Wilmington's apartment buildings trade under $150,000 a door. Can you still finance one?

Published July 26, 2026

Wilmington apartments are trading at a 6.5 percent average cap rate and $140,109 a unit, the cheapest per door pricing in the Harbor submarket. Here is what that means once you run it against a 6.75 percent DSCR rate.

Wilmington apartment buildings have traded at an average 6.5 percent cap rate and $140,109 a unit over the trailing twelve months, the lowest per unit pricing anywhere in the Harbor submarket. A standard DSCR loan today, 720 FICO, 75 percent LTV, sits near 6.75 percent. Here is what that spread means for your numbers.

Every owner I talk to lately asks some version of the same question. Rates went up, prices did not come down enough anywhere I want to buy, so is this market still investable. Wilmington is the one submarket in our coverage area where I can answer that with real numbers instead of a shrug.

What buildings are actually trading for

Over the trailing twelve months, Wilmington apartment sales have averaged a 6.5 percent cap rate and $140,109 per unit, with an average sale price of $1.1 million and total volume of $4.5 million across 32 units sold, according to Bluechip Investment Group's Wilmington market analysis. Average time to sell ran 2.3 months. Bluechip flags Wilmington as the most affordable Harbor submarket, with the lowest per unit cost and the highest yield among the comparable South Bay and Harbor markets it tracks.

That last point is the one worth sitting with. A 6.5 percent cap rate is not a headline number anywhere else near us right now. It is what you get when a market has stayed working class and industrial adjacent while the rest of the coastline repriced around it. Bluechip is upfront that Wilmington is a small market and these figures should be read as directional, not as an appraisal on any single building. That is fair. It is also exactly why the per door price matters so much here. In a thin market, the price per unit tells you more than a handful of comps will.

What it costs to borrow against that

Here is the number that decides whether a 6.5 percent cap rate actually works for you. As of July 11, 2026, DSCR Authority's published rate sheet puts a standard file, 720 FICO, 75 percent loan to value, a debt service coverage ratio between 1.00 and 1.24, at roughly 6.75 percent on a 30 year fixed loan. Top tier files, 740 plus FICO and 1.25 or better DSCR, run lower, somewhere between 6.125 and 6.50 percent. Files with a sub 1.0 DSCR or a lower credit score run higher, up in the 6.875 to 7.375 percent range. Adjustable options exist too, a 5/1 ARM runs roughly three eighths of a point below the fixed rate and a 7/1 ARM about a quarter point below it.

Set the two numbers side by side. A building priced at a 6.5 percent cap rate against a 6.75 percent note is close, uncomfortably close if you are financing at a high leverage point, but it is close in a way that most South Bay submarkets are not even in range of right now. In a lot of places the spread between the cap rate and the borrowing rate is wide enough that the deal only works with a large cash down payment or a value add story. In Wilmington, an owner who buys well and underwrites conservatively is not fighting the same gap.

None of this replaces a real underwriting run with your lender and your CPA. DSCR pricing moves with credit profile, reserves, and the specific lender's overlays, and cap rates on any one building can run above or below the submarket average depending on condition and lease terms. Confirm both numbers against your specific deal with a licensed lender and a licensed real estate professional before you commit.

What this means for your building

If you already own in Wilmington, this is good news you may not have priced in. Your basis is likely below where the market has drifted on a per door basis elsewhere in the South Bay, and a 6.5 percent going in cap rate gives you real room if you ever want to refinance or bring in a partner.

If you are shopping to add a Wilmington building to your portfolio, the math above is your starting filter. Run the actual DSCR on the specific property, not the submarket average, before you get attached to a listing. A building priced right at that $140,109 per unit average with in place rents that support a 1.15 or better DSCR is the profile that clears underwriting cleanly at today's rates.

If you are on the fence about selling, know what you are selling into. A 2.3 month average time to sell tells you buyers are active and pricing is holding, not softening.

Common questions

What is the average cap rate for Wilmington apartments right now? Trailing twelve month sales average a 6.5 percent cap rate, per Bluechip Investment Group's Wilmington market analysis, the highest yield among comparable Harbor submarket properties the firm tracks.

What does it cost to get a DSCR loan on an apartment building today? As of July 11, 2026, a standard file with 720 FICO, 75 percent loan to value, and a 1.00 to 1.24 debt service coverage ratio prices near 6.75 percent on a 30 year fixed, per DSCR Authority's published rate sheet. Stronger files price lower, weaker files price higher.

Is Wilmington actually the cheapest place to buy an apartment building in the South Bay right now? By price per unit, yes. Bluechip's data puts the average at $140,109 a unit, the lowest of the Harbor submarkets it tracks, though it cautions that Wilmington is a small market and figures should be read as directional rather than an appraisal.

Last verified: July 26, 2026. Cap rate and per unit pricing from Bluechip Investment Group's Wilmington apartment market analysis. DSCR rate figures from DSCR Authority's rate sheet as published July 11, 2026. This is general information for property owners, not legal or financial advice. Confirm current pricing, financing terms, and underwriting with a licensed lender and a licensed real estate professional before acting.

Kellie

Schofield Properties

323 Richmond Street, El Segundo, CA 90245

Topics: market, wilmington, south-bay, investing

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Schofield Properties is a family run property management company at 323 Richmond St, El Segundo, CA 90245. We have managed the South Bay since 1972 and personally oversee about 186 doors today. Book a call to talk about your property.