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Just Acquired Nese Apartments | Whitestown, Indiana

by | Feb 12, 2024 | Multifamily Syndication | 0 comments

BAM Capital Multifamiy Syndication Nese Apartments Purchase Class A

We are thrilled to announce the newest asset in BAM Multifamily Growth & Income Fund IV: Nese Apartments.

Nese Apartments is a premier Class “A+”, garden-style luxury apartment community in Whitestown, IN, the fastest-growing suburb of Indianapolis.

Nese Apartment Purchase BAM Capital

Property Highlights

  • Institutional Quality: Constructed in 2022 by a renowned developer of luxury apartments, Nese Apartments is an institutional quality apartment community that consists of 240 units and large floor plans that average 1,021 square feet with impeccable interior finishes.
  • Path of Growth Location: Whitestown is Indiana’s Fastest Growing Suburb – 255% population growth since 2010 and 8% since 2021.  Nese Apartments is located near the largest economic development in Indiana’s history, the $56B LEAP Lebanon Innovation District. This development consists of a $3.7B Eli Lilly Pharmaceutical Complex that broke ground in April 2023. LEAP is set to create more than 50,000 jobs in the area.  Projected job growth is 41.9% compared to the national average of 33.5%.
  • Best-in-Class Amenities: Nese Apartments was constructed with unparalleled amenities, which is a key differentiator from the competition.  Some of these amenities include a resort-style pool and sundeck, 24-hour fitness center, pickleball court, private workspaces, entertainment areas, bark park with a pet spa, and detached garages.
  • Accessibility: Nese Apartments benefits from its proximity to major highways: I-65 and I-865.  These highways provide convenient access to the major economic drivers of downtown Indianapolis (20 min), Zionsville (10 min), Carmel (20 min), and Lebanon (12 min).
  • Exceptional School System: Nese Apartments is located in the A+ Rated Zionsville Community School District.

Ryan Thie, VP of Asset Management, and Ben Cotton, VP of Investor Relations, discuss the newest asset in Fund IV – Nese  Apartments – including the value-add potential and path of development location in the fastest growing suburb of Indianapolis, IN.

Investment Upside

  • Economies of Scale: Leveraging a vertically integrated platform with other assets owned/operated by The BAM Companies in the Indianapolis MSA, there is an opportunity to lower operating costs by as much as $83/unit per month and increase ancillary income by $58/unit per month.  These opportunities translate to an increase of more than $405K in net operating income.
  • Below Market Rents: Nese Apartment’s attractive lease rent growth of 5.4% over the last 6 months, underscores its strong financial potential.  The subject’s average rents are 10.91% ($175/unit per month) lower than the market leader.  This potential rent bump equates to as much as $480k in additional net operating income.
  • Wallet Share (Rent-to-Income Ratio): With a median household income of $103,365 and a 19.97% Wallet Share (Rent-to-Income Ratio) in Whitestown, IN.  This ratio is well below the national average of 30% and makes renting at Nese Apartments 1.7 times more affordable than owning in the area.  Not only does Wallet Share speak to affordability, it provides owners/operators the likelihood of increasing rental rates.

Nese Apartments is a strategic addition to the BAM Capital portfolio and presents an exciting opportunity for investors looking for an above-average risk-adjusted investment return.