Market Highlight: Wilmington Office Market

See this article and other market highlights in the Jan / Feb issue of Northeast Real Estate Business.

With over 150 listings in Delaware, we're happy to provide #OptionsInDE for your business and commercial real estate needs.

Click to view article by Patterson-Woods Principal Greg Ellis, CCIM.

Patterson-Woods' Joseph Latina, shares insight along CORFAC member firms MDL Group and Podolsky Circle at May's ICSC RECon in Las Vegas:

http://www.globest.com/sites/johnsalustri/2017/06/05/the-creative-re-use-of-empty-retail-space/?channel=sectors§ion=retail

Main Street Thrives as Business Destination
Click to View the Full Article on UDReview.com

Charitable Gift of Real Estate Can Be Win-Win

http://www.delawarebusinesstimes.com/charitable-gift-of-real-estate-can-be-win-win/

Duncan Patterson, President at Patterson-Woods Commercial Properties/CORFAC International, weighs in on real estate being an "IDEAL" investment.

As seen on Capital Gazette:

Realities of Real Estate: Building wealth with real estate

 

By Bob and Donna McWilliams

 

When we thing about the world's wealthiest people, names like Gates and Buffett come to mind, and they, indeed, have amassed tremendous fortunes. Bill Gates is now worth almost $80 billion and Warren Buffett isn't far behind with just over $70 billion. But even with numbers like that, they're a long way from surpassing the empire built by the likes of an Andrew Carnegie. In today's dollars, Carnegie would be worth a staggering $310 billion. That's more than the GDP for most of the world's nations.

 

Back in Carnegie's day, it was a little easier to reach the status of what's known as the super-rich. After all, there wasn't any income tax and government regulations were all but non-existent. Nevertheless, his ability to build wealth was a remarkable achievement. So, what sage words of advice did Carnegie have when it came to the art of making money? He said, "Ninety percent of millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate". That was true back in the 1800's, and it's still true almost two centuries later.

 

Real estate has always been one of the safest and most reliable ways to build wealth. You won't get rich quick, but if you stick with it and play the game smart, buying and holding property can lead to a comfortable, carefree retirement. Here are some tips and things to watch for, whether you're looking to be the next Donald Trump, or just want to have a nest egg for your golden years.

 

First off, it's not like you need to go out and start buying shopping centers. Most successful real estate investors are those who have nothing more than a few rental properties. According to Duncan Patterson, President of Patterson, Woods and Associates LLC, a commercial real estate firm headquartered in Greenville, Delaware, real estate is an IDEAL investment.

 

I is for income. In today's market, where we have high rental rates and low mortgage rates, it is possible to buy a rental property, whether it be a condo, detached home or multi-family unit, and realize a positive cash flow right off the bat. And, since you can lock in a 30 year mortgage, your principle and interest payment won't increase on that property even though rental rates will continue to rise. As a result, the cash flow from a rental property will grow over time.

 

D is for depreciation. The beauty of real estate is that it's an investment where the IRS is actually going to help you out. Commercial real estate (like a shopping center or office building) can be depreciated over 39 years, and residential is even faster at 27.5 years, making the deduction a great way to offset your income. But be careful, when you sell a real estate investment, that depreciation will be recaptured and have an impact on what taxes you might owe as a result of the sale.

 

E is for equity. Like any investment, there will be ups and downs. However, even with the recent slide in prices, real estate is a great way to build equity since that equity can come from several sources. First, there's good old sweat equity, where you can do some fix-up to improve the value of your property. Second, your equity will grow as you pay down the mortgage; and third, equity will be generated as the property appreciates. Additionally, real estate equity is a great source of money for other purposes, since you can easily borrow against that equity.

 

A is for appreciation. After the real estate bubble burst, many were soured on the idea of real estate as an investment. Until 2006, most people thought that the value of their home would always grow and real estate was essentially immune to economic cycles. Well, we all found out that the trees don't grow straight to the sky. Even so, there are few other investments that can compete with real estate in terms of reliable growth over the long haul. Moreover, the price of a stock can actually go to zero and become totally worthless; whereas, real estate is a tangible asset that will always have value regardless of market fluctuations.

 

L is for leverage. One of the most effective ways to build wealth is through leverage, and real estate is an extremely effective method for utilizing the power of leverage. Most simply put, leverage is the ability to control a large amount of money, while risking a small amount of money. For example, when buying a $250,000 investment property, you might need about 10% down and there'll be some closing costs. All toll, that could add up to about $35,000. But, for $35,000, you now have the control of a $250,000 asset, one that will appreciate, provide income and give you a great tax write-off.

 

Although real estate can be an IDEAL investment, it is not without risk. If you don't know how to play the game, you can also get burned, especially when it comes to the tax implications of buying and selling real estate. If you do it right, such as the use of 1031 exchange to defer taxes you keep the IRS out of your pocket, but if you do it wrong, they'll be knocking on your door, wanting a big fat check. So, make sure you get professional guidance from a real estate agent, accountant and lawyers. They'll help keep you out of trouble. And finally, remember how Will Rogers summed up the value of real estate when he said, "Buy land. They aren't making any more of it".

News from: Patterson-Woods/CORFAC International
CORFAC Media Contact: Gary Marsh (415) 453-7045 or gary@marshmarketing.com
Patterson-Woods Media Contact: Allison Terranova (302) 622-3506 or terranova@pattersonwoods.com

Wilmington, DE (August 19, 2014) – In recent months, Patterson-Woods Commercial Properties/CORFAC International has secured several sale and lease transactions in Newark, Delaware’s Main Street area – the hottest submarket in Delaware.

Main Street has always been a hot spot for retailers, as it is set in the heart of the 21,000-student University of Delaware campus. The food industry is the common factor in these deals. Costar demographics in the Main Street area show that food and alcohol consumer spending totals are upwards of $25 million per year in a one-mile radius, and close to $160 million per year in a three-mile radius.

Recent Main Street Transactions Completed by Patterson-Woods include:

• In a deal facilitated by Rich Dudek, who represented the landlord, Mr. Bachu Patel, Insomnia Cookies leased 1,200 +/- SF space at 74 E Main Street. The tenant is a Pennsylvania based, round-the-clock dessert company.
• Dudek also took part in a 4,100 +/- SF lease transaction at 76 E Main Street, representing both the tenant, Hakuna Hospitality Group, and the landlord, Fratelli Enterprises, Inc. The tenant, doing business as Del Pez Sea Mex, brings a seafood flare to Main Street as it focuses on coastal-inspired Mexican cuisine.
• Patterson-Woods’ Joe Latina represented the tenant, Main Street Burritos LLC, in the ten-year lease of a 2100 +/-SF space at 127 E Main Street. The company, publically known as El Diablo Burritos, is Wilmington based and currently operates at locations in Wilmington’s Trolley Square and North Wilmington’s Branmar Plaza. The decision to expand in the appropriately related market stems from the company’s current success and the growing popularity of Mexican fast-casual restaurants.
• A block away at 115 East Main Street, Latina represented both the buyer and the seller in the $1.35 million sale of a 3,400 +/- SF commercial condominium unit. The buyer, Mainline Enterprises, LLC purchased the property from LGLB, Inc. in a sale-leaseback investment opportunity, which settled in May 2014. The condo unit houses a restaurant currently doing business as 16 Mile Taphouse. The restaurant is a partner to Georgetown’s 16 Mile Brewing Company and boasts an impressive ensemble of craft beers and award-winning wines.
• Most recently, Latina represented tenant, Colorful Yun Nan, Inc., in the ten-year lease of a 2,911 +/- SF space at 59 East Main Street. The space will be used as an Asian style restaurant.

Patterson-Woods currently lists several other properties on and around Main Street – including retail, industrial, and office space at Market East Plaza, offices at 77 & 273 E Main Street, and retail space at the community at Rittenhouse Station.

About Patterson-Woods/CORFAC International

Patterson-Woods Commercial Properties / CORFAC International is a leading commercial real estate services firm specializing in the Mid-Atlantic commercial property markets.  We have been providing the most complete selection of commercial real estate services to the communities of Delaware, Maryland and Pennsylvania for over 40 years. Patterson-Woods Commercial Properties is a second generation company well known for facilitating solutions to the needs of the business community and developers of real property. For more information on Patterson-Woods/CORFAC International, contact the company’s Wilmington, Delaware headquarters at 302-622-3500 or visit www.pattersonwoods.com.

About CORFAC International

CORFAC International (Corporate Facility Advisors) is comprised of privately held entrepreneurial firms with expertise in office, industrial and retail real estate leasing and investment sales, multifamily property acquisitions and dispositions, property management and corporate services.  In association with FIABCI (the International Real Estate Federation) and global affiliates, CORFAC International offers commercial real estate services with market reach in 65 countries worldwide. In recent years, CORFAC firms have averaged over 9600 completed transactions annually totaling more than 513 million square feet worth an excess of $5.95 billion for their customers. For more information on the CORFAC network, contact 703.532.6160 or visit www.corfac.com.

Wilmington, DE (May 31, 2014) – Rich Dudek Patterson-Woods Commercial Properties/CORFAC International represented both the buyer, Dmello Investments, LLC, and the seller, PMF Properties, LLC, in the sale of a 4,725 sq. ft. retail building located at 307 Ridge Road, Claymont, DE.

Charles Woods and Michael Woods of Patterson-Woods Commercial Properties/CORFAC International represented both the buyer, 1010 River Road, LLC and the tenant, J & J Enterprises, in the sale of a building at 1010 River Road, New Castle, DE.

Joe Latina of Patterson-Woods Commercial Properties/CORFAC International represented the tenant, Skyline Steel, LLC, in the lease of a 950 sq. ft. office space located at 528 Kennett Pike, Chadds Ford, PA.

Chris Moore of Patterson-Woods Commercial Properties/CORFAC International represented the tenant, Michael KJ. Hood, LLC, in the lease of a 1,250 sq. ft. office space located at 916 New Road, Elsmere, DE.

Greg Ellis of Patterson-Woods Commercial Properties/CORFAC International represented both the tenant, Pablo Caballero & Marilu Patino, and the landlord, Layton Landings, LLC, in the lease of a 1,655 sq. ft. building located at 6 Larch Avenue, Suite 400, Newport, DE.

Joe Latina of Patterson-Woods Commercial Properties/CORFAC International represented both the buyer, Mainline Enterprises, LLC, and the seller, LGLB, Inc., in the sale of a 3,400 sq. ft. building located at 115 E Main Street #2, Newark, Delaware.

Contact: Allison Terranova
(302) 622-3506
terranova@pattersonwoods.com