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.

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