Wellings Capital is under contract to provide $10 million of JV Hybrid Equity to a well-established sponsor to acquire a 240-unit, 1998-vintage, garden-style multifamily community in the Indianapolis, IN metro. The Wellings Growth Fund II plans to provide at least $5 million, and this sidecar vehicle plans to provide the rest (subject to change). The closing is targeted for late February 2026.

Investment Highlights:

- Sponsor currently owns/operates over 2,800 multifamily units valued at over $500M and focuses solely on multifamily. Sponsor has completed over $2B in multifamily transactions comprising over 14,000 units since their firm was founded in 1992.

- Sponsor has a strong multifamily track record, including 54 sold multifamily deals with an average investor IRR of over 24%, an average investor equity multiple of ~2.3x, and no losses. 1

- Sponsor has a deep history in Indiana and Indianapolis, including ten successful, full-cycle multifamily properties and a currently owned 372-unit multifamily property (that is performing very well) located less than 3 miles from this new acquisition.

- New Fannie Mae loan will be fixed likely around 5%-5.5% (not yet rate locked) for 7 years with interest-only for 4 years at ~59.5% LTC.

- DSCR on day one is ~1.60x, representing a healthy margin of safety.

- Compelling value-add strategy to increase rents by an average of ~$188 per unit over the first 18-24 months through upgrades to ~50% of units, following a proven playbook validated by the seller.

- Supply-constrained infill location adjacent to a massive park, with no new multifamily under construction within a five-mile radius.

- JV Hybrid Equity structure provides investors with a compelling risk-adjusted return profile prioritizing a return of capital over common equity upon a sale while still allowing uncapped upside potential.

1. Track record is provided by the sponsor, is unaudited, and is available upon request.