Seymour, Indiana – Multifamily Apartment Complexes
This venture involved the acquisition of three distinct apartment complexes in Seymour, Indiana, totaling 40 units. The properties featured a mix of efficiency suites, 2-bedroom/1-bath apartments, and townhouse units, offering a diverse tenant base and value-add potential.
The value-add strategy focused on purchasing these properties with below-market rents and implementing targeted capital improvements to upgrade the units and common areas. By raising rents in line with the improvements, we significantly enhanced both cash flow and the overall property valuation.
- The efficiency suites saw rent increases from an average of $500 per unit to $800 per unit, driving a substantial improvement in rental income.
- The 2-bedroom/1-bath apartments increased from an average of $600 per unit to $900 per unit, with additional upside potential as the local market continues to improve.
- The townhouses experienced a rise from $900 per unit to $1,200 per unit, and there remains further room for rental growth as demand for quality housing increases in the area.
In addition to the rental growth, we have experienced low vacancy rates and quick turnarounds in filling apartments, demonstrating strong demand and the effectiveness of our management approach.
Through these strategic improvements and rental increases, we significantly increased the value of the properties, generating strong returns and positioning them for continued growth in the future.
Highlighted Investments
Lebanon, Indiana – Flex-Use Light Industrial
This off-market opportunity was secured through strong industry relationships, allowing us to access a strategically located light industrial property with significant upside potential. The 12,000-square-foot facility had a lease that was below-market, with only 18 months remaining until renewal. By recognizing an undervalued asset with under-market rental rates and utilizing our expertise in lease negotiations, we successfully increased rental rates by approximately 44% upon renewal, aligning them with current market values.
As a result, the property's appraised value increased by 48%, significantly enhancing equity and solidifying its status as a high-performing investment.
East Indianapolis – Retail & Office Property
The acquisition of this eight-unit, all-brick retail and office property in East Indianapolis presented a strategic value-add opportunity. The value-add strategy focused on increasing rents as leases come up for renewal, bringing them in line with current market rates over a five-year period. This approach aimed to boost rental income and enhance the property’s overall value.
With a strong focus on lease management and tenant retention, this project was designed to deliver consistent cash flow growth. The targeted Internal Rate of Return (IRR) for this investment is between 35% and 45% over a five-year holding period, reflecting the strong potential for rental increases and property appreciation.
Lebanon, Indiana – Warehouse Space
This off-market acquisition involved a 34,000 square foot warehouse space in Lebanon, Indiana, strategically selected to complement our existing investments in the area. The property currently has an existing tenant, but rents are significantly under-market, presenting a clear opportunity for value creation.
By raising rents to market rates, we anticipate a substantial increase in the property’s valuation. In addition to the rent increase, there is strong potential for further development on the property, which could provide outsized returns as the warehouse space is expanded or reconfigured to meet growing demand.
With the existing tenant in place and the opportunity for additional development, this venture is well-positioned for long-term growth and the creation of significant value, both through rental income optimization and capital appreciation.
Lebanon, Indiana – Flex-Use Addition Development
This venture involved the development of an additional 6,240 square feet onto our existing light industrial facility in Lebanon, Indiana. The project required extensive civil engineering, development planning, and close coordination with the city for permitting and variances to ensure a smooth construction process that is scheduled to be completed April 2025.
While the expansion is currently not yet leased, we project that the new space will command competitive market lease rates, which, based on current market trends, could result in the property doubling in value from the construction cost. This highlights the significant upside potential of strategic property expansions in high-demand areas.
Greenwood Medical Office Property – Acquisition & Lease-Up
We acquired a vacant medical office property from a retiring physician at a discounted price through aggressive negotiations. Our value-add strategy focuses on leasing the property to a medical tenant, significantly increasing its value.
By securing a new medical tenant, we aimed to more than double the investments value within two years. This strategy capitalized on the high demand for medical office space, optimizing both rental income and long-term asset value.
