Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing for sale Castlebrook Apartments, a 634-unit, value-add, multi-housing property located in New Castle, Delaware. Castlebrook is a unique offering that affords an investor the ability to acquire a well-maintained, value-add asset of significant scale in suburban Wilmington.
Castlebrook comprises 29 three-story residential buildings spread across 33.12 acres in an irreplaceable, low-density setting. The unit mix is a diverse blend of studio, one-, two- and three-bedroom apartment homes with open floorplans and a private patio or balcony. The multi-housing property offers a competitive amenity package highlighted by a renovated community clubhouse, an Olympic-sized swimming pool with a sun deck, a contemporary fitness center, tennis courts and a community social room. Additionally, residents benefit from the ability to walk to a variety of local amenities including Food Lion, Wawa, Walgreens, a dry cleaner and a liquor store.
Since acquisition, current ownership has infused meaningful capital into the property by building a ground-up resident clubhouse and replacing all roofs (2016 and 2017), gutters, downspouts, windows, sliders, air condensers, paving and more, which affords new ownership the opportunity to focus capital on direct revenue enhancing expenditures such as unit renovations and amenity enhancements. To date, approximately 20 percent of the units have received varying levels of renovation, providing a proven value-add program and leaving a substantial portion of the property available to be renovated. Fully renovated units are achieving a weighted average of $182 over unrenovated units.
Benefitting from Delaware’s advantageous tax climate, New Castle County is home to a diverse set of employment drivers and a variety of major corporations. Multiple national retailers are proximate to the multi-housing property for sale and offer tax-free shopping. The University of Delaware, which is in the midst of a robust expansion, is a 15-minute drive from the property and serves as an economic anchor for the region. Additionally, due to its central location along the eastern seaboard, New Castle County’s residents have direct access to Philadelphia, Baltimore, Wilmington, New York and Washington, D.C. via Interstates 95, 295 and 495 and the New Castle/Wilmington airport, which is only three miles from the property.
For more information on this commercial real estate listing or other multifamily properties for sale in the Mid-Atlantic, please contact Mark Thomson, Carl Fiebig or Francis Coyne in HFF’s Philadelphia office. The team includes Robert M. Stella with Financial & Consulting Services, Inc., a licensed Delaware real estate broker. To view HFF’s current real estate investment sales listings, please click here.