Red Oak Capital Holdings, LLC provided a combined $10.30 million in financing for a pair of multifamily properties located in metropolitan Indianapolis.
The separate bridge loans funded the acquisition and planned renovations of the assets by the sponsor, a value-add investor with extensive experience in the local market.
At $8.60 million, the loan for Canterbury House Apartments in Lawrence, IN accounted for the bulk of the financing total. Structured under Red Oak’s Core-Plus Bridge Loan Program, the loan has a three-year term and an LTSV of 65.90%. Located on 5.8 acres at 7955 Kingsmead Drive, the 84% occupied community features 110 one- to four-bedroom units in seven buildings, as well as a pool, playground, and clubhouse.
Under its Opportunistic Bridge Loan Program, Red Oak provided a two-year, $1.70-million loan for the Marblehead Apartments, a three-story property situated three miles north of Downtown Indianapolis. Located at 3310 N. Meridian Street, the community consists of 36 studio, one and two-bedroom units that are 78% occupied.
Red Oak Regional Manager Stratos Athanassiades originated both loans, which were underwritten and administered by Thomas Gorski, Senior CRE Underwriter, and James Myatt, CRE Loan Administrator. Alec Neesham, founder of Atlas Real Estate Capital, facilitated the loans on behalf of the sponsor, Midwest Living Management, which now owns and operates 13 multifamily communities throughout Metro Indianapolis.
The sponsor plans extensive renovations on both Canterbury House and Marblehead Apartments, focusing on modernizing unit interiors with new flooring, cabinetry, countertops, appliances, and in-unit washers and dryers. Common area upgrades and exterior improvements involve parking lot repairs and roofing replacements. It will also implement water and sewer submetering to enhance efficiency and further reduce operational costs.
Upon completion of renovations and lease-up efforts, the sponsor aims to reposition the properties by bringing rents in line with market rates, addressing current deficiencies of approximately 15% and 40%, respectively. A seasoned agency borrower, it expects to refinance the Red Oak loans with long-term agency financing.
Given the limited supply of affordable housing options, workforce communities like Canterbury House and Marblehead Apartments remain attractive investments and are well-positioned to capitalize on the market’s long-term growth trends. Indianapolis has experienced a 16.8% increase in employment over the past decade, outpacing both state and national averages. The region’s rental market has been equally strong, with steady annual rent growth and robust demand projections.
