One of downtown Wilmington's first apartment developments in decades has entered a new phase of construction.
 
Tom Davis, City Block Apartments LLC developer and founder of Wilmington-based South Eastern Real Estate Services Group, recently said construction crews have completed a multi-level parking garage and are commencing construction on the project’s first level of apartments.
 
The large-scale, $15.5 million project is currently rising at 814 N. Third St. near the corner of Third and Brunswick streets.
 
City Block Apartments is being constructed by the Wilmington division of Clancy & Theys. Davis said when the apartments are finished, the site will be managed by Greensboro-based Bell Partners Inc., a firm that currently manages a number of multi-family properties in Wilmington, including the Reserve at Mayfaire and Cape Harbor apartments.
 
Davis said officials hope to deliver all 112 units for occupancy by late August or early September.
 
“We are pleased with how the construction phase is going,” Davis said. “We’re looking to start marketing the apartments in the next month or two.”
 
Plans call for the one- and two-bedroom units to be packed with upscale amenities, including granite countertops, hardwood floors and General Electric stainless steel appliances. The units will also boast upgraded cabinetry, tile floors in the bathrooms and carpeted bedrooms.
 
Other amenities planned for residents include a fitness center, storage units, a laundry facility, media room and business center. Davis added that the apartments would also include security measures, such as gate access via its entrance on Brunswick Street and keyless access to elevators in the parking garage.    
 
Rent for the one-bedroom, one-bathroom apartments would start at $850 a month $1,200 for two-bedroom, two-bathroom units, Davis said.
 
He said because officials secured a Federal Insurance Loan for the development, the firm had to comply with the National Historic Preservation Act of 1966 – legislation intended to preserve historic neighborhoods and archeological sites, but at times has been an obstacle for development. 
 
“Because the size and scale of the building adversely affected the historic fabric of the neighborhood, we had to do a memorandum of agreement at the state and national level to start the project,” Davis said of the three-year application duration. “It was a long process, but we were able to comply and secure the loan.”
 
Davis said his firm has placed $13,000 in escrow to comply with the act. He said the monies would used by the Wilmington Historic Preservation Commission as part of its ongoing efforts to place the Brookwood neighborhood – an area located near the Forest Hills section with homes dating back to the 1920s – on the National Register of Historic Places.
 
Meanwhile, phase two of the City Block development is eminent – incorporating a mix of new and old architecture and design.
 
While no timeline has been solidified for the future phase, preparation for the expansion are currently underway. 
 
Davis said to make way for an additional 100 new units in the future phase, crews plan to give away two homes at 310 and 314 Bladen St. The structure at 308 Bladen St. will be demolished.
 
“If they can get someone to move the structure, they can have them,” he said. “Otherwise, the plan is to demolish them.”
 
Once the structures are removed, the firm plans to construct new apartment units on the site, Davis said. Additional apartments are also planned for North Fourth Street that would encompass a mix of retail at the street level and apartments above.
 
“These units would connect with the units on Third Street,” Davis said of the future development.   
 
Other plans for the block include upfitting and renovating the historic Fillyaw-Patelos Building at 827 N. Fourth St. into retail and office space.
 
“It’s a very historic structure with great architecture from that era,” Davis said of the building, which dates back to 1898. “It one of the oldest wood frame commercial structures left in the city, and there is already a lot of interest in the site.”
 
Davis – whose project has been called a catalyst for additional large-scale residential development north of downtown – said his firm is pleased to see a renewed interest in the downtown area, adding that his firm remains undaunted by the wave of new multi-family development.
 
“This is a different product targeting a different demographic,” Davis said. “What’s happening downtown is good, and we’re glad to see the development trending our way.”