Sheiner Group Subsidiary Enters Indiana With Value-Add Deal
Port Crossing Apartments has an occupancy rate of 98 percent.
In its first Indiana transaction, Sheiner Group subsidiary Living Well Homes has purchased Port Crossing Apartments. Pedcor Living sold the 432-unit community in Portage, Ind., near Chicago, in an all-cash value-add deal. The property, which came online in three phases between 1990 and 1996, has 32 units designated as affordable, Yardi Matrix data shows.
According to the same source, the property is currently subject to a HUD 223(f) permanent loan, totaling $13.4 million. The financing came in two phases, with the first loan in 2010, having a maturity date set for 2045, while the second financing was received in 2015, to mature in 2050. Merchants Capital originated the funding.
With an occupancy rate of 98 percent, the community encompasses one- to three-bedroom floorplans ranging from 612 to 1,066 square feet spread across 29 buildings on 32 acres. Apartments feature all-electric kitchens, balconies or patios, as well as air conditioning and heating. Community amenities include a play area, part-time courtesy patrol, swimming pool and lake with fountains.
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The buyer’s planned improvements consist of upgrades to the landscaping and clubhouse, the addition of a poolside lounge, gym, dog park, as well as an Amazon Hub Automated Package Center.
Located at 3300 Portside Court, the community is flanked by U.S. Route 6 to the south, while Interstate 90 is roughly 4 miles north. Downtown Chicago is some 40 miles northwest. Employers such as Ivy Tech and Pratt Industries are within a 15-mile radius, while Northwest Health Portage is less than 2 miles away. Along the nearby U.S. Route 6, residents can access a wide range of entertainment, retail and dining options, including a Walmart.
Chicago investors choose value-add ventures
Metro Chicago recorded $2.3 billion in transactions last year through November, according to a Yardi Matrix report from earlier this year. The investment volume was down 31 percent, compared to the same period of 2022, as the metro was in line with the nationwide slowdown. Nonetheless, Chicago’s transactional scene hasn’t slipped as much as other metros.
With more than half of the recorded sales being in the working-class Renter-by-Necessity segment, Chicago is a sought-after market for value-add investment. In another similar deal, Standard Communities purchased Huntington Towers, a 214-unit asset in Mount Prospect, Ill. The firm earmarked $16.1 million for capital expenditures.
