Wilmington Development News

[xzmattzx]

Developers changing face of the city
Buccini/Pollin a force in renaissance


The two young men were talking big in 2002 when they announced their ambitious real estate project while standing outside the burned-out Delaware Trust Co. building in downtown Wilmington.

The city was ready for urban living, said the hard-charging Robert Buccini and his younger brother, Christopher, who, for once, weren't dashing to a meeting or answering a cell phone. And as proof, they were going to spend $50 million to convert the gloomy bank tower into luxury apartments.

A few old-school developers, however, were laughing up their sleeves. Over the decades, the city had seen its share of residential developers blow onto the scene with much fanfare only to quietly disappear a few years later. "You know, this isn't going to work," one older developer said in an aside to Mayor James M. Baker about the Delaware Trust Building project.

"I wouldn't have had the guts," said Brock J. Vinton, who is chief executive of the Commonwealth Group Ltd. in Wilmington and a competitor to the Buccinis. "They did what some of the other developers, notably myself, wouldn't have done -- they had faith in residential."

To that Rob Buccini, 37, replies: "Ignorance is bliss."

Now that Buccini/Pollin Group Inc. has leased nearly all of the 280 apartments in the converted bank building, older developers are still shaking their heads in disbelief, Vinton said. In a little more than a decade, the company with offices in Wilmington, Manhattan and Washington has built a portfolio of $1.5 billion in real estate with properties from Massachusetts to Northern Virginia. It has become one of the biggest real estate acquisition, development and management firms in the mid-Atlantic region.

Still, the Buccinis, who seem more like Wall Street traders than private-school graduates from Chateau Country, said their passion is Wilmington. It's also the city where the company has made some of its biggest bets. Since 2000, the privately held real estate company has developed about $350 million in office and residential projects from Rodney Square to the Christina River waterfront. Many real estate experts credit Buccini/Pollin with the city's greatest transformation in recent history.

"What they've done -- and I don't how they did it -- is they proved Wilmington has a strong residential market," said James A. Tevebaugh, president of Tevebaugh Associates architectural firm in Wilmington.

Tevebaugh, who has been working to revitalize the Christina River waterfront since the early 1980s, said the most breathtaking evidence of Buccini/Pollin's success is the $130 million Christina Landing residential project on the south side of the river.

"They solidified the future of the Riverfront. Residential is absolutely essential to the Riverfront's long-term survival," said Jim Kelly, executive vice president of ING Direct, the nation's fourth largest savings bank, which has its headquarters on the Wilmington Riverfront.

Down by the river

Unlike almost any other single development in Wilmington's history, the Buccinis' Christina Landing project has transformed the south side of the river and the area sometimes called the Amtrak train station district.

The 63 new town houses invariably catch visitors' eyes when they leave the train station or dine on the Riverfront. Nearby, the first of two residential towers is already scraping the sky and should be open by late November.

To those who have followed the fits and starts of development on the river for the past 20 years, it seemed like the houses popped up overnight.

"It's like the fairies came in the night and planted them," Tevebaugh said.

But that's not all Buccini/Pollin is doing for the city's revival. The company plans to start work on a more than $100 million development on the north side of the river near Juniper Bank and the AAA Mid-Atlantic headquarters. The project calls for a hotel, residences, offices and shops on 10.9 acres on what is now public land off South Madison Street.

In another part of downtown that was beginning to feel a little tired, Buccini/Pollin has started work on a $90 million office tower on a long-vacant site at Delaware Avenue and Washington Street. The WSFS Bank Center project should help fill in the western gateway to the downtown area from I-95 and Greenville.

The Buccinis attribute the company's success to several things, including good timing, a unique business model and a regional perspective.

"We're not just throwing mud at the wall to see what sticks," Chris Buccini, 33, said.

The company has five partners, all with a previous work history in various aspects of real estate.

Besides Rob and Chris, the firms' partners are H. Wesley Schwandt, 37, a childhood friend of Rob's. Schwandt is based in Wilmington.

David B. Pollin, 37, and Greg Miller, 42, are located in the Washington office.

Schwandt said partners Pollin and Miller provide an "alternative benchmark" when considering projects.

"These are hometown guys who have been other places and can see what can happen," said Richard V. Pryor, the city's director of economic development. "They've got a much more can-do attitude than some of the other guys who have been around."

Getting a start

Buccini/Pollin's first Delaware appearance was in 1999, when it bought three buildings from the DuPont Co., including the Nemours and Brandywine buildings.

Before that, the firm had never had a project in the city, although it had been in business for five years.

Few people in the real estate community knew much about the company.

But the Buccinis and Schwandt knew the community. All three men grew up in well-to-do areas west of the city and had gone to private schools. The Buccinis lived in Centreville, Schwandt lived in Greenville.

The Buccini brothers also spent a lot of time in the Little Italy section of the city at their grandmother's house on Du Pont Street. The home of Felicia M. DeSeta served as the center of a large extended family involved in the construction industry and real estate development. Felicia DeSeta was one of the founders of Women in Construction in the 1960s.

Rob Buccini graduated from Wilmington Friends School in Alapocas and then went on to Cornell University, where he majored in government. In college, he became friends with Pollin while playing football.

Pollin's uncle, Abe Pollin, and his wife, Irene, are majority owners of the Washington Sports & Entertainment Limited Partnership, which oversees the National Basketball Association's Washington Wizards and the Women's National Basketball Association's Washington Mystics. Their company also oversees the Washington/Baltimore TicketMaster and the management of MCI Center in Washington and George Mason University Patriot Center in Fairfax, Va. The Pollins are the longest-serving team owners in the NBA.

Schwandt said, initially, many people asked whether Abe Pollin was backing the firm.

"He has no involvement at all and didn't when we started the company," Schwandt said. "Rob and Dave cut their teeth by themselves."

Chris Buccini attended Wilmington Friends and graduated from St. Paul's School in Concord, N.H. He went on to Princeton, where he majored in political science.

Schwandt graduated from Tower Hill School and then went to Lehigh University, where he studied business. He and Rob Buccini became friends as children. Schwandt's father, Dr. Hugo B. Schwandt, was an eye surgeon in Wilmington who has since moved to Florida.

Schwandt describes his physician father as always a "closet builder" who built all the houses they lived in.

"When he's in town he says: Let's get in the truck and go see the projects," Schwandt said.

Working up a partnership

After college, all five partners became involved in some aspect of the real estate industry.

Rob Buccini went to work with Kenneth D. Laub & Co. in Manhattan as an analyst and broker. Later, he was assistant vice president for real estate development at the New York City Economic Development Corp. While there, he worked on the Times Square redevelopment project.

Before joining Buccini/Pollin, Chris Buccini worked at Barrow Street Capital LLC, a New York City-based real estate private equity fund.

Pollin worked at Laventhol & Horwath Management Advisory Services and spent seven years in hotel and restaurant operations for major hotel companies.

Schwandt spent eight years with Bancroft Construction Co. in Wilmington where, among other things, he was a senior estimator and project manager.

Miller, who has a degree from Cornell University's School of Hotel Administration, had extensive experience with major lodging companies and was on the management team at two five-star properties.

It was while he was working in New York City that Pollin kept pushing his college friend to do a real estate development.

In 1994, Rob Buccini relented.

"I still haven't forgiven him for it," Rob Buccini said.

He and Pollin developed a 40,000-square-foot building in Delaware County, Pa., which they still own. The next year, they built a hotel in Fairfax County, Va., which was followed by another in 1996 at Baltimore-Washington International Airport.

Today, the company has 17 hotels in a group called PM Hospitality Strategies, which is headed by Miller.

Out-of-state activities

Despite the huge splash Buccini/Pollin has made in Wilmington, the company does most of its work outside Delaware.

Earlier this year, for example, the company bought one-third of the portfolio of Preferred Real Estate Investments Inc. in Conshohocken, Pa.

That added 22 buildings -- or nearly 3 million square feet of office space -- in Pennsylvania, New Jersey and Maryland.

Not that the company hasn't had its bumps. After the Sept. 11 terrorist attacks in 2001, it was severely tested when travel fell off and hotel revenues dropped, Rob Buccini said. He said the company relies on the income from the hotels to support new construction, which can take longer to see a positive return.

"It was an incredible test of the company," he said.

While some developers said they are concerned the purchase of MBNA Corp. by Bank of America could hurt the city's renaissance, Rob Buccini said MBNA employees haven't been that much of a factor in its success with residential projects.

The business model, instead, is based on "creating mass quickly," Rob Buccini said. In addition, the brothers try to have new projects lined up as other projects near completion.

Finally, the partners said, like so much in life, their success is due in large part to being in the right place at the right time.

"If we did what we've done in Wilmington seven years ago, we'd be bankrupt," Rob Buccini said.

Brothers Christopher (left) and Robert Buccini hang in a construction basket outside the 22-story apartment building the Buccini/Pollin Group is building on the Christina River in Wilmington.

[jaysonjaz]

I had dinner at Timothy's on the Waterfront tonite and I snapped a couple of good pictures of the downtown skyline. I think this might be one of the best views of the town.
enjoy!

[Joe84323]

Sweet pics, Jayson. Can't wait till the residential/hotel complex is built!

[xzmattzx]

nice pictures. the christina landing tower blocks the view of the bank one building, but that's fine. walking north along the river would probably reveal the building, and make for a wider skyline picture.

i like your second picture. having the marshes in the front is a nice touch. it helps portray that the land below the city isn't a wasteland of junkyards, strip clubs, and warehouses.

[xzmattzx]

i had jury duty today, and took this picture of the renaissance center site from the top of the ncco courthouse parking lot. i also took other pictures of downtown, which i will put up later.

[Joe84323]

That's ILLEGAL, Matt. I'm calling the police right now!!

NO CAMERAS IN THE COURTHOUSE!!!

[xzmattzx]

anyone know if the residences at christina landing will be taller than the chase manhattan building? how tall will the condos be?

[Joe84323]

^Naah.. They're only like 250/275 feet high.

[xzmattzx]

maybe it's the slenderness or the isolation from other tall buildings that makes it look so tall.

[xzmattzx]

what's the latest on two christina center (or whatever they are going to call it)? when will they be starting on it? or is it not in the works anymore?

[Joe84323]

'Tis on hold for now. Still in the works for '07 from what I understand..

It'll be alright though.. we still got some entertainment until then.

[jaysonjaz]

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[xzmattzx]

very nice

[xzmattzx]

sites in wilmington are some of the places considered in what would be delaware's first park in the national park system.

Carper to make pitch for national park in Del.
All counties included in coastal heritage plan


When you think about wide-open spaces, sweeping vistas and national parks, Delaware is about the last place that comes to mind.

But today, Sen. Tom Carper will make his pitch to the Senate's National Park Subcommittee to change that by creating a national park in Delaware, the only state that does not have one.

"Historically, people thought of a national park as something huge," Carper said. "Delaware is not huge. But there is a lot of amazing history that has been made in the state."

Carper's park proposal is far from typical.

He is not asking for money to purchase land that would become a massive federal holding. Instead, he wants a federal heritage area that would encompass city and state parks and land owned by private commissions and foundations in all three counties.

The properties would continue to be owned, maintained and operated by the current owners, but would be linked under a common theme: Delaware's coastal heritage.

"The Park Service doesn't come in and take over," said David Barna, a spokesman for the National Park Service. "It has all the wonderful benefits" of a national park "but it allows local control."

The federal parks agency manages 388 properties across the country. Some are national parks, some are national seashores and some are battlegrounds or forts.

Each year there are 10 to 15 requests for studies of potential new sites. About half the requests make it through the study stage, Barna said.

Request for study

Carper is asking the committee to endorse legislation asking for a parks service study of the Delaware plan.

Carper said the cost of the study is estimated at less than $200,000. The study would be the first major step in the process toward congressional approval of a heritage area in the state.

It is a proposal that Carper has been working on since 2003.

Carper said he and his family were planning a trip to a national park and when they went to the National Park Service Web site, they found nothing in Delaware. They ended up visiting Alaska and a national park that was bigger than the state of Delaware.

Carper is not the first person to think about a park for Delaware. More than a decade ago, Sen. Joe Biden, D-Del., suggested a national park be designated at the Great Cypress Swamp -- a 6,000-acre tract owned by the nonprofit Delaware Wild Lands.

That plan met with opposition from local lawmakers and others who said the wild and environmentally fragile nature of the area made it unsuitable for a national park.

The current proposal would not have that problem.

"Delaware has a rich historical, coastal heritage," Carper said. "Frankly, not too many people across the country know about it."

A unique concept

Carper established a National Parks Committee in the fall of 2003 with representatives from around the state.

James R. Soles, the retired professor of political science and international relations at the University of Delaware, chaired the committee.

"We looked for something that was important to our national history," Soles said.

At meetings and public workshops throughout the state, the same theme kept coming up, Soles said.

Delaware had a unique coastal heritage dating from prehistoric settlements of native peoples, through settlement by Europeans, colonization, slavery and abolition, war and modern times, Soles said.

The key, Soles said, was coming up with a common theme to showcase what is unique for Delaware and the nation.

In the end, the committee decided "Delaware reflected the nation's coastal heritage," he said.

The members also concluded that the park didn't have to be a contiguous piece of land, or cost hundred of millions of dollars to purchase, he said.

Jim Rockwell, director of operations for the Kalmar Nyckel, Delaware's replica of the ship that brought Swedish settlers to Wilmington, said his organization supports the proposal.

"Anything to help develop the peninsula as an historic site, we'd be in favor of," he said.

The Delaware concept fits between those of Mystic, Conn., which showcases northern coasts, and the Jamestown-Yorktown historic complex in Virginia, which features that maritime heritage.

"There's nothing in between," he said.

Tim Slavin, the state director of historical and cultural affairs, will testify in support of Carper's proposal at today's hearing. He said a heritage area is a wonderful opportunity to tell the many stories of Delaware's coastal area.

"That was the heartbeat of Delaware," he said. The heritage area "would be linking it all together."

Slavin said he believes national parks teach visitors stewardship and give them a sense of pride.

"That's what we want in Delaware," he said. "It's a national experience."

Historic attractions included

Delaware's coastal heritage park would link a string of possible attractions that draw on many pieces of Delaware's history.

Wilmington historic sites, including Old Swedes Church, the Kalmar Nyckel and Tubman-Garrett Park could be one hub.

A second probably would be created in southern New Castle County and would link attractions such as Fort Delaware and Fort DuPont near Delaware City.

In Kent County, the hub would include Bombay Hook National Wildlife Refuge and the John Dickinson Plantation, along with fishing villages such as Leipsic, Little Creek and Bowers Beach.

Sussex County's hub would include historic sites in the Lewes area, along with Fort Miles in Cape Henlopen State Park, the Nanticoke Indian Museum in Oak Orchard and the Indian River Lifesaving Station south of Dewey Beach.

"A national park in Delaware will boost tourism and the state's economy," Carper said. "A national park here will put Delaware on the map and make the state a more attractive place to visit."

[xzmattzx]

decided to stop by the riverfront today, and i took some skyline pictures.

[xzmattzx]

looks like the renaissance center is officially on hold.

Renaissance Centre project halted
Concern about historic structures, ability to attract tenants cited


WILMINGTON -- Work on the $50 million Renaissance Centre has halted, raising questions about the future of the on-again, off-again project some see as key to downtown Wilmington's redevelopment.

The developer of the office, residential and parking project in the 400 block of Market Street is in discussions with the city about "various challenges" concerning the project, including the preservation of historic structures on the site, said Richard V. Pryor, the city's director of economic development. Also being discussed are the "office market realities," Pryor said, including the difficulty of attracting tenants.

The office building was announced as a speculative project -- or one being constructed without having a major tenant signed up. With the impending $35 billion sale of MBNA Corp. to Bank of America later this year and the possibility of job relocation or reduction, there has been concern that the credit card company could dump excess office space on the market. MBNA is the largest corporate owner of real estate in the city, with 1.3 million square feet of space or roughly 14 percent of the office space in the central business district, experts estimate.

"The last thing the city wants is to build a 10-story office building that's empty," Pryor said.

John Rago, communications director to Mayor James M. Baker, said he expects the project to go forward despite "the challenging market conditions."

"At this moment, they're not out of compliance and there have been no discussions about scaling back," Rago said.

Pryor said the city could end up changing the agreement that Renaissance Centre LLC of Wilmington, whose principal is Brock J. Vinton, struck with the city last year for the development of the block bounded by Fourth, Market, Fifth and King streets. The project has been considered a key to redevelopment of the downtown because it would help link the lower North Market Street area with Rodney Square to the north.

Vinton would not comment Thursday.

If the agreement is amended, it will be the latest complication in a development that has been in the works for more than five years. After initial plans in 2000 to build a hotel and office building on the site, the Renaissance Centre group reached a development agreement with the city in 2001 that called for a 225,000-square-foot office building and a 650-car parking garage.

But work was never started. Last fall, it appeared the entire deal was going to fall through after Renaissance Centre failed to purchase the land from the city and Wilmington UDAG Corp. by the deadline imposed in the development agreement. At that point, the agreement already had been amended.

The project was salvaged in November within hours of the deal being canceled after Renaissance Centre LLC paid $2 million of the $2.5 million purchase price. However, plans for the 1.4-acre city block were scaled back from the original to a 325-car parking garage and a minimum 140,000-square-foot office building on the vacant King Street portion of the block. Plans called for existing historic buildings on Market, King and Fourth streets to be renovated for residential and retail use.

The agreement stipulated that the entire project, including the historic restorations, must be completed by spring 2007.

The historic properties already have caused problems.

Work began in the spring on the demolition of four buildings at Fourth and King streets. In the process of cleaning up debris, the contractor hired by Renaissance Centre LLC accidentally hit the corner of a historic building targeted for preservation, according to R. Robert Ruggio, senior vice president of Commonwealth Group, a Vinton company.

At that point, work stopped.

Now, Ruggio said, the plan is to go back to the Wilmington Design Review and Preservation Commission in early November with a plan to dismantle the facades and rebuild them in their original form.

TIMELINE
2000: Initial plans call for a hotel and office building on the site.

2001: The Renaissance Centre group reaches a deal with the city that calls for a 225,000-square-foot office building and a 650-car parking garage.

November 2004: Within hours of the deal expiring, Renaissance Centre LLC pays $2 million of the $2.5 million purchase price. But plans are scaled back to a 325-car parking garage and a minimum 140,000-square-foot office building.

Spring 2005: A contractor hired by Renaissance Centre LLC accidentally hits the corner of a historic building targeted for preservation.

An artist's rendering shows what the intersection of Fourth and Market streets was expected to look like.

at least the gateway plaza is moving along. the area around h.b. dupont park should be pretty nice in a couple years.

[Joe84323]

^The News Journal used the OLD rendering. How tacky of them.

I was pretty aware this wouldn't go through too well with the sale of MBNA by those bastards.

I will tell ya what, tho. This removes one of Christina Centre's obstacles. Maybe they will prelease earlier now. Wilmington is still growing rapidly despite this.

The WSFS headquarters seems to be moving along quicky, and had no problem preleasing. I can't wait to see it rise.

[xzmattzx]

who planned on using the renaissance center?

[xzmattzx]

Bancroft Mills neighbors riled by plan for condos
Developer seeks approval to demolish 21 buildings


WILMINGTON -- Residents of affluent neighborhoods near the historic Bancroft Mills don't seem to mind the 174-year-old mill being torn down. They just don't want to see a $500 million, 1,000-unit condominium project that includes 12-story buildings put in its place.

Hundreds of residents from the Highlands and Forty Acres neighborhoods are expected to attend a meeting tonight of the Wilmington Design Review & Preservation Commission, where O'Neill Properties, of King of Prussia, Pa., will ask for permission to demolish 21 buildings on the former mill site.

The mill, which sits along the Brandywine near the Delaware Art Museum, was the largest and longest-running mill on the Brandywine. Built in 1831 as a cotton cloth mill, it most recently operated as a textile-finishing plant for Wilmington Piece Dye Co. until the company went bankrupt in mid-2003.

With almost 1,000 luxury condominiums and town houses planned for the 21-acre site, the $500 million Rockford Falls development is the biggest residential project now going through the city planning process. By comparison, the $125 million Christina Landing project involves 391 town houses, apartments and condominium units being built on a seven-acre parcel along Wilmington's riverfront.

Bancroft Mills neighbors, such as Irene Shadoan Lott, worry the development would increase use of the area's already overtaxed sewer system and increase traffic, not to mention drastically change the look of the area with the loss of the historic mill buildings and the height of some of the proposed condo buildings. Some of the buildings could be 12 stories or taller, blocking many neighbors' cherished views of the creek.

"I realize they have a right to develop the property," Lott said. "We'd just like to see something a little lower and a little less dense."

A decision on the developer's demolition request is not expected tonight, said William S. Montgomery, Mayor James M. Baker's chief of staff. He said several more meetings will take place before the commission makes a decision.

J. Brian O'Neill wants to build 999 luxury condominiums on the site, which he bought for $7.4 million in a bankruptcy sale last year. Prices would range from about $400,000 for a one-bedroom to about $2 million for a penthouse suite, said Wilmington attorney Lisa B. Goodman, who represents the developers.

O'Neill and his employees have met with a neighborhood group a few times during the past several months to try to develop a compromise that would address the community's concerns. Because nearby residents are concerned about overcrowding the neighborhood, he has said he will consider building as few as 717 units.

"We're not negotiating because we have to legally but because we want to morally," O'Neill said, noting that the property's zoning designation allows him to build more than 1,000 units on the site.

The comment hints to the fact that, while both sides said the meetings have been cordial, the project is contentious nonetheless.

On Tuesday, for example, O'Neill called the residents selfish, saying they are concerned only with their own neighborhoods and are not thinking about the tax revenue the new condominiums would provide for the entire city.

"Are a handful of very rich people depriving some very needy city folks of badly needed tax dollars?" he asked, referring to the property tax the $500 million project is expected to generate.

Gary Linarducci, head of the neighborhood group, called the company's current plan "unworkable and unconscionable" and said O'Neill's comments offended him.

"I think it's ironic that a millionaire developer can come into the state, propose to tear down historic structures, double the number of housing units in the neighborhood, then say we're rich and selfish," he said.

The development would be built in phases during the next several years. Before construction can begin, however, the property will have to undergo an environmental cleanup expected to cost about $10 million and take about a year, Goodman said. According to a hazardous-chemicals assessment commissioned by the developers, the buildings are contaminated with known or probable carcinogens, including mercury and arsenic.

If the city approves the demolition permit, the company then would need approval of its development plan. It is at that point that many of the issues raised by neighbors will be considered.

[xzmattzx]

the condo project at bancroft mills is on hold while environmental impacts are being looked into.