California company snatches up Louisville-area apartment complex in $22M deal
LOUISVILLE BUSINESS FIRST
By Laurel Deppen – Reporter, Louisville Business First
Jun 3, 2022
A California firm specializing in “workforce housing” has snatched up a Jeffersonville, Indiana, apartment complex in a $22 million deal.
Revitate Cherry Tree is a Newport, California-based firm specializing in acquiring, repositioning and managing multifamily assets across key markets in the U.S.
In an interview with Business First, Austin Maleki, principal of Revitate Cherry Tree, said the Southern Indiana location fit into the company’s Midwest expansion plans. He sees Louisville as a growing hub for innovation.
The facility, Beech Grove apartments, is located at 3014 Beech Grove Court in Jeffersonville. The 182-units complex is less than four miles from River Ridge Commerce Center, a major area employer, which the Maleki cited as another attractive asset.
Revitate Cherry Tree was also drawn to apartment complex because it is within a 15-minute drive to Downtown Louisville, but it is in a residential and suburban area.
The firm purchased both the building and the land it sits on from a family that it declined to name. Much of the $22 million investment in the project went to the acquisition of the facility and land.
The investment did include some renovations, but the Maleki stressed it didn’t complete any major projects. The firm's goal is to preserve the community and continue to operate it and create operational efficiencies.
The affordability of the community was also important because workforce housing will have more sustainability in the long term, the company said.
Locally, Revitate Cherry Tree is working with property manager Stone Creek. It is working to identify local contractors, constructors and landscapers to work with on its future renovation plans.
The company is expanding its reach across the Midwest, stating that it had about $73 million in transaction volume over the last six months across Kansas, Missouri and Indiana.
“Beech Grove presents a unique opportunity to own a well-maintained, strong cash-flowing workforce housing community less than 15 minutes away from the vibrant downtown Louisville market,” said Chris Marsh, Revitate Cherry Tree co-founder and general partner, in a news release. “Employers continue to be drawn to Louisville’s growth story, stemming from a high quality of life, affordable cost of living, and a cost competitive business environment.”