Emma Capital Grows in Indianapolis with $39M Buy

The Toronto-based company expanded its footprint in the city to 1,829 units with the acquisition of two apartment communities in the Washington West submarket.
The Courts II

Emma Capital Investments Inc. has acquired the 148-unit Courts I, and the 336-unit Courts II, two apartment communities in Indianapolis, Ind., for a combined $38.5 million.

The deals marked Emma Capital’s 36th and 37th deals in the U.S., and upped its total to nearly 9,500 units in the country while expanding its presence in Indiana’s capital city to 1,829 units.

“We like the location of these properties. We have properties in the surrounding areas and we feel really good about being able to perform value-add upgrades to the unit interiors and throughout the property as well,” Brian Rakowski, Emma Capital’s asset manager for the Indianapolis and Florida Markets, told MHN. “We typically buy Class B value-add properties of 200 units plus in strong markets,” Rakowski added. “We feel this fits our strategy well. We’ve been buying a lot in Indianapolis and felt this was a good extension of some of our recent deals.”

Located at 2000 W. 79th St., Courts I was originally constructed in 1967, while Courts II was built in 1973 and is located next door at 8002 Harcourt Road. While the properties are currently run together, Emma Capital will split them up and run them as separate entities.

The Courts I features four distinct floor plans, and all units offer washer/dryer appliances. Meanwhile, the Courts II features five different floor plans and boast some of the biggest floor plans on the market.

Both communities feature a swimming pool, a children’s playground, a pet park, a fitness center and top landscaping. The properties were nearly 98 percent occupied as of January, according to data provided by Yardi Matrix.

Hot Investment Submarket

According to Rakowski, the submarket has recorded strong rent growth over the past few years and is projected to continue to grow through 2020.

“We like the low unemployment rate, the good job growth, the sizeable population of over 2 million people, and feel there’s value there,” Rakowski said. “There aren’t a ton of properties in the city that offer value-add units, so we see an opportunity to do that here.”

The properties are both nearby St. Vincent’s Hospital and a variety of business sectors, including insurance and financial services, healthcare, life sciences, technology and logistics. The assets are also close to the North side of the city, which offers good live/work/play opportunities.

The seller recently installed new windows, sliding doors, and siding, and Emma Capital will add upgraded community amenities and revamp the interiors.

In December, Emma Capital Investments added 496 units in Indianapolis with the acquisitions of the Brandywine Apartments and The Hunt Club Apartments. The company entered the Indianapolis market in May with the $64 million acquisition of three properties totaling 849 units. The communities were Retreat Northwest (336 units), M Club Apartments (338 units), and Aura Apartments (125 units).

Image courtesy of Yardi Matrix