Brockton
Indianapolis, IN
Description
In 2012, CREC acquired Brockton Apartments, a 284-unit apartment community located in Indianapolis, Indiana, within the highly desirable area of Indianapolis known as Broad Ripple.
The lack of available land to build apartments near the community provides a barrier for new competition. The community is located within a strong school system and offers an abundance of nearby restaurants, cafes, shopping and entertainment options. Additionally, Brockton Apartments is within commuting distance to more than 1 million jobs (according to U.S. BUREAU OF LABOR STATISTICS – November 2020).
Brockton Apartments is tucked away within a quaint neighborhood, giving it a true sense of community. The stable tenant base and favorable unit mix, with 21 different floor plans, creates an attractive environment for a broad range of residents. A desirable amenity package includes two swimming pools, fitness center, clubhouse, garages and carports for residents.
The purchase price of $45,000 per apartment represented a significant discount to replacement cost. The seller owned the property for decades and was willing to sell at a discount if given nine months to acquire a “1031 Exchange” replacement property. CREC agreed to a delayed close, and at acquisition placed a HUD loan on the property. Through a refinance in August of 2017 and a supplemental loan in August of 2021, CREC has returned to investors via distributions an amount that exceeds their invested capital. Investors have received distributions every quarter since the refinance.
Investment Summary
- Asset Location: Broad Ripple neighborhood (Indianapolis, IN)
- Investment Type: Multifamily acquisition, 284-units
- Investment Date: March 6, 2012
- CREC Investment: $2.5 Million
- JV Partner: Barrett & Stokely
