Castle Point

About Castle Point

The Cushman & Wakefield Midwest Multifamily Advisory Group is pleased to present the exclusive listing of Castle Point, a 740-unit, 1974 to 1980-built apartment community located in vibrant South Bend Indiana.

The acquisition of Castle Point represents an opportunity to own a large asset adjacent to the city's highest-end suburb at a 5.6% T-12 Cap Rate and a 7%+ Cap Rate Year 1. The property offers an unmatched set of amenities in a sought-after South Bend location.

Large Iconic Asset - 5.6% T-12 Cap Rate

Castle Point is a well-regarded landmark community with it's massive unmatched amenity center, idyllic setting, and unique unit features and floorplans. Providing an excellent immediate yield, the property is being offered at a 5.6% T-12 Cap Rate and an achievable 7%+ in year one.

Huge Remaining Upside & Proven Premiums

The property offers significant revenue increase potential through continued unit upgrades and converting 2 bedroom units with dens into sought after 3 bedroom units. There are also several free strategies to raise cash flow including: maintaining strong rent increases on lease-trade (currently achieving 15% organically) and rightsizing bad debt and occupancy.

$5.6M Capital Infusion Completed

The current owner has enhanced the property through a $5.6M capital ex program. Improvements included clubhouse upgrades, elevating and adding amenities, and 366 unit interior renovations. 374 classic/previously renovated units remain, offering the new owner the ability to increase revenue by $1M annually.

High Income & Growth Location

Castle Point is located on the north side of South Bend and adjacent to Granger, the most upscale area in the region with the highest single-family home values in the county and touting 56% of households with incomes over $100,000.

The Strength of South Bend

The diverse economy of South Bend has upward momentum with ample new developments and growth. Prestigious Notre Dame University brings stability & educated talent, and the rental market offers an incredible 14.4% rent growth.