Solana apartment complex sells for $60.5 million

An Illinois-based real estate firm has purchased the 384-unit Solana Apartments at the Crossing complex for a jaw-dropping $60.5 million from an affiliate of Indianapolis-based real estate firm Milhaus, the parties announced Tuesday.

It’s just the latest chapter in the twisty story of the high-end development at the southeast corner of East 78th Street and Keystone Avenue. The project began life as a planned, $150 million South Carolina-themed condo community that never was completed.

Milhaus bought the 55-acre property out of bankruptcy in 2012 from Star Financial Bank with plans to complete the project—but as upscale apartments.

The firm finished development within the last month and already has leased more than 95 percent of the units, said Milhaus CEO Tadd Miller.

Milhaus chose to sell the suburban-based Solana so it could focus on its bread-and-butter, urban projects. They include the Circa, Artistry and Mozzo projects in downtown Indianapolis.

“Solana was a great opportunity for us based on market timing, but we really want to stay focused on urban infill and mixed-use projects,” Miller said. “It was a strategic decision as much as a financial decision.”

The buyer was Inland Real Estate Acquisitions Inc., which handles acquisitions for entities of The Inland Real Estate Group of Companies, based in Oak Brook, Illinois.

Solana is “ideally situated” between downtown Indianapolis and Carmel’s office corridor, and in close proximity to the ritzy Fashion Mall at Keystone, said Mark Cosenza, vice president of Inland Real Estate Acquisitions in a press release.

Amenities at Solana include a swimming pool, clubhouse, media lounge, business center, outdoor theater, fitness trails, a 26-acre lake and a watercraft launch area.

Milhaus invested more than $40 million in Solana, Miller said.

Chicago-based real estate and capital markets services firm HFF represented Milhaus in the transaction.