Applegate Apartments

Applegate Acquisition Overview

J+G Companies is pleased to present Applegate Apartments, a 132-unit investment opportunity located in Muncie, Indiana. Applegate Apartments is an off-market, first look opportunity in a market where we already have good scale and strong performance. The property was purchased by one of the largest multifamily owners in the U.S. as part of a large portfolio. They don’t have a presence in Muncie, Indiana so they’ve decided to sell this asset.

Applegate Apartments offers strong in-place cash flow even with low current occupancy. The property currently has about 85% of the units rented. Our strategy is to leverage our operational scale in Muncie to improve occupancy and further improve cash flow.

This investment opportunity is structured with a purchase price of $7.5 million, supported by a $5.7 million loan and an equity raise of $3.0 million. The offering will be conducted under Regulation D, Rule 506(c).

Why We Like This Opportunity:

• Off-Market Advantage – We were given a first look at the deal prior to a broader marketing process, allowing us to secure the asset below initial pricing guidance.
• Recent Capital Improvements – Significant capex is being completed by the seller prior to close (siding, roofs, asphalt, paint, HVAC, etc.), materially reducing near-term capital needs.
• Portfolio Fit & Diversification – The asset complements our existing Muncie portfolio by adding primarily studio and one-bedroom units, filling a gap in our current unit mix.
• Market Familiarity – With three existing properties totaling 210 units in the Muncie MSA, we have strong operational knowledge, established vendor relationships, and a clear understanding of seasonality.
• Operational Upside – Current 85% occupancy provides a clear path to stabilization and revenue growth through improved leasing and management execution.
• Favorable Debt Terms – Competitive financing with interest-only period enhances early cash flow and supports overall deal returns.
• Strong Return Profile – Targeted 5-year returns include 16.82% IRR, 8.04% Cash-on-Cash, and a 2.01x Equity Multiple.