Like most major cities across the United States, Indianapolis has a shortage of apartment units when compared to the demand for them. That’s why the two new multifamily projects being developed by The Garrett Companies here are so important.
The Garrett Companies is currently developing The Hangar at Emerson Pointe and Oliver Springs multifamily developments in the southern Indianapolis suburb of Greenwood, Indiana.
The Hangar at Emerson Pointe will include three buildings with 218 total units. The first building of 62 units opened at the end of June and has already welcomed its first residents.
Oliver Springs, the second luxury multifamily property, will bring 226 additional units to Greenwood. These units will each be two stories and resemble townhomes instead of traditional apartments. This project is under construction now and is expected to welcome its first residents in the spring of 2025.
The two projects will help alleviate at least some of the demand for new apartment housing in the Indianapolis market. This is especially important in the Greenwood area. This southern suburb isn’t quite as filled with multifamily options as are other Indianapolis suburbs such as Fishers and Carmel.
“Our headquarters is just down the street from the Hangar project, so we are excited to bring high-quality housing to the south side of Indianapolis,” said Rob Martinson, chief investment officer for The Garrett Companies. “Mayor Mark Myers’ vision is to continue to develop and grow Greenwood into a world-class destination, the same way that Carmel and Fishers have been able to develop on the North Side. We wanted to create that same opportunity on the south side of the Indianapolis market. “
The Hangar at Emerson Pointe will boast good walkability in the Greenwood community. This includes Runway 19, a coffee that will open on the first floor of the development in the fall of 2023.
The Hangar will also provide the amenities that today’s renters want, including key fob access for each building, mail and package delivery kiosks, valet trash and recycling pickup, and rentable corridor access garages.
The property also includes a fitness center, yoga room outfitted with on-demand fitness software, a bike repair station, a heated resort-style pool and poolside cabanas with USB charging tables, hot tub, outdoor kitchens with gas grills, an outdoor fire pit and an indoor dog wash station.
The Garrett Companies recently broke ground on another luxury multifamily community in Greenwood, the Oliver Springs project. The community, which includes a clubhouse and many of the same amenities being offered at the Hangar, will consist of 226 units resembling townhomes that will each feature private entries and direct access to an attached garage. Green spaces will separate the 10- and 14-unit buildings.
“We love the city of Greenwood — it’s quite literally our headquarters — and we’re incredibly gratified by this project and its role in meeting the growing housing needs of Johnson County and the city,” said Eric Garett, chief executive officer of The Garrett Companies, in a written statement.
Martinson said that both projects will serve a need in the Greenwood community.
“Our goal was to continue to build on the base of high-quality housing in Greenwood and Johnson County,” he said. “The sites for these projects meet the criteria for high-quality multifamily: They are near quality retail. Residents will have access to good public schools in the city of Greenwood. And there are good employment opportunities here.”
Martinson said that Greenwood is in growth mode today, building up its downtown and adding new multifamily and retail to the community.
The multifamily component is especially important. Indianapolis needs more apartment units for its residents. And many renters are searching for higher-quality developments that offer the amenities provided by projects such as Oliver Springs at The Hangar.
Multifamily, of course, remains one of the strongest commercial real estate sectors, with demand for new apartment units rising across the country. Martinson said that this demand won’t lessen anytime soon.
“Everyone needs a place to live,” Martinson said. “People want a quality place to live.”
As mortgage interest rates have risen, the cost of buying a single-family home have soared, too. Combine the higher rates with the higher prices of existing homes today, and many people who would have bought have chosen to rent instead.
“Buying a house has become more expensive,” Martinson said. “It requires a large down payment. Some apartment options provide a good transition for people who want to transition into homeownership at a slower pace.”
Today’s higher interest rates also mean that a smaller number of homeowners are selling their properties. These owners have locked in low interest rates, sometimes rates under 3%. They aren’t eager to sell their homes and move into a new home that comes with a mortgage with an interest rate over 6.5%. instead, they’re waiting out today’s interest-rate environment to see if mortgage interest rates might fall.
“The natural laws of supply and demand are driving prices up for single-family homes,” Martinson said. “There is very little inventory out there. That, too, has driven up the demand for apartment living, and especially for Class-A higher-end apartments.”
Then there are those renters who are renting by choice, not necessity. This group of renters is continuing to increase, too, Martinson said.
“They like the maintenance-free aspect of an apartment community,” he said. “The like the transient nature of an apartment community, too. They are no longer locked into a house and the challenges that can come with selling a home. An apartment offers more flexibility.”
These renters-by-choice are especially interested in the amenities that projects such as The Hangar and Oliver Springs offer, Martinson said. This includes pools, fitness centers, business centers and smart-home technology.
What sets The Hangar and Oliver Springs apart are the quality of these amenities, Martinson said. Renters here don’t just get a pool. They get a resort-style pool, Martinson said. They’ll have access to valet trash services.
Martinson describes it as the “hospitality component” of these developments.
“These amenities are no longer nice to have. They are must-haves,” Martinson said. “When we develop properties, we are always looking at doing the right thing and providing the best quality of life for our renters.”