Morgan Properties Buys 6 in Indianapolis

This marks the largest multifamily transaction by dollar value in the state's history.

The Preserve on Allisonville. Image courtesy of Cushman & Wakefield

Morgan Properties has acquired a six-property, 2,103-unit multifamily portfolio in Indiana from a joint venture of Wilkinson Corp. and Torchlight Investors.

The price for the assets was not disclosed but Executive Vice Chair Hannah Ott of Cushman & Wakefield in Indianapolis, said in a prepared statement the sale of the Indy 6 Portfolio marks the largest multifamily transaction by dollar volume in Indiana history.

Ott, along with Executive Vice Chair George Tikijian and Senior Associate Cameron Benz represented the sellers in the transaction. Ott said Wilkinson and Torch repositioned the assets and Morgan Properties plans to continue renovations at the six communities. All located in Indianapolis, the porfolio comprises the following:

  • Boardwalk at Westlake, 6000 Westlake Drive, 97 acres, 1,381 units, 1 million square feet;
  • Lakeshore Reserve Off 86th, 8320 Spyglass Drive, 16.5 acres, 120 units, 120,436 square feet. According to the Indianapolis Business Journal, the sale of this asset won’t close until later this year due to Housing Assistance Program regulations;
  • Parkside at Castleton Square, 6401 Woods Edge Drive W., 16.2 acres, 190 units, 166,220 square feet;
  • Elliot at College Park, 8760 Le Mode Court, 10.6 acres, 126 units, 114,096 square feet;
  • Lakeside Crossing at Eagle Creek, 3833 Wind Drift Drive, 15 acres, 166 units, 151,870 square feet;
  • Preserve on Allisonville, 5830 River Wood Drive, 11 acres, 120 units, 132,760 square feet.

Wilkinson Corp. acquired five of the properties in the portfolio for $121.5 million from Rose Valley Capital, an affiliate of Hampshire Properties, in November 2018 and renamed them. According to Yardi Matrix data, in January 2009, the Hampshire Properties affiliate bought the properties for $56.4 million and began approximately $29 million in capital improvements, including upgrades to the unit interiors and common areas, as well as amenities enhancements. The only property in the current transaction that was not included in the 2018 sale is Lakeshore Reserve Off 86th. Yardi Matrix reported Wilkinson Corp. purchased Lakeshore Reserve Off 86th from Rose Valley Capital in April 2019 for an estimated $11.4 million. The property, previously known as Spyglass Apartments, was part of the $56.4 million portfolio transaction in January 2009  when Rose Valley Capital acquired all six of the Indiana assets from Aimco, according to Yardi Matrix data.

Assets Detailed

The properties all have similar common area amenities including fitness centers, business centers,  clubhouses, swimming pools, waterscapes, tennis and volleyball courts, playgrounds and laundry facilities.

Further information on some of the properties is available from Yardi Matrix data. Lakeside Crossing at Eagle Creek has one-, two- and three bedroom layouts with rents ranging from $858 to $1,330, according to Yardi Matrix. Lakeshore Reserve Off 86th has one-, two- and three-bedroom units including some townhouse residences with rents ranging from $710 to $891.

The Boardwalk at Westlake, the largest apartment community in Indianapolis, was built in three stages between 1968 and 1977. The property has studio, one- and two-bedroom layouts as well as two- and three-bedroom townhouse residences. Rents range from $600 to $1,024 for the studio to two-bedroom apartments, according to Yardi Matrix. Two-bedroom townhouse rents ranged from $886 to $1,494 and three-bedroom townhouse rents ran from $1,199 to $1,298,Yardi Matrix reported.

More Morgan Growth

In June, Morgan Properties significantly expanded its multifamily presence in Fayetteville, N.C., with the acquisition of two communities on behalf of Morganton Development from Walker & Dunlop. The price paid for two properties, Westlake at Morganton and The Preserve at Grande Oaks, was not disclosed. But the transaction added 642 units to Morgan Properties’ portfolio.

Morgan Properties is planning about $7 million of interior upgrades and smart home tech packages for its units. Plans call for a new clubhouse, bike share program, dog parks, patios for grilling and other community amenities. As of June, Morgan Properties owns and operates five properties in the Fayetteville market, totaling 1,530.

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