Why Milhaus has an Indy Urban Investment Focus?

Indianapolis is our home, and regardless of this bias and lack of multi-family REIT activity, there are a lot of facts that make us bullish on our investment in Indy, especially in the Downtown and Midtown markets. While traveling, I regularly hear about Indianapolis being a flyover state, but every time we actually host an investor, client or customer, their departing image is different than this expectation, and they typically want to come back and hear more. When you consider that “Indianapolis is growing 50% faster than the US as a whole” and has had a net inflow of 65,000 people over last few years,” (Aaron Renn; 2010 Indy Partnership Keynote Address, March 23rd, 2010), it is apparent that this isn’t a sleepy, do nothing nowhere land.

While speaking at ULI’s Fall Conference in 2010, Craig Thomas of Avalon Bay Communities said that the Midwest in general was a “sleeper opportunity,” where low land and wage costs combined for a “screaming bargain.” Most importantly, Thomas was clear that the real key to investment is going where the jobs go. This is important because according to Renn, “Indianapolis created 17,000 jobs in the last decade.” However, Renn went on to say that “Being happy about being the “Diamond of the Rust Belt” is a bit like getting excited winning the loser’ bracket in the JV playoffs again this year. It’s a low hurdle to jump……Indianapolis has already shown that it is the king of the Midwest. Now it is time to graduate, and move up to the next level of competition. Set the sights higher.”

Milhaus believes that Indy has set the bar higher, both from the statistics above, as well as all the activity that is taking place here. According to Develop Indy, the economic development group associated with the municipal government, their 2010 report shows creation of 8,737 new jobs, retaining 7,159 jobs, for a total of 15,896 for a total capital investment of $933,955,063, an incredible array of statistics in this staggering economy. With a state that still has rainy day funds, a balanced budget, as well as job growth, it’s hard to argue that Indianapolis is the place to be. With investors buying on jobs, and employees buying based on livability, Indianapolis is a proving a great place to be and invest, and has an incredible future ahead of it!

Indianapolis, IN Job Statistics
10-year Averages
New Jobs: 3,637
Capital Investment: $390,244,012
140% increase of new jobs in 2010 over 10-year average
90% increase of new jobs in 2010 over previous record year
139% increase of capital investment in 2010 over 10-year average
49% increase of capital investment in 2010 over previous record

Data given by Develop Indy; 12/31/2010