Local Not-For-Profit Preserves Affordable Housing within Luxury Neighborhoods in Indianapolis
- Jun 09, 2015
by Adriana Pop, Associate Editor
Zender Realty is finally unloading a portfolio of 16 apartment buildings in Indianapolis, most of which will be acquired by a local not-for-profit affordable housing provider.
The Indianapolis Business Journal reports that Merchants Affordable Housing Corp. is planning to spend at least $30 million to buy and rehab 10 of the properties included in Zender’s portfolio sale. The organization is currently in the final stage of securing financing for the transaction, which it expects to close by early July.
Meanwhile, local apartment developer Barrett & Stokely is acquiring the six remaining apartment complexes contained in Zender’s package.
The buildings are located downtown and on the near-north side of the city. According to Janine Betsey, Merchants’ executive director, these assets are among the last properties that offer an opportunity to preserve affordable housing options in the city’s high-end residential neighborhoods.
Merchants will initially invest $5.9 million to renovate four of the apartment communities, which are between 65 to 75 years old and offer a total of 219 units. The remaining six properties the organization intends to buy total 282 units. Of these, 70 will be rented at market rate.
With this acquisition, Merchants will more than triple the number of properties it currently operates. In order to finance the purchase and renovations, the organization aims to obtain tax-exempt bonds issued by the city, as well as federal tax credits issued by the Indiana Housing and Community Development Authority.
Zender Realty has been attempting to sell the 16 apartment complexes since 2008. The family-owned company had the properties under contract once before in 2013, but the deal fell through. Zender’s decision to sell is motivated by personal reasons, since all five of its partners intend to pursue different interests.
Photo credits: move.com