KTR Returns to Indy with 594,000-SF Purchase

GREENFIELD, IN-An affiliate of KTR Capital Partners has closed on the purchase of the 594,000-sf Building 105 in Mount Comfort Commercial Park. The acquisition marks KTR's first foray back into the Indianapolis market, since it sold its holdings in the city as part of its merger as Keystone Property Trust with Prologis in 2004.

Keystone had owned four million sf of industrial product in Indianapolis, says John DiCola, a partner at KTR. Prologis acquired the property in its acquisition of the former REIT for about $1.7 billion. This purchase helps the new private KTR move back to its former status in the city, DiCola tells GlobeSt.com. "We like Indy," he says. "It's a major regional hub market, with important access to major interstates and a great labor pool. We were heavy in this market before."

The building, recently constructed by Precedent Cos., is completely empty, amenities such as 32-foot clear ceiling heights, 54 exterior dock doors, 46 trailer stalls and expansion of up to 378,000 sf. DiCola refused comment on how much KTR paid, but said a similar building would cost about $21 million in this market. "We don't have any tenants for the building yet. They're responding to our RFP's, interest has been good, but we don't have any signed leases yet," he says.

He says the local market should support speculative construction. "There's not been a lot of new product, and there's a lack of land with utility access. Precedent has done a fine job of positioning Mount Comfort so that utilities are available." He says he doesn't know what the asking rate will be yet for Building 105. The average warehouse/distribution lease rate in Indianapolis is $3.91, according to a first quarter Grubb & Ellis market report.