Island Club is a 314-unit, Class B+ multifamily community located in the Eagle Creek submarket of Indianapolis, Indiana. Built in 1990 and set on 37.6 acres along a private 25-acre lake, the property offered a living experience that competing assets in the submarket could not replicate at the same price point.
Apta co-sponsored this acquisition alongside CF Capital. The property was acquired below replacement cost with assumable Freddie Mac agency financing locked at a fixed rate, providing interest rate stability and positive leverage across the hold period. At closing, BH Management Services, a national operator managing more than 100,000 units across the United States, was retained to lead day-to-day operations.
The value-add thesis was clear and market-tested. Prior ownership had already completed renovations on a portion of units, establishing proven rent premiums. Apta and CF Capital moved to complete the remaining units, add in-unit washer and dryer machines across all 314 homes, and optimize operations to close the gap between current rents and the submarket ceiling.
Indianapolis ranked fourth nationally for year-over-year rent growth in 2023. Employment in the metro sat more than 5% above pre-pandemic levels, anchored by major employers including Eli Lilly, Roche, Salesforce, and Amazon. The Eagle Creek submarket added a further competitive advantage: proximity to one of the largest municipal parks in the country, strong household income demographics, and a population that grew 7% between 2010 and 2023.
Multifamily investments offered through our strategic partnership with 37th Parallel Properties.
