Wilmington Delaware Market

21 Replies

Hi All

Does anyone have good insight on places in Wilmington Delaware that are on the rise, have development, and are changing? I am looking to buy a property in DE soon. I want to find good areas.

Thanks All!

Brian

Brian,

I am in the same bucket as you.  I am currently researching Wilmington by driving a few neighborhoods to get an idea of what the potential prospects are.  Please keep in touch and we can share info along the way.

@Brian Wert - The "best" areas in Wilmington are Trolley, Little Italy, Cool Springs, Triangle. These are the stronger areas in Wilmington and will likely continue to be strong. If you look at the cities 5-10 year development plans they're trying to invest in some other areas of the city...mostly areas east of 95. With the exception of Midtown Brandywine these areas are historically rougher areas, so you really are rolling the dice as to whether you think the cities efforts to turn these areas around will be successful. 

At the end of the day no one knows for sure and we're all just betting on what's going to appreciate...but then again...that's why I invest for cash flow so that if nothing appreciates...it doesn't hurt my planned IRR.

I would have to agree with @James Masotti , but I would add a few areas to that list including Elsemere and Claymont. I also helped two clients buy new construction townhomes at Darley Green in Claymont. There will be a new Amtrak station there and the easement of regulations for industrial development on the river will attract new investments. 

As far as the downtown goes, it is a risk for sure, but the Buccini's are investing so much down there that I had to jump in, so I bought a couple places including an older commercial space row home on N King Street (Lawyer's Row) for 70k. We'll see how that goes...

Additionally, the Kingswood community center is in talks to get approved for a major redevelpoment with the same folks that were involved in the redevelopment of the East Lake community in Atlanta, GA. This is probably the roughest area of the whole city.

Jack Clough, Real Estate Agent in PA (#rs-330591) and DE (#rs-0022836)

@James Masotti I remembered a while back you made the suggestion that the east side of Wilmington could see a turnaround if the new Police Chief (correct me if I'm wrong here) could implement a plan to correct the issues going on over on the east side of Wilmington. Do you still, in your opinion, believe this is possible?

@Jack Clough I don't know too much about Wilmington, however, I will also agree that Elsemere and Claymont also are good areas, solely based off of driving through the areas. Would like to hear more about the new Amtrak station though (is this the new station they are building in Newark or is it separate?)

@Dustin Verley , They will be spending 40 mil to rebuild the existing station into a new state of the art one. Completion date is 2020. And yes it is on the same line as Wilmington and Newark and serves SEPTA as well as Amtrak.

Jack Clough, Real Estate Agent in PA (#rs-330591) and DE (#rs-0022836)

@Jack Clough Interesting... I've never been to the one in Newark so would definitely like to check it out once completed. I normally utilize Wilmington station. Thanks for sharing.

@Donovon Rogers I don’t think so. Property taxes are too high and eviction laws are not landlord friendly.

Originally posted by @Dustin Verley :

@James Masotti I remembered a while back you made the suggestion that the east side of Wilmington could see a turnaround if the new Police Chief (correct me if I'm wrong here) could implement a plan to correct the issues going on over on the east side of Wilmington. Do you still, in your opinion, believe this is possible?

@Jack Clough I don't know too much about Wilmington, however, I will also agree that Elsemere and Claymont also are good areas, solely based off of driving through the areas. Would like to hear more about the new Amtrak station though (is this the new station they are building in Newark or is it separate?)

Anything is possible. The city does have a plan, but when the new mayor turns down a federal grant to add more police officers, that's not a good sign. There's a lot of politics in whether or not the city can see a turnaround. Two big things need to happen simultaneously in my opinion.

1) Get the violence under control
2) More blue collar jobs need to come to the city. It's great that Wilmington has the city/county building and all the banks and law firms...but given the average Wilmington resident doesn't have a college degree there is a need for decent paying entry level work to find it's way into the city and surrounding area (with DART access). 

@James Masotti Although I agree with you 100%, I wonder why the City of Wilmington doesn't consider bringing in individuals for those roles that require a college degree, or initiate a program to allow for the proper training for such roles within a legal or banking firm.

One thing I would be glad when they figure out is the plan for the old GM Boxwood plant. I've heard this thing change hands so many times recently, and now they're speculating the potential for another company to come in as a result of a recent sale.

As we've already established, the opportunity is there, but (and I rarely like speaking about politics) -- but in this case, the decision the politicians make will play a huge deciding factor the success of Wilmington.

@Dustin Verley , @Brian Wert , @James Masotti , @Donovon Rogers

Buccini Polin Group is building a large mixed use building in the heart of the city one block from Market St. They have also purchased the Dupont hotel and are renovating and updating that as well. BPG is also renovating an older 8 story apartment building on 9th St which will be luxury condos and high end retail. They own the Nemours building which is located right behind the DuPont hotel and has a cool 4th floor space called the Mill which was designed by Rob Herrera as a co-working space which is now almost at full capacity. The Riverfront has gone through a few development phases and of course BPG owns most of the condo buildings down there as well. A lot of young professionals live in the condos on the Riverfront.

The focus is Market St and everything will hopefully build out from there. What they need is to get people to start living downtown and not just downtown, but in the heart of it near Market St. I believe the Millenials are more likely to live down there and will probably start to as soon as BPG's units are complete. The key to it all will be security. Once you have security then you can achieve "walkable urbanism". In order for a city to be revitalized you have to make it walkable and safe (google the success of places like Santa Fe and Charlotte).

Jack Clough, Real Estate Agent in PA (#rs-330591) and DE (#rs-0022836)

@Jack Clough - You're a big fan of BPG. You seem to mention them in a lot of your posts. :)

Large scale residential investments like this being made downtown wont matter a ton if there aren't jobs for those people to have. And if it's not safe for them to live there then they wont. I'm not going to say that these are bad investments...I just don't think it's the ones the city needs right now. 

Again personal opinion...everyone has their own take on things.

@James Masotti

I guess I do mention BPG a lot, but they own half the city and are building the other half, so kinda hard not to especially considering I live here and it's my business to know.

And I believe they are creating the jobs you're referring to (construction, services, retail). I never said it will work. And I did say that security (safety) is the key.

Jack Clough, Real Estate Agent in PA (#rs-330591) and DE (#rs-0022836)

@Brian Wert , as a former resident and current landlord in the city of Wilmington I completely agree with @James Masotti and the neighborhoods he mentioned.  The same neighborhoods that were good 10 years ago are good today.  Although there are "plans", nothing, or very little is being seen to make you believe specific areas are improving or are the "next neighborhood to invest in", like you are seeing in Philadelphia.  The BP Group is investing a lot of money into downtown and that should be good, but they are also building/renovating and lot of residences to house these people they believe will move there.  I don't think that is great for us small time investors.  Will the new residences want to live in a brand new, fully modern units or in the 100 yr old updated homes 3-5 blocks from market street?  James nails the 2 most important needs, fix crime, which isn't improving yet, and create the entry level jobs. 

I'm going to continue to seek units in the areas mentioned above until I believe the turn will happen.  

If you are capable of handling the type of property that bring high cash flow, you have a lot of options around Wilmington.

Originally posted by @Brian Wert :

James Masotti Jack Clough Mindy Jensen Jake Washburn

What do you guys think about this deal?

507 GreenHill Avenue Wilmington Delaware 19805

139,900 Listening Price.

 For what? If you're looking for a place to live...sounds like it could be okay. If you're looking for a rental I personally wouldn't but it because it doesn't meet my investment personal criteria. If you're looking to put 20% down and do a traditional acquisition and still have cash flow. I still think $140k is more than I'd want to be paying for an investment property...even in the Flats...but again...that's just me. Everyone has their own objective in real estate, so the more important question you should be asking is.

Does this property meet your criteria and your objectives? If you don't know the answer to that, than my suggestion is to spend some time exploring those questions for yourself and asking more questions on the forums. Not that the answer can't change...mine has since I started up here on BP over 2 years ago, but without it you're flying blind. 

Originally posted by @Brian Wert :

@James Masotti Jack Clough Mindy Jensen Jake Washburn

What do you guys think about this deal?

507 GreenHill Avenue Wilmington Delaware 19805

139,900 Listening Price.

@Brian Wert - @James Masotti is absolutely right and provides logical advice here.

Additionally, the property seems to be priced slightly above fair market value. I don't foresee any reason for that area to appreciate much (opinion), so in that case it would just be investing for income and if you're investing for income then you'd need to buy at 75k in order to follow the 2% rule. It may work for you and your objectives but I think there are better opportunities out there.

Jack Clough, Real Estate Agent in PA (#rs-330591) and DE (#rs-0022836)

Thanks Guys
You guys think I’ll have issues finding tenants or issues with tenants?

Wow, I'm impressed. You guys have definitely done your research on Wilmington. I need to bring you guys along when I'm talking with a new clients. Lol

You are correct. The Boxwood Plant will be reopening and will create new jobs to the area. The new mayor of Wilmington has a plan of handling crime and I think they just hired a new chief of police in the city. 

James - you came up with some great areas for rentals. 

Brian - the Greenhill property is over priced. I'm guessing this is an owner selling and not an investor. You can find better value homes within the city with strong monthly rental amounts. Keep looking and you will find the perfect one that makes the numbers work.

I manage dozens of rentals in the city and work with multiple portfolio investors. I just helped one of my clients purchase a 2000 sqft, single family home, good condition, in the city, short sale that closed within 30 days for $51k. Needs some new flooring and paint, but I should have it on the market within 2 weeks. 

There are a lot of opportunities in the city. Keep in mind, there were a bunch of investors that scooped up multiple properties at the height of the market. These investors are now 10 - 15 years older, have received their money back from renting and now their homes are lower in value. Today, they want out! Many investors are looking to sell off their portfolio. Find these guys and you may have a great opportunity.

Good luck!

- Jessica 

Jessica Stiner, Real Estate Agent in DE (#RS-0019990)
302-266-0451

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