INDIANAPOLIS—Secondary markets have been surging recently, and as a focal point for US distributors, the Indianapolis region has been attracting attention from national investors for several years. The Los Angeles-based Industrial Realty Group, a real estate development and investment firm, just became the latest company to seek out the type yields available in this metro area. It purchased a 286,555 square-foot distribution facility at 751 International Dr. in suburban Franklin for an undisclosed amount.

Erik Foster and Mike Wilson of Avison Young's national industrial capital markets group represented the owners, New Boston Fund, Inc., a Boston-based private equity real estate investment, development and management firm.

“This is a great opportunity for the new buyer to acquire a fully leased building with strong tenancy in the Indianapolis market,” says Foster. “Indianapolis is one of the best logistics markets in the country and continues to draw investors seeking strong yields and long term stability.”

Caterpillar Reman leases the entire building, which sits on a nearly 23-acre site with quick access to I-65. The company, a division of Caterpillar Inc.,remanufacturers diesel engines and other components for use in machinery and power systems. Caterpillar, Inc., an S&P rated A company, guarantees the lease.

The strength of the Indianapolis region was recently illustrated by the fact that its vacancy rate remained largely stableat about 7.1% for the past year,  according to a recent report from CBRE, even with an active cadre of developers completing several million square feet of speculative construction.