Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
A 195-unit apartment high-rise on the near-north side of Indianapolis has been sold for $11.4 million to an out-of-state development partnership that plans to renovate the property.
Meridian Towers Apartments, 3710 N. Meridian St., was acquired through a joint venture of New York City-based Crown Capital Ventures and Toronto firm Whitestone Capital. The nine-story property was built in 1950 and was sold by Kokomo-based Vernon Graves LLC in an off-market deal.
A $9.4 million loan for the deal, with a three-year interest-only initial term, was financed through Eastern Union, a New York-based firm. The remainder of the funds came from partner equity.
Shia Grunzweig, president and founder of Crown Capital, said the firms—operating as Meridian Towers Apartments LLC, plan to spend about $2 million to improve the property. Updates will include either new or improved laundry facilities, a community clubhouse, a media room and common areas, along with exterior landscaping.
“We’re going to bring it up to par with all the renovated nearby properties,” he said. “There’s a big demand for more of these renovated, more modern, upscale properties, so we’re very excited about this opportunity and we have already started the process.”
The building’s 335-square-foot studios and 540-square-foot one-bedroom units rent for about $550 and $725 per month, respectively. Meridian Towers also has two-bedroom apartments, but a waiting list exists for those units and rents aren’t listed.
Investment in the property is likely to mean rent increases down the road, to allow the owners to recoup their money.
Grunzweig said the firm doesn’t necessarily have immediate plans to sell off the apartments once they are renovated. Although Crown Capital typically has interest in newer properties, it views Meridian Towers as an opportunity to enter the Indianapolis market, he said.
The firm is already eyeing other properties in central Indiana, he said.
“We’re open to both options, but we’re looking to grow in Indianapolis and Indiana in general,” he said. “We’re looking to build a large portfolio in Indianapolis, so we’re probably going to look at this as a long-term hold.”
Please enable JavaScript to view this content.
Interesting.
I’ve said it before and I’ll say it again, in 15 years the 38th and College area will be the new Irvington/Bates-Hendricks up-and-coming spot especially after they get the Purple Line in there. Invest now.
The Red Line already goes past 38th and College and this property.
Purple won’t make any difference here; its impact will start further east (towards the State Fairgrounds and Fall Creek) and extend clear out to Post Rd.
Nap is about to growing that’s good but it’s a big demand and you must build taller and more!!! Every side of the county!!
Bought for $58k per unit – cheap.
It’s class B or C…and they’re still getting $1.35/sqft/month. I agree that’s cheap.
A positive sign. Given that high(er) rise apartment/condo projects a few in Indy in comparison to peer cities such as Columbus or Kansas City. However, both peer cities have done a better job of preserving central city structures, maintaining central city infrastructure, and focusing more attention to preserving, maintaining, and improving central city residential options for a wider range of incomes. While the Indianapolis model has been more slash/demolish/reconstruct than preserve/maintain/improve, there is still a great opportunity to enhance the Meridian corridor. A strong mixed-us office and residential spine should be centered along Meridian from downtown to 38th St. This should include mid and some higher rise structures but along pocket parklets/open space.