Miller Beach Apartments* (Previously Owned Property)
440 N Lake St, Gary, IN 46403
This underperforming work-force housing asset is a good example of the type of properties Green Thumb REIT is planning to acquire. Contrast Asset Management, (the REIT Manager) employs the same team that acquired in 2018, Miller Beach Apartments, managed it, and sold it on behalf of a Canadian Limited Partnership in 2020.
Miller Beach Apartments had attractive characteristics of a great value add opportunity. Its primary deficiency was poor management, which was quickly remedied when the property was purchased.
The exterior physical condition was far superior to many comparable buildings from the 1960’s. The common areas were above average for this class of property. However, approximately 50% of the units had interior conditions that were in a below average state. Increased revenue was derived from economically renovating the units and streamlining the operating expenses of the property. Significant growth in the value of the property was realized upon exit (sale), to an owner seeking consistent positive cash flow.
*Miller Beach Apartments is an example of the type of property that Green Thumb REIT will be targeting to acquire. Similar results are not guaranteed.
