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.

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