WILMINGTON – Evergreen Apartment Group Inc. announced Thursday, Nov. 14, that it has acquired River Commons Apartments, a low-income-eligible community located in downtown Wilmington, for $7 million.
River Commons is Evergreen’s first acquisition in the city and its first to be eligible for the low-income housing tax credit (LIHTC). Evergreen, a 41-year-old, family-run apartment investment and management company based in New Castle, owns and operates eight other communities in Delaware and Cecil County, Maryland.
River Commons, built in 1988, has 116 two- or three-bedroom units located at 200 N. Poplar St., near the Amtrak rail station and the downtown financial district. It was renovated in 2004 and features private entrances, balconies, in-unit washers and dryers, and a community clubhouse.
It had last been operated by TM Associates Management Inc., based in Rockville, Maryland. Prior to the sale the property was owned by River Commons LP, a limited partnership connected to Petrucon Construction Inc., which purchased the community in 2003 for about $2.8 million, according to state records.
Evergreen arranged the $7 million sale directly with broker Andrew Townsend of Marcus and Millichap. Financing for the deal was provided by Fannie Mae, while Key Bank serviced the loan and AMA Financial was the mortgage broker. Subordinate debt for the deal was provided by the Delaware State Housing Authority.
Kevin M. Wolfgang, president and CEO of Evergreen Apartment Group, called River Commons “an exciting acquisition” for his organization.
“The community is also our first LIHTC community which allows us to provide apartments to a portion of the population we were previously unable to serve,” he said in a statement, adding that becoming a LIHTC-approved management company adds another strategic growth avenue for Evergreen.
His company will offer both income-restricted and market-rate units in the community, Wolfgang told Delaware Business Times.
Lauren J. Wolfgang, Evergreen principal and general counsel, added that River Commons will be “strengthened from Evergreen’s intensive management approach, which includes focused customer service, property management best practices, and leveraging the Evergreen brand.”
By Jacob Owens