INSIDE THE DEAL: Apartment Property in Downtown Indianapolis Sells at 7.7% Cap

By Keat Foong, Executive EditorIndianapolis—The owner of a 98-year-old building in downtown Indianapolis put his property on sale in late-2006. It did not sell in 2006 or in 2007, when the market was still strong, or in 2008. It finally sold this year—in the midst of the credit crunch. How did that happen? The owner, Tony Wishart held out on his asking price and refused to go down on it until this year, says the broker George Tikijian, principal of Tikijian Associates, Indianapolis. “The owner stuck pretty close to what he wanted. A number of offers were not high enough,” says Tikijian. Finally, Wishart, in his own words “got tired,” and accepted Evergreen Investments’ offer for $3.2 million. The cap rate is 7.7 percent, though the price is still close to the asking price of $3.5 million. Evergreen Investments, based in Shelbyville, Ind., plans to spend between $200,000 and $300,000 making improvements, such as replacing the hallway carpets, installing new kitchen cabinets and adding landscaping to the outdoor courtyard. The 36-unit property also has a 6,000-square-foot commercial space that is not leased, and the buyers plan to upgrade it to faciliate leasing, Tikijian says.The Argyle on Mass Ave is a triangular-shaped glazed brick building at the intersection of Massachusetts and East Street in the Mass Ave Arts & Theater District. The street level and basement retail shops contain businesses such as Aesop’s Tables Mediterranean Restaurant, caterer Boun Gusto Unique Events and a hair salon. The second and third floors contain the apartments.   Tikijian says that the lively location is a major entertainment and restaurant corridor. Wishart, a local owner, had owned and operated The Argyle since 1983. He also owns shopping centers and was selling the apartment property in part because he wanted less management-intensive real estate, says Tikijian.