By Keith Loria, Contributing Editor
Indianapolis—Steadfast Apartment REIT has acquired Harrison Place, a 307-unit community located in the heart of Indianapolis, for $27.9 million.
“This property exemplifies the Steadfast business plan of buying well located apartment communities that are in high job growth markets,” Ella Shaw Neyland, Steadfast Apartments REIT’s president, tells MHN. “Job growth is the major driver of apartment demand. This community is located very close to major employers including the Defense Finance and Accounting Services, which is the finance center for the U.S. military.”
Located at 5812 Beatle Drive on nearly 22 acres, the property was constructed in 2001 and features one-, two- and three-bedroom apartments, as well as two- and three-bedroom cottages. The apartments and cottages are equipped with refrigerators, microwaves, washer/dryer hook-ups and private patios or balconies. Additionally, many units include electric fireplaces and walk-in closets.
“This property is particularly special because it has bedroom cottages with attached garages giving it a very unique character and charm,” Neyland says. “These cottages are in high demand and stay full.”
Residents at Harrison Place enjoy a full amenity package, which includes a clubhouse/leasing office, fitness center, business center, laundry facility, swimming pool and a resident lounge.
Steadfast plans to make strategic, interior enhancements that include upgrading the appliance package and adding vinyl plank wood flooring when turning the apartment homes between residents.
The property is very close to the Lawrence Village at the Fort, which is undergoing a redevelopment that includes retail and office. It is also well located in its community with easy access to major transportation avenues.
The community is the REIT’s second purchase, following a May acquisition of the 176-unit Villages at Spring Hill in Spring Hill, Tenn.
“Our plan is to buy stabilized apartment communities and bring our institutional operating platform to increase property operations and thereby increase value for our shareholders,” Neyland says. “We are also targeting acquisitions that have the potential to revitalize the apartment homes themselves providing more contemporary interiors for our residents.”
Currently, Harrison Place is 95 percent occupied and according to Neyland, the REIT is planning to upgrade approximately 40 percent of the total homes acquired throughout the portfolio. Harrison Place units average 970 square feet and average in-place rents are $828.