Emma Capital Expands in Indianapolis

The Hunt Club Apartments and Brandywine Apartments, totaling 496 units, bring the Toronto-based investor’s multifamily holdings in the U.S. to some 9,000 units.
The Lenox

Emma Capital Investments Inc. has made two more multifamily purchases in the Indianapolis market this year, adding 496 units at two properties—Brandywine Apartments and The Hunt Club Apartments—that have been rebranded and will undergo improvements in a major value-add play. The assets are the Toronto-based company’s 33rd and 34th purchases in the U.S., bringing its total units in the country to about 9,000.

“The purchase of both properties with a combined 496 units results in Emma Capital further expanding its presence in the Indianapolis market to a total of approximately 1,400 units over five properties. This increased scale will allow Emma Capital to realize efficiencies in the management of its Indianapolis properties,” Haya Zilberboim, founding partner and co-owner, said in a prepared statement.

Emma Capital entered the Indianapolis market in May with the $64 million acquisition of three properties totaling 849 units. The communities were Retreat Northwest (336 units), and M Club Apartments (338 units), acquired from Wilkinson Corp., and Aura Apartments (125 units), whose owner was Martin Hampton, according to Yardi Matrix data.

One of the company’s newest acquisitions was Brandywine Apartments, a 296-unit community located at 8444 Rothbury Drive that Emma Capital has rebranded as The Eclipse. The property was acquired from McKinley Properties, which had owned it since March 1999. The most recent financing on the 21-acre property was a 35-year $15.4 million HUD 223(f) loan funded in April 2011, according to Yardi Matrix. The Hunt Club Apartments, a 200-unit community located at 5421 Calder Way that Emma Capital rebranded as The Lenox, was acquired from Gene B. Glick Co., which had owned it for six years. The most recent financing on the 18.2-acre property was a six-year $5.1 million Fannie Mae loan funded in September 2011, according to Yardi Matrix.

Both properties provide strong value-add opportunities. Brandywine was built in 1974, and all of its units have original interior finishes, and Hunt Club was constructed in 1972.

“We feel that both Brandywine and Hunt Club are strong performers and are poised to benefit from value-add initiatives such as enhanced interior and common area amenities, and unit interior upgrades,” Brian Rakowski, Emma Capital’s Indianapolis asset manager, said in a prepared statement.

Community Details

The Eclipse has 25 two-story buildings with floor plans including loft/studios, one-bedrooms, two-bedrooms and two-bedroom townhouses, three-bedrooms and three-bedroom townhouses with rents ranging from $668 to $1,158 and an average rent of $818, per Yardi Matrix. Community amenities include a business center, clubhouse, tennis, court, swimming pool and partially-covered parking.

The Lenox has nine one- and two-story buildings with one-bedroom and two-bedroom units. Rents range from $636 a month to $827 with an average rent of $734 per month, according to Yardi Matrix. The property has washers and dryers in all units, with some full-sized. Community amenities include a fitness center, business center, clubhouse, swimming pool, playground and partially-covered parking.

“Brandywine and Hunt Club provide the ability to offer a unique variety of floor plans, which will enable Emma Capital to better cater to the individual tastes of potential residents,” Zilberboim noted.

Oz Cohen, Emma Capital partner and co-owner, said the firm was attracted to Indianapolis because it has a diverse and healthy economy in a variety of business sectors, including insurance and financial services, healthcare, life sciences, technology and logistics.

“With a skilled workforce, a tax-friendly structure for business and an excellent quality of life, the city and state offer an extremely attractive environment. With only 3.3 percent unemployment and 1.9 percent annual job growth, Indianapolis is well-positioned to continue its trajectory as a city with strong growth fundamentals, and we are extremely happy to be part of such growth,” Cohen said in a prepared statement.

Expanding in U.S.

Founded in 2012, Emma Capital’s portfolio consists of U.S. properties primarily in the Midwest and Sun Belt with a total asset value of about $1.1 billion. Last month, the firm acquired Avenues 85 Apartments, an Atlanta community with 392 units, for $35.7 million. Built in 1967, the garden-style apartment community encompasses 31 acres in the Northlake submarket and has 20 two-story buildings.

In August 2017, Emma Capital acquired two multifamily properties in Charlotte, N.C., with a total of 550 units. The firm combined them into one community and rebranded them as Avalon Heights Apartments.

Image courtesy of Yardi Matrix