We’ve invested $4 million in the Brandywine Hundred Apartments, a stabilized 301-unit mid-rise apartment property in Wilmington, Delaware. The sponsor, AJH Management, plans to invest approximately $400,000 to perform light common area and unit improvements, as well as fund additional soft and financing costs of approximately $1.6 million. Renovations have already been completed on 49 of the 301 units, which have commanded an average monthly premium of $155 per unit.

Why we invested

  • Strong market: Wilmington presents a strong opportunity arising from a steady financial employment base and solid multifamily market fundamentals. The state’s pro-business environment is expected to keep financial institutions in the market and to continue attracting other business sectors to Wilmington.
  • Experienced partner: AJH Management owns and manages more than 3,000 units, with a value in excess of $300 million.
  • Lack of nearby competitive properties: There is a shortage of similarly aged (and priced) properties nearby. The new construction in the market is primarily located in downtown Wilmington, which generally attracts a younger demographic renter.

Market spotlight: Wilmington

Wilmington benefits from its location within the business-friendly state of Delaware. Since easing regulations in the 1980s, Delaware has continued to incentivize major corporations, specifically in the financial industry, to move to the state.

Wilmington alone has become a national financial center for the credit card industry as it is the home to many major credit card companies including Bank of America, JPMorgan Chase, Discover Bank, and Barclays Bank Delaware. With incentives for businesses to remain in the state, steady employment rates are expected.

In addition, three major employers are located within a mile of the Brandywine Hundred Apartments. JP Morgan Chase, Nemours/Alfred I. duPont Hospital and Astra Zeneca collectively employ nearly 7,000 people. The stable labor force employed by these major corporations provides strong consistent demand for workforce housing in the area, of which there is limited supply.

We believe the supply-demand dynamics in Wilmington, Delaware will support continued demand for these multifamily apartment units.