Indianapolis-based real estate developer Milhaus has received a $245 million equity investment from FrontRange Capital Partners in Colorado and StepStone Group Real Estate LP. The developer says it will use the money, which also includes funding from a group of internal investors, to reach its goal of having 20,000 units in 10 markets by 2020.
Milhaus specializes in urban infill and suburban multifamily residential buildings, with projects currently underway throughout the country, including in Indianapolis. The company says the investments will also allow it to retain long-term ownership and control of its assets, such as Artistry in Indy.
At a news conference Wednesday in Indianapolis, Chief Executive Officer Tadd Miller said the company has also sold $100 million of assets, including the Mozzo and Circa developments in Indy, which will be reinvested into the company.
"The fact that we have attracted this type of international, sophisticated, quality capital expertise from some of the smartest people in the world in our industry just validates the secondary markets in our business plan and even more important, it validates Indianapolis, the state of Indiana and all of the other secondary markets that we operate in," Miller said.
The company’s portfolio value is expected to reach $689 million with nearly 2,800 units following the investments. By the end of 2018, Milhaus says it anticipates beginning construction on an additional 1,548 units, which would bring its portfolio value to more than $1 billion.
Indianapolis Mayor Joe Hogsett praised Milhaus for its growth and its work to boost the city’s downtown. "By prioritizing financial diligence without sacrificing the quality of design, coupling historic buildings with enhanced contemporary features, they propelled our downtown and its transformation without losing sight of tradition."
In 2015, Milhaus announced plans to invest $1.6 million to expand its Indianapolis headquarters and add 250 jobs by 2020. The company has developed and built more than 3,800 units of multifamily apartments and manages nearly 7,500 units.