Marcus & Millichap Brokers Sale of Indiana Apartment Complex
- Sep 27, 2012
Evansville, Ind.—Marcus & Millichap Real Estate Investment Services has closed the sale of The Reserve, a 158-unit apartment complex in Evansville, Ind., on behalf of the property’s seller, Indianapolis-based SC Bodner Company Inc.
“The Reserve is the highest-quality apartment property in the Evansville market,” says Alex Blagojevich, a senior associate in Marcus & Millichap’s Tampa office, who coordinated the sale with David Gaines, the firm’s vice president of investments. “Our offering received multiple bids from both the regional and national investment community.”
According to Blagojevich, the sale attracted an extremely large amount of interest with over 12 competing offers for the asset. The 169,633-square-foot apartment complex was purchased by Thompson National Properties LLC.
“Investors from across the country in search of yield are looking to quality multifamily projects in secondary and tertiary markets to fill that need,” Blagojevich tells MHN. “The buyer was able to achieve an attractive investment return with very low risk through 65 percent LTV Fannie Mae debt at a 3.94 percent interest rate.”
Located at 700 Reserve Blvd., The Reserve consists of the 10 original three-story townhome units, 28 two-story townhomes and two four-story buildings with 120 total units.
“The Reserve was originally conceived as a ‘for sale’ townhome project,” says Gaines. “Later it was rebranded as 158 apartment units, 36 of which were townhomes. The asset is nearly 100 percent occupied and located in a very solid rental market, giving the new owner an opportunity to achieve a very low-risk yield.”
Each unit is cable ready and features fully-equipped kitchens with granite countertops and white appliances, vaulted 14-foot ceilings, hardwood floors and balconies and patios,” Gaines says. “Community amenities include a swimming pool and outdoor lounge, billiards room, business center, fitness center, covered parking and extra storage space.”
The property is close to major big box retailers and new jobs are expected from Toyota, Deaconess Health Systems and St Mary’s Health Systems.
Terms of the sale were not disclosed.
Last year, Marcus & Millichap closed 5,085 transactions, the highest of any commercial real estate brokerage firm.