A portfolio of three Indiana properties has been acquired by an unknown buyer. The transaction was made possible by $54 million in financing arranged by Eastern Union. According to Yardi Matrix data, the seller was Zidan Management Group.
The three multifamily properties, totaling 628 units, are all located on the east side of Indianapolis, an area witnessing unprecedented levels of industrial expansion and corresponding population growth. Michael Muller, senior managing director with real estate brokerage Eastern Union, arranged the sale of the apartment communities.
“Fortunately, there were no significant challenges in financing this portfolio,” Muller told Multi-Housing News. “The properties had been owned by the same seller for many years. They had been well maintained, and the seller had a great reputation. All of the region’s competitors would try to keep their properties in the same condition as this portfolio. These three sites stood as leasing examples for other owners in the area. In addition, the properties performed well during the pandemic.”
The interest rate on the 10-year mortgage is floating at a spread of 2.5 percent plus the one-month SOFR. The financing permits interest-only payments for the first five years. The mortgage was arranged through Fannie Mae. Arbor acted as Delegated Underwriting and Servicing (DUS) lender. Overall purchase price was not disclosed.
Included in the portfolio is Lake Marina, a rental community on a man-made lake at 9515 Shoreland Lane. Built in 1980, the 348-unit property includes 28 two-story residential buildings with a blend of one-, two- and three-bedroom apartments averaging 885 square feet. Units include individual AC, high-speed Internet and, in some, washer-dryers. Amenities include a pool. The property’s mortgage totaled $26.9 million.
Another portfolio asset is Country Lakes Townhomes, located at 2910 White Knight Blvd. Completed in 1974, the 184-unit community features 23 two-story residential buildings and a one-story clubhouse. Renters can choose from 92 two-bedroom and a like number of three- bedroom townhouses averaging 1,203 square feet in size. County Lakes Townhomes assumed a mortgage of $20.6 million.
The final portfolio apartment community is Fountainview, bearing an address at 2800 North Post Road. The 96-unit community was constructed in 1965 and features eight two-story residential buildings. Offered are 32 one-bedroom and 64 two-bedroom units averaging 827 square feet and featuring individual AC and high-speed Internet. A playground is among common-area amenities. The mortgage totaled $6.5 million.
In a prepared statement, Eastern Union noted the Circle City’s east side has attracted a job base growing at a faster pace than the national average. The Indy Partnership has reported projects announced in 2020 are expected to add almost 9,400 jobs and more than $2.4 billion in capital investment in the Indianapolis region.
Last month, Morgan Properties acquired a six-property portfolio in Indianapolis.