The Indianapolis area’s largest apartment complex was sold this month for the second time in four years, as part of six-property transaction that brokers say is the largest apartment portfolio sale in Indiana history.
The sale, which closed June 23 for an undisclosed price, included the 1,381-unit Boardwalk at Westlake on the west side of Indianapolis—the area’s largest apartment complex—along with five other multifamily communities in Indianapolis.
The properties, which total 2,103 units and more than 165 acres, were sold to Morgan Properties, a real estate investment trust based in King of Prussia, Pennsylvania. Yakima, Washington-based Wilkinson Corp. and New York City-based Torchlight Investors were the sellers.
The Cushman & Wakefield Indiana Multifamily Group brokerage team, led by Hannah Ott and George Tikijian, represented the sellers.
Ott told IBJ the acquisition accounts for the largest portfolio sale in terms of price in state history—exceeding the 2018 sale of a portfolio with five of the six same properties. The five complexes fetched about $121.5 million at the time.
The sixth property in the new transaction is Lakeshore Reserve Off 86th, 8320 Spyglass Drive, with 120 units on 16.5 acres. Ott declined to share a specific sales figure for the latest transaction. State sales records have not yet been made public for the properties.
The following properties were part of the deal:
— Boardwalk at Westlake, 6000 Westlake Drive (97.9 acres, 1,381 units, 1 million square feet);
— Lakeshore Reserve Off 86th, 8320 Spyglass Drive (16.5 acres, 120 units, 120,364 square feet); due to Housing Assistance Program regulations, the sale of this property won’t close until later this year;
— Parkside at Castleton Square, 6401 Woods Edge N. Drive (16.2 acres, 190 units, 166,220 square feet);
— Lakeside Crossing at Eagle Creek, 3833 Wind Drift Drive (15 acres, 166 units, 151,870 square feet);
— Preserve on Allisonville, 5830 River Wood Drive (11 acres, 120 units, 132,760 square feet); and
— Elliott at College Park, 8760 LeMode Drive (10.6 acres, 126 units, 114,096 square feet).
Morgan, which is one of the largest multifamily property owners in the country, plans to hold the properties for an extended period, Ott said. The portfolio purchase is the company’s first in Indianapolis, adding to Indiana holdings in Fort Wayne, Valparaiso, Portage and Merrillville.
The combined occupancy rate for the complexes is 95%, according to a statement from the company provided to IBJ.
The properties “offer quality workforce housing with in-fill locations, enabling us to do what we do best and apply our value-add expertise to enhance operations and the overall experience for the hundreds of residents who call these communities home,” the statement said.
Wilkinson and Torchlight spent about $24 million renovating and upgrading common areas and complex amenities for the properties, as well as about 25% of the units, since acquiring them in October 2018.
Morgan plans to continue renovations, with premium kitchen upgrades, installations of in-unit washers and dryers and more enhancements to amenities.
Ott said Wilkinson increased average rent for the communities from about $767 in 2018 to $1,021 by the time they were sold—a 28% increase.
“They really were able to grow rents significantly in their hold period, both by organic rent growth and also by renovating units,” Ott said.
She said additional rent growth is expected for the properties, following Morgan’s renovations.