Situated nearly 30 miles from Cincinnati, Revitate Cherry Tree has acquired Tuscany Bay, a 96-unit highly amenitized multifamily property in Lawrenceburg, Indiana. The acquisition marks the completed investment on Revitate Cherry Tree Multifamily Fund I with a $110 million portfolio totaling 841 units across six properties.
“This acquisition reflects the high quality and strategic precision we’ve been able to achieve throughout the life of the fund,” says Chris Marsh, general partner with Revitate Cherry Tree. “In just over one year, we’ve successfully identified and acquired six communities that match our investment thesis and serve our mission to preserve the availability of attainably priced housing for working families throughout the American Midwest. In each case, we’ve selected markets with strong long-term growth drivers that present strong potential for both risk-adjusted returns and inflation protection for our investors.”
Revitate Cherry Tree’s Tuscany Bay acquisition follows its 182-unit acquisition in Jeffersonville, Indiana, and a 210-unit acquisition in Elkhart, Indiana, giving scale across the state.
“Migration patterns to the Sun Belt are well known and well documented across general and financial media,” explains Alex Bhathal, Revitate executive chairman and Revitate Cherry Tree general partner. “But another set of American cities is often overlooked—one that is attracting a growing population of residents drawn by good job prospects, attainable cost of living, and a diverse array of living amenities. These Midwest growth markets include Kansas City, Louisville, Indianapolis, Cincinnati, and Columbus.”
Marsh says that Revitate Cherry Tree’s first workforce housing acquisitions in the fund were also in the same region and included three multifamily communities totaling 353 units in Kansas City, Missouri.
“We are accessing major untapped potential by drilling down to invest only in workforce housing in this particular Midwest region,” Marsh explains. “The supply-demand fundamentals are exceptionally strong in this sector, driven by rising home prices and limited supply that is further constrained by value-add investors upgrading vintage assets as well as rising material and labor costs that restrict new development. The conclusion is a well-maintained and well-operated asset class that offers safe, stable, and comfortable living environments within short commuting distances of major employment centers.”
Tuscany Bay demonstrates this strategy with its proximity to the newly developed Amazon Air Hub, a $1.5 billion air cargo facility at the Cincinnati/Northern Kentucky International Airport, along with Cincinnati employment hubs. The community offers large two- and three-bedroom floor plans, an upgraded clubhouse,a pool, a playground, a TV room, and a fitness center.
“Like the other assets in the fund, Tuscany Bay is situated in a well-connected region and offers the opportunity to create strong value through our team’s deep expertise in on-site operational strategy,” says Marsh. “With this acquisition, we are on track for strong performance across the fund portfolio, centered on a property type that has historically performed well in times of economic uncertainty. Based on these drivers, we are now seeing demand rise quickly for a subsequent workforce-housing-focused fund.”
