INDIANAPOLIS—Avison Young's Chicago Capital Markets Group has just been awarded the exclusive sale listing of a 134,600-square-foot industrial building at 4760 South Kentucky Ave., adjacent to the Indianapolis International Airport.
The airport submarket remains one of the most active industrial markets in the country, and has recently attracted many investors and speculative developers.
“The building sits in the southwest sector of Indianapolis, which is one of the best logistics markets in the country and provides investors with the strong fundamentals they desire—long term leases with high credit tenants in a prime location,” says Erik Foster a principal in Avison Young's suburban Chicago office. “This building should be in great demand from institutional and regional equity sources given its below market rental rate, solid tenancy, and the fact that it is adjacent to the proposed expansion runways of the Indianapolis International Airport.”
The building, which is 100 percent leased to one tenant, New Sunshine, LLC, sits on a 13.8-acre site at the intersection of I-465, I-74 and I-70. New Sunshine, a consumer skin care company, renovated the building in 2012. The building has T-5 lighting, along with 28-foot ceiling heights, a water purification system, a new ESFR sprinkler system, quality control labs and FDA approved manufacturing/mixing areas.
According to Colliers, “the Indianapolis industrial market delivered more than 2.06-million-square-feet of new investment-grade industrial buildings in the first quarter of 2013, with the vast majority of new product located in the Southwest (Plainfield) and Northwest (Allpoints Anson) submarkets.”
Speculative construction activity remains robust with the expected delivery of more than 883,000-square-feet before the conclusion of 2013, according to CoStar. Furthermore, rental rates for warehouse and bulk distribution facilities have continued to grow and vacancy also decreased to 6.69% in the third quarter from 7% in the second quarter.
Among the recent warehouse and distribution sales the submarket are an 812,900-square-foot facility at 381 Airtech Parkway, purchased by Clarion Partners from Sentinel Real Estate; a 526,200-square-foot facility purchased by Welsh Property Trust from KTR Capital Partners; and a 450,000-square-foot facility at 700 Commerce Parkway, purchased by Industrial Income Trust from Cohen Asset Management.
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