Large Castleton apartment complex sells for $44.6M

A 512-unit apartment complex in Castleton has sold for $44.6 million.

Irvine, California-based Steadfast Apartment REIT III Inc. announced late Wednesday that it has bought Avery Point Apartments at 8525 Laurel Valley Drive, directly south of Sahm Golf Course and northwest of the intersection of Interstate 69 and East 86th Street.

Steadfast President Ella Neyland said in a press release that the Indianapolis area is a perfect fit for the investment objectives of the company, which targets mid-tier multifamily properties.

“Particularly, the [apartment] community is located in the far-north side of the city, which is one of the most affluent and desirable areas, and boasts some of the city’s finest homes, Class A office space, shopping, dining and entertainment,” she said in the release.

Steadfast bought Avery Point from Airmont, New York-based The Embassy Group LLC, which was represented by locally based Tikijian Associates in the sale.

Completed in 1986, Avery Point consists of 58 two-story buildings that include one- and two-bedroom apartments and two-bedroom townhomes averaging 900 square feet. Rents average $778 per month, and the complex is 94 percent occupied, Steadfast said.

The Embassy Group already had renovated about a quarter of the units, and Steadfast plans to remodel the remaining 75 percent by upgrading kitchen appliances, cabinet fixtures, faucets, kitchen counters and bedroom carpets. The company also said it will upgrade common areas and enhance landscaping, signage and the fitness center.

With its acquisition of Avery Point, Steadfast has invested more than $362 million in nine apartment properties in Colorado, Georgia, Illinois, Indiana and Texas, totaling 2,592 units.

In the Indianapolis area, Steadfast also owns Harrison Place in the former Fort Benjamin Harrison, The Lodge at Trails End on the north side and Reveal on Cumberland in Fishers.