Harbor Buys 740-Unit Apt Complex for $61M

(Read more on the multifamily market.)

INDIANAPOLIS-Harbor Group International LLC has purchased the 740-unit Lakeshore Apartments for $61.2 million from an institutional client of Invesco. The Norfolk, VA-based buyer plans to spend another $4 million to upgrade the 97%-occupied property.

Harbor already has a presence in the city, owning the Keeneland Crest and Oaks of Eagle Creek apartment complexes in the downtown area, says company president T. Richard Litton Jr. He says the firm also owned an office building in the city at one time.

The complex was built in 1989, and features one- and two-bedroom floor plans with an average unit size of 752 sf. Amenities include garages and carports, two heated swimming pools, two clubhouses, a fitness center, a dog park and a car wash, and unit amenities include washers and dryers, as well as patios and balconies.

“This property is just a great play for us, it’s a really fantastic location,” Litton tells GlobeSt.com. “There’s high quality retail and office surrounding the location, with not much vacant land where more apartments could be built. The property has been well run and managed, and we think with a nice capital program we can grow the rent.” These upgrades will be basic, he says, such as painting and siding replacement.

He says the apartment market, in Indianapolis and nationwide, continues to improve. “For most of our portfolio, apartment rents are growing, and more people are renting again,” Litton says. Rents at the property average $659 to $829 per month.