Investment Overview

Marcus & Millichap is pleased to present the single-tenant net leased Builders FirstSource located in Newark, DE (Wilmington). The 35,500 SF industrial-retail property sits on 7.50 acres of land along Stanton Christina Rd. with medical office and industrial properties; access from the state Hwy DE-7. Originally built for Shone Lumber, (est. 1957), Shone sold the business to BMC Holdings in 2018, who then merged with Builders FirstSource in 2021 (p. ). Builders FirstSource is the largest supplier of building materials, manufactured components, and construction services in North America with over 570 locations in 43 states, Builders FirstSource serves the professional contractors, sub-contractors, remodelers, and consumers of the single-family and multi-family housing market. The total estimated size of the U.S. residential construction market is around USD 590 billion and is expected to grow at a CAGR of over 3% through 2029. The stock price of Builders FirstSource (NYSE: BLDR) is up 1900% from the COVID low and was recently added to the S&P 500, in December of 2023. The subject property has been utilized for the sales, distribution and warehousing of said construction materials since being built in 1969. The 7.50 acre property serves the larger Wilmington MSA, along with regional business to clients in PA, NJ, & MD, as the border is less than 10 miles away. The lease is under the first option period with four (4+) years remaining & two percent (2%) annual increases. Two (2) additional five (5) year options remain with the same annual rent increases. The lease is double-net (NN) with minimal landlord responsibilities (abstract on p. ) Wilmington, DE is the county seat of New Castle County and the largest city in the state. Situated at the confluence of the Christina River and the Brandywine Creek, near where the Christina flows into the Delaware River, Wilmington benefits from its strategic location, making it a key player in the Mid-Atlantic region's economic activities. Economically, Wilmington is a major center for banking and financial services, partly due to Delaware's business-friendly laws. Many national and international banks and financial institutions have established their headquarters or significant operations in the city, contributing to its reputation as the "Corporate Capital of America." Wilmington is recognized for its significant contributions to the arts, culture, and historical preservation.