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 complex provides a barrier for competition. The community is located within a strong school system and offers an abundance of 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 tenants. A strong amenity package includes two swimming pools, fitness center, clubhouse, garages and carports for tenants.
The purchase price of $45,000 per unit 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. CREC refinanced the property in August of 2017, returning over 145% of invested capital back to investors, and 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