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INDIANAPOLIS—Indianapolis-based Strategic Capital Partners, LLC and its partner Rubenstein Partners, LP, a real estate investment manager focused on value-added office properties, have completed one of the most significant recent investments in the Indianapolis region.

The partners acquired the 1.1 million-square-foot Precedent Office Park on Indianapolis' north side from Chicago-based LaSalle Investment Management for $132.7 million. The 184-acre campus at Keystone Ave. and E. 96th St. in the Keystone Crossing submarket consists of single-story, two-story and multi-story buildings and includes a 38-acre lake.

Although CBDs across the Midwest have attracted a lot of investment, this deal is a reminder that in many metro areas, especially Indianapolis, Kansas City and St. Louis, suburban-style properties still have allure, and in some ways, overshadow downtown offices.

The Precedent acquisition follows the SCP and Rubenstein partnership's purchase of Parkwood Crossing, another suburban Indianapolis office property, in August 2016. The combined campuses total 27 buildings and more than 2.3 million square feet, making the SCP and Rubenstein partnership among the largest office owners in Indianapolis. The two class A campuses are less than 10 minutes from the northern Indianapolis suburbs of Carmel, Fishers and Zionsville, the amenities along the I-465 northern corridor and 20 minutes from downtown Indianapolis.

Similar to their strategy at Parkwood Crossing, Rubenstein and SCP will launch a capital program to enhance on-site amenities, make aesthetic improvements and upgrade building systems. Specifically, the partners will improve landscaping and walkability around the lake, renovate the fitness center and build a new tenant lounge and cafeteria.

“This investment offers a unique opportunity to acquire a low-density office campus located at a strategic “main and main” location,” says Brandon Huffman, principal and portfolio manager, equity investments for Rubenstein. “With limited competitive class A office supply expected to deliver in the near-term, we believe our planned improvements will further reinforce the Precedent and Parkwood Crossing as the premier office campuses in the market. We remain bullish on Indianapolis and look forward to executing our business plans at these campuses.”

The Fashion Mall at Keystone, recognized as Indianapolis' premier luxury shopping destination, sits less than five minutes from the Precedent, directly across I-465 and accessible by River Rd. Several micro-area improvements are underway close to the Precedent, including the construction of new traffic roundabouts at major intersections along 96th St.

JLL's John Robinson, managing director, Traci Kapsalis, senior vice president and Tracy Faulk, vice president, will head the Precedent's leasing team.

“The Precedent has long been one of the premier office parks in Indianapolis,” says Richard Horn, president of Strategic Capital Partners. “Its excellent location and proximity to the Fashion Mall at Keystone and other amenities is why many great local and national companies have chosen to locate their businesses here. Our capital campaign will be designed to retain and attract these tenants over the long term.”

Instant Insights /

Suburban Offices Still Have Allure

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