GREENWOOD, IN - A 450,000-square-foot Greenwood distribution property at 700 Commerce Parkway has sold for $15.75 million. The sale - from Cohen Asset Management to an affiliate of Industrial Income Trust Inc. - drew significant investor interest, reflecting continued strength within the Indianapolis industrial market, according to Cushman & Wakefield, Inc.
Mike Tenteris and Jim Carpenter of Cushman & Wakefield's Chicago office, and Andrew Morris of Summit Realty Group, a Cushman & Wakefield Alliance partner based in Indianapolis, orchestrated the sale.
700 Commerce Parkway, a 13-year-old, Class A core industrial facility, is fully leased to Celadon and Genco. Both tenants are strong and well-recognized transportation and 3PL industry firms (and were initially put into the building by Cushman & Wakefield/Summit Realty Group). The facility offers a highly functional, flexible design and strategic location in the Precedent South Business Park, just minutes from the I-465 loop and the Indianapolis International Airport. High visibility and immediate access to I-65 further contribute to its appeal, according to Tenteris.
"This offering was heavily pursued because it involved a premier, stabilized asset in a market with impressive fundamentals," he said. "Indianapolis is enjoying tight vacancies and rising rental rates, and its South submarket, which includes Greenwood, is performing even better than the overall region. Its excellent accessibility and abundant skilled, low-cost labor continue to draw tenants and investors alike."
Morris added that the Indianapolis investment sales market has undergone a notable shift. "$235 million in asset trades in our market over the past 12 months illustrate a consistent, pre-recession level of interest," he said. "While transaction volume remained steady over the previous 12-month period, we have seen the number of investors looking to place money in Indianapolis grow as Tier 1 markets like Chicago have tightened. In turn, the price-per-pound for quality product has gone up, and cap rates have reduced significantly."
Cushman & Wakefield's industrial brokerage platform provides global resources and local expertise for tenant and landlord representation, disposition and acquisition services, transaction management, and industrial consulting including labor and demographic analysis. In 2012, in the U.S. alone, this group completed more than 7,000 industrial real estate transactions - totaling 261 million square feet - with an aggregate value in excess of $8.43 billion.