strong market knowledge. Our team was able to secure a timely sale, benefiting both the seller and the new owner, who now enjoys additional income potential and value-add opportunities,” said Kelly Jeter.
The McClellan Team worked with Gabrielle Smullen at Whitehead Law in Georgetown on the closing of this transaction and Anita Evans with M&T Bank.
If The McClellan Team can assist with any of your real estate needs,
call 410-543-2440 or email kelly.jeter@svn.com.
