apartment buying from out of state investors

Interesting article on the Indiana Business Journal's website about out of state buyers purchasing multi-family in Indianapolis.

Year-long apartment-market
buying spree continuing strong

Real estate investors, many from outside the Hoosier state, are continuing to snap up Indianapolis-area apartment complexes with five more deals recently closing.

Silver-McCann Apartment Group LP, a joint venture of Florida-based Silver Cos. and McCann Realty Partners LLC of Richmond, Va., acquired a three- property portfolio. The properties—which fetched just under $37.5 million—have a combined 795 units and are Northlake Village in Noblesville, Mission Hills Village in Greenwood and Jamestown Village Apartments in New Castle.

The sellers were legal entities of Wayne R. Nelson, a former developer of apartment properties in the Indianapolis area who recently retired and moved out of state.

Nelson was represented by Michael Drew of Colliers Turley Martin Tucker.

Also, The Oaks at Buck Creek Apartments, an 824-unit complex on East 38th Street between Mitthoeffer and German Church roads, has been acquired by Los Angeles-based Urban Offerings.

The purchase price was not disclosed, but Johnson Capital, a real estate investment banking firm based in Irvine, Calif., said it arranged $18.1 million in financing for the acquisition. A portion of the funds will be used for renovation.

The property listed for just under $15 million. Scott Pollom of Colliers Turley Martin Tucker represented both the buyer and the seller, TriOaks LLC, of Los Angeles.

And finally, Chicago-based Blackhawk Realty Advisors Inc. acquired The Club at Buffalo Creek Apartments, a 308-unit apartment community on the south side of Indianapolis.

Carmel-based The J.C. Hart Co.—which is planning a 160-unit apartment project in downtown Indianapolis—sold the property for an undisclosed price. Tikijian Associates represented the seller.

So far this year, more than $450 million has been paid to acquire local area apartment complexes. At least another $180 million in deals are likely to close before the end of the year, according to local industry tracker George Tikijian.

At the current pace, apartment deals this year will more than double—and could nearly triple—last year's $267 million in apartment transactions.