Commonwealth Group acquires Pencader constructing for $14M
GLASGOW – The Commonwealth Group, a Wilmington-based real estate investment, development, and management firm, recently purchased a building in the Pencader Corporate Center for $14.2 million, according to county land records.
The California-based seller, Cardinal Industrial, acquired the building eight years ago for about $13.9 million, meaning it made a $300,000 sale-to-sale profit in its only Delaware property.
At 183,235 square feet, the 29-year-old building sold at a price point of about $77.5 a square foot. It is 100% leased by tenants like Zacros America, a manufacturer of flexible films and packaging that moved to the location in 2017, and Abundant Life Christian Center.
Kevin Quinn, director of leasing and management for The Commonwealth Group, told Delaware Business Times that his firm was attracted to the building for its future leasing stability.
“Pencader Corporate Center is an established park and the tenants have been in the building for many years,” he said in an email, noting this was the firm’s first acquisition in the business park located off Route 896 between U.S. Route 40 and Interstate 95.
Quinn said that Commonwealth was looking at additional potential buys in the industrial/warehouse space, a sector that has grown rapidly as e-commerce sales ramp up especially during the COVID-19 pandemic. It already has assets in the River Road, River Edge, and Milford industrial parks as well as the Aeropark in Dover.
“We have several projects in our pipeline and will continue to pursue opportunities,” Quinn said. “Our focus is on our tenants. Their health, well-being and success is our priority.”
By Jacob Owens