A joint venture organized by Alex. Brown Realty, Inc. (ABR) and Indianapolis based Buckingham Companies (Buckingham) has acquired the Quail Run Apartments in Zionsville, Indiana. As part of the transaction, the joint venture also acquired an adjacent 8.75-acre parcel, on which it plans to develop an additional 132 apartment units. ABR Chesapeake Fund IV, a value-add real estate fund sponsored by ABR, invested $7.5 million in the venture.
Quail Run is a Class B apartment community that includes 148 town-house units and 20 one-bedroom units on a 14.5-acre site located two blocks north of Ford Road and Oak Street, Zionsville’s primary retail corridor. The community also adjoins the Zionsville Rail Trail, a 3.5 mile greenway that connects Quail Run to downtown Zionsville and the area schools. Occupancy at Quail Run is currently 96%.
The joint venture plans to complete the unit renovation plan initiated by the former owner, which is expected to support rate increases. To date, 67 units have been renovated and the remaining 101 units will be renovated over the next 24 months.
The joint venture will also expand the Quail Run community by developing an additional 132 garden-style, Class A apartment units on the adjacent 8.75-acre parcel. The land is fully entitled and the joint venture anticipates construction will be completed by the summer of 2015.
“We continue to be impressed by Zionsville’s market fundamentals,” noted Brad Chambers, CEO of Buckingham. “Zionsville is one of the fastest growing communities in the Indianapolis metropolitan area – people are drawn to the area by its outstanding public school system and small-town charm. By expanding the Quail Run community, we expect to capitalize on that demand and create a scale that enhances operating efficiencies and property exit strategy by expanding the audience of potential buyers.”
Quail Run represents the first joint venture between ABR and Buckingham. “We look forward to a successful partnership with Buckingham,” commented Tom Burton, ABR’s CIO. “Buckingham has managed Quail Run since 2011 and they understand this market extremely well.”
Financing for the acquisition of Quail Run was provided by Fannie Mae. Centier Bank funded the acquisition and development loan for Phase II.
Alex. Brown Realty, Inc. is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
Founded in 1984, Buckingham is a full service, fully integrated real estate company that includes the development, acquisition, management and construction of a wide range of property types including multifamily, student housing and mixed-use communities. Buckingham manages nearly $1 billion of real estate assets for its own account, clients and institutional partners. Buckingham has managed more than 90 properties consisting of nearly 20 million square-feet of property and approximately 15,000 rental units nationwide. www.buckingham-co.com.
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Thomas R. Burton, 410-547-3009