Capital One to remain in Wilmington; will consolidate space

Capital One will consolidate all its Delaware employees into two adjacent office buildings in downtown Wilmington.

The bank's 2,200 employees will be based at 800 and 802 Delaware Ave, occupying a combined 330,000 square feet. It signed separate 10-year leases for both properties that run through 2027.

Capital One has occupied the entire 14-story building at 802 Delaware Ave. since it acquired ING Direct for $9 billion in 2011. At that time the 256,000-square-foot building was largely vacated following M&T Bank's purchase of Wilmington Trust. Although the bank is renewing its lease at 802 Delaware Ave., it has signed a new lease for four floors totaling about 174,000 square feet at 800 Delaware Ave.

"For the first time ever, Capital One will have all of its Delaware associates together in one space," said Joe Westcott, Capital One's Delaware Market president.

The Delaware Avenue buildings will house workers currently based at 1 S. Orange and 301 W. 11th streets. Company officials did not disclose how much space Capital One will vacate in those buildings. However, those in the real estate community estimated Capital One had about 72,000 square feet at the 1 S. Orange building and slightly less at 301 W. 11th Street. That means Capital One will now occupy more space in Wilmington than it did prior to the consolidation.

Wilmington Mayor Mike Purzycki said the two buildings Capital One will vacate are highly desirable and should attract attention quickly.

Workers will be moved out of those buildings in stages over the next few months with the goal of completing the move by the end of next year. Westcott said the consolidation will not impact the bank's employment numbers. Last year, Capital One laid off about 100 Wilmington workers when it eliminated its mortgage operations.

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Pete Davisson, a commercial real estate broker in the city for more than 30 years, called the leases a definite win for Wilmington.

"Capital One had been making very loud noises over the past two years about leaving Wilmington," he said. "To have them consolidate in those buildings is a net gain for the city. Rents will be higher and it will have more space in the city."

Westcott declined to discuss other properties the McLean, Virginia-based bank considered. He did say Capital One decided to remain in downtown Wilmington relatively early in the process.

"It is important to us that we stay here in Wilmington and demonstrate a long-term investment in the city," he said. "We are focused on partnering with the city and being part of its future."

Capital One did not receive any funds from the city, state or county for the relocation.

The Delaware Avenue buildings stood out because of amenities Westcott described as "nonnegotiable" in any of the bank's lease discussions. Those luxuries include a cafeteria, fitness center and adjacent parking.

Newark-based developer Delle Donne Associates owns 800 Delaware Ave., while Equity Commonwealth Inc., a Chicago real estate investment trust, counts 802 Delaware Ave. Both owners will completely modernize Capital One's space, Westcott said.

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Westcott said renovations will include an open floor plan, adding communication technology and creating collaboration space. The facelifts should take about 18 to 24 months.

"Today, more than ever, work gets done by collaboration and teamwork," he said. "To be able to locate cross-functional teams together right next to each other will enable that to come to life."

Purzycki said he was pleased Capital One will remain in Wilmington.

"The company has had a good experience doing business in Wilmington and we thank them for their support," he said.

Capital One is the second major bank to consolidate its Wilmington employees in a downtown location. In February, Bank of America announced that it would move all 1,200 of its Wilmington-based employees to Bracebridge II at 1020 N. French St. As part of that plan, the bank is selling Bracebridge I at 1100 N. King St. and Bracebridge III at 1100 N. French St.

Contact Jeff Mordock at (302) 324-2786, on Twitter @JeffMordockTNJ or jmordock@delawareonline.com.