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Apartment sellers testing market again

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Several local apartment properties are back on the market as owners try to appeal to private investors looking for deals before higher interest rates and inflation dampen their enthusiasm.

Among the properties is Grande Reserve at Geist, a Class A property that changed hands in 2006, and four complexes owned by Denver-based Apartment Investment & Management Co., the giant apartment owner that has sold 16 Indiana properties in the last 18 months. The AIMCO properties are:

- Scandia, a 444-unit complex at 91st Street and Allisonville Road  built in 1979. It had been listed for about a year with Tikijian Associates. The new listing agent is Steve LaMotte at CB Richard Ellis.

- Bayhead Village, a 202-unit complex near Interstate 465 and West 38th Street built in 1978. It’s listed by Tikijian.

- Fisherman’s Village. Listed by Tikijian, the property near Interstate 465 and Crawfordsville Road has 328 units and was built in 1982.

- Pebble Point, a 220-unit property adjacent to Fisherman’s Village that was built in 1980. Tikijian has the listing.

AIMCO pulled all four properties off the market last November while it reevaluated its goal of selling off Midwest properties to pay down debt. The company also recently listed the 2,009-unit Canterbury Green complex in Fort Wayne. The company’s five Indiana properties are among a dozen nationwide it has on the market.

Another west-side property, Chesapeake Landing, had been for sale and recently returned to the market, said Cassidy Turley broker Scott Pollom, the listing agent. The 478-unit complex, owned for the last four years by a New Jersey-based private investment group, was finished in 1978 and renovated in 2006.  

The Grande Reserve at Geist is a 146-unit apartment complex on Fox Road at Geist Reservoir. The complex, built in 1996, is one of three local properties owned by Muhamad Becovic and operated by his firm Becovic Management Group. It’s listed by Steve LaMotte of CB Richard Ellis for almost $13.4 million.

The Geist property, because it’s relatively new and in a highly desirable location, is considered a Class A property, a group that has seen little sales activity since the dawn of the recession.

As such, there are few such properties on the market here, which LaMotte thinks will work in his seller’s favor. “There’s a lot of private capital coming into the market chasing limited [Class A] deals,” he said.

George Tikijian of Tikijian Associates said most of the opportunities in the market so far have been for lower-grade properties, creating some pent-up demand for Class A properties.

The AIMCO properties here are older but are desirable enough from a location standpoint that AIMCO won’t take the first deal that comes along. Tikijian said AIMCO’s goal is to sell the west-side complexes for a per-unit price in the mid-$30,000 range. It wants in the mid-50s per unit for Scandia because of its north-side location. He said he fielded several offers for the properties between six and nine months ago, but none were high enough to satisfy the seller.

Tikijian said buyers might be more motivated now as they try to make deals before expected hikes in interest rates and inflation.

Pollom of Cassidy Turley said that while apartments are easier to finance than retail and office real estate, it’s still a challenge. Buyers have scooped up distressed low-end properties for all cash. But at higher price points “there’s a lot of frustrated private investment money out there,” he said.

If lenders would loosen up a bit “the apartment market would go crazy,” he said.
 

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  • Apartment sellers testing market again
    Oh, that's a lot of property on sale. This is good site to visit for property buyers for it markets the current available properties with relevant info on the side.
  • Grande Reserve
    This proeperty has major issue with roofs and mold. Buyer beware.

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  1. I took Bruce's comments to highlight a glaring issue when it comes to a state's image, and therefore its overall branding. An example is Michigan vs. Indiana. Michigan has done an excellent job of following through on its branding strategy around "Pure Michigan", even down to the detail of the rest stops. Since a state's branding is often targeted to visitors, it makes sense that rest stops, being that point of first impression, should be significant. It is clear that Indiana doesn't care as much about the impression it gives visitors even though our branding as the Crossroads of America does place importance on travel. Bruce's point is quite logical and accurate.

  2. I appreciated the article. I guess I have become so accustomed to making my "pit stops" at places where I can ALSO get gasoline and something hot to eat, that I hardly even notice public rest stops anymore. That said, I do concur with the rationale that our rest stops (if we are to have them at all) can and should be both fiscally-responsible AND designed to make a positive impression about our state.

  3. I don't know about the rest of you but I only stop at these places for one reason, and it's not to picnic. I move trucks for dealers and have been to rest areas in most all 48 lower states. Some of ours need upgrading no doubt. Many states rest areas are much worse than ours. In the rest area on I-70 just past Richmond truckers have to hike about a quarter of a mile. When I stop I;m generally in a bit of a hurry. Convenience,not beauty, is a primary concern.

  4. Community Hospital is the only system to not have layoffs? That is not true. Because I was one of the people who was laid off from East. And all of the LPN's have been laid off. Just because their layoffs were not announced or done all together does not mean people did not lose their jobs. They cherry-picked people from departments one by one. But you add them all up and it's several hundred. And East has had a dramatic drop I in patient beds from 800 to around 125. I know because I worked there for 30 years.

  5. I have obtained my 6 gallon badge for my donation of A Positive blood. I'm sorry to hear that my donation was nothing but a profit center for the Indiana Blood Center.

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