Zidan Management sells a portfolio of 3 properties in Indiana
A portfolio of three Indiana properties has been acquired by an unknown buyer. The transaction was made possible through a $54 million financing arranged by Eastern Union. According to Yardi Matrix data, the seller was Zidan Management Group.
The three multi-family properties, totaling 628 units, are all located on the east side of Indianapolis, an area witnessing unprecedented levels of industrial expansion and corresponding population growth. Michael Muller, senior managing director of real estate brokerage firm Eastern Union, organized the sale of the apartment communities.
“Fortunately, there were no major challenges in funding this portfolio,” Muller said. Multi-Accommodation News. “The properties had belonged to the same seller for many years. They had been well maintained and the seller had a great reputation. All competitors in the area would try to maintain their properties in the same condition as this portfolio. These three sites were rental examples for other landlords in the region. Additionally, the properties have performed well during the pandemic.
Interest only payments
The interest rate on the 10-year mortgage is floating at a spread of 2.5% plus the one-month SOFR. The financing makes it possible to pay only the interest during the first five years. The mortgage was arranged by Fannie Mae. Arbor acted as a DUS (Delegated Underwriting and Servicing) lender. The aggregate purchase price was not disclosed.
The portfolio includes Lake Marina, a rental community on a man-made lake at 9515 Shoreland Lane. Built in 1980, the 348-unit building comprises 28 two-story residential buildings with a mix of one-, two-, and three-bedroom apartments averaging 885 square feet. Units include individual air conditioning, high-speed Internet and, in some, washer-dryers. Facilities include a swimming pool. The mortgage on the property was $26.9 million.
Another portfolio asset is Country Lakes Townhomes, located at 2910 White Knight Blvd. Completed in 1974, the 184-unit community includes 23 two-story apartment buildings and a one-story clubhouse. Renters can choose from 92 two-bedroom townhouses and as many three-bedroom townhouses averaging 1,203 square feet. County Lakes Townhomes assumed a $20.6 million mortgage.
The latest apartment community in the portfolio is Fountainview, with an address at 2800 North Post Road. The 96-unit community was built in 1965 and includes eight two-story apartment buildings. The offer includes 32 one-bedroom units and 64 two-bedroom units with an average area of 827 square feet and equipped with individual air conditioning and high-speed Internet access. A playground is part of the common facilities. The mortgage was $6.5 million.
In a prepared statement, Eastern Union noted that the east side of Circle City has attracted a job base that is growing at a faster rate than the national average. The Indy Partnership reported that projects announced in 2020 are expected to create nearly 9,400 jobs and more than $2.4 billion in capital investment in the Indianapolis area.
Last month, Morgan Properties acquired a portfolio of six properties in Indianapolis.