Peachtree Group Supplies $44M Construction Loan on Indiana Apartments
By Andrew Coen August 8, 2024 12:41 pm
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Keystone Group has inked $44 million of construction financing to build a multifamily asset in suburban Indianapolis, Commercial Observer can first report.
Peachtree Group provided the floating-rate loan on Keystone Group’s planned 233-unit The Benjamin property in Lawrence, Ind., at the site of the former Fort Benjamin Harrison Army base. The loan has 36-month term with one 12-month extension option.
Located at 5611 Lawrence Village Parkway around 15 miles north of downtown Indianapolis, The Benjamin development is slated for completion in early 2026. The five-story property will also feature 23,160 square feet of retail space.
Gregory Koenig, senior vice president of commercial real estate credit at Peachtree Group, said the public-private partnership aspect of the project with Keystone working in concert with the City of Lawrence was an attractive component to deciding to lend on the deal. He noted that the 3.8- acre site is one of the last remaining parcels to be developed where the Fort Benjamin derby base once stood, and will include a parking garage which can be used for events in the main street area of Lawrence.
“You have very strong sponsorship with a city that will be very focused on making sure this property is a success since they’re putting money into the deal as well,” Koenig told CO.
Koenig added that demand for multifamily is strong in the Indianapolis metropolitan area noting that a new apartment project across the street quickly became fully leased with limited new supply in the region.
Officials at Keystone Group did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
