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.
- 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