INDIANAPOLIS—Transpacific Development Co. has just executed a lease with Ozburn-Hessey Logistics for 450,000 square feet of distribution space at 2450 Stanley Rd. in suburban Plainfield. The lease, one of the largest distribution transactions in the Midwest so far this year, represents another big step toward rectifying the metro area's current imbalance between supply and demand, which experts say opened up due to a massive building boom in 2013 and 2014. With this transaction, which covers the entire building, the global 3PL firm now leases three full buildings from TDC in the Plainfield submarket.
“We expect to see several of the other spec buildings that were developed in that time frame leased within the next few months,” Thomas Irish, president of Torrance, CA-based TDC, tells GlobeSt.com. “Having all of that new, quality distribution space ready for immediate occupancy has attracted sizable users looking for space in the Midwest.”
Although terms of the transaction were not disclosed, it is the largest new distribution lease in the area this year, and one of the five largest new leases in the past twelve months, according to DTZ.
“OHL is TDC's largest tenant based upon square footage, as they also lease our buildings at 1100 and 1101 Whitaker Rd.,” Irish adds.
“A major component of OHL's success is our ability to provide flexible warehouse and distribution solutions to our customers, and TDC has continually gone the extra-mile to enable our success,” says Randy Tucker, OHL's president of contract logistics and transportation management. “TDC has facilitated that growth through investing in the expansion of our business in the Indianapolis area.”
Jeb Atkinson, Jess Andrews, Brian Camp and Doug McDowell of ProVenture represent OHL globally, and Steve Schwegman of JLL assisted locally. TDC was represented by Michael Weishaar and Luke Wessel of DTZ.
TDC acquired 2450 Stanley Rd. in September 2013 from an affiliate of VanTrust Real Estate, LLC. The Kansas City-based VanTrust built the then-unleased building on a speculative basis. The building features a 32' clear height, 40 dock doors in a cross-dock configuration, T-5 lighting, and three entrances off of Stanley and Perry Rds. With this lease, TDC's Indianapolis-area portfolio is now 97.6% leased.
“We did not have OHL as a prospective tenant at the time we bought the building,” Irish says. “We are one of the largest owners of modern bulk distribution space in the Indianapolis area, with high occupancy and a lot of single-building tenants. Based upon that, we were comfortable adding a new, vacant building to our portfolio, so we bought 2450 Stanley without a specific tenant in mind. We were really happy when OHL toured through the building and, based upon our multi-building relationship with them, the transaction came about very quickly.”
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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.
