The Sterling Group and Virtus Real Estate Acquire Multifamily Property In Indiana
The Sterling Group has purchased Lake Castleton, a 1,261-unit apartment community on the highly desirable northeast side of Indianapolis. Sterling made this investment in a joint venture with Virtus Real Estate, LLC (“Virtus”), an Austin, Texas-based private real estate manager. Sterling will manage the property.
Located at the corner of Shadeland Avenue and 75th Street, near the interchange of I-465 and I-69, Lake Castleton is adjacent to Community North Hospital and within close proximity to downtown Indianapolis, Castleton, Broad Ripple, Fishers, and Keystone at the Crossing.
Lake Castleton is situated on nearly 90 acres of land and comprised of two-story, all brick buildings featuring studio, one-, and two-bedroom apartments, as well as townhomes. There is a wide variety of floor plans ranging in size from 431 square foot studios to 1,266 square foot townhomes. Residents of Lake Castleton live just minutes from some of the best shopping, dining, and entertainment the area offers. Community amenities include two lakes, two resident clubhouses, two swimming pools overlooking the larger lake, multiple laundry facilities, a fitness center, acres of green space, grilling stations, a dog park, multiple tennis courts, a basketball court, and a playground. Plans include customer service and capital improvements. Capital improvements include a multimillion dollar renovation program to expand common area amenities, enhance the exterior grounds, and upgrade interior units.
“Our acquisition of Lake Castleton Apartments gives Sterling another opportunity to serve residents of a vibrant community and to expand our presence in the Indianapolis market,” said The Sterling Group’s President, Lance Swank. “Lake Castleton is a well-built and beautiful property located in a strong in-fill location. Our plan is to utilize our seasoned professional management team to enhance customer service and to execute an extensive capital improvement plan to renovate both the interior units and exterior amenities of the property. We acquired this property at a significant discount to replacement cost, and we look forward to bringing value to our residents through customer service and competitive rents while delivering a significantly improved product.”
“Lake Castleton fits our investment strategy focus on cycle-resilient property types well,” said Virtus Managing Director, Kevin White. “We see an opportunity to make improvements to the property that will create a better experience for the residents while still being a great relative value compared to other competitors in the market. We are actively looking for similar multifamily opportunities to invest in across the U.S.”
About The Sterling Group
The Sterling Group, founded in 1976, is a family-owned and vertically-integrated real estate investment firm specializing in multifamily housing and self-storage properties. Sterling companies include development, construction, property management, and investment management. Sterling owns and manages approximately 14,000 units of apartments and self-storage properties across the United States with a concentration within the Midwest and Southeast. For more information about Sterling management or investments, please visit www.thesterlinggrp.com or contact Andrea Vinstra, Vice President of Management, at 574-247-3241, or Clay Scheetz, Chief Investment Officer, at 574-247-3259.
About Virtus Real Estate
Virtus Real Estate, LLC was founded in 2003 and brings thoughtful stewardship to the practice of real estate investment by delivering non-correlated alpha via cycle-resistant real estate. Over the last 14 years, Virtus has completed 200 property transactions for a combined acquisition value of $3.2 billion. With a strong and established track record, Virtus has proven to be successful in all phases of the market cycle. For more information, please visit www.virtusre.com.