Experts on the Indianpolis Apartment Market

Over 70 years of combined experience in the multihousing brokerage industry

60,000 Units Sold Throughout Indiana and Kentucky

Clients include local, regional and national private equity investors; public pension funds; and public and private REITs.

$2 Billion in Multihousing Sales

And the highest number of apartment transactions by any Indianapolis brokerage firm.

Annually Presents the Indiana Apartment "Industry Outlook"

An event hosted in conjuction with the Indiana Apartment Association.

12.04.2014

Multifamily Investment Opportunity: The Bristol

Here is a new opportunity to invest in the Indianapolis Market. For more information, or to download a full offering memorandum visit our website HERE.


The Bristol Investment Highlights

Rare Class A Offering: The Bristol is a 211-unit Class A luxury apartment community completed in 2004. Historically, opportunities to acquire Class A properties are rare in the Indianapolis market.

Favorable Low Interest Rate Assumable Financing: The Bristol acquisition is especially attractive because of the in-place Fannie Mae, low 3.84% interest rate financing to be assumed by the buyer at closing. The current loan is not due until December 2022.

Offers an Attractive and Very Popular Mix of (a) Condominium Style Units with Attached Garages and (b) Garden Style Units with Private Entries and Screened-in Patios/Balconies: The Bristol offers its resident several desirable unit floor plans. Fifty-one condominium style units that offer one and two car attached garages and a “home-like” feel. These condo units are extremely popular and have a low turnover rate. The other one hundred sixty units are garden style with private entries and large screened in patios or balconies. All units offer full size washer/dryer connections, walk-in closets, nine-foot or vaulted ceilings. Many of the units overlook picturesque ponds with fountains.

Low Risk Value-Add Opportunity to Increase Revenue through Modest Interior Unit and/or Clubhouse Upgrades:
While The Bristol is only ten years old and operates with stabilized strong occupancy, a modest upgrade of interior unit finishes will serve to both enhance the renter profile and allow the property to achieve the higher rents commanded by newer construction. The current owner has demonstrated this potential by installing upgraded flooring in some units and increasing rental rates for such units by $75 per month. Opportunities for upgrades include installation of black appliances, new cabinet hardware and faux wood plank flooring in the kitchen, baths and entries.  A modest “face lift” of the leasing center/ club house would also help portray an updated property image.

Stable and Improving Rental Revenue with High Current Occupancy: Trailing 6-month annualized rental revenue increased by 2.9% over Trailing-12 month rental revenue. Demand for rental units at The Bristol has been very strong and current occupancy stands at 94%.

The Bristol Offers  a Comprehensive Amenities Package: Residents of the property enjoy access to the upscale clubhouse offering a business center, billiards area, large fitness facility, tanning and beautiful pool overlooking a pond with fountain.

Additional Nine Acres Included - Planned, Permitted and Ready-to-Build 112 More Units:
Land adjacent to The Bristol has already been planned and permitted for an additional 112 units. The new owner will have the opportunity to develop and build this “Phase II” in a very cost effective manner because the amenities have already been constructed, streets leading to Phase II are in place, and public utilities are at the site.

Located on Growing Southwest Side of Indianapolis near Indianapolis International Airport and Major Employment Centers: The property is conveniently located only three miles from Ameri-Plex, a growing class A industrial park with over 6,000,000 square feet of rentable space. Current major employers at Ameri-Plex include PepsiCo, FedEx, Indiana Department of Revenue, Allison Transmission and more.

Upscale Retail and Dining Available at Nearby at Metropolis Outdoor Shopping Mall: Just minutes from The Bristol, residents can enjoy shopping, dining and entertainment at Metropolis, an outdoor mall offering over twenty retail stores, five dining options and a Carmike Cinemas movie theater.

Expected Price is Well below Replacement Cost: Both land and construction costs have increased dramatically recently. The expected acquisition price of The Bristol will be significantly below the cost of developing a comparable new property from the ground up.

12.03.2014

Multifamily Investment Opportunity: Castle Point



Castle Point Investment Highlights

Distinctive and Well Performing South Bend Property Offered Free and Clear:
Castle Point is a unique 740-unit multifamily property in South Bend, Indiana. The property is offered free and clear of existing debt and ideally poised for new permanent financing with high current occupancy and long term stabilized operations.

Less than Two Miles from Prestigious Notre Dame University - Opportunity to Increase Student Population:
The northern edge of Notre Dame University’s campus is just 1.8 miles south of Castle Point. With just over 12,000 students, the close proximity to the university offers the new owner the option of targeting student renters.

Long Term Stabilized and Current High Occupancy and Many Long Term Employees: Historical occupancy since 2011 and Trailing 12 occupancy has averaged over 90%.  Occupancy and performance has been bolstered by low employee turnover, resulting in a staff with years of experience at the property.

Numerous “Low Hanging Fruit” Value-Add Opportunities to Increase Revenue: 
Great opportunity to renovate unit interiors to achieve rental increases;
  •     Implement water/sewer/trash bill backs to increase annual revenue by over $200K;
  •     Add washer/dryer hook-ups in units to command higher rents (the current laundry equipment is owned by the property and no laundry contract exists);
  •     Add pet centered amenities to drive pet fee income (the property only recently began accepting dogs – in August of 2014).
  •     Update interior hallways to benefit leasing efforts;
  •     Add additional amenities such as Wi-Fi and a business center in the leasing office.

Large One and Two Bedroom Floor Plans Offer Unique Features such as Two Story Lofts and Turret Style Bedrooms:
Castle Point units average over 930 square feet. All units have large, open kitchens with architectural beams on the ceiling. 171 two bedrooms units have vaulted ceilings and an additional loft area accessed via a spiral staircase. 54 one bedroom units offer a turret style bedroom (rounded walls) which is very popular with residents.

Brand New Roofs and Carports: The owner is in the process of replacing all roofs and rebuilding all carports, saving a new owner over one million dollars in future capex costs.

Well-Located Landmark Property Boasting Positive Reputation: Castle Point is located on the northern edge of South Bend, near affluent Mishawaka and Granger, both of which are seen as upscale communities. The property is a well-regarded apartment landmark in the area.

Huge Clubhouse and Amenities Package is Well Utilized by Current Residents: The clubhouse offers an extensive array of amenities, including a large pool, updated fitness center overlooking the pool, sauna, yoga/aerobics room,  racquetball courts, indoor miniature golf, indoor and outdoor basketball courts, indoor tennis court, rec room with foosball, air hockey and ping pong tables, and large club room with kitchen.

Idyllic Setting Located on over 50 Acres of Rolling Topography with Many Mature Trees and Impressive Stone Walls: Castle Point offers its residents a park-like setting with hundreds of  large trees, rolling hills and plenty of green space. Stone retaining walls throughout the property compliment the stone found on the exterior of the buildings. The property offers a quiet resident feel, while being near major thoroughfares, retail centers, schools and churches.

12.02.2014

Multifamily Investment Opportunity: Regency Park

Here is a new opportunity to invest in Indianapolis. For more information, or to download a full offering memorandum visit our website HERE.

Regency Park Investment Highlights

High Cap Rate on Current Actual Net Operating Income (NOI): The offering price of $14,500,000 represents an 8.0% cap rate on 2013 actual NOI and an 8.4% cap rate on 2015 forecast NOI.

Favorable Assumable Financing at Approximately 74% LTV: The current loan on Regency Park is a conduit loan with a 4.598% interest rate, 30-year amortization, and maturity date of July 15, 2023. The established annual replacement reserve is just $341 per unit. The current principal balance of approximately $10,700,000 at closing would provide a loan-to-value ratio of approximately 74% based on a $14,500,000 purchase price.

Excellent South Side Location: Regency Park is located on Indianapolis’ suburban south side, a strong rental market with average occupancy over 92%. The south side experienced an average rent increase of 2.4% between 2013 and 2014.

High Visibility Location at Intersection of Two Busy Thoroughfares: The property is located on the northeast corner of two high-traffic streets, Indiana State Road 135 and Epler Avenue. Average daily traffic count along State Road 135 near the property is estimated at more than 24,000 vehicles per day.

Strong Upside Potential through Unit Upgrades: The property’s current rental rates allow for rent growth to be achieved through unit upgrades. Competing properties nearby command higher rent by offering units with recent interior updates.

Almost $3M Spent in Recent Capital Improvements: Regency Park has benefitted from a great deal of capital improvement completed between 2008 and 2011. Improvements have included: extensive asphalt repair and replacement, concrete repair, new signage, interior hallway updates in all thirty-six halls, replacement of all mansard roofs and seven townhouse roofs, 72 balconies rebuilt and 55 balconies repaired, and major pool renovations. In addition, a majority of the units received new flooring, light fixtures, cabinet and door hardware and plumbing fixtures and a significant number received one or more new appliances.

High Occupancy History: Trailing twelve month occupancy through September 2014 was 93.0%.

Convenient to Interstates, Shopping and Employment Centers: The property is only one mile from access to Interstate 465 (Indianapolis’ interstate beltway), making travel to virtually any part of the city exceptionally convenient. Both the downtown CBD and the Indianapolis International Airport are within fifteen minutes. The community is in a residential setting but exceptionally convenient to the south side’s widest selection of shopping and dining destinations, including recently renovated Greenwood Park Mall, Indiana’s second largest mall, which lies just five miles to the property’s south.