CREC Real Estate, a private equity real estate investment firm, has emerged as the seller of a stake in VER at Proscenium, a 196-unit luxury property that is part of a mixed-use development in downtown Carmel, Ind. Sterling Group has acquired the interest.
Located at the intersection of Rangeline Road and West Carmel Drive, VER was completed in 2021 and features four multifamily buildings alongside two onsite restaurants. CREC said it acquired its stake in VER in 2019. Construction had already begun on the mixed-use retail portion of the 5.3-acre site but not on the multifamily units, CREC President Aaron Dixon said in prepared remarks. Yardi Matrix data shows the property was 95.9 percent occupied at the time of the sale to Sterling Group.
VER’s four adjoining buildings vary in style, from urban modern to industrial and art deco, and include studio and one- and two-bedroom floorplans, ranging from 601 to 1,356 square feet. The apartments have condo-grade contemporary finishes and in-unit washers and dryers. Private balconies or patios are available in select units. Rents range from $1,409 to $2,625, with an average price of $1,856, according to Yardi Matrix data.
Community amenities include an outdoor resort-style pool, a multistory virtual simulator, putting green fitness center, clubhouse with a 24/7 beer tap, business center and coworking space. The property is within walking distance of Rangeline Crossing business center and 1 mile from Merchant’s Square shopping mall. Downtown Indianapolis is some 15 miles to the south.
Mixed-use development
The multifamily property is part of Proscenium, an $85 million mixed-use development spread across 7 acres developed by Birkla Investment Group and Woolpert. The project includes Agora at the Proscenium, a 100,000-square foot building with office space and 40,000 square feet of retail space, and REV at Proscenium, a 22-unit condo building. The $29 million second phase of Proscenium is already underway and is slated to add 48 rental apartments, seven penthouse condos and some 16,000 square feet of restaurant and office space. Plans also call for Proscenium Tavern, a 4,600-square-foot building that will host a steakhouse and a wine and coffee bar.
CREC’s investments
In April 2022, a partnership between CREC and Rincon Capital Partners acquired Ascent 1829 Apartments, a 180-unit community in North Phoenix, for $48 million. A month earlier, CREC had closed its second real estate fund targeting value-add communities in secondary markets across the United States. The fund, CREC Real Estate Fund LP, closed with $80 million in investor commitments. Fund II targeted markets seeing job and population growth along with an undersupply of housing. Communities where the fund made investments last year included Atlanta, Cincinnati, Seattle, Phoenix, Tucson, Ariz., Hilton Head Island, S.C., and Charlotte, N.C.
