INDIANAPOLIS — A partnership between two investment firms, Indianapolis-based Strategic Capital Partners (SCP) and Philadelphia-based Rubenstein Partners LP, has acquired The Precedent Office Park, a 1.1 million-square-foot, Class A office complex in Indianapolis, for $132.7 million. Chicago-based LaSalle Investment Management was the seller.
The property is situated on 184 acres at the intersection of Keystone Avenue and East 96th Street, just off Interstate 465 on the city’s north side. It consists of 19 buildings positioned around a 38-acre central lake. The campus is also located near a shopping and dining destination, The Fashion Mall at Keystone.
Current amenities include a 6,000-square-foot fitness center, daycare center, bike-sharing program and micro-market vending options in select buildings.
The buyers will implement a capital improvement program focused on enhancing the on-site amenities and upgrading the building systems. The improvements will aim to bolster the lake’s role in the amenity package by improving the landscaping and walking paths around it. Other amenity upgrades will include the renovation of the fitness center and the development of a new tenant lounge and cafeteria.
“The Precedent’s location and proximity to the Fashion Mall at Keystone and other amenities is why many great local and national companies have chosen to locate their businesses here,” says Richard Horn, president of SCP. “Our capital campaign will be designed to attract and retain those tenants over the long term.”
The Precedent marks the partnership’s second acquisition of a suburban office park in the Indianapolis area in the past 18 months. In August 2016, it purchased Parkwood Crossing, a 27-building, 2.3 million-square-foot office asset located a few miles away from The Precedent. A similar capital improvements program was implemented at the Class A Parkwood Crossing property.
“This investment offers a unique opportunity to acquire a low-density office campus located at a strategic ‘Main’ and ‘Main’ intersection,” says Brandon Huffman, principal and portfolio manager at Rubenstein. “With limited competitive Class A supply expected to be delivered in the near term, we remain bullish on Indianapolis and look forward to executing our business plans at these campuses.”
JLL will handle leasing of The Precedent.
— Taylor Williams