WILMINGTON — “This is the solution right here,” New Hanover County Commissioner Rob Zapple said Wednesday to attendees, while gesturing to the construction site of Avenue Flats.
The commissioner had just shared an anecdote he heard from Thom Moton, Wilmington’s deputy city manager, about one of the city’s new hires. The employee makes $18 an hour, Zapple said, but has to drive from Warsaw, 60 miles away, because that’s where he can afford to live.
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“We’re going to lose that guy in a heartbeat the second they offer him another buck or two an hour,” Zapple said, before pointing to Avenue Flats as the solution for locals increasingly finding themselves priced out of homes and rentals.
While construction had already started, Wednesday was the official groundbreaking for the 184-unit workforce housing complex, located next to the Seahawk Cove Apartments on Kerr Avenue. The almost $60-million project is a product of Blue Ridge Cascade, formerly Blue Ridge Atlantic, and is projected to open in March 2027.
Unlike many other affordable housing complexes, which only provide 10% of units to workforce needs, every unit in Avenue Flats will be offered to residents making between 30% and 80% of the area median income. For single-income households, this means the units will be available to those bringing in between $22,750 and $60,700 per year.
After approving the rezoning of the property in September 2024, the Wilmington City Council appropriated $4 million from its general fund toward the project.
“This development won’t just be affordable, it will be a high-quality community with three residential buildings, a central clubhouse, direct access to a multi-use path that will be here along for Avenue Flats,” Mayor Bill Saffo said at the groundbreaking. “Avenue Flats has been thoughtfully designed to reflect our unique coastal character. And if you look around, this has got to be the largest attention pond I’ve ever seen.”
The mayor thanked both the New Hanover County commissioners, who approved $1.5 million for the project, and New Hanover Community Endowment for their funding commitment, which was announced in 2024. The Endowment granted $4.7 million to help acquire the property for Avenue Flats. First Citizens Bank has also committed to $50 million in equity investments and loans to the project and the North Carolina Housing Finance Agency provided a $28-million tax credit.
“I think this is probably the second or third time this month that we have all gotten together with the city and county and The Endowment to bring you these type of projects for the citizens of New Hanover County,” Commissioner Chair LeAnn Pierce said. “And I think that’s exactly when I do that, but you know, that is exactly what the folks in New Hanover County expected us to do when we created this Endowment.”
Both New Hanover County and the City of Wilmington partnered on funding Starway Village, which opened on Carolina Beach Road last October to a 400-plus applicant list. More recently, the city, county and The Endowment have partnered on the purchase of 25 acres on Greenville Loop Road for a city-maintained parks and recreation space.
Sophie Dagenais, recently crowned permanent CEO of The Endowment after a stint as the interim leader, said housing affordability is one of the defining issues of our time and Avenue Flats is a supply-side solution making a difference in the community.
“We are very proud to be here,” Dagenais said. “As with other challenges, we cannot grant our way out of them, but we can help to accelerate that progress, and today is a model of that alignment.”
Paul Kennedy, board member on the North Carolina Housing Finance Agency that helped bring Avenue Flats to fruition, used Wednesday’s platform to advocate for more federal, state and county housing support. He also said regulations need to be modified to make it easier and more efficient for housing to be built.
“Don’t give it away, but make it easier and less restrictive,” he said. “High quality and affordable homes by the foundation of strong families and strong communities.”
Chris Eisenzimmer, CEO of Blue Ridge Cascade, used his comments to point out there’s a major housing gap in New Hanover County. According to data collected by Root Policy Research last year, the county needs 21,864 units — 12,864 for ownership and 8,317 for rental — over the next decade. In the next 20 years, the total rises to 38,697 units to accommodate a projected population of 305,506 people. Eisenzimmer also pointed out 53% of renters in the area are cost-burdened.
“While this project is not going to solve that issue, the huge issue for housing needs, it certainly will make an impact,” he said.
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