According to Downtown Indy, BAM’s home city metro area is set to gain quite a few new residential multifamily units in the next few years. Like many other metro areas, planned projects are set with others already underway which will help add to the inventory seeing demand in the Circle City. We share some of the numbers in today’s BAM Blog…
The Downtown Indy page reveals projects the city has either on the agenda or already under construction. Without including hotel rooms, there are 1,074 planned residential units that will be located throughout the downtown area, spanning as far west as S. White River Parkway and as far east as E. 10th street and I65/70.
Of these 1,000+ residential units, 789 are projected to be completed within the next four years – between now and 2023. 207 of these are anticipated to be completed by the third or fourth quarter of this year. Another 332 units are expected to be finished by next year.
These planned projects represent somewhat of a variety; while some of these units will fulfill more space in Class A, luxury housing, other projects also include units that are earmarked for more affordable housing. There are also residential units planned in mixed-use properties, such as the ambitious project located at the site of the former GM Stamping Plant.
Construction delays are being reported widely across the industry, as both higher construction costs and difficulty finding skilled labor combine to slow delivery of new multifamily units. As more of these projects begin construction, these conditions may in turn impact the expected delivery time.
In terms of existing multifamily investment, at this point in the cycle, BAM is avoiding heavy value-add properties and instead going after newer, nicer assets with light value-add. Properties such as B+ to A-/A that may be more expensive initially but also carry less risk is what BAM is currently looking for, according to BAM founder and CEO, Ivan Barratt. For more insight on BAM’s current investment strategy, take a listen to Ivan’s recent podcast appearances here.
Want more info and insight? Head over to ivanbarratteducation.com. You’ll find informative, free articles and videos featuring Ivan himself.