INDIANAPOLIS—Due to its central location and dense network of interstates, Indianapolis has become one of the nation's top logistics and distribution hubs. The region's rising economy has also lifted up its multifamily sector, and owners in the region are also making moves to improve their financial position.
J.C. Hart Co., Inc., for example, just secured $38.5 million in financing for two of its Indianapolis-area apartment communities, The Hamilton and BayShore Apartments. Working on behalf of the borrower, HFF placed the loans in two separate transactions. A $25.2 million, 15-year, fixed-rate loan was placed with 40/86 Mortgage Capital, Inc. for The Hamilton. And Morgan Stanley Bank, N.A. closed a $13.3 million, fixed-rate loan for BayShore Apartments. Both loans refinanced existing debt on the properties.
The Hamilton is a 233-unit, class A asset located at 116th St. and Hoosier Rd. in suburban Fishers. Completed in 2014, the property features one-, two- and three-bedroom luxury units and has many amenities including a swimming pool with sun deck, grilling area with fire pit, state-of-the-art fitness center, indoor gymnasium, business center, café lounge, game room and garage parking.
BayShore Apartments is located on Main St., just east of SR 135 in suburban Greenwood. Built by J.C. Hart in 1998, it features 236 one-, two- and three- bedroom units, which average 893 square feet each. Community amenities include a swimming pool, hot tub, tennis court, indoor gymnasium, sand volley ball court, fitness center, clubhouse and business center.
The HFF debt placement team representing the borrower was led by senior managing director David B. Keller.
The future looks good for the region's multifamily market, which registered 405 units of net absorption during the first quarter of 2015, according to a recent report by DTZ. This was a 63% increase over the first-quarter absorption last year and continues “a streak of more than five years of uninterrupted occupancy gains in Central Indiana.”
“The Indianapolis unemployment rate is 4.4% as of July, inside of the Indiana rate of 4.7% and the US rate of 5.1%,” Keller tells GlobeSt.com. “The strength of the economy is reflected in the apartment markets where occupancy rates are strong and consistent rent growth is being enjoyed. While the markets have been strong, The J.C. Hart Company has a reputation for building some of the highest quality and most innovative product in the market. The Hamilton has enjoyed a strong lease up due to the strength of the location and quality of the asset.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
