CBRE Arranges Sale of 196-Unit Trophy Mixed-Use Residential and Retail Development in Carmel, Indiana

CBRE has arranged the sale of VER at Proscenium, a 196-unit, trophy mixed-use asset in the center of the affluent suburb of Carmel, Indiana to the Sterling Group for an undisclosed amount.

CBRE’s Steve LaMotte, Jr., Dane Wilson and Ross Wettersten represented the undisclosed seller in the transaction.

VER at Proscenium is located at 1225 Veterans Way and features studio, one- and two-bedroom floorplans. Amenities include a resort-style swimming pool, state-of-the-art fitness center, pet spa, virtual sports simulator, co-working space and the metro area’s only fob-activated resident beer tap. The community has two restaurants on-site: Wahlburgers and 101 Beer Kitchen, a third on the way, and the Indy metro’s prestigious salon and spa, Lux Lab Hair + Body.

“Despite significant market turbulence and a complex physical asset, CBRE procured 20 bids to purchase VER at Proscenium, a fitting demonstration of demand from sophisticated investment capital for the most notable multifamily transaction of the year in the Indianapolis metro,” said CBRE’s LaMotte.

Completed in 2021, VER at Proscenium is situated in the center of Carmel’s world-class redevelopment and amenity zone with access to employment, shopping, restaurants, entertainment and the Monon Trail which create a walkable environment and a high quality of life. It is located near the U.S. 31 corporate corridor, the second-highest concentration of office workers in Indiana with over 40 corporate headquarters. Carmel was recently voted the no. 1 small city in America by WalletHub.

LaMotte added, “With 20 bids, the market was undeterred by the complexities of the asset which included an HOA containing office space and condos, an air rights structure and TIF which effectively caps real estate taxes at roughly half of what they would otherwise be.”

Apartment fundamentals are strong in Carmel, which experienced 5.9% year-over-year rent growth in Q2 2023, according to CBRE Research. More than 40 national, regional, and local companies have established their corporate headquarters in Carmel. Carmel is home to Indianapolis metro’s top suburban rents, now approaching $2.25 per square foot in the most recent supply currently delivering. Carmel has positioned itself as the Indianapolis metro’s wealthiest submarket with average household incomes of $175,496 and the top 1% ranked school system in the state.