Delaware Community Investment Corp. Makes its First Investment From $23 Million Fund to Support Community Development
Market Street Apartments has officially broken ground and construction is underway to renovate three historic commercial buildings to provide 76 quality, affordable apartment homes to downtown residents.
The development represents almost $27 million of investment in the heart of Wilmington’s Market Street City Historic District. Delaware Community Investment Corporation (DCIC) provided $9 million of equity through Housing Tax Credits and partnerships with the private sector.
Market Street is the first development to receive funding from DCIC Capital Fund I, the first Delaware-focused equity investment fund formed since DCIC became part of Cinnaire in late 2013. Two more developments are slated to receive funding this year, one more in Wilmington and another in Seaford, Delaware. The Fund will provide 176 units of quality, affordable housing to families and individuals with special needs.
The mixed-income development will include the 76 new residential apartment homes, with 61 apartments reserved for working professionals with moderate to low-incomes at or below forty or sixty percent of Area Median Income (AMI). The remaining 15 apartments will be rented at market rate.
“We at the Buccini/Pollin group are thrilled with our decision to work with Delaware Community Investment Corporation (DCIC) on the Market Street Village development in downtown Wilmington. Part of that decision was based on DCIC having experienced team members and our perception of the value they could add through local knowledge and state-wide accomplishments. While we are the largest developer in the State of Delaware, we had never engaged in a combined low-income and historic tax credit project prior to Market Street Village. That is why it was so important for us to partner with a group who not only cared about our vision within the City of Wilmington, but also had the knowledge to help us navigate through the intense process on our home turf; DCIC was that partner and more” said Rob Buccini of Buccini/Pollin Group.
“Beyond its home field advantage, DCIC was also able to provide a tremendous amount of support from its underwriting team at Cinnaire. Stemming from their nation-wide deal experience and in-depth knowledge of tax credit projects, the underwriting team added tangible, monetary value to the deal and we are truly impressed with their efforts. BPG looks forward to working with the DCIC team on many more successful projects in the coming years, and we are excited to watch the progress that they inspire within our market.”
BPG Real Estate Services (BPG), the sponsor, has been involved in the redevelopment of ten buildings on a less than ½ mile stretch on Market Street surrounding the development and has been at the forefront of the redevelopment of Wilmington.
“DCIC feels privileged to be part of the transformation happening downtown Wilmington, much of which has been the result of the leadership of the Buccini/Pollin Group,” President of DCIC, James Peffley, commented. “This groundbreaking coincides with tremendous redevelopment in surrounding area, making Market Street City History District a healthy, vibrant location for residential, commercial and retail occupancy. We look forward to working on additional transactions that will be part of the revitalization of the City of Wilmington and the State of Delaware. We formed this partnership with Cinnaire for this very reason- to bring new capital and new strategies to our state.”
Market Street Apartments will be specifically marketed as an affordable housing alternative to professionals working in the education system, as typical teacher salaries are within the qualifying limits of Market Street’s affordable housing units. While marketed to education professionals, Market Street will not restrict occupancy to these individuals and will be open to all individuals meeting the leasing criteria.
A new charter school is opening in the fall of 2015 within close proximity to the Apartments and the development has already been presented to staff as a housing option to live and teach in downtown Wilmington.
The development team is led by BPG Real Estate Services and Ingerman Management. The architect on Market Street is Blackney Hayes, and the general contractor is BPFS Construction. Novogradac & Company serves as the project accountant.
**Photo/Renderings available upon request**