Brandywine Realty Trust to convert Wilmington high-rise

WILMINGTON — Brandywine Realty Trust plans to convert one of its high-rises in Wilmington’s center business district into apartments after a year of exploration of the project.

The real estate investment trust told investors at the end of April that it would remove 300 Delaware Avenue from its list of leasable properties as office space in order to redevelop it as apartments.

Brandywine Realty Trust CEO Jerry Sweeney said that the REIT would remove the 17-story building from the core portfolio either in the third or fourth quarter. The building may be eligible for federal financing, such as low-cost loans and tax credits.

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“That building is eligible for some federal financing that helps augment the yield on that project. So we have a lot of work underway on that property. The NOI [net operating income] that we’re losing is actually very minimal,” Sweeney told investors on an earnings call.

Right now, TD Bank leases the first floor of 300 Delaware Ave. Other tenants include Davinci Meeting Rooms and Alliance Virtual Offices, which books meeting spaces for clients and companies, according to online listings.

Outside of the Richards Layton & Finger headquarters at One Rodney Square, this is the only Wilmington asset the REIT owns. The Philadelphia-based Brandywine Realty Trust invests and owns 72 buildings in Pennsylvania, Washington D.C. and Texas that spans roughly 12.8 million square feet.

300 Delaware Ave. was 50% occupied as of last year and sits across from the Brandywine and Nemours Building which are two major assets the Buccini Pollin Group has heavily invested in over the decade. The building has floorplates that span 15,000 square feet.

In early 2024, Brandywine Realty Trust was apparently weighing options on converting 300 Delaware Ave. At the time, the 36-year-old building was vacant and not as profitable as it could be, and Sweeney said that more office leasing would likely not see a strong return on investment there.

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The REIT had decided years ago to not invest in more capital in renovations for tenants in a bid to secure higher rents. Brandywine Realty Trust bought the building in 2004.

“We made the decision that it made no economic sense given where rent levels and capital costs are in that market for us to continue leasing that building on purely an office basis,” Sweeney said.

The design process will take months, including review for mechanical, electrical, and plumbing and HVAC installation. Brandywine Realty Trust is also analyzing whether the converted space will remain in the portfolio or marketed as a turnkey development.

Wilmington city officials have not received any permit applications for 300 Delaware Ave. as of this month, according to city officials.

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