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Argus Buys Class A Complex for $38M

CARMEL, IN-The three-building, 305,138-sf Meridan Plaza draws strong interest from investors throughout the nation.

By Danielle Anderson | Updated on November 13, 2006

CARMEL, IN-A San Clemente, CA-based investor with an appetite for properties that are at least 90% occupied has purchased the three-building, 305,138-sf Meridian Plaza in this suburb north of Indianapolis. Argus Realty Investors LP bought the three class A office buildings at 10333, 10401 and 10585 N. Meridian St. from Talcott Realty Investors for $37.6 million, or $123 per sf.

John Merrill, a senior vice president with CB Richard Ellis’ Investment Properties Institutional Group, says that Meridian Plaza generated strong interest from buyers across the nation and that more than a dozen qualified investors bid on the property. Merrill, who represented the seller, attributes the demand to the property’s “excellent” location along the city’s main north/south thoroughfare, and its history of high occupancies and consistent performance.

For new owner Argus, Meridian Plaza fits well into its current acquisition strategy. The company prefers to buy class A properties in class A locations that are at least 90% occupied with upside potential from leases at current market rates. Pricing also should be well below replacement cost. According to Argus, the replacement cost for Meridian Plaza is $170 to $175 per sf.

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