IBJNews

Geist apartment complex sale ends drought of Class A transactions

Back to TopCommentsE-mailPrintBookmark and Share

A Chicago-area buyer has scooped up the first Class A apartment complex sold in this market since 2008.

Oak Residential Partners LLC purchased the 146-unit Grande Reserve at Geist on Oct. 29 and plans a $500,000 upgrade of the property.

Built in 1996 and owned the last four years by Muhammad Becovic, Grande Reserve was listed with Steve LaMotte of CB Richard Ellis for just under $13.4 million. The property on Fox Road at the south end of Geist Reservoir sold for more than $13.3 million.

Its sale for near the list price is a reflection of the dearth of Class A complexes coming to market the last two years. Class A properties—so called because they’re relatively new and located in the most desirable areas—disappeared from the market because buyers were anticipating a flood of distressed properties and were only willing to pay fire-sale prices.

But the expected influx of distressed Class A properties didn’t materialize. The price expectations of buyers and sellers are now in closer alignment, said Richard Wise, a managing principal of Oak Residential.

The Grande Reserve is Oak’s first property in the market. Wise said his company was looking for an attractive property in Indianapolis because the three-to-five year outlook for the local economy is positive.

Oak liked the prospects for the complex itself because there aren’t many apartment properties in the high-end Geist area and little chance that will change. “It’s very insulated from new construction,” Wise said. “A couple of miles out, you might find available land for new construction, but then you’re not at Geist.”

Previously managed by Becovic Management Group, the complex now will be managed by Village Green Management Co. of Farmington Hills, Mich. Occupancy at the complex of one-, two-, and three-bedroom units was 93 percent at the end of October and average rent was $950 a month.

Wise said monthly rents are projected to rise from $100 to $200 for units that are upgraded. Not all units will be improved, but some will get new hardwood floors, granite countertops, new kitchen cabinets and stainless steel appliances. The leasing office, clubhouse and business center also are slated for renovation, and the complex exterior will get new signage and upgraded landscaping. Wise said improvements will begin after the first of the year.   

The deal was financed with a 10-year, fixed rate Freddie Mac loan arranged by Wells Fargo Multifamily Capital. Wise said Freddie Mac and Fannie Mae are still the go-to sources of money for multi-family housing. He noted that life insurance companies also are getting back into the game.  

Grande Reserve is one of two apartment properties sold in recent weeks by LaMotte of CB Richard Ellis. The other was Scandia, a 444-unit complex at 91st Street and Allisonville Road built in 1979. The buyer was St. Louis-based Thiemann Real Estate LLC, another entity just entering the market.  

The price paid for Scandia wasn’t disclosed, but a previous listing agent for the property, George Tikijian of Tikijian Associates, said the seller, Denver-based Apartment Investment & Management Co., wanted approximately $55,000 per unit, which translates into a total of more than $24 million.

AIMCO has been divesting its Indiana portfolio over the last two years to raise money to pay down debt. It has sold at least 17 Indiana properties in that span, and three more sales are on the horizon.

Tikijian said the sale of Pebble Point, a 220-unit complex near Interstate 465 and Crawfordsville Road, is expected to close any day. Tikijian has that listing and is also representing AIMCO in the sale of 328-unit Fisherman’s Village, which is near Pebble Point, and Bayhead Village, a 202-unit property near I-465 and West 38th Street. Bayhead Village is under contract and Fisherman’s Village is expected to be under contract in a few weeks, Tikijian said.

When those sales close, AIMCO, once one of the state’s largest owners of apartment properties, will have one property left in the state: the giant, 2,009-unit Canterbury Green complex in Fort Wayne.

AIMCO pulled Scandia and the other three local properties from the market late last year because offers were trickling in at prices lower than AIMCO wanted to consider.

The company decided in May that the market had improved and put its remaining Indiana holdings back in play.

Apartment vacancies here have fallen and are expected to continue to drop. The vacancy rate was more than 10 percent last year. It has since fallen to 9.2 percent and is projected to reach 8.5 percent by next year, according to statistics provided by Tikijian Associates.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Uh, sorry Johnnie, but you are incorrect. Despite the assertions by yourself and various defenders and captains, sports attendance is NOT off significantly at most sporting events in the US. Variances in attendance has been in the range of single digits, both + & - for years now. MLB has had most of its best overall attendance nubers in the last decade, and that trend has been consistent for most major sporting events. The number one issue cited by most fans when asked about attendance is the overall cost of attending. The presence of HD and big screen televisions in home doesn't even register, as a factor for not attending an event. VALUE in the product is the key, and apparently is something lacking in the current ICS. What other explanation is there when with what is routinely touted as the "best" racing on the planet, fans are staying away in DROVES. A "close" title battle into the last event at Fontana, with the "cars and stars" of the ICS, and who showed up? MAYBE 8K. Sorry, but HD TV isn't to blame for that kind of fan apathy.

  2. Do you need finance to establish your business ? Are you interested in getting a loan at 3% from our private company? If so please Email: suntrust_oil@blumail.org

  3. If she was worth the $ the public outcry over direct tv dropping them would have kept them on their dishes as we have seen with other companies. I too quit watching channel 13 after she showed up since I left channel 8 because of her all show rather than production results. When Randy on 8 corrected her she had a big head and incorrectly challenged his correction for pronunciation of a city. Other antics while she matures was too much for me with her very inaccurate forecasts. All the forecasters were predicting rain until Thursday except Chris. They predicted sunny on Thursday but instead of rain until Thursday upon which the sun would finally make it out in full glory Chris was right on the money just as I too predicted looking at the radar on weather.gov. One thing I love about Angela is the fear you can see in her every time it thunders in the winter. It far exceeds the entertainment value of her body language (high heel noise drags, depression, etc) when her forecasts are so incorrect. Her hair stands on end, you have to see it!!!

  4. Good Day, Apply For A Loan I am Mr Fernadez Antonio, a private Loan lender and a cooperate financial for real estate and any kinds of business financing. I also offer Loans to individuals, Firms and cooperate bodies at 3% interest rate We offer any kind of loans. email us via fernadezloaninvest@outlook.com LOAN APPLICATION FORM First name:......................... Middle name:......................... Last name:........................................ Date of birth (yyyy-mm-dd):....................... Gender:........................................... Marital status:................................... Total Amount Needed............................... Loan Duration.................................... Address:.......................................... City:............................................. State/province:................................... Zip/postal code:.................................. Country:.......................................... Phone:............................................ Fax:.............................................. Mobile/cellular:.................................. Monthly Income.................................... Occupation:....................................... Best Regard, Mr Fernadez Antonio.

  5. i will love to share my testimony to you all the people in world i got married to my husband about 2 year ago we start having problems at home like we stop sleeping on the same bed,fighting about little things he always comes home late at night,drinking too much and sleeping with other women out side i have never love any man in my life except him. he is the father of my child and i don't want to loose him because we have worked so hard together to become what we are and have today .few month ago he now decided to live me and the kid,being a single mother can be hard sometimes and so i have nobody to turn to and i was heart broken.i called my mom and explain every thing to her,my mother told me about DR.okoro how he helped her solve the problem between her and my dad i was surprise about it because they have been without each other for three and a half years and it was like a miracle how they came back to each other. i was directed to DR. okoro on his email:okorospell@gmail.com and explain everything to him,so he promise me not to worry that he will cast a spell and make things come back to how we where so much in love again and that it was another female spirit that was controlling my husband he told me that my problem will be solved within two days if i believe i said OK So he cast a spell for me and after two days my love came back asking me to forgive him i Am so happy now. so that why i decided to share my experience with every body that have such problem contact Dr okoro the great spell caster on his email addresses spellcasterforlove@outlook.com

ADVERTISEMENT