Multi-Family Housing Boom
Upscale, multi-family housing has grown into a hot commodity in Central Indiana, and Custom Concrete’s commercial division has been busy meeting the needs of demand.
According to DTZ (formerly Cassidy Turley), the Indianapolis multi-family market registered 405 units of net absorption during the first quarter of 2015, an increase of 63% over the prior year’s first-quarter absorption tally of 246 units. That figures into more than five years of uninterrupted occupancy gains in Central Indiana.
Likewise, the vacancy rate holds steady at six percent, and the development pipeline in greater Indianapolis remains full with nearly 4,000 units currently under construction, 3,263 of which will be delivered in 2015.
One of those first-quarter deliveries included The Hamilton Luxury Apartment Homes, a 233-unit development owned and managed by the J.C. Hart Company, one of Central Indiana’s leaders in the upscale multi-family market since 1985. Custom Concrete has worked with the company for the last half-dozen years, first with basements and foundations and most recently with flatwork and multi-tenant commercial slabs, earning them status as a preferred provider according to company president John Hart.
“Today’s apartment dwellers are seeking something that lives more like a condominium with more detail door and window treatments, larger bathrooms with over-sized tubs,” says Hart. “Of late, we’ve concentrated on hard surface counter tops and laminate flooring.” One thing he notes has remained popular with those leasing J.C. Hart properties since 1985: direct access garages.
Despite the last five years’ growth, Hart maintains the market has not reached a saturation point. “We strive to design a product that crosses over a number of demographics from the entry level renter to the baby boomer,” he says. “While there is a spike of permits over the last year or two, the last five years’ permits has underserved the market by about 2,000 a year – so we are really catching up to get supply back in line with demand.”
This philosophy and reputation for a quality product have enabled J.C. Hart to weather times of economic uncertainty. “We have historically tried to keep moving forward … when times are good and not as good. Our business is cyclical; it takes so long to build a community from inception to zoning to construction. It’s three year cycle at minimum,” says Hart. “It was hard to predict three years ago what it would be today. With great locations, one-of-a-kind design and outstanding people providing excellent service, we feel like we can thrive in any market.”