Any apartment investors in Indianapolis?

[Ki Lee]

Hello BP,

What kind of cap rate can I expect for value-add class C property in class C+ neighborhood in the Indianapolis area?  20-30 unit buildings with price range between $1M-$1.5M.

I would especially love to hear from someone who actually invests there or works with local investors (broker, property manager, lender)

Thanks

[Andrew Hogan]

Great question Ki. Oddly enough, in the Indy area, C class properties are yielding the same returns as B class properties that have less risk. We’re only acquiring stabilized assets that have a strong cash flow from day 1 and don’t need a heavy value add -- it’s not the right time in the economic cycle for that.