Despite these setbacks, there was a notable increase in the under-construction pipeline, which reached 4.5 million square feet as of January. The jump marked a significant increase from the previous January, when a single project measuring 300,000 square feet was underway.

Projects, such as Ely Lily and Co.’s campus at the LEAP Research and Innovation District in Lebanon, Ind., are helping to sustain the market’s pipeline. In May, the company announced an additional $5.3 billion investment, building on the $3.7 billion already committed.

Later in the year, the firm revealed plans for the $4.5 billion Lily Medicine Foundry, the first facility to integrate research and manufacturing. These developments are keeping the market afloat and demonstrate a commitment to innovation and growth.

Smallest development pipeline among peer markets

Indianapolis’ industrial sector had nearly 4.5 million square feet under construction at the end of 2024, according to CommercialEdge data. These projects accounted for 1.2 percent of the market’s total inventory, slightly below the national average of 1.7 percent.

Compared to its peers, Indianapolis had the smallest amount of space underway. Phoenix ranked first with 22.3 million square feet, followed by Dallas (18.9 million square feet) and Houston (12.4 million square feet).

Early last year, Simtra BioPharma Solutions announced an expansion exceeding $250 million for its sterile fill/finish manufacturing campus in Bloomington, Ind. The new 150,000-square-foot facility is expected to be operational by this summer.

Another facility that is expected to come online this year is Sephora’s build-to-suit distribution center in Avalon, Ind. Developed by VanTrust Real Estate, the 746,672-square-foot facility broke ground last year and is part of the firm’s Avon Landings Commerce Park.

Completions remain below national figures

In 2024, Indianapolis had 6.1 million square feet in industrial completions across 13 properties, accounting for about 1.6 percent of total stock. This figure was below the national average of 1.9 percent.

Among its peer markets, Indianapolis had the least amount of new industrial space delivered last year. Phoenix led with 36 million square feet, followed by Dallas with 27.6 million square feet and Chicago with 14.9 million square feet.

Deliveries are expected to remain steady in 2025, as 4.2 million square feet of industrial space broke ground last year and are slated for delivery.

This quarter, Ambrose Property Group completed Building III, a 233,000-square-foot facility in Whitestown, Ind., within the Indianapolis Logistics Park Northwest. The first phase of the campus will comprise three buildings totaling more than 700,000 square feet.

Indy asset prices less than half the U.S. average

In 2024, the Indianapolis industrial real estate investment volume amounted to $320.7 million in sales from the 46 assets totaling 4.4 million square feet that changed hands. This placed the metro behind all its peer markets.

On average, Indianapolis assets traded for $73 per square foot, significantly lower than the national average of $167 per square foot. The Bay Area recorded the highest sale prices nationally at $414 per square foot, followed by Orange County ($314 per square foot) and Los Angeles ($294 per square foot).

In January, Libitzky Property Cos. acquired Park 130 @ Whitestown Building 3, a 319,336-square-foot facility in Whitestown, for $28.4 million. Sold by EQT Exeter, the property houses a distribution center operated by Frito-Lay.

Vacancy rates continue to rise

As of January this year, Indianapolis’ average industrial vacancy rate stood at 9.1 percent, marking a 650-basis-point increase from the previous year. This rate was also 1.1 percent higher than the national average. Among its peers, Orange County (5.0 percent) posted the lowest figure, followed by Atlanta (7.2 percent) and the Inland Empire (7.9 percent).

In May, Cummins Inc. leased a 1.1 million-square-foot building at Mohr Logistics Park, a 475-acre industrial campus. Mohr Capital completed the building in 2023.

As of January, the average listing rate within the Indianapolis metro was $4.9, notably lower than the national average of $8.4. Among peer markets, Orange County ($16.6) had the highest rate, trailed by Los Angeles ($15) and the Bay Area ($13.5).

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Deliveries in the metro decreased significantly, with only 6.1 million square feet coming online year-to-date through August, marking a more than 50 percent drop year-over-year, CommercialEdge data shows. However, the under-construction pipeline slightly increased, with 2.3 million square feet underway, up from 1.9 million square feet registered during the same period last year.

Additionally, the metro’s industrial vacancy rate is also on the rise. The rate reached 6.3 percent in August, slightly below the 6.7 percent national average, but more than twice the 2.5 percent recorded that same month last year.

Indy deliveries halve year-over-year

Indianapolis’ industrial sector saw 13 properties delivered year-to-date through August, totaling 6.1 million square feet. This accounts for 1.6 percent of total stock, slightly above the 1.3 percent U.S. figure, but less than half the metro’s 13.8 million square feet completed during 2023’s same period.

The metro surpassed Atlanta and New Jersey, each having 5.8 million square feet in deliveries. The Inland Empire (19.2 million square feet), Phoenix (20.2 million square feet) and Dallas (22.8 million square feet) led nationwide.

Earlier this year, a joint venture between Browning and Prologis completed Subaru of America’s 1.1 million-square-foot distribution center in Zionsville, Ind. The developer took out a $78 million construction loan for this project, CommercialEdge shows.

New projects boost pipeline

The Indianapolis industrial market registered almost 2.3 million square feet of space under construction at the end of August, spanning eight projects and accounting for 0.6 percent of the metro’s total inventory—placing it below the 1.8 percent national average. Indianapolis lagged peer markets, with New Jersey (7.0 million square feet), Atlanta (8.2 million square feet) and Chicago (9.5 million square feet) faring better, while Phoenix remained in the lead with 34.9 million square feet underway.

Year-to-date through August, five properties totaling 1.7 million square feet broke ground in Indianapolis, about 0.4 percent of the market’s stock. This figure is on par with the 0.7 percent U.S. average.

One of the largest developments that started going vertical this year is Sephora’s Midwest distribution center. The beauty retailer tapped VanTrust Real Estate to construct its 746,672-square-foot build-to-suit facility in Avon, Ind., which is expected to be delivered next summer.

In May, pharmaceutical company Eli Lilly and Co. invested an additional $5.3 billion at its 600-acre campus in Lebanon, Ind. The firm’s site is within the 9,000-acre LEAP Research and Innovation District and is set to include manufacturing facilities for antidiabetic and weight loss drugs.

Indianapolis industrial sale prices go up

Year-to-date through August, the Indianapolis market recorded $252 million in industrial deals. The average trading price was $93 per square foot, significantly lower than the $132 national average. Although sales nearly halved year-over-year, the average sale price per square foot rose by $12.

The metro fared worse than all peer markets. Dallas ($3.0 billion), Chicago ($1.9 billion) and Phoenix ($1.6 billion) were at the opposite pole.

In May, Nuveen Real Estate purchased a two-building portfolio in Plainfield, Ind., from HSA Commercial Real Estate. The properties totaling 371,200 square feet are part of Gateway Business Park.

Two months later, Lincoln Property Co. sold 4321 Albert S. White Parkway, a 146,640-square-foot facility in Whitestown, Ind. Battery manufacturing company SungEel HiTech acquired the recently completed asset, according to CommercialEdge.

Vacancy rate continues to rise

The average listing rate during the same month was $4.88, an 8.0 percent increase from August last year. The market’s rate was below the $8.11 U.S. figure and those registered in Dallas ($6.09) and Atlanta ($5.86).

Indianapolis’ industrial vacancy rate at the end of August clocked in at 6.3 percent, 40 basis points below the national average and considerably above the 2.5 percent rate registered in 2023’s same month. Among peer markets, Phoenix (5.6 percent) registered the lowest vacancy, followed by Atlanta (5.8 percent), Dallas (7.7 percent) and New Jersey (8.1 percent).

In May, global power solutions company Cummins Inc. fully leased a 1.1 million-square-foot building at Mohr Logistics Park, a 475-acre industrial campus. Mohr Capital recently completed the facility.

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The facility will give the Indianapolis-based company the ability to research new ways of producing medicines, while also scaling up production for clinical trials. It is slated to open in late 2027 and is expected to add 400 full-time jobs for highly skilled workers including engineers, scientists, operations personnel and lab technicians.

The Medicine Foundry will combine research, manufacturing and the latest technology to develop innovative solutions for new production methods, increase capacity for clinical trial medicine, scale global access for the company’s growing pipeline while reducing costs and environmental impact.

In particular, the facility will enable production of various molecular therapies, including drug substances for small molecules, biologics and nucleic acid therapies. The new technologies will then be transferred to other manufacturing sites for full-scale production.

READ ALSO: Recovery Is in Sight for the Life Science Sector

The new location in LEAP will offer close proximity to the Lilly Research Laboratories in Indianapolis and the company’s manufacturing sites in Lebanon.

In May 2022, Lilly announced plans to invest $2.1 billion in two new manufacturing sites in Lebanon to expand its network for active ingredients and new modalities including genetic medicines. Lilly broke ground on those facilities nearly a year later and announced an additional $1.6 billion investment.

This May, Lilly announced another $5.3 billion investment at the Lebanon manufacturing site to increase production capacity for ingredients for its latest diabetes and obesity medicines, Zepbound and Mounjaro.

Lilly CEO David Ricks told CNBC yesterday the pharmaceutical giant has 11 obesity drugs in its pipeline and is also seeking to develop more treatments for neurodegenerative conditions like Alzheimer’s disease and amyotrophic lateral sclerosis, or ALS. Mounjaro and Zepbound, part of a popular group of GLP-1 drugs like Novo Nordisk’s Ozempic and Wegovy, have been successful products for Lilly. They are expected to provide $50 billion in revenue alone by 2028 or twice the company’s entire 2022 revenue, according to CNBC.

State support

The State of Indiana will provide infrastructure improvements at the site including roads, water, electricity and other utilities. The state will also offer economic incentives tied to Lilly’s investment and employment goals in Lebanon.

The Indianapolis Star reported the Indiana Economic Development Corp. will contribute an additional $456 million in tax incentives based on achieving certain hiring goals. The newspaper stated Lilly’s total incentive package would reach more than $1.25 billion, including an additional $20 million in redevelopment tax credits.

Lilly began construction on its 600-acre campus last year. The combined projects are expected to bring about 1,300 jobs to the area as well as approximately 5,000 construction jobs.

Indiana Secretary of Commerce David Rosenberg said in prepared remarks the LEAP district is quickly becoming an international destination with $18 billion in committed capital investment on 2,300 acres since its launch in 2022.

The LEAP district is located about 30 miles to the northwest of Indianapolis and 35 miles to the southeast of Purdue University. The 9,000-acre site is located along Interstate 65 and is dedicated to the development of life science and tech-related office, industrial, mixed-use and multifamily projects.

Expanding its reach

With the new investment in the Medicine Foundry, Lilly’s total capital commitment in the U.S. has reached more than $23 billion since 2020.

In August, Lilly opened its Lilly Seaport Innovation Center, a research and development facility in Boston’s Seaport district. The 12-story, 346,000-square-foot building at 15 Necco St. was developed by Alexandria Real Estate Equities Inc., in partnership with National Development. Lilly had preleased the building during its construction in early 2022.

The company plans to use the site for research in RNA- and DNA-based therapies. It will also be used to pursue new medicines and treatments for diabetes and obesity as well as chronic pain, cardiovascular and neurodegenerative diseases.

The company is also developing facilities in Concord and Research Triangle Park, N.C., as well as in Ireland and Germany. Lilly has also allocated $1.2 billion to upgrade its existing facilities in Indianapolis and acquire an injectable drug production plant previously owned by Nexus Pharmaceuticals.

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VanTrust Real Estate will develop a 746,672-square-foot build-to-suit facility for Sephora in Avon, Ind. The 61-acre property will serve as the beauty retailer’s Midwest distribution center and is scheduled to come online next summer.

This marks the second collaboration between the two companies. In 2019, VanTrust completed Tropical Distribution Center 2, a 715,000-square-foot facility in North Las Vegas that is fully occupied by the cosmetics supplier.

Development partners for the upcoming facility include general contractor Pepper Construction, architecture firm MacGregor Architects and civil engineer American Structurepoint. The building is designed to meet LEED Silver certification. CBRE Executive Vice Presidents Toby Mink and Andrew Morris arranged the deal on behalf of Sephora.

READ ALSO: I.CON East Special Report: Industrial Opportunity Snapshot

VanTrust will build the distribution center within its Avon Landings Commerce Park, a two-phase industrial project measuring 119 acres. The developer broke ground on the first three speculative buildings two years ago, of which one has already been completed. Together with the upcoming Sephora distribution center, the campus will encompass nearly 1.5 million square feet.

The industrial park is on Ronald Reagan Parkway, allowing access to interstates 465 and 74. The Indianapolis International Airport is within 8 miles, while downtown Indianapolis is some 12 miles east.

Indianapolis’ steady industrial sector

Despite increased construction costs, Indianapolis had nearly 4.8 million square feet of space under construction as of May, representing 1.3 percent of existing stock, according to the latest CommercialEdge industrial report. Additionally, the market’s vacancy rate was 4.7 percent, 90 basis points lower than the national average.

In May, Eli Lilly and Co. announced a $5.3 billion investment at its Lebanon, Ind., manufacturing site. This new funding is aimed at enhancing production capabilities for ingredients used in Zepbound and Mounjaro, which are injectable antidiabetic and weight loss drugs. Production at the 600-acre campus is expected to start at the end of 2026.

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Lincoln Property Co. has sold 4321 Albert S. White Parkway, a 146,640-square-foot distribution center in Whitestown, Ind. Colliers brokered the transaction on behalf of the seller.

In 2022, Independent Bank issued a $10.4 million construction note set to mature in June of 2025, according to CommercialEdge. Peterson Construction & Property Services served as general contractor.

The 2023-built property features 32-foot clear heights, 53-foot by 56-foot 8-inch column spacing with a 60-foot speed bay, 12 dock doors, two drive-in doors, 40,000-pound mechanical levelers, as well as a truck court depth of 130 feet, 126 parking spaces and 41 trailer spots.

READ ALSO: 5 Capital Trends to Watch in H2

Located inside the 616-acre industrial park AllPoints at Anson, the distribution center is less than 1 mile from Interstate 65. Boone County Airport and the Indianapolis International Airport are some 4 and 26 miles away, respectively.

Colliers Executive Vice President Jason Speckman and Senior Vice President Jimmy Cohoat represented Lincoln Property Co.

Indianapolis industrial vacancy rate inches upward

In the first quarter, investors traded $64 million in industrial assets throughout metro Indianapolis. EQT Exeter’s disposition of Park 130 at Whitestown Building Three is one noteworthy transaction that took place earlier in the year. The asset changed hands for $28.4 million.

As of March, Indianapolis’ industrial vacancy rate rested at 3.2 percent, 80 basis points higher than a year ago but still significantly below the U.S. average.

One notable lease also occurred relatively recently within AllPoints at Anson. Last year, Rockwell Automation doubled down on its 369,449-square-foot lease at CBRE Investment Management’s Anson 8A, renewing the deal at the 708,367-square-foot building.

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Clark Construction Group has topped out the first phase of Andretti Global’s new headquarters in Fishers, Ind., measuring almost 400,000 square feet. Partners on the development also include master developer Bradford Allen, architect of record RATIO and design firm Ridge and Partners.

The building is part of a 90-acre campus and more than quadruples Andretti’s current headquarters. The company broke ground on the $200 million project in December 2022 and plans to relocate to the new complex in 2025. At full build-out, the property will measure some 575,000 square feet.

In 2022, the Indiana Economic Development Corp. announced plans to invest up to $19 million in Andretti Autosport through conditional tax credits and up to $125,000 in training grants, contingent on the company’s investments in its Indiana operations. Additionally, the city of Fishers has granted further incentives.

READ ALSO: Indianapolis Industrial Construction Booms in Q1

The Phase One building will house day-to-day operations for the racing team, as well as Andretti Technologies’ advanced research and development pursuits. A fitness center, walking trails, amphitheaters, employee gathering areas and expanded dining options will be part of the facility’s set of amenities.

Plans also call for the construction of Andretti Experience, an expanded section of the complex that will cater to fans and the community. The property will include interactive experiences, memorabilia, museum exhibits and public dining, among others.

The development is on the southeast side of Indianapolis Metropolitan Airport, near E. 96th St. and Hague Road. Downtown Indianapolis is some 18 miles away.

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Eli Lilly and Co. has announced an additional $5.3 billion investment at its Lebanon, Ind., manufacturing site, increasing its commitment within the LEAP Research and Innovation District from $3.7 billion to $9 billion.

According to Lilly, the new capital is geared toward production capabilities related to ingredients for the Zepbound and Mounjaro products, which are injectable antidiabetics and weight loss drugs.

Additionally, the company has also committed to the construction of a new manufacturing training center that will host programs with Ivy Tech Community College and Purdue University.

Capital injections

Construction on the 600-acre campus, located between Wilt Road and Interstate 65, began last year. The development is expected to spin up production at the end of 2026, increasing the scope of its operations over the following two years. During the development process, the project is expected to employ more than 5,000 construction workers, with another 900 full-time employees expected to work at the campus once it becomes operational.

Lilly’s initial commitment was announced in May of 2022, when the Indianapolis-based pharmaceutical giant announced the allocation of $2.1 billion for the construction of two manufacturing facilities at the site. That announcement came roughly two years after the firm had made research breakthroughs related to Tirzepatide, sold as Zepbound and Mounjaro. The U.S. Food and Drug Administration approved the drugs for use that same month. Under a year later, the firm committed an additional $1.6 billion to the site, which added 200 long-term jobs.

READ ALSO: Life Science Prospects Are Looking Up: JLL

Lilly’s latest expenditure brings the company’s total manufacturing-related investments and developments this decade to $18 billion, motivated in part by its successes with Tirzepatide. The firm is also developing facilities in Concord and Research Triangle Park, N.C., as well as in Ireland and Germany. Outside of new development, Lilly has allocated $1.2 billion to upgrade its existing facilities in Indianapolis, in addition to acquiring an injectable drug production plant previously owned by Nexus Pharmaceuticals.

Leaping forward

The LEAP Lebanon Innovation District, located roughly 30 miles to the northwest of Indianapolis and 35 miles to the southeast of Purdue University, is a 9,000-acre site located along Interstate 65, dedicated to the development of life science and tech-related office, industrial, mixed-use and multifamily projects.

According to a March 2023 article from the Indiana Capital Chronicle, the Indiana Economic Development Corp., the development’s sponsor, bought more than 1,500 acres of land in the area for $126 million. To date, Eli Lilly remains the district’s only committed private entity.

One of the nation’s largest life science clusters, Indianapolis continues to see long-term investments from some of the industry’s biggest power players. In February, Simtra BioPharma went public with a $250 million expansion of a fill and finish manufacturing campus in nearby Bloomington, home to Indiana University. Two months prior, NexCore Gorup begun its development of Waterway Labs, a $60 million, 100,000-square-foot facility geared toward startups and larger companies.

The post Eli Lilly Boosts Manufacturing Site With $5.3B Investment appeared first on Commercial Property Executive.

Year-over-year as of March, the metro’s under-construction industrial pipeline grew more than seven times, reaching roughly 4.3 million square feet, according to CommercialEdge information. Moreover, almost 3 million square feet came online between January and March.

Infrastructure projects like the I-69 Finish Line extension, Clear Path 465 and Revive I-70 initiative also enhance connectivity and improve transportation efficiency, making Indianapolis an attractive location for businesses reliant on seamless logistics.

Indianapolis’ pipeline grows significantly

At the end of the first quarter, Indianapolis’ industrial sector saw 4.3 million square feet of space under construction across 12 properties, a pipeline more than seven times larger than in the same interval last year, when only one project was underway. However, there is no data about any construction starts between January and March, CommercialEdge shows.

With 1.1 percent of total stock underway, the metro lagged Atlanta (2.2 percent), Dallas (2.5 percent) and Phoenix (10.3 percent), but surpassed Chicago (1.0 percent).

In February, Simtra BioPharma Solutions announced plans for a $250 million-plus expansion of its sterile fill/finish manufacturing campus in Bloomington, Ind. The company will build a 150,000-square-foot facility, with completion anticipated for 2026.

In August, Brennan Investment Group acquired 68 acres in Brownsburg, Ind., for the development of two industrial facilities that will total 826,687 square feet. Dubbed Park 74 Commerce Center, the campus is expected to come online in the following months.

Less facilities to come online

January through March, six warehouses totaling almost 3 million square feet came online, accounting for 0.8 percent of total stock, 20 basis points higher than the national average. Still, this marks a considerable decline from the 8.8 million square feet of industrial space delivered in 2023’s first quarter, CommercialEdge data shows.

Despite a nationwide activity slowdown affecting all markets, New Jersey (2.5 million square feet) was the only peer market to see less space delivered than Indianapolis. At the opposite pole, the Inland Empire (12.2 million square feet), Dallas (9.1 million square feet) and Chicago (6.3 million square feet) registered the highest square footage in deliveries.

In the first quarter of last year, Mohr Capital completed Building 6 at Mohr Logistics Park, a 1.1 million-square-foot logistics center in Whiteland, Ind. The property is part of a 475-acre master-planned development, which is expected to measure 7 million square feet upon full build-out.

Another facility that came online more recently is Sunbeam Development’s Building 2 within I-65 South Commerce Park, encompassing more than 1.1 million square feet. The distribution center is part of a 542-acre campus set to encompass up to 11 buildings.

Transaction activity follows national patterns

Indianapolis transaction activity closely mirrored national trends in the first quarter, with $64 million in assets trading, according to CommercialEdge. The total sales volume in the U.S. during this period stood at $10 billion.

Industrial properties in the market changed hands for an average of $62 per square foot, less than double the $147 national average and the lowest price among top metros. Western markets saw the highest prices per square foot, Orange County ($326) and Los Angeles ($325) being the most expensive.

In January, EQT Exeter sold Park 130 @ Whitestown Building 3, a 319,336-square-foot facility for $28.4 million—around $88.93 per square foot—to Libitzky Property Cos. The multi-tenant warehouse located in Whitestown, Ind., came online in 2018 and was triple-net leased at the time of sale to Frito-Lay, Home Depot and FBN.

Last year, Transwestern Investment Group purchased Ameriplex 4, a 912,522-square-foot facility on behalf of a separately managed account. The property, part of the World Connect at Ameriplex industrial park, is fully leased to PepsiCo’s Quaker Sales & Distribution Inc.

Indianapolis industrial vacancy rate remains low

With less space hitting the market in recent months, Indianapolis’ industrial vacancy rate as of March stood at 3.2 percent, 2.0 percent lower than the national average, but still 80 basis points higher year-over-year. Midwestern markets performed best during the same month, with Columbus and Kansas City posting the lowest vacancy rates at 2.4 percent. Meanwhile, Chicago (6.1 percent) and the Inland Empire (6.0 percent) fared worse.

Notable industrial leases in the metro within the past year included Rockwell Automation renewing its 369,449-square-foot commitment at Anson 8A, a 708,367-square-foot building within the AllPoints at Anson industrial campus in Whitestown, Ind. CBRE Investment Management is the asset’s owner since 2019.

A month before, Adidas also renewed its commitment at 8677 Logo Athletic Court for 599,152 square feet. The company utilizes the space at Link Logistics’ property as a finishing facility.

The average rent for Indianapolis logistics hubs during the first quarter clocked in at $4.6 per square foot, based on CommercialEdge data. Despite a 5.0 percent increase year-over-year, the metro still lagged the $7.85 national average and all of its peer markets. Los Angeles ($14.31), Orange County ($15.44) and New Jersey ($10.49) registered some of the highest rents.

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The company’s business segments include Components, Engine, Distribution, Power Systems and Accelera by Cummins. Other high-caliber tenants signing leases in the past year at the industrial park include Goodyear, NFI, Turn 14 and DHL.

The new deal for Building 6 represents the fifth major lease for the Class A industrial park that will have 7 million square feet of industrial space at full build-out.

READ ALSO: How Will the Manufacturing Investment Boom Impact Industrial CRE?

Mohr Capital, a Dallas-based privately held real estate investment firm that specializes in acquisition and development of commercial real estate assets across the country, completed Building 6 in February 2023. At that time, Mohr Logistics Park had 1.5 million square feet under construction, with another 1.2 million square feet of build-to-suit space expected to be developed.

Mohr broke ground on the project in June 2020. By July 2021, the developer had delivered Building 1, a 1 million-square-foot build-to-suit facility to Cooper Tire. That same month, Mohr began construction on Building 9, a speculative 827,000-square-foot facility, and Building 6.

Building 6 is a 40-foot clear-height, cross-dock warehouse and distribution facility. Other features include two drive-in doors, 68 dock doors and a total of 527 parking spots.

Located at 5741 N. Graham Road in Whiteland, Ind., Mohr Logistics Park is 19 miles from downtown Indianapolis and close to interstates 465 and 65. The location is 25 miles from FedEx’s Indianapolis International Hub and within 27 miles of Indianapolis International Airport.

Team players

Firms contributing to development at Mohr Logistics Park include Sam Fugate with Pepper Construction, Shawn Curran with Curran Architects and Ross Nixon with American Structurepoint.

Mark Writt with CBRE represented Mohr on the latest lease. Cummins was represented by Heidi Kent and Gabrielle Woolley of Cummins. Kathy Foster, Anne Street, Jon Jessup and Brian Zurawski with Colliers served as tenant representatives for Cummins. Steve Fenton represented UBM Bank as the lender.

Mohr deals

Mohr Logistics Park is the largest industrial park developed in the Indianapolis area in 15 years. Mohr has also been active in other markets around the U.S. in recent years. In August 2023, Mohr acquired three mission-critical facilities from Crothall Laundry Services, an H.I.G. Capital company and one of the leading providers of medical laundry services to the hospital industry. The off-market transaction included facilities in Phoenix, Winston Salem, N.C., and Birmingham, Ala.

In June 2022, the firm broke ground on a two-building, speculative industrial campus totaling 704,472 square feet in Surprise, Ariz., within Summit Business Park, a Foreign Trade Zone capable industrial area totaling approximately 142 acres. The buildings had 453,960 square feet and 250,512 square feet.

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Nuveen Real Estate has purchased a two-building portfolio in Plainfield, Ind. HSA Commercial Real Estate sold the two assets encompassing 371,200 square feet. Colliers represented the seller.

The two properties are part of the Gateway Business Park—a six-building industrial center developed by HSA. The park’s first building was completed in 2004, while the most recent one came online in 2022.

Nuveen acquired Buildings III and IV. Developed in 2014, Gateway Industrial Park Building III is a 220,000-square-foot cross-dock facility spanning 18 acres. Amenities include 32-foot clear heights, 60-foot speed bays, 49 trailer parking stalls, four drive-ins, as well as 24 dock doors, which are expandable to 60.

READ ALSO: 5 Strategies for Distress Buyers

Completed in 2017, Gateway Industrial Park Building IV is a 151,200-square-foot, rear-load building. Amenities at the 9-acre facility include 30-foot clear heights, 60-foot speed bays, 32 truck docks, four drive-in doors and parking for as many as 156 vehicles.

The two buildings are at 1025 S. Columbia Road and 3051 Midfield Court. Major thoroughfares within a 4-mile radius include U.S. Road 40 and Interstate 70, while the Indianapolis International Airport is some 3 miles eastward. Indianapolis’ central business district is 14 miles away.

Tenants at Gateway III and IV include Kuehne and Nagel International—which signed the agreement in 2016—and Penske Logistics, as well as AEL Span. The firms provide automotive, manufacturing and technology services. Both buildings are fully leased.

Colliers Vice Chair Alex Cantu, alongside Executive Vice President Alex Davenport and Principal Vice Chairs Steven Disse and Jeff Devine, represented HSA in the transaction.

Taking Indianapolis’ industrial pulse

Metro Indianapolis’ average price per square foot was $62 as of March, according to a CommercialEdge report. This was well below the $147 national average. Naptown’s industrial rent growth clocked in at 5 percent year-over-year, trailing the U.S.’ 7.3 percent rate.

The metro’s vacancy stood at 3.2 percent, one of the lowest in the nation, exceeded only by Columbus, Ohio, and Kansas City, Mo., both at 2.4 percent.

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Simtra BioPharma Solutions will undertake a $250 million-plus expansion of its sterile fill/finish manufacturing campus in Bloomington, Ind., the contract development and manufacturing organization (CDMO) announced.

This announcement follows the 2023 acquisition of Simtra by Advent International, one of the largest global private equity investors, and Warburg Pincus, a global growth investor, for a reported $4.25 billion.

The 150,000-square-foot building will house two high-speed automated isolator syringe fill lines and a new high-speed isolator vial line equipped with three 322-square-foot (30-square-meter) lyophilizers. The expansion will also include a dedicated clinical line equipped to support Simtra’s growing development/clinical business.

The clinical line is scheduled to be ready for new projects by the summer of 2025. It will provide the Bloomington campus the ability to better accommodate projects that are in early phases of development (phase I or II) and keep these projects onsite as they scale up for commercialization.

READ ALSO: Attracting Life Science Tenants in Core Markets

Construction of the new building is planned to start in June and expected to take two years to complete, allowing for GMP readiness in late 2026.

A report from local outlet B Square Bulletin described the Simtra campus as being on Curry Pike just outside Bloomington city limits, near Monroe County Airport.

There is a broad increase in demand and need for injectable manufacturing in therapeutic classes such as GLP-1 drugs and product categories such as Antibody-Drug-Conjugates as well as overall continued growth of the oncology pipeline, Franco Negron, CEO of Simtra BioPharma Solutions, commented in a prepared statement.

Simtra reported that this expansion follows a $100 million-plus investment in its Halle/Westfalen, Germany, site in 2021 for the construction of a new building housing a high-speed syringe line and a vial line equipped with four lyophilizers. 

Drugs on a budget

Last November, Fujifilm’s Diosynth Biotechnologies signed Johnson & Johnson’s Janssen Supply Group as the first tenant at the company’s $2 billion biopharmaceutical manufacturing facility in Holly Springs, N.C. The 1 million-square-foot project is slated for completion in 2025. 

In a recent report on life science trends to watch this year, JLL highlighted (among other trends) the need for more manufacturing space as potential breakthrough technologies like GLP-1 agonists for weight loss and antibody-drug conjugates come to market.

On the other side of the coin, however, JLL noted that with venture capital retrenching, biopharma companies are trying hard to make the most of their space and their portfolios.

The post Simtra BioPharma to Begin $250M Expansion at Indianapolis Plant appeared first on Commercial Property Executive.

Big V Property Group and Equity Street Capital have acquired a 232,284-square-foot open-air shopping center in Carmel, Ind. The purchase of Merchants’ Square marks the entry of Big V into the Indianapolis market.

Big V currently owns and operates more than 50 neighborhood and community shopping centers, totaling in excess of 9.5 million square feet, mainly located in the southern region of the U.S. Last year, the firm obtained $125 million for the refinancing of a 846,467-square-foot lifestyle retail center in Murfreesboro, Tenn.

An Indianapolis-area shopping center

Merchants’ Square is a six-building asset completed in 1974, CommercialEdge data shows. Originally a Target-anchored and enclosed Keystone Square Mall, the property was renamed and redeveloped to the current configuration in the 1990s, according to Indianapolis Business Journal.

READ ALSO: Retail’s Return: Is the Sector 2024’s Sleeper Hit?

The property previously traded in 2004, when Kimco Realty purchased it for $37.3 million. Current tenants include Planet Fitness, Flix Brewhouse, Cost Plus World Market, Dollar Tree and Petco. Harvest Market is set to shadow-anchor the property, opening its 76,000-square-foot storefront this fall.

Located at 2100 E. 116th St., in the third-largest city of the Indianapolis metro, Merchants’ Square is 22 miles from downtown Indianapolis and 31 miles from Indianapolis International Airport. The shopping center serves more than 168,000 residents living within a 5-mile radius and earning, on average, $143,557.

The Indianapolis retail market ended last year on a high note, according to a fourth quarter report by Cushman & Wakefield. The metro’s vacancy rate dropped to 4.5 percent, down 100 basis points over the quarter and 70 basis points over the year. The Carmel submarket, alongside Avon, Fishers and Mooresville, recorded vacancies of less than 2 percent at the end of 2023.

The post Kimco Realty Sells Indianapolis Retail Center appeared first on Commercial Property Executive.

Park 130 @ Whitestown Building 3, a 319,336-square-foot Class A industrial property in the Northwest submarket of Indianapolis, has changed hands for $28.4 million. CBRE arranged the sale of the facility located at 6040 Commerce Drive in Whitestown, Ind.

The previous owner was EQT Exeter, according to CommercialEdge data, which had acquired the asset in May 2021 for $28.5 million. The Pennsylvania-based company owns several industrial properties in Whitestown, including a building at 4683 Albert S. White Drive leased by third-party logistics provider ITS Logistics.

Park 130 @ Whitestown Building 3, a multi-tenant property with suites ranging from 76,366 to 152,051 square feet, came online in 2018, the same source shows.

The warehouse and distribution facility is triple net leased to three national companies: Home Depot, Frito-Lay, a division of PepsiCo, and FBN. Home Depot leased the smallest space in May 2021 and planned to invest at least $1 million in the project, the Indianapolis Business Journal reported. Frito-Lay operates a distribution center in the largest suite, while FBN leases about 90,000 square feet, according to the same source.

Located on more than 27 acres, Building 3 has 61 truck docks, four drive-in doors and 28-foot clear height. The property benefits from direct access to Interstate 65.

CBRE Investment Properties’ Midwest leader Kevin Foley and Vice Chairman Anthony DeLorenzo, along with CBRE Executive Vice Presidents Andrew Morris and Jeremy Woods, represented the seller.

Strong investor interest

California capital is showing strong interest in Midwest markets, including Indianapolis where industrial market fundamentals are strong, according to a prepared statement from Foley. He added that investors have been selling their older product in California and trading into newer modern bulk buildings in the Midwest with credit, stable term and assets that require minimal management responsibilities.

Park 130 @ Whitestown Building 3 received significant interest, including 11 offers, from all different buyer profiles. The unidentified high-net-worth investor prevailed with an all-cash bid. Foley noted the building checked all the boxes occupiers demand in site selection: optimal location, modern infrastructure, skilled labor pools, economic incentives and the latest in distribution center facility design.

The post EQT Exeter Sells Indianapolis Industrial Asset appeared first on Commercial Property Executive.

Rendering of the Waterway Labs at 16 Tech facility. Image courtesy of Cushman & Wakefield

NexCore Group is set to develop a 100,000-square-foot life science project in Indianapolis. The $60 million Waterway Labs at 16 Tech development is scheduled to break ground next year.

The five-story building will feature two spaces catering to NexCore’s HATCHspaces platform. The first, HATCHlabs, is set to be four floors featuring 22,000-square-foot floorplans. The second, HATCHx, will include eight turnkey lab suites featuring more than 2,000 square feet and 10 leasable single lab suites and offices.

The purpose-built lab space in the development is intended to service both startups and established companies, providing graduation space for companies growing out of nearby research institutions.

READ ALSO: Emerging Life Science Hubs Stake a Claim

Situated at 1206 Waterway Blvd., the project is within 16 Tech Innovation District, a 50-acre technology campus. The research-focused hub opened in 2020 and hosts more than 200 life science, health tech, med tech and innovation-related companies. Anchor tenants include the Indiana Biosciences Research Institute and the Emerging Manufacturing Collaboration Center.

The innovation hub features three activity centers, a food hall, a marketplace, as well as flexible office and coworking spaces. More than 3 million square feet of residential and commercial real estate is planned to be completed at 16 Tech by 2030.

Future campuses of Indiana University Indianapolis and Purdue University in Indianapolis are planned in the district’s proximity. Downtown Indianapolis is less than 2 miles from the development, while the Indianapolis International Airport is some 15 miles away.

Cushman & Wakefield has been selected as the project’s leasing agent, with Jon Owens and Joshua Graham heading up the assignment.

Lab space details

HATCHlabs space within Waterway Labs at 16 Tech will support long-term tenants with flexible suite layout options. It will include lounge areas, restrooms and a common chemical waste storage room. The space is designed to feature 15-foot, 6-inch clear heights, a 100 per square foot live floor loading capacity and a 20 per square foot dead loading capacity, six outside air changes per hour, an emergency diesel generator, a 20 watt per rentable square foot of electrical capacity and a floor vibration criterion of 6,000 micro-inches per second.

HATCHx will feature furnished lab suites, a common freezer farm and a conference room. Both spaces are set to include Biosafety Level 1 (BSL-1) and BSL-2 lab space support.

The post NexCore Group Plans $60M Life Science Project appeared first on Commercial Property Executive.

Park 74 Commerce Center rendering. The project is set to deliver by mid-2024. Image courtesy of Brennan Investment Group

Brennan Investment Group has acquired a 68-acre lot for the development of two Class A industrial facilities. The project, Park 74 Commerce Center, is situated some 15 miles outside of Indianapolis. Upon completion, the development will include two distribution buildings totaling 826,687 square feet.

Although Brennan broke ground on the development in June of this year, an official groundbreaking ceremony for the project will be held in late October, Doug Lance, senior vice president at Brennan Investment Group, told Commercial Property Executive.

Building A will be a 580,884-square-foot, cross-dock distribution property, while Building B will be a 245,803-square-foot, rear-load distribution facility. Both projects will include 40-foot by 32-foot clear heights.

READ ALSO: Manufacturing Thrives Amid Construction Surges

The first building will feature 60 dock doors, 4 drive-in doors, LED motion sensor lighting, 254 parking spaces and 151 trailer parking spots. Building B will include 24 expandable dock doors, 2 drive-in doors, 155 car parking spaces and the same LED lighting.

Located in Brownsburg, future tenants will be in proximity to the Indianapolis International Airport, the UPS Ground Sort Center and the FedEx Hub. Situated at the intersection of Ronald Reagan Parkway and Route 136, the property is near the Interstate 465 loop, and I-74, I-70 and I-65, offering far-reaching distribution access.

Lance told CPE that the location of the project in the Brownsburg area “has a great labor story and decent demographics which add a lot of ‘strength’ to the project.”

The buildings are anticipated to be completed in July 2024.

Indianapolis’ expanding industrial market

In the second quarter of this year, the Indianapolis industrial market posted a record number of deliveries, with more than 7 million square feet of space hitting the market, according to a Cushman & Wakefield MarketBeat report. While a large amount of space came online, overall tenant demand slowed to 1.9 million square feet, the lowest quarterly absorption total since the first quarter of 2020.

Walmart has recently completed it’s largest fulfillment center in McCordsville, Ind., located 18.2 miles east of downtown Indianapolis. The property is 2.2 million square feet and features modern technology used to increase the company’s delivery speed.

The post Brennan Plans Suburban Indy Distribution Center appeared first on Commercial Property Executive.

Marwood Plaza. Image courtesy of Institutional Property Advisors

Citivest Commercial has sold Marwood Plaza, a 107,080-square-foot grocery-anchored retail center in Indianapolis. Marcus & Millichap division Institutional Property Advisors brokered the transaction, representing the seller and procuring the buyer.

Citivest Commercial acquired the property back in 2019 from Brixmor Property Group for $6.4 million, according to CommercialEdge data. Back then, Ready Capital provided a $4.9 million acquisition loan, the same source shows.

Built in 1972 and renovated in 2021, the shopping center was 93.5 percent leased at the time of the sale. Anchored by Kroger—which occupies 42 percent of the gross leasable area at the property—Marwood Plaza features a diverse mix of tenants, including Buyer’s Market, Laundry & Tan Connection, Los Patios Restaurant, China One, H&R Block, Boost Mobile, Little Caesar’s, T-Mobile, Great Clips and a Chase Bank net-leased outparcel. IPA Senior Director Bill Rose said in prepared remarks that Kroger has been a Marwood Plaza tenant for more than 50 years and will continue to operate at the property after signing a new long-term lease.

The retail center is located at 3361 Kentucky Ave., roughly six miles from downtown Indianapolis in the Southwest Indianapolis neighborhood. Spanning across 9.3 acres, the shopping center is close to the junction between interstate 70 and 465, serving approximately 135,800 people within a five-mile radius, according to IPA.

Rose, along with Senior Managing Directors of Investment Craig Fuller, Erin Patton and Scott Wiles, led IPA’s team in the negotiations. Josh Caruana, first vice president & district manager at Marcus & Millichap Indiana, was also involved in the deal.

The post Citivest Commercial Sells Indianapolis Grocery-Anchored Retail Center appeared first on Commercial Property Executive.

Anson 8A. Image courtesy of Colliers

Rockwell Automation has renewed its lease for 369,449 square feet of industrial space at Anson 8A, a 708,367-square-foot building at the AllPoints at Anson industrial park in Whitestown, Ind.

Colliers arranged the deal on behalf of the landlord, CBRE Investment Management. The firm had acquired the 39.3-acre asset in Boone County for $43.1 million in November 2019, according to CommercialEdge data, in a three-building portfolio transaction encompassing 1.8 million square feet.

Anson 8A came online in 2016 in the 616-acre industrial park. Rockwell leased more than half of the facility in 2018 for a distribution center operated in partnership with Kuehne + Nagel. Colliers’s Jimmy Cohoat and Jason Speckman facilitated the lease renewal on behalf of CBRE IM.

Located north of Indianapolis at 4255 S. 500 E., the property offers access to the Interstate 65 logistics corridor via an on-ramp located 1 mile away. The industrial park is 9 miles from Interstate 74 and 20 miles from Indianapolis International Airport. One of the campus’ tenants is ITS Logistics, which leased a 600,000-square-foot facility at 4055 S. 500 E. property, or Anson 7A, in late 2022.

As of the end of May, Indianapolis had an industrial pipeline measuring some 12.5 million square feet, according to a recent CommercialEdge report. The metro had one of the nation’s lowest vacancy rates at 2.6 percent.

The post Rockwell Automation Renews Lease at CBRE IM-Owned Property appeared first on Commercial Property Executive.

8677 Logo Athletic Court. Image courtesy of Colliers

Adidas has renewed a lease for 599,152 square feet of industrial space in Indianapolis. The athleticwear and footwear company utilizes the space at 8677 Logo Athletic Court as a finishing facility.

The property, which is owned by Link Logistics, is situated on Indianapolis’ east side, along the primary east-west Interstate 70 logistics corridor. Adidas stamps, presses, stores and distributes screen-printed sport apparels for sports teams, ranging from professional to amateur, at the site.

Colliers’ Indianapolis office represented both landlord and lessee, with Jason Speckman representing Link Logistics, while Jimmy Cohoat, Andrea Hopper and Billy Powers represented Adidas.

READ ALSO: The Untapped Potential of NYC Industrial

Last year, Germany-based Adidas leased office space at Brookfield Properties’ California Market Center in Los Angeles, as the property’s anchor tenant. The company opened its first U.S. production plant in Atlanta in 2017.

More recently, Link Logistics sold a 260,000-square-foot distribution center in Jacksonville, Fla., for $31.1 million.

Indianapolis industrial sector grows

At the end of April, Indianapolis had nearly 11 million square feet of industrial assets in the pipeline, according to CommercialEdge data. The metro also boasted one of the lowest vacancy rates in the U.S. at 2.6 percent.

Early this year, ITS Logistics opened a 700,000-square-foot warehouse at its campus in Whitestown, Ind. Over the next two years, the company plans to grow its Boone County campus to more than 2 million square feet.

The post Adidas Renews 600 KSF Indianapolis Industrial Lease appeared first on Commercial Property Executive.

McCordsville Fulfillment Center. Image courtesy of Walmart

Walmart has completed a 2.2 million-square-foot fulfillment center in McCordsville, Ind. The property is the largest of its kind for Walmart and will expand access to the retailer’s next- or two-day shipping.

Walmart first announced plans for the distribution center in June 2022, along with three other high-tech facilities. The company picked the Indiana location back in 2020 and sought tax abatements for investments totaling more than $600 million.

READ ALSO: Expanding Into Industrial: Diversifying for Long-Term Success

The center features technology that will increase the speed of delivery. According to prepared remarks from Walmart Senior Vice President David Guggina, this will be possible through the use of an automated storage system and a five-step process which has the potential to double the storage capacity and the number of customers in one day. Walmart Fulfillment Services will also leverage the space to fulfill Marketplace items.

Located at 5259 W. 500 N., on 151 acres, the center is next to Indianapolis Regional Airport and 18.2 miles from downtown Indianapolis. The property was designed to feature 146 docks and parking for 1,985 cars and 916 trailers.

The property has access to several transportation routes, including interstates 70 and 465. Neighboring industrial companies include Amazon, Smithfield Distribution, Progressive Logistics and Tsuda USA Corp.

Indianapolis development remains strong

Since the beginning of 2023, several industrial projects were brought to completion or broke ground in Indianapolis. As of April, the market had nearly 11 million square feet under construction, representing 3.1 percent of stock, a CommercialEdge report shows.

ITS Logistics opened a 700,000-square-foot warehouse at its 1.3 million square feet campus in Whitestown, Ind., which will continue to expand over the next two years.

Mohr Capital also completed a large-scale project, a 1 million-square-foot building at Mohr Logistics Park in Whiteland, Ind., that will comprise 7 million square feet at full build-out.

Last month, HSA Commercial Real Estate broke ground on Terminus at Hobbs Station, a two-building speculative development totaling 497,540 square feet in Plainfield, Ind., that is set for delivery in the fourth quarter of this year.

The post Walmart Opens Its Largest-Ever Fulfillment Center appeared first on Commercial Property Executive.

1414 SW St. Image courtesy of CommercialEdge

Vertical Cold Storage has acquired MWCold, a company which operates some 545,000 square feet in the Indianapolis area. The acquisition was sponsored by Platform Ventures.

The largest of the two assets is a two-story, 390,000-square-foot cold storage facility owned by MWCold, built in 1956 on a 13.3-acre site, according to CommercialEdge data. The multi-modal property features 33,000 pallet positions and 46 dock doors, along with blast freezing, export services and quick thaw capabilities. It is also dual rail-serviced by CSX and Norfolk Southern. Located at 1414 SW St., it is close to Interstate 70 and some 2 miles from downtown Indianapolis, as well as roughly 12 miles from Indianapolis International Airport.

The other building, owned by Lineage Logistics and leased by MWCold, spans 159,000 square feet and can handle multiple temperature zones, down to -20°F. It encompasses 19,600 pallet positions and 15 dock doors. It is located at 725 Pioneer Trace, in Pendleton, Ind., a small town in Indianapolis’ northeast. The property is near Interstate 69, about 31 miles from Indianapolis.

The locations of the two facilities enable two day or less service to 75 percent of U.S. and Canadian populations, according to Vertical Cold Storage.

Steady industrial fundamentals in the Midwest

Despite economic headwinds, the industrial market has retained its strong fundamentals, though it has shown signs of slowing down. Transaction activity in the first quarter of 2023 totaled $7.7 billion nationally, considerably lower than the $20.5 billion figure registered in the same period in 2022, a recent CommercialEdge report shows.

Metro Indianapolis reached a transaction volume of $151 million from January through March, at $152.6 per square foot.

The post Vertical Cold Storage Buys Indianapolis Firm appeared first on Commercial Property Executive.

Rendering of Terminus at Hobbs Station. Image by Curran Architecture, courtesy of HSA Commercial Real Estate

HSA Commercial Real Estate has commenced construction on Terminus at Hobbs Station, a two-building speculative development totaling 497,540 square feet, in Plainfield, Ind. The industrial project is expected to be delivered in the fourth quarter of this year.

The development team includes Curran Architecture as the appointed architect, Kimley-Horn as the civil engineer and Meridian Design Build serving as general contractor. Colliers’ Senior Vice Presidents Jimmy Cohoat and Andrea Hopper are the exclusive leasing agents.

READ ALSO: Industrial Sector to Maintain Winning Streak in 2023

The two cross-dock properties will rise at 9524 and 9532 Station Blvd. and will include 32-foot clear heights, three drive-in doors, loading bays with 60-foot heights, ESFR sprinkler systems, LED lighting and 50-foot by 50-foot column spacing. The 233,618-square-foot Building I will feature 163 parking spots that can be expanded to 187, 36 dock doors and 48 trailer parking spots, while the 263,922-square-foot Building II will include 187 parking spots with expansion up to 219, 30 trailer parking spots and 31 dock doors.

Terminus at Hobbs Station will be situated on a 37-acre lot, close to Highway 40 and Interstate 70, 8.8 miles from Indianapolis International Airport and from FedEx’s second-largest distribution center in U.S., and within 19 miles of downtown Indianapolis. Neighbors include UPS, Amazon, XPO Logistics, The Home Depot and others.

Indianapolis’ attractive industrial fundamentals

Plainfield is maintaining its strong position for industrial development, showing a 5 percent vacancy rate at the end of 2023’s first quarter, Robert Smietana, the company’s vice chairman & CEO, said in prepared remarks. High-profile industrial users are looking to move in proximity of easily accessible transportation networks and HSA aims to meet this demand with its current project, he added.

Over its 15 years of activity in the local market, HSA has delivered roughly 1.2 million square feet of industrial space. The company reached full lease-up at the seven-building Gateway Business Park, also in Plainfield. HSA has also recently broken ground on its first speculative project in Florida—the 482,000-square-foot Highland Commerce Center, which is expected to come online by the end of the year.

The post HSA Kicks Off 500 KSF Indianapolis Project appeared first on Commercial Property Executive.

Mohr Logistics Park. Image courtesy of Mohr Capital

Mohr Capital has completed the 1,057,350-square-foot Building 6 at Mohr Logistics Park, its 475-acre master-planned industrial project in Whiteland, Ind. At full build-out, the campus will comprise some 7 million square feet.

Mohr Logistics Park currently has 1.5 million square feet under construction and the developer is expecting an additional 1.2 million square feet of build-to-suit space, Mohr Capital CDO Gary Horn said in prepared remarks. The development team also includes Curran Architecture, Pepper Construction and American Structurepoint.

A master-planned industrial development

Mohr broke ground on the project in June 2020. In July 2021, the developer completed the first phase of land acquisition and delivered Building 1, a 1 million-square-foot build-to-suit facility to Cooper Tire. That same month, construction began on Building 6 and on the 827,000-square-foot Building 9.

The development’s Building 6 features 40-foot clear heights, two drive-in doors, 68 dock doors and a total of 420 parking spots. The facility has 513,000 square feet of space currently under leasing negotiations, while some 540,000 square feet are already occupied. CBRE Senior Vice President Mark Writt, together with Mohr Capital’s Gary Horn, are marketing the remaining space for lease.

Mohr Logistics Park is 19 miles from downtown Indianapolis, close to interstates 465 and 65. The location is 25 miles from FedEx’s Indianapolis International Hub and within 27 miles of Indianapolis International Airport.

Positive signs for Indianapolis’ industrial market

According to a recent CommercialEdge report, Indianapolis scored one of the lowest industrial vacancy rates in the U.S. as of December 2022, at 2.3 percent, while the national average clocked in at 3.9 percent. In terms of supply, the metro had 24.8 million square feet of space delivered in 2022, while 17.9 million square feet were under construction at the end of the year.

In January, ITS Logistics opened a 700,000-square-foot warehouse at its existing campus in Whitestown, Ind., representing the company’s latest addition to its Midwest headquarters. The property currently encompasses more than 1.3 million square feet.

The post Mohr Capital Completes 1 MSF Building at Indianapolis Campus appeared first on Commercial Property Executive.

4683 Albert S. White Drive

ITS Logistics has opened a new, 700,000-square-foot warehouse at its existing campus in Whitestown, Ind. The expansion is the third-party logistics provider’s latest addition to its Midwest headquarters, which now totals more than 1.3 million square feet. Over the next two years, the company plans to grow its Boone County campus to more than 2 million square feet, alongside a large-scale expansion of its truck fleet.

Reno, Nev.-based ITS established its Midwest footprint in 2021, when the company leased 350,000 square feet at 4683 Albert S. White Drive. The warehouse is part of Fishback Creek Business Park, a 200-acre, 2.4 million-square-foot industrial campus developed by GDI Construction. The landlord, EQT Exeter, had acquired the building in 2020 for $28.5 million, according to CommercialEdge information.

READ ALSO: Top Sectors for Industrial Demand: JLL

The firm’s second campus expansion took place in the second quarter of 2022, when ITS leased a 600,000-square-foot facility at 4055 S. 500 East. CommercialEdge data shows that Prologis owns the 2012-completed property that is part of AllPoints at Anson industrial park.

Situated within one mile of an on-ramp to the Interstate 65 and within 9 miles of Interstate 74, the campus is within a day’s drive of the Midwest’s largest population centers. Indianapolis International Airport is 20 miles away.

Indianapolis’ industrial increases

Indianapolis remains a ripe opportunity for industrial leasing, construction and investment, due in part to its location at the center of many highly trafficked highways and railroads, as well as its relaxed regulatory environment. According to data from a recent CommercialEdge report, the metro’s sales volume totaled $1.1 billion year-to-date as of November, the second-highest in its region, as well as one of the lowest vacancy rates at 2.5 percent. Construction showed strong vitals as well, with 22.8 million square feet in the pipeline as of November, the same data source shows.

One recent headline around the capital of The Hoosier State is DHL Supply Chain’s purchase of a 979,264-square-foot facility in nearby Whiteland. The building is part of a 2.4 million-square-foot, master-planned industrial park.

The post ITS Logistics Grows Indianapolis Campus to 1.3 MSF appeared first on Commercial Property Executive.

Ameriplex 4

Transwestern Investment Group, on behalf of a separately managed account, has acquired a 912,522-square-foot industrial property in Indianapolis. Ameriplex 4 is fully leased to PepsiCo’s Quaker Sales & Distribution Inc.

The asset is located at 5510 Exploration Drive, within the World Connect at Ameriplex industrial park. Situated at Ameriplex Parkway and Interstate 70, Ameriplex 4 covers 54.4 acres of land in the Plainfield submarket, according to CommercialEdge data.

In proximity to major thoroughfares such as Interstates 65, 69, 70, 74 and 465, the property has access to 80 percent of the nation within a one-day drive and cross-country access in a nearly two-day drive. The Indianapolis International Airport is 3 miles north, as is the second-largest FedEx Express Hub in the U.S.

Ameriplex 4 features ESFR sprinklers, 36-foot clear heights, loading doors and 56 feet by 50 feet column spacing, according to the same data. The industrial building was completed in 2017.

Mike Caprille, Ryan Bain and Zach Graham with CBRE brokered the purchase of Ameriplex 4.

Late last year TIG sold an industrial asset in Edwardsville, Ill. The 500,000-square-foot property was fully occupied by Walgreens at the time of the sale.

The post Transwestern Investment Group Buys 900 KSF PepsiCo Facility appeared first on Commercial Property Executive.

Project rendering. Image courtesy of Broe Real Estate Group

Broe Real Estate has acquired a 19.5-acre development site for its first industrial project within Southern Indiana’s River Ridge Commerce Center in Jeffersonville, Ind.

River Ridge Commerce Center is a 6,000-acre business park. The new 300,000-square-foot Class A industrial project is designed to accommodate single- or dual-tenant occupancy.

Last month, Broe sold two assets in Rincon, Ga., for $116 million. The two Class A industrial buildings totaling 1.1 million square feet were completed earlier in 2022.

Commercial Kentucky’s team led by Senior Directors Robert Walker and Greg Charmoli will market the property for lease. American Structure Point will provide engineering services, while Ware Malcomb will serve as the project’s architect.

Attracting big names

River Ridge Commerce Center is a world-class industrial business center located at 300 Corporate Drive, close to Clark Memorial Bridge, Interstates 65 and 265, providing quick access to Louisville, Ky., and Indianapolis. The business park’s central location attracts large firms operating in the automotive, life science, aerospace and pharmaceutical sectors, among others. River Ridge Commerce Center’s tenant roster now includes companies such as Amazon, Medline or Bose, and its employee pool exceeds 10,000 people.

OmniTrax, the transportation affiliate of Broe Real Estate Group, will be in charge of upgrading the industrial park’s rail infrastructure, that will expand with the park’s development, in order to provide efficient shipping, rail access and low-cost transportation.

The 300,000-square-foot Class A speculative project will be designed to accommodate tenants specializing in manufacturing, logistics, research and technology. Features will include 36-foot clear heights and trailer parking spots. The industrial developments’ construction is expected to begin in the summer of 2023.

In June, VanTrust broke ground on two industrial parks in suburban Indianapolis. The two projects total 2.5 million square feet of space and benefit from a 10-year real estate tax abatement.

The post Broe Real Estate Plans Suburban Louisville Project appeared first on Commercial Property Executive.

Whiteland 65 Logistics Center. Image courtesy of Hines

Hines, together with Cresset Partners, has sold the first phase of Whiteland 65 Industrial Center, a 1.1-million-square-foot facility in Whiteland, Ind. The Class A asset traded for $104 million, according to Johnson County public resources.

The sale, marking the firm’s largest industrial transaction in the Midwest and the largest single asset industrial deal in the metro this year, came on the heels of another Hines large-size disposition.

Cushman & Wakefield Vice Chairman Luke Wessel and Executive Managing Director Michael Weishaar negotiated the Whiteland 65 sale on behalf of the partnership, while Colliers Senior Vice President Cam Kucic represented the buyer.

A Class A industrial campus near Indianapolis

Hines and Cresset purchased the 90-acre development site in June 2021, for $4.9 million, according to CommercialEdge data, and immediately commenced construction. This was the company’s first logistics project in the Indianapolis metro and, at the time, the only speculative industrial development larger than 1 million square feet in the area, Hines Managing Director Will Renner said, in prepared remarks.

Located at the intersection of Whiteland Road and Interstate 65, the recently completed facility features a 40-foot clear height, 108 dock doors, 690 parking spots for vehicles and 291 parking spots for trailers, CommercialEdge data shows. The property is 18 miles from downtown Indianapolis and 26 miles from Indianapolis International Airport.

The partnership plans to break ground on the distribution campus’ second phase, slated to include two buildings totaling some 870,000 square feet, in 2023.

Hines also recently announced its participation in another big industrial project. The firm, in a joint venture with The Galesi Group, plans to develop an approximately 1.7 million-square-foot industrial park in Austin, Texas.

The post Hines JV Sells 1 MSF Industrial Asset for $104M appeared first on Commercial Property Executive.

Southern Plaza. Image via Google Street View

First National Realty Partners has acquired Southern Plaza, a 268,000-square-foot, grocery-anchored shopping center in Indianapolis. Prodigy Real Estate Group Co-founder & Principal John May represented the seller, identified by CommercialEdge as Tri-Land Properties.

The same data provider data shows the five-building retail center came online in 1961 across some 33 acres. A recently renovated 59,900-square-foot Kroger supermarket, which has been operating at the location since 1990, anchors the property. Other tenants include Ross, Harbor Freight, Oak Street Health, Goodwill, Rue 21, Qdoba, Cosmo Prof, BMO Bank and Sally Beauty.

Located roughly 5 miles from downtown Indianapolis at 4200 S. East St., the property is adjacent to Interstate 465, in an area where the daily car traffic reaches 92,000 vehicles. More than 216,000 people live within a 5-mile radius.

According to a Cushman & Wakefield report, the U.S. retail sector continued to showcase growth in the third quarter of 2022, and Indianapolis was no exception. The metro has witnessed 263,032 square feet of positive absorption, while vacancy dropped 150 basis points to 5.4 percent over the year.

FNRP Senior Director of Acquisitions Matt Annibale mentioned in a prepared statement that Southern Plaza’s location and e-commerce resistant tenant mix offers an expansion opportunity in a growing market. Earlier this month, the firm added two grocery-anchored shopping centers to its national portfolio.

The post First National Realty Partners Buys Indianapolis Asset appeared first on Commercial Property Executive.

Avon Landings Commerce Park. Rendering courtesy of VanTrust

VanTrust has broken ground on a pair of industrial parks in Indianapolis-area suburbs. The company broke ground on Avon Landings Commerce Park in Avon, Ind., and Air 70 Logistics Park in Mount Comfort, Ind.

Both of the industrial parks were designed by JRA Architects, with American Structurepoint as civil engineers for both projects. VanTrust tapped Hemmer Construction as the general contractor for the Avon project, while the developer hired Pepper Construction for the Mount Comfort project. Both of the projects will also take advantage of a 10-year real estate tax abatement.

In Avon, VanTrust is building its industrial park on a 58-acre site that was formerly a regional airport. The first phase of the Avon Landings Commerce Park will include three buildings, the first of which VanTrust has already broken ground on. The first building will include 330,240 square feet of speculative industrial space and is expected to be completed by early 2023.

The second and third buildings of Avon Landings Commerce Park will be 245,000 square feet and 156,00 square feet respectively. The project already has an additional 60 acres designated for the second phase, but the timeline and the size of the buildings for the next phase are yet to be determined.

Air 70 Logistics Park. Rendering courtesy of VanTrust

In Mount Comfort, VanTrust is working on Air 70 Logistics Park, a 132-acre industrial park that will also contain three buildings. The buildings will total 1.8 million square feet and the developer is expected to start work on the first of the buildings this month. The first building will offer 800,280 square feet and is expected to be completed in June 2023, while construction of the other two will follow afterwards.

Busy Spring for VanTrust

VanTrust’s two industrial projects in Indiana came after a flurry of groundbreakings on industrial projects throughout the U.S. in April. Most recently, the company began infrastructure and site work at Vantage North in North Las Vegas, which will provide 4.5 million square feet of distribution facility space when completed in October 2023.

Prior to its Vegas area project, VanTrust acquired a 60-acre site in northeast San Antonio that will be transformed into a nearly 414,000-square-foot industrial center. Also in April, the company broke ground on the first phase of its 150-acre industrial park in Peoria, Ariz., with Frito Lay having already signed on as the first tenant.

The post VanTrust Commences Spec Industrial Projects in Indiana appeared first on Commercial Property Executive.

Lakefront 6 in Indianapolis. Image courtesy of Rubenstein Partners

Rubenstein Partners was able to fully lease its office building in Indianapolis, which is currently being marketed for sale. The property owner negotiated a seven-year lease with Raytheon Intelligence & Space, which will occupy all of Lakefront 6, a 86,965-square-foot office building that’s part of a larger office development.

Raytheon, an aerospace and defense company, is planning to use the space for support work on the development of advanced sensors, cyber and software solutions. JLL’s Tammy Faulk and John Robinson represented Rubenstein Partners, while Cushman & Wakefield’s Mike Semler and Brendan O’Shaughnessy represented the tenant.

Located at 3939 Priority Way, the four-story Lakefront 6 was built in 1985 and offers 473 parking spaces. The office building is one of 15 located within Lakefront at Keystone, which totals more than 1 million square feet surrounding a 38-acre lake. The office park is home to a diverse mix of office tenants including insurance company eHealth, accounting firm Ducharme McMillen & Associates, and financial firm Thrivent Trust Co. Rubenstein Partners also said that two restaurants, Prodigy Burger Bar and Big Bear Biscuits, signed leases at the office park earlier this year.

Multimillion Dollar Renovations

While the office buildings were constructed much earlier, Rubenstein Partners and Strategic Capital Partners first took over ownership of Lakefront at Keystone in 2017. The new owners then pursued a multimillion-dollar capital improvement plan for the office park that introduced new indoor and outdoor amenities.

Now, Lakefront at Keystone includes a new indoor amenity center with a fitness center, tenant lounge, cafe, property management office and conference facilities. Outside, the new amenities include a floating barge, basketball court, workout circuit, bike path, food truck depot, seating areas, fire pits and interactive games.

Brian Simel, vice president at Rubenstein Partners, said in prepared remarks that the company’s investments into the office campus have been a big part of recent success with leasing and tenant retention. While the company has plans for additional improvements, Lakefront 6 is also being marketed for sale by Newmark’s Jim Postweiler.

Nearby in Indianapolis, Rubenstein Partners and Strategic Capital Partners have also spent millions in improvements for an eight-building office park called Parkwood Crossing. More recently, the company landed a 12-year lease with a digital investment company for its office complex in Stamford, Conn.

The post Rubenstein Partners Lands Full-Building Tenant in Indianapolis appeared first on Commercial Property Executive.

Whiteland Exchange Business Park. Image courtesy of Avison Young

Lexington Realty Trust, a New York-based REIT focused on single-tenant industrial real estate investments, acquired three buildings totaling 878,410 square feet located within the Whiteland Exchange Business Park in the Indianapolis market from Jones Development.

The price was not disclosed. Avison Young negotiated the sale of the properties in the 168-acre, 2.4 million-square-foot master-planned business park located at Interstate 65 and Whiteland Road in Whiteland, Ind.

READ ALSO: 3 Trends Dominating CRE Today

Jones Development was represented by Avison Young’s Erik Foster and Mike Wilson, principals and members of the U.S. industrial capital markets team in the firm’s Chicago office. The team worked in conjunction with Sean McHale, principal, and Senior Associate Peter Seoane, both located in the firm’s Indianapolis office. The Indianapolis team was the exclusive leasing agent for Whiteland Exchange.

The largest building is 530,400 square feet and has been fully leased to Amazon since June 2020. The other assets—a 168,480-square-foot building and a 179,530-square-foot building—are fully leased to a global packing company.

Foster said in a prepared statement the historic expansion in e-commerce continues to draw investors to the industrial sector. He said he expects the strong momentum in the Indianapolis market and other growing logistics markets across the country to continue as investors seek newly constructed properties and long-term rental rate growth.

Brendan Mullinix, Lexington executive vice president & chief investment officer, said during the REIT’s third-quarter earnings call last week that Indianapolis is a market the company is committed to. He cited the central location and population reach of Whiteland Exchange, as well as the extensive highway air and rail systems, deep labor pool, business-friendly government and its access to the second-largest FedEx hub in the world. He noted the properties are all recently constructed and sit along I-65 in the business park.

Growing market

Jones Development, based in Kansas City, Mo., broke ground on Whiteland Exchange in July 2019. The speculative development was aimed at supporting the region’s growing industrial space occupiers, which range from e-commerce businesses to manufacturers, according to the Jones Development website. Plans called for the buildings at the business park to range in size from 168,000 square feet to 1.2 million square feet.

In June, Hines, in partnership with Cresset Real Estate Partners, broke ground on Whiteland 65 Logistics Center, a 1.1 million-square-foot building located on 81 acres along I-65. It is Hines’ first logistics project in the Indianapolis metro area and can be leased to one or two tenants. The property is near Indianapolis International Airport, the Indianapolis International FedEx Hub, the Louisville UPS Hub and other major thoroughfares, including I-70.

Several months earlier in April, Mohr Capital began construction of an 827,000-square-foot speculative industrial building within its Mohr Logistics Park, a master-planned business park also located off I-65 in Whiteland. Mohr also planned to add a 1 million-square-foot asset at the site within 60 days. The start of construction came soon after Mohr completed a 1 million-square-foot warehouse and distribution facility leased to Cooper Tires within the same park.

Lexington’s industrial growth

Lexington has been transitioning from an office REIT to a REIT focused on industrial real estate since December 2015. In an Oct. 6 letter to shareholders, Lexington said its portfolio was 94 percent industrial, with assets in markets predominantly located across the Sun Belt and Midwest. The company expects to complete the portfolio transition to 100 percent industrial by year-end 2022. The note stated that since Dec. 31, 2015, Lexington had acquired $2.7 billion of industrial assets and sold $3.2 billion of assets, including $1.6 billion of non-industrial assets.

In its third-quarter earnings report, Lexington stated it had acquired five warehouse/distribution properties during the quarter for a total cost of $134.8 million. The REIT said it had also begun development of five warehouse/distribution properties comprising 2.8 million square feet in the Greenville-Spartanburg, S.C., and Phoenix markets. Lexington also noted it invested $57.3 million in eight ongoing development projects.

The post Lexington Realty Takes 3 in Indianapolis appeared first on Commercial Property Executive.

Westpoint II. Image courtesy of JLL Capital Markets

Ambrose Property Group LLC has just pocketed $43 million on the sale of Westpoint II, its newly developed industrial facility in Mooresville, Ind. With the assistance of JLL Capital Markets, Ambrose sold the 507,600-square-foot Indianapolis-area asset to Cambridge Holdings.

“The investment received double digit offers, showing how in demand industrial product is right now,” Ed Halaburt, senior director with JLL Capital Markets, told Commercial Property Executive. “The depth of the interest came from core funds, REITs and private capital.” JLL Capital Markets’ John Huguenard and Brian Seitz joined Halaburt in representing Ambrose in the sale.

READ ALSO: IDI Logistics Sells 2.4 MSF Portfolio for $195M

Carrying the address of 2633 Westpoint Blvd., Westpoint II is located roughly 22 miles from Indianapolis’ central business district on a site within the 550-acre Westpoint Business Park, a new master-planned compound that will ultimately encompass more than 9 million square feet of offerings across Monrovia and Mooresville and hold the distinction of being one of the largest distribution centers in the state of Indiana. Fronting Interstate 70, Westpoint II also provides a prime position within the highly desirable Southwest Industrial submarket and close proximity to the Indianapolis International Airport.

Ambrose built Westpoint II as a speculative development but signed Deckers Outdoors Corp. to a 10-year lease of the entire facility shortly before completing the project in the first quarter of 2021, with Cresa representing the tenant in the transaction and JLL standing in for the landlord.

The Class A building boasts institutional-quality features and is expandable to approximately 685,300 square feet. “Investors were drawn to the physical quality of the asset—new construction, expansion capability—the exceptional performance of the Indianapolis market and long lease term with a publicly traded tenant,” Halaburt added. Designed by Curran Architecture, Westpoint II is also expected to meet the qualifications for LEED ID+C Gold certification.

Moving up in the world

Demonstrating enviable fundamentals, Indianapolis is rising higher on the investment community’s radar. “Indianapolis is an institutionally accepted market for distribution assets and is growing in importance with the overall rise of e-commerce and the expansion of the FedEx air hub. The market continues to set records for net absorption and is experiencing demonstrable rent growth,” Halaburt said.

In the second quarter of 2021, net absorption totaled approximately 5 million square feet in metropolitan Indianapolis, marking the highest amount ever recorded in the market in a single quarter, according to a JLL report. Additionally, tenants continue to claim inventory soon after delivery, keeping vacancy rates at record lows.

The post New Indianapolis-Area Industrial Facility Fetches $43M appeared first on Commercial Property Executive.

ConAgra Distribution Center. Image courtesy of JLL

In a $114 million deal, W.P. Carey has purchased a 1.5 million-square-foot, Class A bulk regional distribution center in the Indianapolis-area community of Frankfort, Ind. The property is triple net leased to ConAgra Brands. JLL marketed the property on behalf of the seller, Founders Properties LLC.

READ ALSO: The Logistic Sector’s Record-Breaking Momentum

ConAgra Distribution Center was completed in 2015 as a build-to-suit for ConAgra, the nation’s 11th-largest food and beverage maker. The building has 10 rail docks served by CSX and Norfolk Southern and features a 34-foot clear height, concrete truck courts, 125 dock-high doors plus 125 knockouts, four drive-in doors, 853 trailer parking stalls, ESFR fire protection and LED lighting.

The 180-acre site is at 3500 W. County Road O NS in Frankfort, 41 miles from Indianapolis and only 5 miles from I-65.

The JLL Industrial Capital Markets team that represented the seller was led by Senior Managing Director John Huguenard and Senior Director Kurt Sarbaugh.

Development surges

According to a prepared statement by Huguenard, the building is one of the largest modern distribution centers in the Midwest, playing an integral role in ConAgra’s ability to deliver food to a significant portion of the country. “These types of infrastructure-driven offerings continue to attract institutional capital,” he added.

The construction pipeline for industrial space in metro Indianapolis more than doubled from the first to the second quarter, according to a recent report from Cushman & Wakefield. Spec development surged, constituting more than two-thirds of the total; barely a quarter of that space is preleased.

The average vacancy for modern bulk space in the Greater Indianapolis market is 8.5 percent on an inventory of 113.5 million square feet. Year-to-date direct net absorption is about 3.4 million square feet, and 19.4 million square feet is under construction, also according to Cushman & Wakefield.

In January, Ambrose Property Group sold a 660,400-square-foot Class A cross-dock warehouse in Greenfield, Ind., just east of Indianapolis. The property is fully leased to Amazon as a fulfillment center.

The post W.P. Carey Buys Regional Distribution Center for $114M appeared first on Commercial Property Executive.

Mount Comfort Logistics Center II. Image courtesy of Ambrose Property Group

Calling the location outside Indianapolis a key transportation hub, a fund sponsored by CBRE Global Investors has acquired a newly constructed 505,872-square-foot Class A warehouse/distribution property in Greenfield, Ind. The property, known as Mount Comfort Logistics Center II, was completed in the first quarter and is fully leased.

READ ALSO: Top 5 Markets for Industrial Construction

The price and seller were not disclosed by CBRE Global Investors. The developer and most recent owner of the property at 4268 West County Road 300 N. was Ambrose Property Group, according to CommercialEdge. In early June, Ambrose stated Progressive Logistics would be leasing the newly built site in the business park. At that time, Progressive Logistics officials said the state-of-the-art climate-controlled facility would allow it to grow its food-related and e-commerce business.

Ambrose also announced it would be expanding the park with four more Class A distribution buildings on a newly created east campus. When that expansion is completed, Ambrose will have developed eight Class A distribution buildings totaling more than 3.5 million square feet at the Mount Comfort Logistics Center.

Property details

Mount Comfort Logistics Center II sits on a 42.78-acre site and features 36-foot clear height; 54-foot by 50-foot column spacing; 50 dock doors, with the ability to add 80 more dock doors; three drive-in doors; 50 trailer parking spaces, with an option to add 83 more spaces; and 155 auto parking spaces. The facility can also add more than 200,000 square feet to accommodate potential tenant expansion.

Gary Jaye, head of Americas Logistics Operator Division for CBRE Global Investors, said in a prepared statement Mount Comfort is in an extremely well-located site on the east side of Indianapolis that provides users access to a strong labor pool and excellent interstate connectivity. Mount Comfort is less than 25 miles east of the FedEx Air Hub at the Indianapolis International Airport and has immediate access to I-70, a major east-west highway in the U.S.

Jaye said the Indianapolis MSA has more than 330 million square feet of industrial product, with a tight vacancy rate. In addition to the FedEx Air Hub, the second-largest in the U.S., the MSA has access to five railroads and substantial freeway infrastructure, which provides access to more than 75 percent of the U.S. and Canadian population within a 24-hour drive.

The Mount Comfort submarket is one of Indianapolis’ fastest-growing modern logistics submarkets. More than 5 million square feet of new users have recently opened logistics operations or committed to the Mount Carmel submarket, according to Colliers. Hancock County, where Greenfield is located, plans to spend more than $30 million in infrastructure improvements to its major thoroughfares to accommodate the needs of the modern logistics users.

In June, Exeter Property Group acquired a 52-acre site in Mount Carmel Commercial Park, also in Greenfield, from Becknell Industrial. Exeter plans to develop a 955,687-square-foot speculative warehouse on the property that will feature a 40-foot clear height, 282 trailer parks and 80 exterior docks. The building is scheduled for completion in the first quarter of 2022.

CBRE Global Investors has also been active this summer in the Orange County industrial sector. Last month, the firm acquired Irvine Crossing, a mixed-use facility in Irvine, Calif., from Menlo Equities through one of its funds. According to public records, the property sold for $180.8 million. The deal was one of the largest industrial transactions in Orange County so far this year. Amazon is one of the property tenants.

The post CBRE Global Investors Buys Metro Indianapolis Logistics Asset appeared first on Commercial Property Executive.

1430 S. Third St., St. Louis. Image courtesy of Transwestern Investment Group

Having brought a 2.9 million-square-foot portfolio of industrial assets in the Midwest to full occupancy, Transwestern Investment Group has decided to part ways with the collection of 10 well-located buildings. TSP sold the properties on behalf of TSP Value and Income Fund II, its four-year-old discretionary investment fund, to Stockbridge for an undisclosed amount.

READ ALSO: Dream Industrial to Sell US Portfolio for $167M

With buildings located in the high-demand industrial markets of St. Louis, Indianapolis and Columbus, the portfolio turned the heads of investors eager to fortify or even establish a Midwestern footprint with a substantial collection in one fell swoop.

“There is significant opportunity for growth in secondary industrial markets across the Midwest. The location of these assets generated a great deal of interest from a wide variety of investors, some of which have not historically been interested in acquiring industrial product,” Ryan Grable, vice president with Transwestern Investment Group, told Commercial Property Executive.

Good bones

5345 Decatur Blvd., Indianapolis. Image courtesy of Transwestern Investment Group

The portfolio includes seven buildings in St. Louis and Indianapolis that Transwestern had acquired as part of a 2.5 million-square-foot portfolio purchase in 2017, just months after the launch of Fund II. The metropolitan St. Louis properties, which account for a total of approximately 909,500 square feet, consist of: 1430 S. Third St. in St Louis; 1602 Park 370 Court in Hazelwood, Mo.; 1600 Park 370 Place & 4774 Park 370 Blvd. in Hazelwood, Mo.; and 1010 Turner Road in St. Peters, Mo. TIG’s 2017 purchase had also included the facility at 6030 Gateway Drive and 5345 Decatur Blvd., accounting for an aggregate 467,600 square feet in metropolitan Indianapolis.

Rounding out the portfolio TIG just sold to Stockbridge are the three Columbus assets, which TIG had acquired on behalf of Fund II from a joint venture between Singerman Real Estate and Green Door Capital in 2019, the same year Fund II completed its final closing. The 1.5 million-square-foot group of facilities, which had been only 50 percent occupied at the time of purchase, consists of 3800 Lockbourne Industrial Parkway, 4150 Lockbourne Industrial Parkway and 3880 Industrial Parkway.

6030 Gateway Drive, Plainfield, Ind. Image courtesy of Transwestern Investment Group

While the new owner of the portfolio will benefit from the steady income that comes with a full tenant roster, there remains an option for upside potential in the not-too-distant future. The weighted average lease term among the 24 tenants at the newly traded portfolio is just over 3 years, and in-place rents are approximately 8 percent below today’s market rates.

Michael Caprile and Zachary Graham of CBRE represented TIG in the transaction with Stockbridge, and it is no surprise that the team welcomed such strong interest from investors.

The industrial sector in America’s heartland is thriving. As noted in a first quarter 2021 report by CBRE, “The Midwest industrial market continued to see new construction activity, occupancy growth, sustained low vacancy, and steady average asking lease rates despite tough economic conditions.”

The post Transwestern Investment Group Sells 2.9 MSF Midwest Portfolio appeared first on Commercial Property Executive.

Whiteland 65 Logistics Center. Rendering courtesy of Hines

Hines, in partnership with Cresset Real Estate Partners, has broken ground on a 1.1 million-square-foot building along Interstate 65 in Whiteland, Ind.

The Whiteland 65 Logistics Center is Hines’ first logistics project in the Indianapolis metro area. Cushman & Wakefield will handle leasing and marketing of the property. The property is available for preleasing and is slated for a 2022 completion.

The Whiteland 65 Logistics Center development benefits from a 10-year real estate tax abatement program, according to marketing materials published by Cushman & Wakefield. According to the Daily Journal, the tax abatement amounts to $3 million, and Hines is expected to invest $28.8 million in the project.

READ ALSO: Exeter Property Group Buys Industrial Site Near Indianapolis

Whiteland 65 Logistics Center will be situated just off Interstate 65, near the intersection with Whiteland Road. Johnson County is home to several other large projects. In a prepared statement, Hines Director Joe Noon said that the project will serve the area’s growing demand for large-format bulk distribution and warehouse space.

The upcoming logistics center will sit on an 81-acre site and is set to feature a 40-foot clear height, a cross-dock configuration with approximately 108 doors, four drive-in doors, ESFR sprinklers and two 1,500-amp service panels. Additionally, the project will benefit from 291 trailer parking spaces (expandable to 581), over 690 auto parking spaces and a 135-foot truck court. The property can be potentially leased to one or two tenants, as the minimum divisible space is 565,320 square feet.

The project’s location facilitates access to several major thoroughfares. Whiteland Logistics Center will have frontage along Interstate 65 and is less than 30 miles from Indianapolis International Airport, while Interstate 70 provides access to Eastern destinations. Nearby corporate neighbors include Cooper Tire & Rubber Co., Amazon, Pilot Flying J and Amcor.

Growing market

Earlier this year, the REIT entered Indiana by acquiring a 1 million-square-foot property in Jeffersonville, Ind., a property that is fully leased to Amazon.

The Indianapolis industrial market had a strong first quarter this year, with 5.3 million square feet leased, translating to 1.2 million square feet of direct absorption, according to Cushman & Wakefield research. This represents the second-highest first quarter absorption since 2015, the same report shows. Developers expect demand to continue growing.

According to CommercialEdge data, the Indianapolis market has more than 11.6 million square feet of industrial space under development. Virtually all construction activity is concentrated in submarkets like Johnson (which has 2.5 million square feet underway), as well as Hancock and Hendricks counties, where space is widely available. Of the total 22 properties, there are three other one-building projects of more than 1 million square feet each, including a Walmart Distribution Center that will comprise 2.2 million square feet.

The post Hines JV Breaks Ground on 1 MSF Logistics Center appeared first on Commercial Property Executive.

Mount Comfort Commercial Park. Image courtesy of Colliers International

Exeter Property Group, a Conshohocken, Pa.,-based real estate investment management firm focused on industrial properties across North America and Europe, has acquired a 52-acre site in Mount Comfort Commercial Park near Indianapolis from Becknell Industrial.

READ ALSO: E-Commerce Continues Driving Industrial Growth

Exeter plans to immediately begin construction on a 955,687-square-foot speculative warehouse on the property. The building, scheduled to be completed in the first quarter of 2022, will feature a 40-foot clear height, 282 trailer parks and 80 exterior docks.

Exeter is one of the largest industrial property owners in the Indianapolis market. In December 2019, when Exeter had acquired Mount Comfort Building 115, located at 7284 West 200 North in Greenfield, Ind., Colliers International stated Exeter owned more than 11.2 million square feet of industrial assets in Indianapolis at that time. Exeter planned to expand the 200,000-square-foot modern bulk facility on that lot to 398,000 square feet. In August 2020, The Opus Group said it was beginning construction of an 862,235-square-foot building in Mount Comfort, Ind., that would be owned by Exeter. The development, located in the Point 70 Logistics Park, was expected to be completed this summer.

Ownership of Exeter has recently changed with global private equity firm TA Associates selling its funds’ ownership interest in Exeter to EQT AB for $1.87 billion. The transaction was completed in April. Upon closing, Exeter and EQT’s real estate businesses were combined as EQT Exeter.

Becknell also building

A Colliers Midwest Industrial Sales Team led by Alex Cantu in the Indianapolis office and Jeff Devine and Steven Disse in the Chicago office, arranged the Mount Comfort Commercial Park deal on behalf of Becknell. Based in Carmel, Ind., Becknell specializes in the development, investment and management of industrial properties across the U.S. The company owns interests in 185 properties totaling more than 30 million square feet. Becknell is currently developing two industrial buildings totaling 650,000 square feet in the Mount Comfort Commercial Park.

Growing submarket

Located off I-70, a primary east-west highway, Mount Comfort is one of Indianapolis’ fastest growing modern logistics submarkets. More than 5 million square feet of new users have recently opened logistics operations or committed to the Mount Comfort submarket, according to Colliers. Hancock County, where Mount Comfort is located, plans to spend more than $30 million in infrastructure improvements to its major thoroughfares to accommodate the needs of the modern logistics users.

The post Exeter Property Group Buys Industrial Site Near Indianapolis appeared first on Commercial Property Executive.

Mohr Capital’s upcoming speculative industrial building within the Mohr Logistics Park. Image courtesy of Mohr Capital

Dallas-based Mohr Capital has begun construction of a Class A, 827,000-square-foot speculative industrial building within its Mohr Logistics Park, a master-planned business park in the Indianapolis metropolitan area. The privately held real estate investment firm expects to begin development of a 1 million-square-foot asset in the Whiteland, Ind., business park within 60 days.

READ ALSO: Top 10 Industrial Projects Under Construction

The smaller of the two assets is scheduled for completion in October and the larger property is slated to deliver in January 2022. The start of construction on the two lots comes soon after Mohr completed a 1 million-square-foot warehouse and distribution facility leased to Cooper Tires within the same park. Mohr Capital broke ground on the Cooper Tires building in June. Gary Horn, chief investment officer for Mohr Capital, told Commercial Property Executive the capital investment in the property exceeded $50 million at that time.

Project Details

Mohr Capital, which is the exclusive developer for Mohr Logistics Park, expects to construct more than 7 million square feet of Class A bulk industrial space at the 475-acre park. Located off Interstate 65, the park is about 20 miles south of Indianapolis, 25 miles to the Indianapolis International FedEx Hub and 102 miles to the Louisville UPS Hub.

Both buildings are expected to have clear heights up to 36 feet, 60-foot loading bays, four drive-ins, 7-inch unreinforced floors, interior LED lighting and ESFR sprinkler systems. The smaller of the two speculative properties, known as Spec Lot 9, will have 109 dock doors and will be located on a 62.45-acre lot with up to 250 car parking spaces and up to 572 trailer parking spaces. The larger spec building, known as Spec Lot 6, will have 100 dock doors and will be located on a nearly 60-acre lot with up to 270 trailer parking spaces and 652 car parking spaces.

Mike Long with Curran Architecture and Ross Nixon with American Structurepoint are providing architectural and civil designs. Mark Writt, CBRE senior vice president, is handling leasing for the business park along with Nikki Leahy, CBRE client services specialist.

Mohr Deals

In March, Mohr Capital sold a 200,000-square-foot warehouse and outdoor storage facility in Michigan City, Ind., occupied by GAF Materials Corp. The buyer was Four Springs Capital Trust, a New Jersey REIT. Mohr Capital had built the ground-up development on the 45-acre site in nine months and delivered the completed facility to GAF in November 2020.

Mohr Capital made its first investment in Florida in January with the purchase of a 78,449-square-foot medical office building in Orlando, Fla., from Wells Real Estate, according to CommercialEdge. Accredo Health Group Inc., an Express Scripts company and subsidiary of Cigna Corp., occupies the two-story building under a long-term lease.

The post Mohr Capital Breaks Ground on Spec Industrial Property appeared first on Commercial Property Executive.

2909 Pleasant Center Rd., Fort Wayne, Ind. Image courtesy of JLL

Raith Capital Partners has walked away with $140 million on the disposition of a collection of 12 industrial properties spanning roughly 3 million square feet in the Midwest. With the assistance of JLL Capital Markets, the private investment firm sold the nearly fully leased assets to three different buyers in separate transactions after having successfully executed a years-long asset management strategy at each facility.

READ ALSO: Industrial Real Estate Clear Leader in Moody’s Report

The industrial portfolio consists of buildings located in metropolitan Cleveland, as well as facilities in Fort Wayne and Bloomington, Ind.—all of which are markets that have not always been at the top of industrial investors’ list. However, JLL Capital markets solicited a deep and diverse buyer pool that responded in kind, resulting in a broad and competitive process that even yielded some parties that were new to the sector and/or the market. The Midwest’s rather newfound popularity among industrial investors is no fluke.

“I would say that the industrial sector nationally is well positioned, and the Midwest is certainly included in that,” Sean Devaney, managing director with JLL Capital Markets, told Commercial Property Executive. “The fundamentals on the user front remain healthy across virtually all Midwest markets. As for the capital side, the Midwest offers an opportunity to get a little yield premium compared to coasts which for some investors is critical.” JLL Capital Markets’ John Huguenard, Kurt Sarbaugh Peter Moriarty, Joe Messina and David Stecker joined Devaney in the representation of Raith.

Hot properties

Raith sold the bulk of its portfolio, a 2.1 million-square-foot group of properties in the Cleveland area, to Plymouth Industrial REIT for $94 million. The 10 multi- and single-tenant Ohio buildings are approximately 90 percent leased to 15 tenants and include: 3400, 3111, 3081, 3325, 3375 and 3425 Gilchrist Road. in Mogadore; 4122 Shuffel St. N.W., and 2100 and 2210 International Parkway in Canton; and 1366 Commerce Dr. in Stow. The approximately 274,500-square-foot building at 2100 International is one of the more recent properties that Raith had added to its holdings, having acquired the fully leased, build-to-suit facility in 2018 for roughly $14.1 million.

3400 Gilchrist Road, Mogadore, Ohio. Image courtesy of JLL

The remaining two Indiana assets, the 764,200-square-foot bulk distribution center at 2902 Pleasant Center Road in Fort Wayne and the 125,000-square-foot manufacturing and distribution center at 555 N. Daniels Way in Bloomington, came under the ownership of STAG Industrial Inc. and Legacy Investing LLC, respectively. Located on more than 114 acres, 2909 Pleasant is a single-tenant facility that is fully occupied by a vehicle parts supplier, and the 19-acre 555 N. Daniels property, featuring freezer and cooler space, is triple net leased to a global health-care and pharmaceutical company.

As Devaney noted in a prepared statement, the JLL and Raith teams collectively thought it best to pursue multiple transactions to efficiently transact on the overall portfolio, given the variety of individual deal profiles.

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Mount Comfort Logistics Center Building I. Image courtesy of JLL

Ambrose Property Group has finalized the disposition of Building I at Mount Comfort Logistics Center, a recently delivered 660,384-square-foot Class A industrial property in Greenfield, Ind. The cross-dock warehouse serves as a fulfillment center for Amazon, which occupies the facility on a net lease.

The seller and developer broke ground on the project in November 2019 and delivered it in 2020. The building sits on nearly 87 acres at 4412 W. County Road 300 N. The warehouse has a 36-foot clear height, two drive-in and 178 dock-high doors and an LED lighting system. Situated close to the Indianapolis Regional Airport, the property is within three miles of Interstate 70 and roughly 17 miles northeast of downtown Indianapolis.

Building I is the first property in a 176-acre master-planned industrial complex. Currently, Ambrose is finalizing the construction of Building II, a 505,000-square-foot spec facility that is expandable by up to 222,560 square feet. The developer has 2.2 million square feet of additional logistics space planned within the park. Hancock County has awarded Ambrose a 10-year tax abatement on the first four buildings at Mount Comfort Logistics Center, according to Inside Indiana Business.

The JLL Team that assisted the seller included Senior Managing Director John Huguenard, Senior Director Ed Halaburt and Managing Director Jake Sturman.

Earlier this month, Hines sold a 414,300-square-foot industrial property in Santa Ana, Calif., for $113.5 million. Realty Income purchased the Amazon-leased asset, according to CommercialEdge.

The post Ambrose Sells Amazon-Leased Indianapolis Warehouse appeared first on Commercial Property Executive.

Distribution Center. Image by marcinjozwiak via Pixabay

JLL Income Property Trust has purchased Whitestown Distribution Center, a two-building industrial asset in Whitestown, Ind. The company paid $62 million for the 720,000-square-foot property. The distribution center is fully leased to LifeScience Logistics and Lowe’s Cos., according to the Indianapolis Business Journal.

Constructed in 2020, the Whitestown Distribution Center encompasses a 440,000-square-foot facility at 5102 E. 500 S. and a 280,000-square-foot building at 4993 Anson Blvd., near interstates 65 and 75, around 20 miles from downtown Indianapolis. The distribution center is also located roughly 25 miles from the Indianapolis International Airport and provides easy access to major cities across the Midwest. The acquisition is part of JLL’s strategy focusing on purchasing industrial facilities at primary locations with access to well-developed transportation infrastructure.

The Indianapolis industrial market has been thriving amid the severe economic uncertainties caused by the COVID-19 pandemic. The metro’s industrial market registered the third-lowest vacancy rate in the country at around 5.1 percent, according to JLL Income Property Trust President & CEO Allan Swaringen.

JLL’s most recent Indianapolis industrial report indicates that a total of 10.4 million square feet of industrial space was delivered in the metro in the third quarter, and another 4.9 million square feet could be completed before the end of the year. And despite the elevated construction activity, there are no overbuilding concerns, JLL reported.

The post JLL Income Property Trust Pays $62M for Indianapolis Distribution Center appeared first on Commercial Property Executive.

Whitestown Business Park Building 2. Image courtesy of Colliers

An affiliate of Walton Street Capital has acquired Whitestown Business Park Building 2, a 636,742-square-foot, distribution center in Whitestown, Ind. Colliers arranged the transaction on behalf of PUMA North America. The deal marks Walton’s first industrial acquisition in Indianapolis.

Built in 2019, the asset is 100 percent occupied by the seller. Colliers also assisted PUMA in establishing the center, where the company took occupancy in June. The site features an approximately 1 million-square-foot parcel for further expansion. According to Colliers, the property is the largest of PUMA’s two national distribution hubs.

Located at 3632 Perry Blvd., the facility is just off Interstate 65. The property is within 20 miles of downtown Indianapolis and 23 miles of Indianapolis International Airport.

Colliers Vice President Alex Cantu, along with Principals Jeff Devine and Steven Disse represented PUMA. In October, Cantu assisted the seller of Midtown III, a 77,793-square-foot office property in Carmel, Ind. Balke Brown Transwestern purchased the building, backed by a $12.1 million acquisition loan from Enterprise Bank & Trust.

The post PUMA-Leased Industrial Asset Trades Near Indianapolis appeared first on Commercial Property Executive.

Stonemont Financial’s industrial project in Lebanon, Ind. Image courtesy of Stonemont Financial Group

Stonemont Financial Group has commenced construction on a new 615,000-square-foot industrial facility in Lebanon, Ind., roughly 20 miles outside Indianapolis. Stonemont, both owner and developer of the speculative project, is relying on Duke Realty to serve as general contractor.

READ ALSO: Supply Chain Resiliency to Boost Logistics Demand

The new facility will sprout up at the 1,250-acre Lebanon Business Park, on one of the last remaining developable sites in Lebanon. The park, which is located within the lower Midwest region’s E-Commerce Heartland area, is surrounded by transit and is home to the likes of such businesses as XPO Logistics and Hachette Book Group. Designed for bulk distribution uses, the property will be able to expand to as much as 985,000 square feet.

High demand

Stonemont’s new project is likely to receive a warm welcome upon completion, like many spec developments in the national industrial sector, which is surviving the pandemic due in no small part to the rise in e-commerce. “[In Indianapolis] demand for industrial space continues at a heightened rate,” according to a third quarter report by JLL, which is serving as leasing agent for Stonemont’s facility. “Active tenant requirements have exceeded pre-COVID-19 levels and are approaching 20.0 million square feet. This is a 60 percent increase over historical averages.”

Other developers are capitalizing on the loud cry for accommodations in Indianapolis. Mohr Capital broke ground on a $50 million, 1 million-square-foot warehouse and distribution build-to-suit for Cooper Tires in Whiteland in June of this year. Stonemont expects to complete development of its industrial project in the summer of 2021.

The post Stonemont Financial to Build 615 KSF Project in Indianapolis appeared first on Commercial Property Executive.

Midtown III. Image courtesy of Colliers International

Colliers International has completed the sale of Midtown III, a 77,793-square-foot office property in Carmel, Ind. Vice President Alex Cantu and Director Alex Davenport represented the seller, Ambrose Property Group. Balke Brown Transwestern purchased the building, backed by a $12.1 million acquisition loan from Enterprise Bank & Trust, according to Hamilton County records.

The property delivered in 2018. The seller and developer had taken a total of $13.7 million in construction financing from Associated Bank for the project. Old Town Development was the general contractor for the building.

Located on a 1-acre parcel at 571 Monon Blvd., the four-story building serves as the corporate headquarters of MJ Insurance. The property is attached to a 318-stall parking deck on its eastern side. Situated in the Carmel Arts & Design District, the site is 15 miles north of downtown Indianapolis.

Midtown III was the last office asset in Ambrose Property Group’s portfolio, according to President & Chief Investment Officer Jason Sturman. Moving forward, the company intends to focus its investment and development strategy on e-commerce and logistics properties.

Last year, the brokerage duo was part of the team that assisted Lexington Realty Trust in the sale of Crosspoint Plaza One, a 138,636-square-foot office asset in the neighboring suburb of Fishers. Tempus Realty Property purchased the property.

The post Colliers Arranges Suburban Indianapolis Office Sale appeared first on Commercial Property Executive.

Bonn Building. Image courtesy of Hanley Investment Group Real Estate Advisors

Hanley Investment Group Real Estate Advisors has brokered the sale of the 36,000-square-foot, mixed-use Bonn Building in the northeast Indianapolis suburb of Fishers, Ind. Vice President Corey Olson and Senior Associate Dylan Mallory worked on behalf of the seller. The buyer, Republic Development, represented itself. In May, Mallory was part of a different team responsible for closing a two-property retail disposition in Knoxville, Tenn., and Somerset, Ky.  

Public records show the new owner received $7 million in acquisition financing from German American Bank. The loan matures in 2030.

Located at 13578 E. 131st St., the asset is within the 3.5 million-square-foot Saxony office and industrial development, which covers an area both north and south of Interstate 69. At the time of sale, the asset was 92 percent leased to a mix of retail and office users, including Edward Jones, RE/MAX, a gym and a number of health-care and food service tenants.

According to the brokers, residents of Fishers have an average annual household income of $155,000. The population within 3 miles of the property has grown tremendously since 2010, jumping by 33 percent. This growth is anticipated to continue by another 23 percent during the next three years.

If you’d like to be featured in Brokers’ Corner, simply fill in our short form or send your deal to deals@cpe-mhn.com.

The post Hanley Investment Brokers Indianapolis Mixed-Use Asset Sale appeared first on Commercial Property Executive.

Rendering of upcoming Cooper Tires facility in Whiteland, Ind. Image courtesy of Mohr Capital

Mohr Capital, of Dallas, has broken ground on a 1 million-square-foot warehouse and distribution facility for Cooper Tires in Whiteland, Ind. Gary Horn, chief investment officer for Mohr Capital, told Commercial Property Executive that the capital investment in the property exceeds $50 million.

READ ALSO: SIOR: CRE Market Confidence Slightly Higher

Cooper Tires is North America’s fifth-largest tire manufacturer and focuses primarily on passenger car and light vehicle replacement tires. The new development will coincide with Cooper Tires’ relocation from its current 807,000-square-foot distribution center in Franklin, Ind. Both locations are just west of I-65, roughly 20 miles south of Indianapolis, in the 11-county metro area.

Horn said in a prepared statement that the Franklin facility was undersized and needed additional trailer parking, prompting the development of a larger facility. Mark Writt, a senior vice president with CBRE, assisted Mohr Capital with the land acquisition and in working with local officials to address any potential concerns.

Pepper Construction, Curran Architects and American StructurePoint, the latter two both based in Indianapolis, will be designing and building the distribution center. The development is scheduled to be completed in the first quarter of 2021.

So far, so good

At the onset of the pandemic, the Indianapolis industrial market was seeing a good balance between strong demand for large distribution space (from both consumer goods and e-commerce–based companies), a record level of new product and “solid net absorption numbers,” according to a first-quarter report from Avison Young. Absorption over the first quarter totaled about 3.9 million square feet, while another 9.8 million square feet of space was in the construction pipeline.

Even before the COVID-19 pandemic, however, the market was facing difficulties in the form of rising construction costs and labor supply challenges. Still, the overall direct vacancy was about 4.4 percent, deal velocity has remained strong, and the average triple-net asking rental rate is $3.88 per square foot, also according to Avison Young.

Speaking of deal velocity, in January, Founders Properties purchased a 519,100-square-foot industrial property in Indianapolis from a joint venture between Transwestern Investment Group and Acento Real Estate Partners. And in late May, Black Creek Group acquired a new 690,700-square-foot industrial facility in Brownsburg, Ind., from Washington Capital Management.  

The post Mohr Capital Breaks Ground on 1 MSF Facility in Indianapolis appeared first on Commercial Property Executive.

Eaglepoint Six. Image courtesy of JLL

Black Creek Group has acquired Eaglepoint Six, a 690,702-square-foot, newly built, industrial facility in Brownsburg, Ind. Washington Capital Management, on behalf of a client, sold the Class A asset in partnership with Becknell Industrial. Recently, Black Creek Group selected Cushman & Wakefield to lease its eight-story Bank of America Tower in Boca Raton, Fla.

Located at 1111 E. 56th St. within the Eaglepoint Business Park, the facility is adjacent to Interstate 74, 11 miles from Interstate 465, 22 miles from Indianapolis International Airport and 16 from the metro’s downtown. Completed in 2019, the asset comprises up to 36-foot clear height, T-5 warehouse lighting, crossdock capability, ESFR sprinkler system, four drive-in doors and 136 trailer parking spaces.

Lauth Group developed the Class A asset, while Radial Inc. occupies the space. Senior Managing Director John Huguenard, Managing Director Jake Sturman, along with Senior Directors Sean Devaney, Kurt Sarbaugh, Robin Stolberg and Ed Halaburt from JLL Industrial Capital Markets worked on behalf of the seller.

The post Black Creek Group Buys 671 KSF Indianapolis Industrial Facility appeared first on Commercial Property Executive.

Courtyard by Marriott, The Stations. Image courtesy of Dunn Hospitality Group

A new Courtyard by Marriott is coming to Fishers, Ind. Dunn Hospitality Group has purchased a hotel site in the Indianapolis suburb from Thompson Thrift Retail Group. The lot was sold for an undisclosed price and is part of Thompson Thrift’s mixed-use development The Stations.

READ ALSO: Q&A: How Can Hotels Prepare for an Optimized Recovery?

Dunn is planning to build a 145-key Courtyard by Marriott on its new lot with the start of construction planned for early summer 2020. The hotel will feature meeting spaces, fitness facilities, an indoor pool, room service and a bistro bar. Dunn, who is spending $20 million on construction, expects to open the Courtyard by Marriott in the second half of 2021.

David Dunn, president & chief operating officer of Dunn, said in prepared remarks that the company had enough funding in place to purchase the hotel site despite the ongoing economic situation. Dunn added in his prepared statement that the hotel will likely open during an opportune time since it is being built while the economy is recovering.

Elsewhere in the state, the Indiana-based hotel development and management company has three hotel properties in Evansville and two in Indianapolis. South of Indiana, Dunn Hospitality also has a Holiday Inn Express and a Hilton Garden Inn in its Louisville, Ky., portfolio.

Dual mixed-use projects

Dunn’s new hotel will be part of The Stations, Thompson Thrift’s 8-acre multi-use development. The Stations will include 60,000 square feet of office, 6,600 square feet of retail, 37 townhomes and the upcoming hotel. Later this year, Thompson Thrift plans to break ground on the office portion with a Class A four-story office building equipped with a large lobby with elevators and outdoor work areas on the building’s top floor. The company is also working on the residential section of the Stations by completing the initial site work for the three-story townhomes.

Eric Wojak, development director for Thompson Thrift, said in prepared remarks that Dunn’s hotel is a great fit for The Stations as it will attract business traveler demand and complement the upcoming office building.

As Thompson Thrift’s exclusive hospitality partner, Dunn previously worked with the real estate company in its adjacent mixed-use Fishers District project. The developers built a 211-key, dual-branded Hyatt Place/Hyatt House in Thompson Thrift’s Fishers District, which also includes 100,000 square feet of retail and dining and 260 multifamily units. Watermark Residential, an affiliate of Thompson Thrift, is also working on a 324-unit community in Huntsville, Ala.

The post Dunn Hospitality Acquires Indiana Hotel Site appeared first on Commercial Property Executive.

853 Columbia Road. Image via Google Street View

HSA Commercial Real Estate has signed a 20,439-square-foot lease with American Residential Services at a 104,400-square-foot industrial building in Plainfield, Ind. The tenant plans to move into the fully leased building in September. CBRE represented the landlord.

Located at 853 Columbia Road, ARS’s new space is within 1 mile of Interstate 70 and 5 miles of Interstate 465. Indianapolis International Airport is 3 miles from the facility.

HSA developed the property in 2004 as the first phase of the 55-acre Gateway Business Park. Since then, the company has expanded the industrial park, developing six buildings encompassing some 900,000 square feet. The most recently delivered structure, a 262,758-square-foot multi-tenant distribution center, opened in 2019. Prior to completion, transplant solution provider LifeNet and aerospace firm Safran Nacelles had inked long-term leases for the facility.

CBRE Senior Vice President Terry Busch and Vice President Jared Scaringe worked alongside HSA Executive Vice President Christine Muszynski to close the transaction.

The post HSA Signs Tenant at Indianapolis Industrial Park appeared first on Commercial Property Executive.

Image via Pixabay.Com

Merchants Capital has arranged a $59 million loan for Bottleworks District, a mixed-use development in Indianapolis. The construction loan for the project—slated to open this year in September—was secured on behalf of Hendricks Commercial Properties, which acquired the 12-acre site of the Coca-Cola bottling plant in 2017 for $260 million.

Located at 850 Massachusetts Ave., the project will include a 150-key boutique hotel with a rooftop bar, an eight-screen cinema, 180,000 square feet of office space, 175,000 square feet of prime retail space, 240 condos and apartment units. The retail space will offer suites from 1,000 to 22,000 square feet and will include a mix of restaurants, soft goods, entertainment, service, fitness and specialty retailers.

A 500-seat food hall dubbed The Garage, will be a roughly 30,000-square-foot community-focused food and market hall located in the heart of the development. It consists of two authentic garage buildings and will include vendors ranging from 100 to 1,000 square feet.

The post Bottleworks District Project Lands $59M Construction Loan appeared first on Commercial Property Executive.

8325 N. Norfolk St. Image via Google Street View

A joint venture between Transwestern Investment Group (TIG) and Acento Real Estate Partners has sold a 519,100-square-foot industrial property in Indianapolis to Founders Properties. The partnership had first acquired the asset as part of a 2 million-square-foot portfolio purchase in 2014. This sale was the final disposition of that portfolio.

The former Federal Mogul facility came online in 1988. Located at 8325 N. Norfolk St. on 21.8 acres, in the Park 100 industrial complex, the property is less than 1 mile from Interstate 465 and roughly 20 miles north of the Indianapolis International Airport. Several shopping and dining options are available at the Traders Point mall, just off I-465.

CBRE Vice Chairman Michael Caprile and Senior Vice Presidents Ryan Bain and Zachary Graham represented the seller in the deal.

The strong demand for industrial assets on a national level is fueled by the needs of third-party logistics companies and e-commerce tenants. Industrial vacancy rates are at historical lows and rent prices continue to rise, having a projected growth of 5 percent in 2020, according to research by Transwestern.

The post Transwestern JV Sells Indianapolis Industrial Asset appeared first on Commercial Property Executive.

Candlewood Suites. Image via Google Street

Vista Capital Co. has secured $22.5 million in non-recourse, fixed-rate loans for two hotels: Candlewood Suites in Terre Haute, Ind., and Holiday Inn Express in Indianapolis. The company arranged the financing separately and were not cross-collateralized.

Located at 721 Wabash Ave., Candlewood Suites features common-area amenities such as an on-site business center, meeting convention spaces, Wi-Fi throughout the hotel, fitness center, same-day dry cleaning, self-laundry facilities and picnic tables.

Situated at 410 S. Missouri St., Holiday Inn Express includes a breakfast buffet, off-site restaurant delivery service, walk-in shower, on-site business center, free Wi-Fi in all rooms, indoor heated swimming pool, indoor whirlpool, fitness center and on-site guest self-laundry facilities. Additionally, a complimentary shuttle to and from the convention center is available. Indianapolis International Airport is situated approximately 12 miles from the hotel.

The loans were awarded to a European-based investment bank after a competitive bidding process that is core to Vista’s capital-raising strategy. In another recent deal, Riller Capital acquired the $24.1 million Holiday Inn Express Nashville Airport, a 207-key property in Nashville, Tenn.

The post Vista Capital Arranges Financing for 2 Indiana Hotels appeared first on Commercial Property Executive.

775 Commerce Parkway W. Drive. Image via SREIT

Starwood Real Estate Income Trust Inc. has just entered the industrial sector, establishing a footprint spanning more than 4.1 million square feet of Class A assets in one fell swoop.

The non-traded REIT acquired a 95 percent stake in the 33-property Midwest Industrial Portfolio from Becknell Industrial in a transaction valued at $319.6 million.

READ ALSO: The Future of Industrial Real Estate

The Midwest Industrial Portfolio, consisting predominantly of light industrial assets, spans four of the top-20 industrial markets in the U.S. Approximately 43 percent of the portfolio is concentrated in metropolitan Chicago, 33 percent is located in the Indianapolis area and 16 percent is sited in metropolitan Columbus, Ohio, with the remaining 8 percent located in the Milwaukee area.

2240 Creekside Parkway. Image via SREIT

The list of properties includes the approximately 100,400-square-foot warehouse at 775 Commerce Parkway W. Drive, just outside Indianapolis in Greenwood, Ind., and the 125,000-square-foot building at 2240 Creekside Parkway in Lockbourne, Ohio, near Columbus.

The Midwest Industrial Portfolio is a relatively young group of properties, with an average age of roughly 14 years. The collection is currently 98 percent leased to 50 tenants and boasts an average 10-year occupancy level of nearly 95 percent. Becknell retained a 5 percent stake in the portfolio.

Rising Star

Two years into its formation, SREIT—which is managed by a subsidiary of global private investment giant Starwood Capital Group—claims ownership of a diverse portfolio of assets spanning the U.S.

Notable transactions in 2019 include the $231 million acquisition of a 1.3 million-square-foot office portfolio in Jacksonville, Fla. SREIT also partnered with DoveHill Capital Management on the $66 million purchase of the 236-key Renaissance Fort Lauderdale Cruise Port Hotel in Fort Lauderdale, Fla.

At the start of December, the perpetual-life, monthly NAV REIT’s holdings encompassed 70 multifamily, office and hotel assets valued at a total of nearly $2 billion.

The post SREIT Buys $320M Industrial Portfolio appeared first on Commercial Property Executive.

Aerial view of Shadeland Commerce Center. Image via Google Maps

Plymouth Industrial REIT has completed the $62 million acquisition of a 2.1 million-square-foot industrial portfolio in Indianapolis. The 10-building transaction brings the company’s footprint in the metro to more than 3 million square feet.

The deal involved the purchase of the 1.7 million-square-foot Shadeland Commerce Center, which was 95 percent leased at the time of sale. The property is home to 26 tenants including ABC Supply Co., PPG Industries, Penske and Ryder. The nine-building complex is across the street from two other Plymouth-owned facilities at the Shadeland I-70 Business Park.

Additionally, the REIT acquired a 353,000-square-foot property located at 7901 W. 21st St., roughly 10 miles from Indianapolis International Airport. The asset is fully leased to two tenants—Iron Mountain and Venture Logistics.

In September, Plymouth Industrial REIT paid $90 million for a multi-state industrial portfolio. Encompassing some 2.2 million square feet, the properties are spread across Illinois, Tennessee and Ohio. 

The post Plymouth Industrial Boosts Indianapolis Footprint in $62M Deal appeared first on Commercial Property Executive.

Crosspoint Plaza One

Tempus Realty Partners has acquired Crosspoint Plaza One, a 138,636-square foot office building in Fishers, Ind. Yardi Matrix data shows Lexington Realty Trust sold the Class A asset after almost 15 years of ownership. Recently, Lexington spent $180 million for a 2.4 million-square-foot e-commerce industrial portfolio in Cincinnati.

Located at 10475 Crosspoint Blvd. close to a dense residential area, the four-story building is less than a mile from Interstate 69 via the new 106th St. exit, roughly 2miles from a Walmart Supercenter and almost 20 miles northeast of downtown Indianapolis. Completed in 1999 on a 10.3-acre site, the building was originally built-to-suit for Wiley Publishing—which vacated the premises—and is currently 20 percent occupied. The new owner intends to implement a renovation program for the common areas, outdoor spaces and the first-floor conference facility.     

Colliers International’s Vice President Alex Cantu and Associate Alex Davenport, together with Executive Vice Presidents Leader Matt Langfeldt and Rich Forslund worked on behalf of the seller.

The post Lexington Realty Trust Sells Indianapolis Office Building appeared first on Commercial Property Executive.

Image via Pixabay

An industrial property in Greenwood, Ind., that is net leased to Amazon has been acquired by Monmouth Real Estate Investment Corp., a New Jersey-based REIT, for $81.5 million. The 615,750-square-foot building opened last month as a fulfillment center and is leased to the e-commerce leader for 15 years.

READ ALSO: Amazon Adds 104 KSF to Austin Lease

Located at 1151 S. Graham Road in the Indianapolis suburb of Greenwood, the industrial facility is situated on approximately 78.6 acres off County Road 200 E., about a half-mile from Interstate 65. The packaging center hired more than 1,000 full-time employees for the new fulfillment center, which was previously slated to become a FedEx distribution hub before the company scrapped its plans in March 2018, according to the Associated Press.

Monmouth Real Estate President & CEO Michael Landy said in a statement that the industrial market in the Indianapolis metro area is one of the best in the country. Landy’s company has previously acquired industrial properties in the area, including a facility for ULTA Cosmetics and a FedEx Ground distribution center. The REIT, which owns roughly 23 million square feet of assets, specializes in acquiring net-leased industrial properties with a single, investment-grade tenant.

Amazon’s nationwide moves

Amazon has been beefing up its footprint in cities across the country lately, expanding leases at its locations in Chicago and Austin, Texas, and leasing an entire office building in Northern Virginia.

Last year, when cities were still pulling out all the stops to entice Amazon into building an HQ2 in their metros, the e-retailer named Indianapolis as one of the 20 finalists in its nationwide search. After initially announcing New York City and Crystal City, Va., as the new HQ2 locations, the company abruptly pulled out of its NYC plans, opting to stick with a campus in the D.C. metro area that will create 50,000 jobs and a smaller campus in Nashville, Tenn., that will employ 5,000 people.

The post Amazon-Leased Property in Indiana Trades for $82M appeared first on Commercial Property Executive.

Eight Parkwood. Image courtesy of Rubenstein Partners

Rubenstein Partners together with Strategic Capital Partners (SCP), has secured CBIZ’s 53,000-square-foot lease at Eight Parkwood, a 204,126-square-foot building in Indianapolis. The property is part of Parkwood Crossing, an eight-building office park totaling roughly 1.2 million square feet. Rubenstein and SCP acquired the $163 million park in 2016.

Located at 800 E. 96^th St., adjacent to the suburbs in Carmel, Zionsville and Fishers in Hamilton County, Eight Parkwood sits on approximately 9.6 acres and consists of one five-story building. The property provides convenient access to Interstate 465 and 96^th Street.

The joint venture plans to invest more than $20 million in upgrades at Parkwood, especially to the PARC, a 14,000-square-foot full-service tenant amenity center opened in 2018. The property features common-area amenities including tenant lounge with fireplace, outdoor wraparound deck, gourmet café, a 6,000-square-foot fitness center, access to a bike sharing program, locker rooms and private showers, four Tesla and three universal electric charging stations, conference and training cente and roughly 23 miles of trail going from downtown Indianapolis to north of Carmel.

Matt Waggoner of JLL and Gibraltar Real Estate Services represented the tenant, while JLL’s team led by Traci Kapsalis, Adam Broderick and Brittany Shuler worked on behalf of the building’s owner.

The post CBIZ Signs Indianapolis Office Lease appeared first on Commercial Property Executive.

Hampton Inn & Suites by Hilton Wayne Downtown. Image courtesy of Hilton

White Lodging has opened Hampton Inn & Suites by Hilton Wayne Downtown, a 136-key property in Fort Wayne, Ind. The hotel broke ground in June 2018. Of the total of rooms, 25 percent will be oversized suites.

Located at 223 W. Jefferson Blvd., adjacent to Parkview Field and the Grand Wayne Convention Center, the hotel provides convenient access to Foellinger-Freimann Botanical Conservatory, Headwaters Park and Fort Wayne Children’s Zoo. Additionally, the Fort Wayne International Airport is approximately 8 miles away. 

Hampton Inn & Suites by Hilton Wayne Downtown features free Wi-Fi in every room and throughout the hotel, oversized rooftop fitness center, outdoor fireplace and patio area and a meeting room for up to 47 people with direct access to the outdoor area. Additionally, the property offers two new community-focused restaurant concepts: Burger Bar—seating for 70 including 18 outdoor seating—and Conner’s Rooftop. Situated on the top floor of the building, Conner’s Rooftop features outdoor/indoor seating, shareable small plates, fire pits and a mix of craft and frozen cocktails.

Earlier this month, Hilton opened a 213-key dual-branded development in West Florida.

The post New Hampton Inn & Suites by Hilton Opens in Indiana appeared first on Commercial Property Executive.

Metro Air Business Park. Image courtesy of Strategic Capital Partners

PCCP LLC has established a new joint venture with Strategic Capital Partners LLC for the development of the next phase of Metro Air Business Park in Plainfield, Ind. The partners will erect two new industrial buildings totaling nearly 725,000 square feet at the 100-acre, metropolitan Indianapolis complex.

Metro Air sits adjacent to the Indianapolis International Airport on a site that had been owned by the Indianapolis Airport Authority before construction of the park commenced in 2006. The new joint venture will add Metro Air 8 and 9 to the mix with nary a tenant commitment in place at either building. “Despite additional supply, the market is demonstrating strong fundamentals,” Ryan Dodge, vice president with PCCP, told Commercial Property Executive. “We believe the site is well positioned versus competitive product and tenants value the main location.”

READ ALSO: Blackstone to Double US Industrial Footprint in Record $18.7B Deal

Metro Air 8 will be a rear-load facility encompassing approximately 223,500 square feet. Metro Air 9, a cross-docked building, will consist of roughly 501,400 square feet. PCCP and Strategic Capital plan to commence construction of the JRA Architects-designed warehouse/distribution facilities, which will rise at the intersection of Ronald Reagan Parkway and Stafford Road, in August, with delivery scheduled for the second quarter of 2020. The project marks the second joint venture endeavor for the companies at Metro Air. In mid-2018, they completed development of Metro Air 2 and 6, totaling nearly 500,000 square feet.

Indianapolis in demand

The strength of the Indianapolis industrial market has failed to wane for quite some time, as evidenced by a 10-year streak of positive net absorption totaling between 2 million and 8 million square feet annually since 2009, according to a report by Cushman & Wakefield. In the first quarter of 2019, the overall vacancy rate in metropolitan Indianapolis was just 4.6 percent. Additionally, 32 projects accounting for an aggregate 10.5 million square feet were under construction—and a notable 54 percent of the total was already preleased. Among the early commitments was LifeNet Health’s signing of a lease for approximately 68,100 square feet at the Gateway V project in HSA Commercial Real Estate’s Gateway Business Park in Plainfield.

Experts expect the positive fundamentals Dodge spoke of to persist in the Indianapolis industrial market through 2019. Per the Cushman & Wakefield report, business expansion will continue to spur demand for space in the area over the long term.

The post PCCP JV to Build 725 KSF Indianapolis Industrial Project appeared first on Commercial Property Executive.

Indianapolis Airport Suites. Image via Google Street View

Marriott International has plans to open another SpringHill Suites by Marriott property. Shree Hotels LLC will own The SpringHill Suites Indianapolis Airport Plainfield, a 103-key hotel operated as a Marriott franchise, while Commonwealth Hotels will manage it. Marriott plans to open the formerly known as Indianapolis Airport Suites at the beginning of July.

Read Also: JV Breaks Ground on Dual-Branded Marriott Hotel

Located at 6014 Gateway Drive, the property offers convenient access to Indianapolis Airport, situated four miles away. Additionally, Indiana Convention Center/Lucas Oil Stadium, Victory Field and the Indianapolis Zoo are nearby.

The four-story hotel will include common-area amenities such as same-day dry cleaning, guest laundry facilities, a 24-hour market, Wi-Fi, an indoor swimming pool and a fitness center. Additionally, The SpringHill Suites Indianapolis Airport Plainfield will feature on-site parking and two meeting rooms for up to 100 people totaling more than 3,000 square feet.

The post Marriott to Open New SpringHill Suites Hotel appeared first on Commercial Property Executive.

U-Haul Moving & Storage of Eastgate. Image courtesy of U-Haul

U-Haul has converted a 178,963-square-foot retail building into a self storage facility in Indianapolis. The former Kmart structure has been vacant since 2014. Starting June 2018, U-Haul began using it as a truck and trailer sharing center. Currently, the facility encompasses 598 self storage units..

Situated at 7425 E. Washington St., U-Haul Moving & Storage of Eastgate is alongside Interstate 465, around 10 miles from downtown Indianapolis and within 23 miles of the Indianapolis International Airport. The asset is near residential areas, with approximately 4,400 units completed within a 3-mile radius, such as the 208-unit English Village and the 184-unit Pheasant Run.

The building was originally constructed in 1969 on roughly 12 acres. Currently, it has indoor, climate-controlled units and wine storage. Characteristics of the facility include high-tech security, online payment option, 24-hour access, moving supplies and towing inspection.

U-Haul has several adaptive reuse facilities underway in the country. In Ammon, Idaho, the company is also converting a former Kmart store into self storage. A  103,977-square-foot retail building is being transformed into 900 self storage units.

The post U-Haul Converts PA Retail Into Storage appeared first on Commercial Property Executive.

Hampton Inn Indianapolis. Image via Google Street View

After recently purchasing the 139-key Hilton Garden Inn Las Vegas/Henderson, MCR has acquired Hampton Inn Indianapolis Northwest–Park 100 and Residence Inn by Marriott Indianapolis Northwest. Both assets are located within 10 miles of the Indianapolis Motor Speedway.

Located at 5680 W. 73rd St., the 110-key Hampton Inn is adjacent to Interstate 465 and is within 2 miles of Interstate 65. The property has 800 square feet of meeting and event space for up to 45 people and a 24-hour business center. Hotel amenities include pet-friendly guestrooms, a heated indoor pool and 24-hour fitness center.

The Residence Inn by Marriott Indianapolis Northwest is located at 6220 Digital Way. The 78-key hotel includes amenities such as pet-friendly suites with fully-equipped kitchens, outdoor firepit and barbecue area, a 24-hour business center, a heated indoor pool, a 24-hour fitness center, a 24-hour convenience store and 288 square feet of meeting and event space. Both assets are within 10 miles of Indianapolis Motor Speedway Museum and The Children’s Museum of Indianapolis.

The post MCR Acquires IN Hotels appeared first on Commercial Property Executive.

Courtyard by Marriott Indianapolis West-Speedway. Rendering courtesy of MHG Hotels

The latest property in the Courtyard by Marriott portfolio will open in Speedway, Ind., with the launch of MHG Hotels’ new 97-key Courtyard by Marriott Indianapolis West-Speedway. The hotel will feature Courtyard’s most recent contemporary room design.

Located at 6315 Crawfordsville Road, the four-story asset will feature an indoor swimming pool, fitness center and meeting room with 1,200 square feet of functional space. 

“With revitalization of the historic Speedway Area, the continued growth of businesses and the lack of hotel rooms in the immediate area, it made this the perfect time to open new supply and add to the growth,” Andrew Quinto, MHG Hotels’ vice president of operations, told Commercial Property Executive. “We are also adding much-needed supply for businesses that are in the area that used to have to house their guests in the Avon or Northwest Indy markets.”

Courtyard is Marriott’s mid-priced hotel chain catering primarily to business travelers, with more than 900 locations in 37 countries. In April, Winwood Hospitality Group opened the 105-key Courtyard by Marriott Raleigh/Cary Parkside Town Commons in Cary, N.C.

“Courtyard has long led the industry when meeting the needs of the modern business traveler,” Quinto said. “Courtyard has continuously evolved, pushing the boundaries of design, style and service in the upscale category—introducing game-changing amenities like our Bistro Bar, an elevated evening experience featuring a menu of seasonal American Classics with a Twist and handcrafted cocktails, and collaborative lobby spaces. Courtyard Speedway will be the closest hotel to the Indianapolis Motor Speedway and will be the preferred hotel for guests visiting IMS.”

Experience in the area

MHG Hotels has been in the Indianapolis market for the past 25 years. According to Quinto, the company is very familiar with the unique demands of the Speedway market as it also operates two hotels in Avon—A Fairfield Inn & Suites and a Comfort Inn—both just 5 miles away. 

The new hotel is close to the Indianapolis Motor Speedway, Lucas Oil Raceway, Eagle Creek Park, the Indiana Convention Center, Lucas Oil Stadium, Marian University and the Indianapolis Zoo.

The post New Courtyard by Marriott to Open in Indiana appeared first on Commercial Property Executive.

Rendering of Hilton Plainfield Indianapolis Airport

Hilton’s brand Embassy Suites by Hilton has opened Hilton Plainfield Indianapolis Airport, a 174-key hotel near Indianapolis. Sun Development & Management Corp. owns and manages the property.

Located at 6089 Clarks Creek Road, the hotel offers convenient access to downtown Indianapolis and to various dining, shopping and entertainment venues including Lucas Oil Stadium, Bankers Life Fieldhouse and Indianapolis Motor Speedway. Hilton Plainfield Indianapolis Airport provides a shuttle bus to the Indianapolis International Airport, situated 5 miles away.

The hotel includes common-area amenities such as 10,000 square feet of meeting space for up to 2,000 people, 24-hour convenience market, 24-hour business center, fitness center, indoor swimming pool and an outdoor area with a pond, boardwalk and several patios.

“Travel is booming in Indianapolis and the addition of our fourth Embassy Suites by Hilton in the greater Indianapolis area will accommodate the increase in travelers and growing demand for lodging,” Alan Roberts, global head, Embassy Suites by Hilton, said in a prepared statement. “The dual convenience to Indianapolis International Airport and proximity to downtown provides the ideal location for business travelers attending a conference or for families exploring all that the city has to offer.”

Image courtesy of Hilton

The post Hilton Opens New Embassy Suites in IN appeared first on Commercial Property Executive.

Jeff Sachs, Senior Managing Director, JLL’s Hotels & Hospitality Group, Atlanta

As it celebrates its centennial in the hospitality business, Hilton has launched its latest brand, a meetings-and-events-focused product called Signia Hilton.

Each Signia property will feature a minimum of 500 guestrooms and 75 square feet per key of flexible meetings and events space, as well as:

• An impressive lobby intended to also serve as a social destination for guests throughout their stays;
• Guestrooms with premium designs and quality finishes;
• A destination bar that references that city or resort destination;
• A signature restaurant based on a chef-driven concept;
• Top-notch wellness experiences, such as infinity pools, spas, fitness classes and facilities.

All of these are in addition to large ballrooms and pre-function areas with smart design and the newest technologies.

Signia Hilton will be a global brand, with properties in major urban and resort locales, and will start off with Signia Hilton Orlando Bonnet Creek, Signia Hilton Atlanta and Signia Hilton Indianapolis. The latter will be a 38-story, 800-key property at Illinois and Georgia streets in downtown Indy, and should be completed in 2023, according to a local news report.

“Signia Hilton grew from feedback from top meeting professionals, owners, developers and guests,” David Marr, senior vice president and global head, Full Service Brands, Hilton, said in a prepared statement. 

Big fish, big pond

So, what is Signia’s niche and what are its likely competitors?

“Signia will compete with the typical meeting-oriented hotel brands: Marriott, Marriott Marquis, Renaissance, Hyatt, Omni and even Hilton itself,” Jeff Sachs, senior managing director of Strategic Advisory & Asset Management at JLL’s Hotels & Hospitality Group, in Atlanta, told Commercial Property Executive. “Every brand has good, better and best examples of hotels within their brand; Signia is striving to be the ‘best’ in the meetings segment. Rebranding Bonnet Creek, which is attached to a Waldorf Astoria, is a purposeful statement of what they want the brand to be.”

As to how much of a market there is for a hotel with this focus, he said, “Everyone wants high-end meetings, and the market is robust. Group ADRs in the high-end group hotels we asset manage exceed transient ADR in many cases. Add on the F&B spend, and group hotels blow away other segments.”

“Many convention hotels have not kept up with client demands and existing brands are tied up in existing owner agreements,” Sachs added. “Signia allows the new-tech convention hotels to be developed that meet the needs of groups that ‘old-tech’ hotels cannot provide.”

Video courtesy of Hilton

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350 Veterans Way

Tryperion Partners has acquired a 137,000-square-foot suburban Indianapolis office asset—headquarters of Allied Solutions—for $32 million from Ambrose Property Group, according to Yardi Matrix. Morgan Stanley provided $17.6 million in acquisition financing to the buyer. The 10-year note bears interest at a fixed rate of 4.5 percent per year.

Ambrose completed the property in November 2017, Yardi Matrix data shows, following the project’s groundbreaking in mid-2016. Associated Bank financed the development to the tune of $26.9 million.

Located at 350 Veterans Way in Carmel, Ind., the five-story building is situated on a 3.4-acre lot, 2.5 miles east of Meridian Street. The property is a few blocks south of the busy Main Street retail corridor, home to a wide variety of shops and restaurants. Several assets have been developed in the Carmel-Meridian submarket in recent years, with coworking firm Serendipity Labs signing for 24,000 square feet in a property undergoing redevelopment immediately south of Tryperion’s structure in August.

Allied Solutions occupies 108,000 square feet of the building and the F.C. Tucker Co. signed a deal to lease 15,750 square feet through 2029, according to the Indianapolis Business Journal. REI Real Estate Services manages the property and a Colliers International team leads leasing efforts.

Image courtesy of Yardi Matrix

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“These transactions demonstrate ILPT’s commitment to executing on our business plan to grow our industrial asset base using low-cost debt to enhance future earnings and create value for our shareholders,” said John Murray, president & CEO of Industrial Logistics Properties Trust, in a prepared statement.

The eight-property portfolio carries a price tag of $280 million and encompasses 4.2 million square feet in metropolitan Indianapolis and Cincinnati. The facilities, which have an average age of 13 years, are 100 percent leased to 10 occupants under lease agreements with a weighted average remaining term exceeding four years.

With the purchase of the CCIT II portfolio, ILPT will add 8.7 million square feet of industrial space spanning 12 states to its holdings. The 18 properties have an average age of nine years and are fully leased to 13 tenants, with a weighted average remaining lease term of more than nine years. ILPT will acquire the properties for $625.3 million, including the assumption of $57 million in existing debt.

ILPT will finance the purchase of both portfolios with cash on hand and proceeds drawn from its $750 million revolving credit facility.

Both portfolio transactions are on schedule to reach full completion within 60 days. Once the properties are under ILPT’s ownership, the REIT will count Amazon and FedEx as its two largest tenants.

Post-IPO life

ILPT went public in January 2018 and since then, the REIT has announced in excess of $1 billion in acquisitions of high-quality assets, including the two pending portfolio additions and the 240,666-square-foot Hellmann Worldwide Logistics facility in Doral, Fla., which the company bought for $43.1 million last year.

“We continue to be encouraged by the growth of e-commerce and logistics industries and the strength of the nationwide industrial market,” said Murray.

2018 was another banner year for the industrial sector. Vacancies remained at historic lows, averaging 5 percent in the fourth quarter, according to a report by commercial real estate services firm Newmark Knight Frank, and asking rents continued to rise, increasing 10.3 percent quarter over quarter.

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Rendering of Gateway V

With less than one month ahead of finalizing Gateway V warehouse, HSA Commercial Real Estate has signed a lease with LifeNet Health. The transplant solution provider will occupy 68,125 square feet of space within the most recent addition to HSA’s 40-acre industrial park near the Indianapolis International Airport. The move-in is expected to take place in July, once interior tenant improvements will have been completed.

“The amount of interest and pre-leasing activity prior to the completion of the Gateway V building has been really impressive,” said Robert Smietana, vice chairman & CEO of HSA Commercial Real Estate, in a prepared statement.

The brokers who represented the landlord were Senior Associate Jared Scaringe and Senior Vice President Terry Busch. Both of them work for CBRE.

Generous layouts

The distribution center is located at 845 Airtech Parkway in Plainfield, Ind., and is expected to provide 262,758 square feet of space upon its completion. It will also feature 32-foot clear heights, 30 expandable truck docks, four drive-in doors, 185 parking stalls and 70 trailer positions. In the remaining space, the landlord expects to be able to accommodate three more tenants in addition to LifeNet.

In the summer of 2018, HSA also welcomed Pelican BioThermal to Gateway II, the second warehouse part of Gateway Business Park. All five buildings encompass approximately 630,000 square feet of speculative space.  

Image courtesy of HSA Commercial Real Estate

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679 E. County Line Road

Montecito Medical has acquired a two-tenant, 42,000-square-foot medical facility in Greenwood, Ind. The two-story asset was built-to-suit for Urology of Indiana and Integrated Cancer Care. The first tenant, which ranks as the 15^th largest urology practice in the U.S., occupies 83 percent of the Class A building. 

Built in 2009 at 679 E. County Line Road, the facility is roughly 3 miles of the 462-bed Franciscan Health Indianapolis Hospital and less than 13 miles south of downtown Indianapolis. The property provides easy access to Interstate 65 as well as several shopping centers.

“This asset offers very strong fundamentals, a history of 100 percent occupancy and tenants that are leaders in their market,” said Chris Conk, senior vice president for acquisition & principal at Montecito Medical, in prepared remarks.

The deal comes only four months after Montecito entered the Minnesota market by acquiring a 31,775-square-foot medical office building in Willmar.

Image via Google Street View

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The Hampton Inn & Suites by Hilton Fort Wayne Downtown

After more than six months of construction work at the new Hampton Inn & Suites by Hilton hotel in Fort Wayne, Ind., developer White Lodging Services Corp. has completed the building’s structural framework. The $18 million development is scheduled to open in July and to encompass 136 keys and two restaurants: a walk-up Burger Bar restaurant, which White Lodging first introduced in Austin, Texas, in 2015, and a rooftop bar, Conner’s Rooftop.

The hotel is adjacent to Parkview Field and the Grand Wayne Convention Center and will offer views of downtown Fort Wayne. The construction represents the latest project of the city’s initiative to “re-energize downtown (which started with) the Harrison Square re-development over a decade ago,” said Deno Yiankes, president & CEO at White Lodging, in a prepared statement.

The hotel will offer all of the brand’s signature amenities, including free hot breakfast, free Wi-Fi, a 24-hour business center and a rooftop fitness center. More than 30 guestrooms are designed as oversized suites.

Image courtesy of White Lodging Services Corp.  

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Cook Regentec’s Indianapolis facility, an adaption of a former beer warehouse

Cook Regentec, a Cook Group company, has opened its first facility in Indianapolis. The firm has adapted a former beer warehouse into a 22,000- square-foot research center featuring a modern, collaborative office space and adjacent laboratory areas.

The center is part of 16 Tech Innovation District, which is also home to the Indiana Biosciences Research Institute, the Central Indiana Corporate Partnership and Indiana School of Medicine, the latter having recently become a partner of Cook Regentec. The two teams will work from a 6,000-square-foot idea lab on new technologies in the fields of cell and gene therapy and regenerative medicine.

The live-play-work community at 16 Tech spans from 10th St. to 16th St. along Indiana Avenue and is approximately 10 miles from Duke Realty’s upcoming headquarters. It offers 2 million square feet of office and lab space, multifamily units, a hotel, restaurants and several entertainment venues. The work spaces are surrounded by more than 15 acres of green space which include four parks, three miles of walking and biking trails and access to the city’s waterways.

According to the community’s website, 16 Tech has recently begun or will begin construction on four buildings—office and residential—partially financed via a $38 million grant from Lilly Endowment Inc.  

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MedTech Park

Central Indiana Orthopedics, in a partnership with City of Fishers and construction manager Envoy Inc., has broken ground on a new medical office building in Fishers, Ind. The building will be part of MedTech Park and is expected to be complete in late 2019.

First announced in 2016, the medical office building is the first construction of the 37-acre MedTech Park campus. Located near 136th St. and Interstate 69, the campus is close to the Ikea furniture store that opened last year.

The upcoming development will house Central Indiana Orthopedics’ Fisher-based operations, currently located in St. Vincent’s Hospital. It will include a clinic and surgery center and will provide imaging and physical therapy, among other services.

“The MedTech Park vision is to attract a critical mass of innovative medical service providers and ultimately be a regional destination for those in need of expert care,” said Nimu Surtani, president of Central Indiana Orthopedics, in a prepared statement.

Image courtesy of Envoy

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6929 W. 38th St.

Marcus & Millichap has brokered the sale of a 7,000-square-foot retail property, which is part of The Village at Eagle Creek shopping center in Indianapolis. The asset was recently completed and was put under contract before it was delivered. Austin Weisenbeck and Sean Sharko, investment specialists with the company, marketed the listing on behalf of the seller while Josh Caruana acted as the broker of record in Indiana. The transaction closed at $3.2 million.

The property is located at 6929 W. 38th St., near the junction with Interstate 465. It is anchored by Starbucks and has Great Clips and Sprint as co-tenants. The shopping center is also home to retailers such as Target and Marsh as well as a number of restaurants. Downtown Indianapolis and Indianapolis Motor Speedway, which hosts the largest single-day sporting event in the country, are less than 10 miles away.

The surrounding area has been rapidly growing, reaching a population of more than 90,000 within a three-mile radius. Last month, The Mele Group of Marcus & Millichap brokered the sale of an 80,000-square-foot self storage facility located less than 10 miles from The Village at Eagle Creek shopping center.

Image via Google Street View  

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Duke Realty Corp. is one big step closer to making its new Indianapolis corporate headquarters a reality. The industrial REIT and joint venture partner PK Partners LLC recently broke ground on 8711 River Crossing Blvd., a 78,000-square-foot office building where Duke will be the sole office tenant. 

8711 River Crossing Blvd.

8711 River Crossing will take shape on 2.9 acres within River North at Keystone, a mixed-use destination being developed by PK Partners in the upscale Keystone at the Crossing district. The office building will be co-owned by the developer and Duke upon its completion, with Duke leasing its space, Wesley Podell, senior vice president with PK Partners LLC, told Commercial Property Executive.

Duke, which currently maintains its home base less than four miles away at 600 E. 96th St., had very specific reasons for building its own headquarters.

“Duke Realty feels it is important to create a state-of-the-art work environment that allows us to attract and retain top talent in both the short-term and long-term, enhance collaboration and employee connection, make the workplace experience seamless and showcase our strong brand and culture,” Nick Anthony, chief investment officer for Duke Realty Corp., told CPE. “This facility, which will provide a collaborative environment coupled with nearby amenities, accomplishes that.” 

Construction is estimated at $25 million, according to Duke, which will set up shop in 73,000 square feet of the LEED-Silver-designed building, leaving the remaining 5,000 square feet to operate as a retail space that will be occupied by a restaurant. For Duke, the office space will not only provide cutting-edge accommodations, it will pave the way for location consolidation. “Our new headquarters also will ensure that all of our Indianapolis associates will be located in one facility, which would have been difficult to accomplish in existing properties,” Anthony said.

Indy trends

Duke Realty Groundbreaking

Build-to-suit office developments are trending in Indianapolis. Per a report by commercial real estate services firm CBRE Group, which is handling lease-up of the retail space at 8711 River Crossing, three office buildings totaling approximately 430,000 square feet were under construction during the second quarter, and all three are build-to-suit properties. The projects, two of which are mixed-use, will be headquarters locations for KAR Auction Services, Merchants Bank and MJ Insurance.

Duke and PK Partners expect to complete the development of 8711 River Crossing in time for the REIT to relocate in late 2019. Local officials praise Duke’s decision to stay put in Indianapolis and have shown their support through the approval of approximately $2.9 million in tax increment financing for the headquarters project.

Images courtesy of Duke Realty Corp.

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Cambria Hotel Westfield

Choice Hotels International Inc.’s franchise The Cambria Hotels has opened Cambria Hotel Westfield, a 152-key hotel in Westfield, Ind. This opening marks the company’s second property opened in the Indianapolis area.

Located at 18592 Carousel Lane, the property is a short drive to downtown Indianapolis and offers convenient access to Grand Park Sports Complex. Other nearby attractions include Indianapolis Convention Center, Arctic Zone ice rink, The Palladium at the Center for the Performing Arts and Conner Prairie Interactive history park. Additionally, the Indianapolis International Airport is approximately 37 miles away.

The Cambria Hotel Westfield features communal-area amenities such as:

• indoor swimming pool
• fitness center
• spa-styled bathrooms
• 3,800 square feet of meeting space
• Social Circle bar and restaurant
• laundry service
• conference facilities
• banquet room
• business center

“Indianapolis boasts a diversified economic landscape anchored by the health care, education, and financial sectors, as well as a tourism industry that has experienced six-straight years of growth,” Janis Cannon, senior vice president of Choice Hotels, said in a prepared statement.

In February, Choice Hotels started construction on Cambria Hotel Ocean City, a 133-key hotel set for completion in summer of 2019.

Image courtesy of Choice Hotels International Inc.

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Washington Avenue Mini Storage

Iron Guard Storage has purchased Washington Avenue Mini Storage, an 80,875-square-foot facility in Evansville, Ind. The Mele Group of Marcus & Millichap marketed the property on behalf of the seller, a limited liability company, and secured the buyer in the transaction. The property marks Iron Guard Storage’s first purchase in Indiana.

Situated at 4619 Washington Ave., the storage facility is near Interstate 69 and freeways 66 and 41, approximately 5 miles from downtown Evansville. Additionally, the asset is positioned across from Washington Square Mall and is exposed to more than 41,800 cars per day. Washington Avenue Mini Storage comprises 144 climate-controlled and 536 drive-up units, ranging from 25 to 300 square feet. Other features of the storage include security cameras and controlled access. The facility also offers moving supplies such as boxes, tape, plastic covers and locks.

“We are very pleased to be part of Iron Guard’s expansion into the Midwest, and at the same time help the sellers conclude their successful ownership, development and expansion of this outstanding facility,” said Jeffrey Herrmann, investment specialist at Marcus & Millichap, in prepared remarks.

In June, The Mele Group also brokered the sale of Security Storage, a 382-unit facility in Spring Hill, Fla. 

Image courtesy of The Mele Group 

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300 North Meridian

REI Real Estate Services, which developed 300 North Meridian, a Class A Indianapolis office tower in 1987, has refinanced the 336,374-square-foot building with a fixed-rate loan.

HFF’s debt replacement team represented the borrower and arranged the loan with Nationwide Real Estate Investments. HFF will service the loan, proceeds of which will be used to pay off existing debt and provide capital for a major tenant improvement plan and lobby renovations.

HFF Senior Managing Director David Keller, Senior Director Ken Martin and Nelson Almond, an analyst, were part of the debt replacement team working with REI.

“Given the quality of the sponsorship, continued long-term commitment to the building by its major tenant and the overall strength of the downtown Indianapolis office market, this proved to be a very attractive opportunity for Nationwide,” Martin said in a prepared statement.

Strong local player

The 27-story tower is 82 percent leased to a diverse group of national and regional banks and law and consulting firms including Faegre Baker Daniels LLP and BGBC Partners LLP. REI also has its offices in the building, which has 9-foot ceilings and sweeping views of downtown Indianapolis and University Park. The property has an on-site garage for 300 vehicles and access to an 850-space garage connected by a skywalk. The property is located on Meridian Street, one of the most desirable addresses in the city, and two blocks north of Monument Circle in the heart of downtown Indianapolis.

REI owns approximately 1 million square feet of office space and manages more than 2.8 million square feet in the Indianapolis area. The firm has spent decades working on major development and construction projects across the U.S.

In October 2016, REI and a joint venture partner, Perennial Investments, sold 550 Congressional, a Class A, 106,404-square-foot office building in nearby Carmel, Ind., to an affiliate of Tryperion Partners of Los Angeles. REI and Perennial had invested about $1 million in renovations and upgrades, increasing occupancy from 25 percent to 83 percent at the time of the sale.

Earlier this month in Indianapolis, an HFF debt placement team that also included Keller arranged the refinancing of 360 Market St. with a $104 million floating-rate loan. Flaherty & Collins, the owner and developer of the newly built mixed-use multifamily and retail property in the city’s downtown, used the proceeds of the loan from Heitman LLC to retire construction financing. The development is on the site of the old Market Square Arena. It has 292 apartment units and 42,000 square feet of ground-floor retail anchored by Whole Foods Market.

Hot office market

Indianapolis’ office market has “been on a tear in this economic cycle, both in terms of rent and occupancy growth,” according to a recent Colliers International report. Rents were up 4.2 percent year-over-year in Class A buildings as of the second quarter, with occupancy growing to nearly 85 percent, up 120 basis points from same time last year. Colliers noted more new development and capital investment in the city’s office market is expected through the end of this year.

“Leasing activity, a positive future indicator for real estate fundamentals, is up 77 percent as businesses continue to locate within the Indianapolis market,” the report stated.

Image courtesy of HFF

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Stock Yards Bank Building

Everwood Hospitality Partners has acquired the former Stockyards Bank Building in downtown Indianapolis. The firm plans to convert the property into the Aloft Indianapolis Downtown, a 128-key hotel. 

Located at 136 E. Market St., the current office building features 54,947 square feet across 12 stories. The Class B property was constructed in 1898 and was home to several law offices, a bank and a law library. The most recent tenant was Stockyards Bank & Trust. The asset last traded in March 2015, when Hotel Capital purchased it for $2.8 million from private owner James Ammeen, according to Yardi Matrix. 

Construction on the Aloft Indianapolis Downtown is set to begin in the fourth quarter of this year, with completion scheduled for the third quarter of 2019. Brand features will include the Live at Aloft Hotels programming, a mezzanine level overlooking the hotel bar and music stage, SPG Keyless entries, free Wi-Fi, a Re:charge fitness center, the signature W XYZ bar and Re:fuel by Aloft gourmet grab & go food and beverage area. 

“The Aloft Indianapolis Downtown will be a perfect complement to our growing portfolio of well-branded, investment grade hotels in submarkets that recreate urbanized environments or central business district assets in vibrant, walkable cities, like Indianapolis,” said Amit Govin, principal at Everwood, in a prepared statement. “Everwood remains one of the few independent Marriott owners in the market, and we believe the hotel will benefit from our unique, hands-on approach to improving both the bottom line and the guest experience.  The Aloft will be at the forefront of the city’s lodging options, and we are confident the hotel will quickly take its place as a segment and market leader.”

In February, Everwood Hospitality Partners paid $24.7 million to acquire the 263-key Sheraton Suites Plantation in Plantation, Fla. 

Image courtesy of Yardi Matrix

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Atlanta Serendipity Lab

Serendipity Labs is ready to open its first shared office spaces in the Indianapolis area, about the same time it debuted in Pittsburgh. The company has leased 24,000 square feet on the second floor of a building which is being restored in midtown Carmel, Ind., with completion date set for the fourth quarter of 2018. Once this first location opens, Serendipity plans to add two more coworking spaces in the metro.

“Indianapolis is a vital Midwest hub, home to large multinational companies and those that are local. With distributed teams and ever-changing workforce requirements, businesses need flexible workplaces that are professional without being stodgy,” said Chairman & CEO John Arenas, in a prepared statement.

The project belongs to a joint venture between Old Town Development and Ambrose Property Group. Jones Lang LaSalle represented both parties in the transactions, with Managing Director Michael Berman and Executive Vice President Graham Summers closing the deal on behalf of the tenant. Managing Director Adam Broderick represented the landlord.

An engaging environment

The office building is located at 517 Monon Blvd., overlooking the popular Monon Greenway. Serendipity will offer up to 80 work desks, private focus rooms, lab spaces, wellness rooms, a work lounge and café for all types of businesses, including healthcare, pharmaceutical, insurance, tech and finance.

The communal areas feature abundant natural light and curated art work and are designed to encourage interaction. In addition, the company uses 100 percent recyclable carpet and nontoxic construction materials, including low volatile organic compound paint.

Image courtesy of Serendipity Labs

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“By being the sole office tenant in the building, we will be able to showcase our brand, business and successes and ensure a design focused on connectivity and collaboration. Plus our new location will meet associates’ preference for a Northside location with convenient interstate access, and provide them with access to many walkable amenities,” said Duke’s Chairman & CEO Jim Connor, in a prepared statement.

Known as 8711 at River North, the new headquarters will span approximately 3 acres and will include a 5,000-square-foot restaurant. Among the planned amenities are an outdoor terrace, a patio overlooking a 25-acre lake and a parking garage with both below-grade and street-level spaces. Upon completion, the development is expected to be LEED certified to the Silver level. Its opening will mark 47 years since Duke Realty—one of the top office portfolio buyers in 2017—launched its business with the development of an industrial building in Indianapolis.

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EDP Renewables, through its fully-owned subsidiary EDP Renewables North America, has secured a 139-megawatt, 15-year power purchase agreement (PPA) with Facebook for the energy produced at its Headwaters II Wind Farm in Randolph County, Ind.

Headwaters Wind Farm, consisting of two phases, has an installed capacity of 200 megawatts and is located some 70 miles east of Indianapolis along the Ohio border. It can produce sufficient clean energy to power the equivalent of more than 52,000 homes each year. In addition, the project will provide economic benefits such as jobs throughout the construction process and operation, landowner payments, as well as money spent in nearby communities.

The first phase of the project, Headwinds I Wind Farm, became operational in 2014 and has paid about $2.6 million in cumulative payments to local governments and more than $11.9 million to local landowners in 2017. The addition of Headwind II Wind Farm will increase the tax payments contributed to the county.

“EDP Renewables is pleased to work with Facebook to help in meeting their sustainability goal of procuring renewable energy to support their operations”, Joao Manso Neto, EDP Renewables CEO, said in prepared remarks. “Corporate purchasers, like Facebook, who purchase fixed, competitively-priced renewable energy have greatly contributed to the continued growth and success of the wind industry”.

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3405 Meyer Road

Indiana Acquisitions and Continental Hastings have secured a lease renewal with Essex—a leader in magnet wire product manufacturing, development and sales—and Essex Brownell—a distributor of a variety of industrial service and repair parts—at its warehouse property in Fort Wayne, Ind. 

The 282,550-square-foot building, located at 3405 Meyer Road in the Coastal Commerce Center, will also continue to be the home of Essex Active, an industrial material conversion and fabrication service offered by Essex Brownell that offers multi-functional support with the latest converting technologies. 

Cushman & Wakefield’s Executive Managing Director Kirk Diamond, Director Greg Dickerson and Senior Director Fritz Kauffman represented the tenant in the lease negotiation. The Zacher Cos.’ President Steve Zacher and Vice President of Brokerage Services John Adams represented the landlords in the transaction. 

“This lease represents one of the largest in Fort Wayne this year,” said Diamond, in a prepared statement. “The warehouse has been a fantastic location for Essex as the home of its North American distribution and light manufacturing/assembly functions, and has allowed them to reach their customer base quickly.”

Earlier this month, Cushman & Wakefield represented the International WELL Building Institute in leasing 9,000 square feet at 220 Fifth Ave. in Manhattan. 

Image courtesy of Cushman & Wakefield 

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Gateway II

HSA Commercial Real Estate has added Pelican BioThermal to the tenant roster of Gateway II, a 121,800-square-foot distribution facility within Gateway Business Park in Plainfield, Ind. The manufacturer of thermal packaging signed a lease for 49,977 square feet, which left the landlord with only 20,000 square feet of available space in the building. The company will move into its new space at 851 S. Columbia Road in July.

Gateway II was delivered in 2004 and is part of the 55-acre industrial park located near Indianapolis International Airport. The complex encompasses five buildings totaling approximately 630,000 square feet. The most recent project completed was Gateway IV, a 151,200-square-foot distribution center which came online in July 2017 and is now fully leased.

Senior Vice President Terry Busch and Associate Jared Scaringe of CBRE represented ownership in the lease, while Vice President Bryan Augustin of Alliance Commercial Group represented the tenant.

Upcoming project

HSA is currently working on the fifth addition to Gateway Business Park, as “the need for new Class A warehouse facilities in Indianapolis is outpacing the amount of development in the market,” Robert Smietana, the company’s vice chairman & CEO, explained in a prepared statement. “Since Indianapolis is accessible to over half of the United States within a one-day drive, the market is uniquely positioned geographically to take advantage of the growth in e-commerce and logistics,” he added.

The development will be located on a 19-acre site at the corner of Stafford Road and Airtech Parkway. It is slated to encompass 262,758 square feet and to feature 32-foot clear heights, 30 truck doors, four drive-in doors, 185 parking spaces and 70 trailer positions. Delivery date is set for December 2018.

Image courtesy of HSA Commercial

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Embassy Suites by Hilton, Noblesville, Ind.

A new, 198-key Embassy Suites by Hilton has opened in Noblesville, Ind., as part of a line of recent Embassy hotel openings which are taking place across the nation. The hotel offers state-of-the art features and amenities and proximity to various attractions such as Hamilton Town Center, Ruoff Home Mortgage Music Center, Edge Adventure Parks, the Conner Prairie Living History Museum and the Palladium at the Center for the Performing Arts.

The owner and manager of The Embassy Suites by Hilton Noblesville Indianapolis Conference Center is Sun Development and Management. The hotel offers three different suite layouts, with every suite featuring free WiFi, large HDTV, sofa bed, microwave, mini-fridge, coffeemaker and ergonomic workspace. Amenities include an indoor pool, custom atrium water feature on the first floor, business center, 24-hour fitness center and audio/visual equipment rental. In addition, the property features over 29,000 square feet of meeting space suitable for nearly 1,800 guests.

The hotel can be reached via Interstate 69 and is approximately 25 minutes from downtown Indianapolis.

Image courtesy of Hilton

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Former GM stamping plant site, Indianapolis

Ambrose Property Group has completed the purchase of former Indianapolis General Motors stamping plant site. The company plans to launch a $550 million development project, which will transform the long-abandoned area into a thriving district.

In May 2017, the site’s previous handler, RACER Trust, selected Ambrose as the developer of the site. The company announced its intention to buy the property toward the end of last year.

A milestone for Indianapolis

The land on which the stamping plant is located, along the White River, measures slightly more than 100 acres. It is bordered by Harding Street, Oliver Avenue and West Washington Street. The site is expected to become a dynamic district, which will include office, retail and residential space as well as a hotel and several public recreational areas.

“This is not just another redevelopment but a regeneration of Indianapolis,” said Andrew Greenwood, senior vice president of development at Ambrose, in a prepared statement.

The acquisition being complete, Ambrose is planning to launch the first phase of the construction by the end of 2018. It is estimated to cost approximately $92.5 million, create more than 1,000 construction jobs and almost an equal number of permanent positions.

“This marks a significant milestone for the continued advancement of Indianapolis,” said City Mayor Joe Hogsett, in prepared remarks. “Over the coming years, the redevelopment of the former GM stamping plant will create new community amenities, drive economic development and uplift the Valley neighborhood.”

Image courtesy of Ambrose Property Group

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Courtyard by Marriott South Bend Downtown

Developer JSK Hospitality has opened Courtyard by Marriott South Bend Downtown, a $14 million, five-star, 140-key hotel in South Bend, Ind. The company now operates nine hotels, six of which are in St. Joseph County.

Located at 121 S. Dr. Martin Luther King Jr. Blvd., the five-story hotel features an innovative lobby space and Courtyard’s contemporary room design, with an aim to allow guests to optimize their travel experience. The new hotel’s location offers convenient access to the University of Notre Dame, The Century Center, the HealthWorks Kids’ Museum, the Morris Performing Arts Center and Four Winds Field. It’s also close to South Bend International Airport.

“Today’s technology has changed how people travel. Our guests want a room that has purpose and flexibility that enables a seamless transition between relaxing and working. Courtyard is designed to offer them a relaxing and functional space to work the way they want to, when they want to,” Callette Nielsen, Courtyard’s vice president & global brand manager, said in a prepared statement.

Design of the times

The hotel is boosting its tech offerings and personal services for guests. For example, once guests arrive, they can store their bags in a “luggage drop” and plug any personal devices into a “tech drop” ledge. Indirect lighting and a neutral, tone-on-tone color palette is designed to create a soothing environment.

Guest room design includes signature furniture and architectural elements, rather than the more traditional art normally available, such as a lounge-around sofa and a light desk on wheels. All rooms also equipped with a microwave and refrigerator.

Common-area amenities at The Courtyard by Marriott South Bend Downtown feature a heated indoor swimming pool, fitness center and guest laundry. The hotel boasts Courtyard’s most recent lobby design, where guests can enjoy an open and modern environment outside of their rooms. This includes the newly designed Bistro, which encourages social connections and collaboration thanks to flexible and informal seating options.

There is also a business library with several computer terminals, a printer and separate computer stations dedicated solely to printing airline boarding passes and checking flight status. And it champions a guest recycling program, encouraging guests to recycle with numerous receptacles for paper, glass, plastic and metal conveniently located by all side exits.

Earlier this week, Hospitality Ventures Management Group and Investra Capital Group teamed on the acquisition of a 1,465-key national portfolio of hotels operating under various Marriott and Hyatt brands, including eight Courtyard hotels.

Rendering courtesy of JSK Hospitality

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Jefferson Pointe at 4110 W. Jefferson Blvd., Fort Wayne, Ind.

HFF has secured the sale of Jefferson Pointe, a 407,363-square-foot mixed-use property situated in Fort Wayne, Ind. The company worked on behalf of the seller, Institutional Mall Investors LLC. Miller Capital Advisory Inc. advised on the sale, while Jefferson Pointe Center SPE LLC acquired the asset for an undisclosed price.

Located at 4110 W. Jefferson Blvd., on approximately 50 acres, the retail center is in close proximity to downtown Fort Wayne and seven miles from the Indiana University Purdue University Fort Wayne campus. The average annual household income within the property’s ZIP code is about $86,154. 

Constructed in 2000, the lifestyle center includes retail, restaurant and entertainment options and is leased to tenants such as Carmike Cinemas, Bed Bath & Beyond, Barnes & Noble, Marshalls, Ulta Beauty, Old Navy, White House Black Market, Vera Bradley, Michaels and Tucanos Brazilian Grill. Additionally, the property is anchored by a separately owned Von Maur.

HFF Senior Directors Amy Sands and Clinton Mitchell, along with Senior Managing Directors Barry Brown, Dave Keller and Claudia Steeb were part of the investment advisory team that represented the seller. In another recent deal, HFF worked on behalf of the seller in the acquisition of an Arizona shopping center.

Image via Google Street View

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Jorge Escobar, CEO & managing partner of Black Salmon

Black Salmon, a new national CRE investment platform and business line of TSG Group, of Miami, has purchased, for $70 million, Bank of Montreal (BMO) Plaza, a 444,644-square-foot, 28-story Class A office building in Indianapolis’ central business district, the buyer announced.

The prominent building, at 135 N. Pennsylvania St., near Monument Circle, is occupied by finance, government and corporate tenants, such as BMO Harris Bank, the U.S. Department of Defense and General Electric Capital Services.

Black Salmon purchased BMO Plaza with general partner REDICO, of Southfield, Mich.

The property, completed in 1988, is currently 82 percent occupied, and Black Salmon is currently working to increase that to 95 percent, a Black Salmon spokesperson told Commercial Property Executive.

BMO Plaza in Indianapolis

The building underwent a $6 million cosmetic renovation in 2016 and 2017, in addition to which Black Salmon reportedly plans to further upgrade the property’s common areas.

BMO Plaza largely meets the investment selection criteria implemented by Black Salmon, including low vacancy; proximity to top-tier universities, like Purdue University, Butler University and Indiana University; and a sizable Millennial population.

Black Salmon’s recent acquisitions include The Offices at Public Market, a Class A building in San Francisco, for $33 million.

“We launched Black Salmon with the goal to reach close to $300 million in assets during the first two to three years,” Jorge Escobar, CEO & managing partner of Black Salmon, said in a prepared statement. “The acquisition of … BMO Plaza signifies the $100 million mark for our firm.”

The seller was Hearn, of Chicago, which had purchased the building for $40 million in April 2016 from True North Management Group. The latter had taken possession in October 2009 by means of a deed in lieu, according to information provided to Commercial Property Executive by Yardi Matrix.

A stable market, with a twist

Indianapolis office rents have been on the rise, if a bit unsteadily, since 2012, according to a report from JLL: “New construction and building renovations have largely contributed to this trend in the past few years, especially for Class A office product.”

Another angle to the Indy office market is a trend for office tenants to be more likely to renew leases in their current buildings than relocate. Renewals/expansions jumped by nearly 10 percentage points from 2016 to 2017, JLL reported.

And in an interesting twist, Indianapolis is seeing a record surge in conversions of downtown office buildings to hotels, JLL noted. Two such conversions happened in the 1990s and two more in the 2000s, but in this decade, one has been completed, two are under way and three more are proposed.

The demand for hotels guestrooms downtown is driven by conventions, sporting events and business travelers, according to JLL, and these conversions will tighten the CBD office supply, especially in Class B space.

Images courtesy of Black Salmon

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Devonshire Station, at 6404 Rucker Road, Indianapolis

Devonshire Station, a 9,222-square-foot retail center in Indianapolis, has changed hands. Colliers International secured the sale on behalf of the seller, Lor Corp., while San Jose, Calif.-based Better Things LLC acquired the asset.

Located at 6404 Rucker Road, on approximately two acres, on the northeast side of Indianapolis, the property offers convenient access to dining, shopping and entertainment venues, such as Peak Fitness, CVS Pharmacy, Starbucks, McDonald’s and Dollar General. Built in 1999, the center includes tenants such as Morellis Cleaners, Binford Café and Black Diamond BBQ.

According to Colliers, the building offers 1,400 square feet of available space for lease. The average household income within a three-mile radius is roughly $73,000. Alex Davenport, investment sales associate with Colliers International Indianapolis, arranged the sale. This transaction marks the buyer’s first acquisition in Indianapolis.

In another recent deal, Colliers International represented the landlord to sign the lease for the Ashley Oaks, a South Carolina shopping center.

Image via Google Street View

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Heritage Park II in Indianapolis

Gladstone Commercial Corp. has signed a lease amendment with Visionary Enterprises Inc., a subsidiary of Community Health Network Inc., allowing the developer to expand its Indianapolis office to approximately 64,000 square feet. The new lease is set to expire in 2026.

Gladstone’s multi-tenant, 86,495-square-foot property is located within the Castleton submarket and is currently 90 percent leased. The five-story structure is one of the three buildings making up the Heritage Park office campus. Situated at 6626 E. 75th St., next to Interstate 465, the center enables easy access around Indianapolis.

According to Yardi Matrix data, the building has been part of Gladstone’s office portfolio since 2014, when the company acquired it from First Highland for $10.5 million. Built in 1979, the asset was renovated in 2011 and 2014.

Image courtesy of Yardi Matrix

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U-Haul Self Storage

U-Haul Moving & Storage plans to transform a former Menards home improvement center into a self-storage facility in Indianapolis. The company acquired the 107,216-square-foot asset in December.

Located at 6800 Pendleton Pike, the facility occupies 9.6 acres near Interstate 465 and is within 20 minutes of downtown Indianapolis. Built in 1961, the property will be redeveloped as a self-storage facility with 1,000 units. The storage spaces will be equipped with high-tech security features, offering indoor climate-controlled options, propane, hitch installations, 24-hour access, as well as RV, boat and vehicle storage. Another facility available includes the Take a Box, Leave a Box program.

“This acquisition gives us the ability to serve the neighborhoods in northeastern Indianapolis,” said Anthony Jones, president at U-Haul Company, in prepared remarks. “The City of Indianapolis wants to see this building reused. It has been here for more than 30 years, and the community wants us here. We are excited to grow as a local staple that’s been in operation in Indianapolis since 1970.”

In December, AMERCO, the parent company of U-Haul, acquired an unoccupied retail space in Junction, Colo. 

Image courtesy of U-Haul

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Airwest 12 and 14 in Plainfield, Ind.

Hillwood has acquired three Class A industrial properties in the Indianapolis area. The portfolio, in total, contains 1,085,810 square feet. Northwestern Mutual sold two of the properties, Airwest 12 and Airwest 14, for $38.8 million, according to public records. Panattoni sold the third development, Commerce Drive Commerce Center.

The two Airwest buildings are situated in a large industrial district southwest of Indianapolis’ airport. Airwest 12, at 2301 Reeves Road in Plainfield, contains 448,305 square feet, and Airwest 14, located next door at 2201 Reeves Road, includes 476,225 square feet of warehouse space. Near Interstate 70, both properties enable convenient access throughout the region. Constructed in 2015, the two cross-dock buildings feature 36-foot clear heights, large truck courts and ample trailer parking.

The third property, Commerce Drive Commerce Center, consists of two structures comprising 100,800 and 60,480 square feet, respectively. Located at 7515 and 7535 Company Drive in Indianapolis, the property sits alongside Interstate 65 and is in a small industrial district eight miles south of the city’s downtown. The buildings were completed in 2008 and offer 24- and 28-foot clear heights, 130-foot truck courts and ESFR fire sprinklers. The acquisition also includes 1.2 acres of land for potential future development.

New opportunities and developments

Company Drive Commerce Center in Indianapolis

“Indianapolis has proven to be a great industrial market,” said Don Schoenheider, senior vice president and Midwest market leader for Hillwood, in a prepared statement. “With the addition of these properties, we can provide multiple, prime location options for companies looking for 30,000 to 950,000 square feet of Class A distribution space.”

As Hillwood increases its footprint in Indianapolis, the firm is expanding in other markets nationwide, with a 1.7 million-square-foot speculative industrial project slated to break ground this year near Cincinnati.

Images via Google Maps

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Piper Plaza

Baceline Investments has purchased Piper Plaza, a shopping center in Kansas City, Kan., for $6.3 million from McCownGordon Construction. The acquisition was partially funded by the sale of the firm’s Madison & Edgewood Shoppes in Indianapolis for $4.3 million.

Built in 2005 at 10940 Parallel Parkway, the property sits within one mile of Interstate 435. The building is situated in a busy retail district of the city and is less than a half mile from the Legends Outlets outdoor shopping center and a number of big-box retailers, including Sam’s Club, Target and Walmart. Two local bus routes operate a stop next to the property. Piper Plaza is 97 percent leased, with Quest Diagnostics, The UPS Store, Danny’s Bar & Grill North and a few smaller tenants occupying the building.

Funding the acquisition

The Madison & Edgewood Shoppes retail property, located at 5855 Madison Ave. in Indianapolis, was sold following just under three years of ownership by Baceline. The company had acquired the shopping center in January 2015 for $2.4 million, according to public records. Tenants in the building include a dental practice, a pet supply store and a few restaurants and salons. A Kroger grocery store under separate ownership sits next to the building.

“Piper Plaza is a notable addition to our portfolio and a quintessential fit for our niche investment approach,” said David Puchi, managing partner of Baceline, in a prepared statement. Regarding the sold property, he added, “Baceline was able to maximize the potential of Madison & Edgewood in a relatively short time by implementing institutional property management and leasing strategies, while replacing obsolete business concepts.”

Last month, Baceline acquired a community shopping center in Madison, Wis., for $3 million.

Image via Google Maps

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Precedent Park aerial

Strategic Capital Partners and Rubenstein Partners have acquired the Precedent Office Park, in Indianapolis’ Keystone Crossing submarket. The purchase was made from LaSalle Investment Management for $132.7 million. JLL Capital Markets represented the seller in the transaction. 

The 19-building campus is situated on 184 acres and comprises 1.1 million square feet across single-, two- and multi-story properties. The campus also includes a six-acre parcel that is zoned for up to 80,000 square feet of office space, one of the last remaining parcels in the Keystone submarket. Positioned around a 38-acre central lake, the 90 percent leased Precedent Park is the second Indianapolis office campus acquired by the partnership in the last 18 months, the other being Parkwood Crossing. These two acquisitions make the partnership one of the largest office property owners in Indianapolis. 

Renovation Plan Underway 

The companies will be implementing a capital program focused on upgrading on-site amenities, making aesthetic improvements and updating building systems. Specifics include:

• amenitizing the lake
• improving landscaping and walkability 
• renovating the fitness center
• building a tenant lounge and cafeteria 

“This investment offers a unique opportunity to acquire a low density office campus located at a strategic “main and main” location,” said Brandon Huffman, principal & portfolio manager, Equity Investments for Rubenstein Partners, in prepared remarks. “With limited competitive Class A office supply expected to deliver in the near-term, we believe our planned improvements will further reinforce the Precedent and Parkwood Crossing as the premier office campuses in the market. We remain bullish on Indianapolis and look forward to executing our business plans at these campuses.”

The Class A campus is located less than 10 minutes from the northern Indianapolis suburbs of Carmel, Fishers and Zionsville, 20 minutes from downtown Indianapolis, and the amenities along the I-465 northern corridor, which include The Fashion Mall at Keystone. Other notable projects in the area include the construction of a new hotel within the campus and new traffic roundabouts at major intersections along the 96th Street border of the office park. 

Vice President Tammy Faulk, as well as Managing Directors James Postweiler, Peter Harwood and John Robinson led the deal for JLL.

In a separate partnership, Rubenstein Partners and Northpoint Realty Partners unveiled plans for the design and renovations of Carlyle Tower and the Shops at Carlyle Tower in Alexandria, Va., last November. 

Image courtesy of Strategic Capital Partners and Rubenstein Partners 

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314 W. Michigan St., Indianapolis

Direct Connect Logistix has moved into its newly expanded Indianapolis headquarters. The project began in 2016 and cost the company more than $2 million, including several interior upgrades and new equipment. The 14,000-square-foot office will allow DCL to nearly double its team to 170 employees by the end of 2020.

The city of Indianapolis has supported the project at the request of Develop Indy, a business unit of the Indy Chamber. Thus, the Indiana Economic Development Corp. covered part of the project costs—approximately $700,000—through performance-based tax credits and training grants.

The office is located at 314 W. Michigan St. and features an open design on the ground floor, red accents, abundant light and a contemporary mural of the city. It also provides nearly 170 workstations. The design allows DCL to triple its footprint if needed.

“Remaining in downtown Indianapolis and expanding our presence was a logical step as we look to attract and hire an energetic and diverse workforce,” said Greg Humrichhouser, co-founder & president of DCL. According to data provided by Yardi Matrix, the city has been enjoying steady economic growth which has kept unemployment at 2.9 percent, well below the U.S. average.

Image via Google Street View

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HSA Gateway Industrial IV, Plainfield, Ind.

HSA Commercial plans to expand its footprint in suburban Indianapolis by adding a new warehouse to its existing industrial portfolio. For this, the company has acquired a 19-acre parcel at the corner of Stafford Road and Airtech Parkway, near the Indianapolis International Airport in Plainfield, Ind.

Construction is slated to start early next year, with the first tenants scheduled to arrive in fall 2018. Upon completion, the 262,758-square-foot building is expected to feature 32-foot clear heights, 30 expandable truck doors and four drive-in doors.

HSA has tapped CBRE’s Senior Associate John Hanley and Senior Vice President Terry Busch to start the leasing efforts.

A rapidly growing industrial market

The newly-acquired site is close to Gateway Business Park, another HSA Indianapolis speculative development, which incorporates 630,000 square feet and spans over 40 acres. The most recent delivery is the 151,200-square-foot Gateway Industrial IV building.

“The Gateway Industrial IV building that we completed earlier this year had one of the fastest lease-ups of any spec developments in our company’s history, so we feel very confident about the continued growth and absorption in the Indianapolis market,” said Robert Smietana, vice chairman & CEO of HSA Commercial Real Estate, in prepared remarks. “Whether it’s Amazon, Home Depot, Dick’s Sporting Goods, Rolls-Royce or any of the major third-party logistics firms in the country, it seems that everyone is starting to realize the strategic value of Indianapolis as a regional distribution hub.”

Image courtesy of HSA Commercial Real Estate

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Rebecca Wells, SVP, Lee & Associates

Lee & Associates has hired industry veteran Rebecca Wells as senior vice president in the company’s Indianapolis office. Wells has been in the industry for more than 23 years, specializing in office and retail investments on behalf of institutions, REITs, developers and private clients. In her new role, she will oversee the firm’s platform of real estate services in the Midwest as well as client relationships.

“Wells’ expertise and her transaction track record are important additions to our robust service platform in the region. I am enthusiastic about her ability to grow our capital markets practice and collaborate with our professionals,” said Jeffrey Rinkov, Lee & Associates’ CEO, in a prepared statement.

Prior to joining Lee & Associates, Wells was an executive vice president within JLL’s capital markets team. She is a graduate of Indiana University and a member of Indy CREW and Indiana Council of Shopping Centers (ICSC). Wells was also the president of the Indiana CCIM chapter and a former adjunct lecturer at Indiana University in Bloomington.

Image courtesy of Lee & Associates

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Mark Frissora

Caesars Entertainment Corp. has agreed to acquire Centaur Holdings LLC for $1.7 billion in cash, which will add to Caesars’ already-extensive roster, including Centaur’s “racino” operations in Indiana.

The two properties are Hoosier Park Racing and Casino in Anderson, roughly 25 miles northeast of Indianapolis, and the Indiana Grand Racing and Casino in Shelbyville, about the same distance southeast of Indianapolis. In addition, Caesars will gain Centaur’s three off-track betting locations, in Indianapolis, New Haven and Clarksville. The racinos offer gaming, racing, dining, and entertainment, including more than 2,000 slots and electronic table games, multiple dining options and both live and simulcast horse racing. Caesars anticipates introducing table games to these properties, pending regulatory approval.

Centaur’s properties host more than 6.5 million guests each year, and more than 1.1 million members are part of its loyalty program. Caesars sees the acquisition as complementing its existing properties in Indiana: Horseshoe Hammond, which serves the Chicago area, and Horseshoe Southern Indiana, which serves the southern Indiana and Louisville area. “The acquisition of Centaur represents an excellent opportunity to enter into a growing region,” Mark Frissora, president & CEO of Caesars Entertainment, said in a prepared statement.

Rod Ratcliff

“We believe Caesars’ acquisition of Centaur Gaming will further build on the successes and contributions of the properties for the benefit of our customers, team members, horsemen, community partners, and financial stakeholders,” Centaur Holdings Chairman & CEO Rod Ratcliff said in a prepared statement.

Subject to regulatory approvals and other closing conditions, the transaction is expected to close in the first half of 2018.

The Past few Years

Caesars Entertainment Operating Co., the operating unit of Caesars Entertainment Corp., had filed for bankruptcy protection in January 2015. The restructuring plan called for the operating unit to be split into a casino company and a real estate unit. “The addition of Centaur is the first example of our post-emergence, inorganic growth strategy,” Frissora said.

Last month, VICI Properties Inc. completed its spin-off from Caesars Entertainment Operating Co. and became an experiential-asset focused REIT. VICI owns 19 major gaming facilities, including Caesars Palace Las Vegas, and totaling more than 32.5 million square feet of space, 12,000 guestrooms and 150 restaurants, bars and nightclubs.

Photos courtesy of Caesars Entertainment & Centaur Holdings

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1430 S. Third St. in St. Louis

Transwestern Investment Group has acquired a nine-building industrial portfolio in St. Louis and Indianapolis, totaling more than 2.5 million square feet, expanding its Midwestern portfolio to more than 10 million square feet.

Jay Borzi, Steve Silk and Josh McArtor of Eastdil Secured brokered the transaction on behalf of the seller. 

All the properties are situated along the Interstate 70 transportation corridor that bisects the country.

“We were attracted to this portfolio because of its strong in-place cash flow with tenant and market diversity, staggered rollover and limited near-term capital expenditures,” John Higgins, TIG’s director of acquisitions, said in a prepared release. “We believe tenant demand and vacancy in St. Louis and Indianapolis are favorable for industrial landlords, and e-commerce will further drive demand in Midwest cities with well-developed transportation networks, access to skilled labor and proximity to the majority of the nation’s population.”

The portfolio consists of seven St. Louis-based properties: The 500,000-square-foot 28 W. Gateway Commerce; the 494,333-square-foot 4702 Park 370 Blvd.; the 319,184-square-foot 1600—4774 Park 370 Place; the 248,635-square-foot 1010 Turner Road; the 248,635-square-foot 1602—1620 Park; the 215,935-square-foot 370 Court; the 155,700-square-foot 22 W. Gateway Commerce; and the 125,712-square-foot 1430 S. Third St.

Two properties are in Indianapolis—the 274,530-square-foot 6030 Gateway Drive and the 193,055-square-foot 5345 Decatur Blvd.

Attributes of the buildings in the portfolio include modern bulk designs with low office finishes, ample truck courts and clear heights ranging from 22 to 39 feet.

Growing Markets

The portfolio was 92 percent leased at the time of sale.

According to Colliers’ most recent Indianapolis Industrial Report, the city’s vacancy rate stands at 5.2 percent, an increase of 0.3 percent from the last quarter. The report noted that new construction, heavily weighted towards speculative projects, is growing the inventory base.

Colliers’ 2017 Q3 St Louis Industrial Market Report noted that year-to-date, speculative construction and absorption has been strong, though it projects the St. Louis industrial market to experience significantly lower leasing activity in the large user category—those requiring 200,000+ square feet.

Earlier this week, Transwestern expanded its portfolio with the acquisition of two industrial buildings in Sanford, Fla.

Image courtesy of Transwestern Investment Group

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AllPoints Midwest

A joint venture between Duke Realty and Browning will open AllPoints Midwest 8, a 708,230-square-foot warehouse, marking the JV’s eight building in AllPoints Midwest, its industrial park in Plainfield, Ind. The state-of-the-art facility is 100 percent leased and scheduled for delivery in May 2018. 

“We are pleased that we are able to meet our tenant’s needs with a new, first-class build-to-suit facility in a readily accessible location and deliver it in the time frame they need,” Mark Hosfeld, vice president of leasing and development of Duke Realty’s Indiana operations, said in a prepared statement. CBRE’s Terry Busch and Seth Kelly represented the tenant in the lease.

Room for more growth

The cross-loaded bulk distribution facility is expandable to 1,046,528 square feet as well as divisible at 338,580 square feet. The property’s features include:

• 36-foot clear height
• 72 dock doors equipped with levers, bumpers, seasls and lights
• two drive-in doors
• 128 car parking spaces
• 72 trailer parking spaces

Located on approximately 44 acres at the intersection of County Road 900/Smith Road and AllPoints Parkway, west of Ronald Reagan Parkway, AllPoints Midwest 8 offers convenient access to Interstate 70 and to CSX intermodal rail facility. Indianapolis International Airport and FedEx Hub are nearby. 

Of AllPoints Midwest’s roughly 1,000 acres suitable for the development of more than 13.5 million square feet of space, Browning and Duke Realty have delivered seven buildings totaling more than 5.2 million square feet, all fully leased. More than 300 acres of land are still available for future development. Back in October, Duke Realty discussed plans to acquire an industrial portfolio consisting of 3.4 million square feet of properties and two soon-to-be-developed land parcels, from Bridge Development Partners LLC.

Image via Google Street View  

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One of the 27 Store Here properties up for sale in the portfolio

A joint venture between funds managed by Westport Capital Partners and Store Here Management has disposed of a 27-property self-storage portfolio across Colorado, Georgia, Indiana, Kansas, Louisiana and Texas. The portfolio totals 1.7 million square feet across 12,171 units. 

Currently operating under the Store Here brand, the portfolio is 80.6 percent occupied and features amenities such as gate access, security cameras, climate-controlled or drive-up units, onsite management, as well as RV and surface parking. The properties are in eight MSA’s, including Colorado Springs, Colo.; Atlanta; Indianapolis; Kansas City, Kan.; Shreveport, La.; and Dallas, San Antonio and Austin, Texas. 

The HFF self-storage team of Senior Directors Barbara Guffey and Tom Doyle, Senior Managing Directors John Merrill and Jason Nettles and Managing Directors Sean Fogarty and Jules Sherwood marketed the property on behalf of the seller. 

“The quality of the assets, embedded upside, and most of all the economy of scale is what attracted numerous investors to the portfolio,” said Guffey, in prepared remarks. “The ability to acquire 1.7 million square feet in one transaction aligns with the buyer’s strategic growth plan, and provides an opportunity to implement and capitalize upon their operational platform.”

Image courtesy of HFF 

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