ind-circa (4) Circa Apartments, a 265-unit development in the Indianapolis downtown.

INDIANAPOLIS—CBRE Capital Markets has just arranged the $320.5 million sale and recapitalization of Milhaus’s Urban Core Portfolio, a nine-property multifamily portfolio located in Indianapolis, Memphis, Oklahoma City and Cincinnati. The majority of the portfolio was recently developed by Milhaus, an Indianapolis-based firm which builds multifamily properties in job-rich, secondary markets.

Four of these new, class A communities were sold to several investors. Milhaus recapitalized the other five. That deal allows the short-term investors to exit and Milhaus to continue creating new apartment communities in rising markets.

The Indianapolis properties included in these transactions are: Artistry, a 258-unit development at 451 E. Market St.; Mentor & Muse, the 242-unit second phase of Artistry; Mosaic, the 54-unit third phase; Circa Apartments, a 265-unit development in the downtown area; Mozzo Apartments, a 65-unit development at 531 Virginia Ave.; and The Maxwell Apartments, a 105-unit development at 530 E. Ohio.

Also included: Highland Row, a 354-unit community at 387 S. Highland St. in Memphis, TN; Gantry Apartments, a 131-unit development at 1580 Blue Rock in Cincinnati; and Lift Apartments, a 329-unit development at 801 NW 10th St. in Oklahoma City.

“The portfolio consists of small and large assets in four distinct metros, but the common theme the capital recognized is that each of these markets have expanding employment bases of young talent with plenty of runway left in this cycle,” says Steve LaMotte, Jr., senior vice president, CBRE. Along with CBRE’s Central Midwest Multifamily team, he represented Milhaus. “The rare opportunity to deploy a sizeable amount of capital in newly constructed, best-of-class, urban-walkable assets were duly noted by the market.”

Artistry, Mentor & Muse, Mosaic, Lift and Highland were recapitalized by a newly formed joint venture between StepStone Group Real Estate LP and Milhaus, a spokesperson tells GlobeSt.com. Separately, FrontRange Capital Partners made a platform level investment in Milhaus which helped facilitate the recapitalization. This structure will allow Milhaus to reach its goal of operating 20,000 units by 2020, as well as retaining long-term ownership and management of assets the firm develops.

Three investors bought the remaining four properties. The Indianapolis-based Gene B. Glick Co. was the seller of the Maxwell property.