Red Oak provided $8.6 million for the acquisition and planned renovation of Canterbury House Apartments, a 110-unit garden apartment community located in suburban Indianapolis. Situated on 5.8 acres at 7955 Kingsmead Drive, the 84% occupied community features a mix of one- to four-bedroom units in seven buildings, as well as a pool, playground, and clubhouse within the common areas.

Regional Manager Stratos Athanassiades originated the loan, which was underwritten and administered by Thomas Gorski, Senior CRE Underwriter, and James Myatt, CRE Loan Administrator. Atlas Real Estate Capital’s Alec Neesham represented the sponsor, Midwest Living Management, a value-add multifamily investor that owns and operates 13 communities throughout Metro Indianapolis.

The sponsor plans extensive renovations on Canterbury House, focusing on modernizing unit interiors with new flooring, cabinetry, countertops, appliances, and in-unit washers and dryers. It will also address the asset’s major repair needs including new roofing and implement water and sewer submetering to enhance efficiency and further reduce operational costs. As renovations are completed and units are re-leased, the sponsor intends to correct a roughly 40% deficiency in market rents and then retire the Red Oak loan with long-term agency financing.