CF Capital Snaps Up Lakeside Indy Property
The investor plans to treat the community as a value-add play.
CF Capital has acquired the 314-unit Island Club Apartments in Indianapolis. The seller, Covenant Capital Group, acquired the community in 2021 for $36.3 million, Yardi Matrix data shows.
Island Club, developed in 1990, offers a mix of one- and two-bedroom units along with two-bedroom townhouse homes. Units are an average of 782 square feet. The property is 96.2 percent occupied, according to the same data.
Island Club consists of 19 buildings on nearly 40 acres. It is located on the Eagle Creek Reservoir, a 25-acre lake in northwest Indianapolis. All of the units have views of the water, and kayaks can be launched from the property.
Amenities include washer-dryer hookups and fireplaces in all units, as well as vaulted ceilings and high-speed Internet access. Common-area amenities include a fitness center, clubhouse, tennis and pickleball court, swimming pool and 600 parking spaces.
The community has already benefited from $4.2 million in recent renovations, including upgraded cabinet fronts, quartz countertops, refreshed fixtures and updated bathroom accents. Roughly 60 percent of the units are still upgrade-ready, according to CF Capital, which will be part of its strategy to add value to the property. The company plans to spend $2.8 million on property enhancements.
Indianapolis still strong
“Indianapolis’ economic landscape and growth potential makes it an ideal market for multifamily investments,” CF Capital Managing Partner Tyler Chesser told Multi-Housing News.
The city’s long-term appeal is bolstered by a strong local job market and a forward-thinking commitment to development, Chesser added. The employment data supports Indy’s growth prospects: For the 12 months ending in June 2024, the metro added 29,600 net positions, or a 2 percent expansion, according to the Bureau of Labor Statistics, which was 70 basis points higher than the national average.
Overall occupancy in Indianapolis multifamily properties dropped 40 basis points year-over-year, to 94.1 percent as of July, according to Yardi Matrix. The market remains close to the national apartment occupancy average of 94.7 percent.
Metro Indianapolis’ multifamily stock grew 1.7 percent year-to-date through August, the same data reports, with developers bringing 3,149 units online over that period. That number is above the 2,402-unit annual average that the market experienced from 2016 to 2023, and only about 300 units short of the overall total in 2023.
Even so, rents continued to climb as demand remains strong. Asking rents were up 0.3 percent on a trailing three-month basis through August, to $1,277 a month, Yardi Matrix notes. Metro Indy ranked fourth nationwide for year-over-year rental growth among major metros, coming in at 3 percent.
