INDIANAPOLIS—The Transpacific Development Company has just acquired a 1,119,195-square-foot distribution building from Metro Holdings One, LLC, at 9101 Orly Rd. in Indianapolis' Ameriplex Business Park. The purchase increases TDC's footprint in the Indianapolis market to more than 4,600,000-square-feet and shows again the attraction that developers and investors have for the burgeoning distribution sector southwest of the central city.

“We like the southwest Indianapolis distribution market due to its proximity to Indianapolis International Airport and accessibility to Interstates 70, 74 and 465,” says Thomas Irish, president of TDC. “We think it is one of the best distribution locations in the US, with good transportation facilities, a strong logistics workforce, and a pro-business attitude.”

The demand for big box distribution centers that can reach the vast middle of the country has transformed the area. According to Colliers, “the Indianapolis industrial market delivered more than 2.06-million-square-feet of new investment-grade industrial buildings in the first quarter of 2013, with the vast majority of new product located in the Southwest (Plainfield) and Northwest (Allpoints Anson) submarkets.” Particularly significant was the delivery of Industrial Developments International's 795,000-square-foot speculative project at the same Ameriplex park.

“We entered the market nearly eight years ago and now own nine buildings here,” Irish adds. “Seven of those nine buildings are single-tenant properties, which we strongly prefer. Central Indiana is TDC's largest market, and our portfolio here is currently 97.4% occupied. We intend to own this property for a long time.”   

Although the parties did not disclose the exact terms of the deal, TDC bought the property on an all-cash basis and is currently placing long-term debt on it. TDC was represented in the transaction by John Huguenard, the international director and head of industrial capital markets from Jones Lang LaSalle's Chicago office and Chris Clayton, an executive vice president in JLL's Cleveland office. The seller represented itself.