INDIANAPOLIS — FM Capital has provided a $6 million bridge loan for the acquisition of a retail center in Indianapolis. The 182,056-square-foot property is comprised of two buildings and an outparcel. The asset is approximately 89 percent occupied. Tenants include Shoppers World, Dollar Tree and Dollar General. The borrower was not disclosed.
INDIANAPOLIS — A&G Realty Partners has arranged the sale of a 58,692-square-foot educational building in Indianapolis for $1.8 million. The facility was formerly an ITT Tech school owned and operated by now-bankrupt ITT Educational Services. Mercy Road Church has purchased the property with plans to operate the first floor as a church and lease the second floor to a coworking space for nonprofits and faith-based businesses. The sale marks the completion of A&G’s national disposition of 31 properties formerly owned by ITT Educational Services for a total of $88 million.
WEST LAFAYETTE, IND. — Money360 has provided a $7 million bridge loan for the refinancing of a 446,222-square-foot office property in West Lafayette. The three-year, nonrecourse loan features a loan-to-value ratio of 66.8 percent and a floating rate. The borrower was not disclosed.
Recently, my national research colleagues released “The Top 10 Commercial Real Estate Trends for 2019,” a piece featuring predictions on subjects such as trade tensions, labor shortages and the evolution of “co-everything.” Of all the predictions, one stood out as being especially relevant for the Indianapolis industrial market as we inch further into 2019. Indianapolis has lacked industrial space for occupiers seeking to grow, particularly in smaller segments. The great news is that the market is well on its way to remedying this ailment. Demand causing shortage As we all know, the industrial sector is undergoing an e-commerce revolution. This has created a rush of demand by retailers and third-party logistics (3PL) providers for distribution and warehouse space, especially in cities like Indianapolis, which historically has been recognized for logistics strength. As a result, industrial market fundamentals have generally tightened across much of the United States. In the fourth quarter of 2018, the U.S. industrial vacancy rate fell to 4.8 percent, the lowest rate on record. Similarly, Midwestern markets currently sitting at 4.8 percent vacancy have experienced a 50-basis point decline in vacancy since the fourth quarter of 2017. Pair that with north of 111.5 million square feet of …
ILLINOIS, IOWA AND MICHIGAN — Real estate advisory and brokerage firm A&G Realty Partners has announced the results of its Jan. 28 bankruptcy auction of the final department store properties formerly owned by The Bon-Ton Stores Inc. The stores, located in the Midwest, formerly operated under the Bergner’s Carson’s, Younkers, Elder-Beerman and Bon-Ton names. In Coralville, Iowa, a home furnishings retailer acquired the 98,458-square-foot Younkers at Coral Ridge Mall. Mall owner Abbell Associates purchased the 165,000-square-foot Younkers at Merle Hay Mall in Des Moines. Mall owner Brookfield Properties acquired the 128,000-square-foot Carson’s at Spring Hill Mall in Dundee Township, Ill., as well as the 150,081-square-foot Younkers in Grandville, Mich. Mall owner Simon Property Group purchased the 125,000-square-foot Bergner’s at White Oaks Mall in Springfield, Ill. In Indiana, the Economic Development Corp. of Wayne County purchased 100,000-square-foot Elder-Beerman in Richmond. HOM Furniture acquired the 46,660-square-foot Bon-Ton at Lewistown Mall in Lewistown, Pa. Two Herberger’s stores in Minnesota were removed from the auction. In late January and early March, A&G completed private sales on two other store properties from the Bon-Ton portfolio. This includes the sale of the former Younkers building at Miller Hill Mall in Duluth, Minn. Buyer Essentia Health plans …
While Indiana is well known for the Indianapolis 500, the state’s economy is firing on all cylinders and experiencing noteworthy job growth. Indiana’s marketing campaign, “A State That Works,” has been successful in attracting investment to the state by touting its highly ranked business climate, competitive cost of doing business, pro-business tax climate, low cost of living, extensive logistical infrastructure and access to strong educational systems. In June 2018, Bloomberg ranked the Indiana cities of Elkhart (No. 1), Kokomo (No. 3) and Columbus (No. 13) for having the largest employment gains in the country since the recession. The Indianapolis metro area has created one of the nation’s top burgeoning tech scenes with a 68.1 percent increase in tech job growth from 2006 to 2016, landing No. 5 on Forbes’ list of “Cities Creating the Most Technology Jobs.” The state’s stable economy and encouraging unemployment rate have provided strength to the rapidly evolving retail industry. While national news is filled with retail bankruptcies and store closures, there has been tremendous retail activity backfilling vacancies and spurring new development from the following retail sectors: grocery, home living, health and wellness, beauty, fitness, off-price/discount, and dining and entertainment. Backfilling bankruptcies Following the bankruptcy …
WEST LAFAYETTE, IND. — Maverick Commercial Mortgage has arranged a $7 million bridge loan for the International Technology Center in West Lafayette. The anchor tenant of the 75,099-square-foot office building is Parkwest Fitness. Space currently used as a basketball court at the property will be converted into additional office space. A national lender provided the nonrecourse loan. The initial funding paid for the refinancing of existing debt on the property and closing costs. Remaining funding will be used for construction costs, tenant improvement costs and leasing commission costs related to the conversion of the gym to office space. The three-year loan features a 75 percent loan-to-value ratio.
INDIANAPOLIS — Gladstone Commercial Corp. has purchased a 34,800-square-foot industrial building in Indianapolis for $3.5 million. The property, located within Park 100, is expandable by approximately 13,000 square feet. Indianapolis Fruit Co. Inc. fully occupies the freezer storage and distribution facility. The company provides fresh, frozen and packaged produce to a variety of customer types, including grocery stores, restaurants, schools and food management companies. The seller was not disclosed.
INDIANAPOLIS — NorthMarq Capital has arranged a $4.3 million Fannie Mae supplemental loan for Wildwood Apartments, a 324-unit multifamily property in Indianapolis. Wildwood Apartments features communal amenities such as a pool, fitness center, basketball court, tennis court and a playground. David Garfinkel of NorthMarq placed the loan, which carries a five-year term and a 30-year amortization schedule, on behalf of the undisclosed borrower. Proceeds will be used to fund continued value-add programs and upgrades to the unit interiors and amenity spaces.
SOUTH BEND, IND. — Sinatra & Co. Real Estate and L5 Investments, along with Odyssey Properties Group Inc., have acquired Castle Point in South Bend for $56 million. The 740-unit multifamily property is comprised of 32 two-story buildings. A 25,000-square-foot amenity area features a fitness center, basketball courts, racket ball courts and pool. Sinatra & Co. plans to implement a value-add program, including unit and common area upgrades with a focus on fitness and technology. Sinatra & Co. Management will manage the property. Cushman & Wakefield brokered the sale. The seller was not disclosed. Pennybacker Credit I LP provided a preferred equity investment.
