Red Oak closed on a $1.7-million loan secured by Marblehead Apartments, a garden apartment community located north of Downtown Indianapolis. The three-story property is 78% occupied and consists of 36 studio, one- and two-bedroom units.

The Red Oak team of Stratos Athanassiades, Originator and Regional Manager, Thomas Gorski, Senior CRE Underwriter, and James Myatt, CRE Loan Administrator, structured the financing, which was sourced by Alec Neesham of Atlas Real Estate Capital. The sponsor, Midwest Living Management, is a value-add investor and repeat Red Oak client that owns and operates 13 communities throughout Metro Indianapolis.

Its plans for Marblehead call for gut renovations to unit interiors, common area upgrades, and various exterior repairs. It will also bring it its own management to help address a roughly 15% deficiency in rental rates, leveraging the property’s upgrades and growing rental demand from Downtown Indianapolis’ younger, lower-income population demographic.