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|Number of units||362|
JLL is pleased to present the opportunity to acquire Spring Crossings, a 362-unit, 1974-vintage, garden-style, value-add apartment community located in the heart of Newark, New Castle County, Delaware. The Property is 40% renovated and current renovated market rents are achieving a $200+ premium. Additionally, current ownership has invested over $4M in capital expenditures, significantly increasing the curb appeal and unit finishes at the Property. Spring Crossings is centrally located between I-95 and Route 40, 3.5 miles from the University of Delaware’s STAR Campus and the Newark Amtrak Station.
Compelling Value-Add Opportunity
Ownership has renovated approximately 40% of the units establishing a proven demand in the market for modern finishes as renovated market rents are currently achieving a $200+ premium. The remaining 60% of the property features classic unit finishes, as well as an additional 21 units that feature a previous renovation. The remaining unrenovated units present an opportunity for value-add investors to continue the proven renovation program and further enhance the appeal of the asset while commanding significant rental premiums.
Maintained To An Institutional Level
Current ownership has invested over $4M of capital expenditures at Spring Crossings, significantly enhancing the curb appeal and unit finishes. Select deferred maintenance items include $275,000 on HVAC replacements and $257,000 on roof replacements. Additional expenditures include paving, electrical upgrades, common areas, plumbing, landscaping, and much more. New ownership is presented the opportunity to focus on revenue-enhancing projects such as the continuation of the in-place renovation program and amenity modernizations.
Resilient Market Fundamentals
The New Castle County multi‐housing market has proven resilient amidst the implications of COVID‐19, with occupancy remaining near 94.4%. This is well above Philadelphia’s metro‐wide average of 90.2%. Furthermore, specifically in Class‐B, garden‐style assets with 100+ units, occupancy have remained above 96%, signifying the success of work‐force housing through the pandemic. In addition to tight vacancy, the submarkets asking rents have increased 4.3% year‐over‐year as of 1Q2021, outperforming the submarkets' previous year‐over‐year average growth of 2.7%.