BAM Capital Buys 300 Units in Indiana
This is the first acquisition for the buyer's fifth investment fund.
BAM Capital has acquired Hayden Flats, a 298-unit apartment community located in Bloomington, Ind. The seller was CRG Residential, which built the property in 2023. A sale price was not disclosed.
The acquisition is the foundational asset in BAM Multifamily Growth Fund V, which targets Midwestern multifamily assets built in 2015 or later. To date, BAM Capital has invested in nearly 30 multifamily assets through the other four funds. Most have been located in Indiana, but a number have been in Midwestern states. This approach aligns with broader geographic predictions that highlight continued demand for recently-built assets in the region.
Hayden Flats offers one- and two-bedroom units with an average size 963 square feet and a mean rent of $1,547 a month, up slightly from 2023, according to Yardi Matrix data. The property is 94.6 percent occupied, the same source shows.
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Common-area amenities at Hayden Flats include a saltwater pool with an indoor/outdoor lounge, a fitness center and an all-purpose sports and pickleball court. Units feature kitchens with quartz countertops and spa-inspired bathrooms. Residents will also have direct access to the B-Line Trail, providing direct access to downtown Bloomington.
The property is near Westgate on Third, a newly-built garden-style property built by BAM. The proximity will create operational efficiencies and economies of scale between the two properties, BAM notes. Hayden Flats is positioned to attract residents from the area’s workforce, according to BAM Capital. That includes tech, education, medical, and defense sectors, all of which are important industries locally.
Inside fund No. 5
With the new fund, BAM expects to drive rent growth of 4 percent, Alec Bannister, acquisitions manager at BAM Capital, said during a recent webcast, adding that Bloomington saw rent growth of about 6 percent last year. The fund itself targets a 15 to 20 percent internal rate of return and an 2 to 2.5 equity multiple of over a projected five- to seven-year hold period for any acquired properties.
