INDIANAPOLIS—It takes a measure of confidence to buy nearly half-a-million square-feet of vacant space, but the Transpacific Development Company has decided that the expanding warehouse and distribution market in the Hoosier State is healthy enough to justify the risk. The California-based firm just acquired 2450 Stanley Rd., a 450,000-square-foot, class A distribution building in Plainfield, just southwest of Indianapolis, from an affiliate of VanTrust Real Estate, LLC. The Kansas City-based VanTrust built the unleased building on a speculative basis.
In late August, GlobeSt.com reported that TDC had just purchased 9101 Orly, a 1,119,195-square-foot building in Indianapolis' Ameriplex Business Park. TDC now owns ten distribution facilities in the area with a total of more than 5,000,000-square-feet.
“The southwest Indianapolis market is one of the best distribution locations in the US with good transportation facilities, a strong logistics workforce, and a pro-business attitude,” says Thomas Irish, president of TDC. “Both buildings share basic strategic advantages such as their proximity to Indianapolis International Airport and accessibility to Interstates 70, 74, and 465.”
Developers have transformed the landscape around the city as they scramble to meet the rising consumer demand for quickly delivered products. 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 Ameriplex park.
Exact terms of the transaction were not disclosed. TDC was represented by John Huguenard, the international director and head of Industrial Capital Markets for Jones Lang LaSalle's Chicago office. The seller was represented by Glenn Davis, president and managing director of Colliers in Indianapolis.
“Our properties here have been well-leased, so we felt comfortable taking on marketing risk with this property,” Irish adds. Before purchasing the Stanley Rd. facility, TDC buildings had a 97.4% occupancy rate. The building has the modern features that most distributors now feel they need to compete: 32'clear height, multiple entry points, an ability to add parking to the site, advanced sprinkler and lighting systems, and other features. “It is our desire to find a single tenant for the whole building, but we will consider splitting it up under the right circumstances.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
