INDIANAPOLIS—This city and its suburbs have seen a tremendousexpansion of industrial real estate over the past few years, andnow that the recovery has gathered even more steam, the expansionseems to be accelerating. Developers of modern bulk distributionbuildings, medium-sized distribution, manufacturing and otherfacilities have launched many projects and investors have alsobegun swooping in. Granite Real Estate InvestmentTrust, a Toronto-based firm, for example, has justpurchased three industrial properties in the suburbs fromsubsidiaries of Ingram Micro Inc. for a totalpurchase price of $68.75 million.

The portfolio includes two logistics-distribution facilities inPlainfield, totaling 1,033,520-square-feet. Granite paid $65.45million for the buildings, which also include a total of about140,000-square-feet of office space and were constructed in 2009and 1999. Ingram Micro, a global technology and supply chainservices firm, will continue to occupy the properties and willenter into leases for an initial term of 10 years. The investmentrepresents an in-going yield of about 6.5%, Granite officialssay.

Granite also agreed to purchase 29 acres of adjacent land in theAllPoints Midwest Business Park for $3.3 million.The land will provide for up to 585,000-square-feet of newlogistics - industrial space.