Capano Residential has purchased 1303 Delaware Apartment Homes in the Trolley Square area of Wilmington.
Holliday Fenoglio Fowler, L.P. announced the closing of the sale from Merion Realty Partners, Wynnwood, PA to the Wilmington company.
Terms were not not disclosed, although Holliday Fenoglio Fowler noted that it worked on behalf of the new owner to secure a fixed-rate Fannie Mae acquisition loan and that the property was free and clear of debt.
1303 Delaware consists of studio, one,twoand three-bedroom apartment homes averaging 928 square feet.
“This was a great opportunity for investors to acquire a property in one of the best locations in the state with a proven value-add component,” HFF Managing Director Mark Thomson said. “The sellers recently renovated 84 of the 231 units and invested more than $2 million in building systems improvements. The capital spent on building improvements provides the new buyer a great opportunity to focus on updating the remaining 141 un-renovated units, which still have original kitchens and bathrooms.”
“All of these factors combined to create significant interest in the property,” Fiebig added. “Many of the groups attracted to this offering were looking to acquire in Delaware for the first time and were drawn to the strength of the submarket, property and proven value-add story.”
Capano Residential (“Capano”) is the multi-family division of a privately held real estate investment company based in Wilmington.
The second and third generation, father-son team own and manage over 4,500 apartments and two million square feet of office and retail space in Delaware and Florida.
Nearly all assets in the portfolio have been developed, built and managed by Capano.
The recent acquisition complements an initial 100 units purchased in the adjacent area of Trolley Square in late 2016. In addition to the existing portfolio, Capano will deliver another 500 new luxury apartments and rental townhouses in Delaware over the next year.
Capano is actively seeking approvals for over 1,000 units that could break ground in 2019-2020 in all three counties of Delaware.
It has proposed the redevelopment of the Brandywine Country Club site north of Wilmington, but has run into opposition from neighbors and planners for proposing a project that mainly consists of apartments.
Capano has been adding properties following a financial windfall provided by the sale of the Wilmington headquarters property of drug-maker Incyte Inc. to that publicly traded company.