400 & 402 FOULK ROAD WILMINGTON, DE
301 UNIT VALUE-ADD OPPORTUNITY
EXECUTIVE SUMMARY EXECUTIVE SUMMARY
BRANDYWINE HUNDRED The Opportunity
Holliday Fenoglio Fowler, L.P. (“HFF”) is pleased to present the exceptional opportunity to acquire Brandywine Hundred Apartments (“the Property”, “Brandywine Hundred”), a 301-unit, value-add, multi-housing property situated in the historic and affluent Brandywine Hundred neighborhood of Northern Wilmington, Delaware.
400 & 402 FOULK ROAD, WILMINGTON, DE 19803
YEAR BUILT 1965/1971 TRANQUIL. SPACIOUS.
YEAR RENOVATED 2008 WELL-DESIGNED.
BUILDINGS TWO (2)
UNITS 301
NET RESIDENTIAL SF 284,715
AVERAGE UNIT SIZE 946 SF
LAND AREA 10.66 ACRES
CURRENT OCCUPANCY 96%
AVERAGE IN-PLACE RENT $1,330 ($1.41/SF)
YEAR 1 NOI 3,286,443
Constructed in 1965 and renovated in 2008 ($6 million), Brandywine Hundred offers spacious and well-designed units, averaging 946 SF, in an ideal suburban location with outstanding access to major employers, shopping, dining, and public transportation. The Property, which is situated on a tranquil 10.66 acre site, is located less than 1 mile from major employers including JPMorgan Chase & Co. (2,400 jobs), AstraZeneca (2,000 jobs), and Nemours/Alfred I. DuPont Hospital for Children (2,568 jobs). Additionally, the Property is less than 0.5 miles from shopping and dining along Route 202, and a short distance from numerous state parks, golf courses and recreational activities.
Ownership has initiated a unit renovation program consisting of new kitchen and bath finishes, which has been very well received by the marketplace. To date, 49 of the 301 units have been renovated, yielding a $155/unit monthly premium. This is an excellent opportunity for new ownership to significantly enhance revenue by renovating the remaining 252 units and capitalize on the outstanding curb appeal and amenity package.
BRANDYWINE HUNDRED EXECUTIVE SUMMARY 3 INVESTMENT HIGHLIGHTS
AFFLUENT, HISTORIC NORTH WILMINGTON NEIGHBORHOOD
• Average Annual Income within 1 mile of Brandywine Hundred is $122,000 which is 66% higher than the US average
• Average Annual Income within 3 miles of the Property is $87,697 which is 20% higher than the US average
• Median Housing Value of $276,300 within 3 miles of the Property
• Award Winning School District
VALUE-ADD OPPORTUNITY
• 16% of units renovated with kitchen and bath upgrades achieving accretive average premiums of $155 per unit
• Minimal defensive capital required: roofs, elevators, windows, hallways and amenities have been replaced
ONLY MINUTES TO MAJOR EMPLOYERS
• 1 Mile to JPMorgan Chase & Co., Astra Zeneca Headquarters and Nemours/Alfred I. DuPont Hospital for Children
• 10 Minutes to Wilmington CBD
• 30 Minutes to Philadelphia CBD
EXCELLENT REGIONAL CONNECTIVITY
• Located just off Interstate 95 and US Route 202 (Concord Pike Retail Corridor)
• 10 Minutes to Wilmington Amtrak Station
• 20 Minutes to Philadelphia International Airport
TAX FRIENDLY DELAWARE LOCATION
• No spot assessments permitted in the State of Delaware
• No School District appeals
• Business friendly / Tax free shopping
BRANDYWINE HUNDRED 4 EXECUTIVE SUMMARY NEMOURS/ALFRED I. DUPONT Brandywine Hundred offers its residents one of the most HOSPITAL FOR CHILDREN accessible and convenient locations in the Philadelphia region. Positioned 1 mile from the Intersection of I-95 and Route 202, and 5 miles from the Pennsylvania border, Brandywine Hundred benefits from convenient accessibility. Additionally, Brandywine Hundred is only 20 minutes to the Philadelphia International Airport, which offers flights to a plethora of destinations, domestically and internationally. HIGHLIGHTS
REGIONAL LEADERS Brandywine Hundred is ideally located less than 1 mile from three of the region’s largest employers (JPMorgan Chase & Co., Nemours/ Alfred I. DuPont Hospital for Children and AstraZeneca), which collectively employ approximately 7,000 jobs in Wilmington alone, including a large proportion of residents at Brandywine Hundred. In addition, the Property is a short distance from numerous other major employers in downtown Wilmington, the Pennsylvania suburbs and Center City Philadelphia.
INVESTMENT INVESTMENT 2,568 Employees ATTRACTIVE TAX-FREE RETAIL HUB The state of Delaware’s favorable tax laws, including tax-free shopping, have made it a major retail destination within the Philadelphia region and the broader Mid-Atlantic. Brandywine Hundred’s 2,400 Employees residents benefit from the attractive retail environment. The Property is situated in the center of the Northern New Castle County retail submarket, which totals over 6.3MSF in over 268 buildings, and features grocery-anchored shopping centers, regional malls and award-winning restaurants as well as other convenient retail options. 2,000 Employees
BRANDYWINE HUNDRED EXECUTIVE SUMMARY 5 UNMATCHED ACCESS TO AMENITIES & EMPLOYMENT
141 ASTRAZENECA ALAPOCAS RUN POWDER HILL ROAD STATE PARK 2,000 EMPLOYEES DUPONT GOLF COURSE JPMORGAN CHASE & CO. NEMOURS/ALFRED I. DUPONT 2,400 EMPLOYEES HOSPITAL FOR CHILDREN 2,568 EMPLOYEES
SUBURBAN CONCORD PIKE 202 PHILADELPHIA WILMINGTON 202 CBD BRANDYWINE EXECUTIVE CENTER FAIRFAX ROCK SHOPPING MANOR CENTER GOLF 261 COURSE
FOULK ROAD
SIMON ROAD
20 MINUTES 71,525 6.8M SF 30 MINUTES PHILADELPHIA WILMINGTON OFFICE SPACE TO PHILADELPHIA CBD INT’L AIRPORT POPULATION WILMINGTON CBD 42M SF OFFICE SPACE
BRANDYWINE HUNDRED 6 EXECUTIVE SUMMARY EXCELLENT VALUE WHITE MODERNISTA® ENHANCEMENT 141 ASTRAZENECA ALAPOCAS RUN POWDER HILL ROAD STATE PARK 2,000 EMPLOYEES DUPONT OPPORTUNITY GOLF COURSE Ownership initiated a unit renovation program that has been well JPMORGAN CHASE & CO. NEMOURS/ALFRED I. DUPONT 2,400 EMPLOYEES received among the residents and submarket. HOSPITAL FOR CHILDREN Since the program’s inception, Ownership has renovated 49 of the 301 units (16%), 2,568 EMPLOYEES achieving an average premium of $155/unit. The Korman branded Modernista unit finishes come in a maple or white cabinet finishes, yielding premiums of $158 and $146 respectively. Comparable properties in the submarket have been renovating kitchens SUBURBAN and baths, and are achieving premiums of up to $300/unit. As rents continue to rise and CONCORD PIKE 202 PHILADELPHIA the demand for upgraded units expands, a significant opportunity exists for a new owner 5% $146 WILMINGTON 202 16 out of 301 Weighted Average CBD to increase NOI by both continuing and enhancing the renovation program. BRANDYWINE Units Renovated Rental Premium EXECUTIVE CENTER FAIRFAX ROCK SHOPPING MANOR CENTER CLASSIC WHITE Upgrades MODERNISTA® GOLF 261 COURSE Include:
• Stainless Steel Appliances FOULK ROAD • Maple or White Cabinets
SIMON ROAD • New Countertops
• Stainless Steel Backsplash
• Wood Surface Flooring
• Upgraded Lighting 11% $158 33 out of 301 Weighted Average Units Renovated Rental Premium
BRANDYWINE HUNDRED EXECUTIVE SUMMARY 7 CONCORD MALL PRIME CORRIDOR NAAMANS ROAD OUTSTANDING
LOCATION BRANDYWINE DEMOGRAPHICS TOWN CENTER 3 Mile Radius CONCORD SQUARE
SHIPLEY ROAD 101,713 FAIRFAX Population CONCORD PIKE SHOPPING CENTER 141 261 202 FOULK ROAD $276,300 Average Housing Value 38% Renter Occupied Housing 202 $87,697 ROCK MANOR GOLF CLUB Average Household Income 95 75% Population Commuting > 30 Minutes 95 6.8 Years Average Rental Stay
AFFLUENT RESIDENT PROFILE Residents of Brandywine Hundred represent an educated, qualified and affluent demographic, with an average household income of over $87,000. Brandywine Hundred’s upper income and high caliber resident profile highlights the Property’s position within the marketplace. The resident profile demonstrates the Property’s desirability to individuals who can afford to live anywhere, yet have chosen Brandywine Hundred as their home.
BRANDYWINE HUNDRED 8 EXECUTIVE SUMMARY APARTMENT LIVING AT ITS BEST
Brandywine Hundred is an award-winning rental community strategically located within the affluent and historic Brandywine Hundred neighborhood of Wilmington, Delaware. The community offers a tranquil setting amidst beautiful landscaping, with modern interior finishes, and on-site amenity package in a highly accessible location.
Residents of Brandywine Hundred enjoy access to: Community Amenities Unit Features
• Swimming pool with sundeck and poolside Wi-Fi • Modernista® kitchens *
• State-of-the-art fitness center with LCD TVs • Large private balconies *
• Resident lounge with free Wi-Fi • Stainless steel appliances *
• Business center with free internet & printing • Separate breakfast area
• Tennis courts • Dining rooms
• Covered parking garages available (111 spaces) • Oversized balconies
• Secured access buildings • Large units- average of 946 SF
• 24 hour emergency maintenance • Penthouses with exclusive lobby *
• On-site property management • Corporate units* * Select Units
BRANDYWINE HUNDRED EXECUTIVE SUMMARY 9 LIVE.WORK.PLAY
SWARTHMORE PHILADELPHIA 1 13 BRANDYWINE RIVER MUSEUM
1
CHADDS FORD 202 322 291 52 100
322 95
491 13
52 92 92 PENNSYLVANIA 291
DELAWARE 261 HOCKESSIN 3 CLAYMONT
WASHINGTON, D.C. | 113 MILES 202 495 95
141
141 52
48
48 13
WILMINGTON DELAWARE CENTER CITY PHILADELPHIA | 31 MILES NEW JERSEY
95
202 13
NEW CASTLE 295 COUNTY AIRPORT DOWNTOWN WILMINGTON | 3 MILES 9
BRANDYWINE HUNDRED 10 EXECUTIVE SUMMARY EXCLUSIVE LIVE.WORK.PLAY MARKETING ADVISORS
MARK THOMSON Senior Managing Director 484.532.4206 [email protected] Investment Sales
CARL FIEBIG Associate Director 484.532.4166 [email protected] Investment Sales
JOSE CRUZ Senior Managing Director 973.549.2011 [email protected] WASHINGTON, D.C. | 113 MILES Investment Sales
FRANCIS COYNE Associate Director 484.532.4171 [email protected] Investment Sales
CENTER CITY PHILADELPHIA | 31 MILES JAMES CONLEY Managing Director 484.532.4208 [email protected] Financing
HFF PHILADELPHIA *HFF has engaged Financial & Consulting Services, Inc. (DE broker license #RB0001876) as licensed co-broker for the offering. 161 Washington Street © 2017 Holliday Fenoglio Fowler, L.P. (“HFF”). Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, DOWNTOWN WILMINGTON | 3 MILES Suite 925 “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the Conshohocken, PA 19428 global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity HFFLP.COM placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.