Whitsett Plans to Convert 190,000 SF Former Indianapolis Star HQ into Apartments

by Adriana Pop, Associate Editor

The Whitsett Group is planning to redevelop the Indianapolis Star’s downtown headquarters into apartments. According to the Indianapolis Business Journal, the company has recently acquired the 190,000-square-foot property at 307 N. Pennsylvania Street and its 500-space parking garage from Star’s parent company, Virginia-based Gannett Co. Terms of the transaction were not disclosed.

Dubbed Pulliam Square, the mixed-use redevelopment project will bring 500 apartments contained in three buildings, along with a small retail component. Browning Day Mullins Dierdorf Architects is in charge with the plan’s preliminary design. Construction is expected to begin next summer, once the newspaper finalizes its move to a smaller location downtown.

Upon completion, Whitsett’s project will become one of the largest residential developments in downtown Indianapolis. According to Tikijian Associates, the 525-unit Riley Towers currently ranks as the area’s largest apartment complex, followed by Lockefield Gardens (493 units) and The Gardens on Canal Court (421 units).

In other news, the Indianapolis Business Journal reports that Eli Lilly and Co. has sold the Rolls-Royce Meridian Center in downtown Indianapolis to American Realty Capital for a reported $90 million. The complex had been on the market for about a year.

“The firm was interested in the property due to its long-term lease and high-quality tenant, and it’s in a central business location,” Lilly spokesman Ed Sagebiel told the newspaper.

Located on South Meridian Street, the building is fully occupied by aircraft engine maker Rolls Royce Corp. The company signed a long-term lease for the 405,000-square-foot property in March 2011 and invested about $20 million in renovations.

Formerly known as the Faris Campus, the Rolls-Royce Meridian Center offers more than 320,000 square feet of office space, a 48,000-square-foot fitness center, a cafeteria, a conference center and more than 2,000 parking spaces. In 2001, Lilly invested $58 million to develop the complex.

Photo credits: Browning Day Mullins Dierdorf Architects

Kite Realty Acquires Castleton Crossing in Indianapolis for $39M

by Adriana Pop, Associate Editor

Kite Realty Group Trust Inc. has purchased the 280,000-square-foot Castleton Crossing retail center in Indianapolis for $39 million. According to property records, Texas-based American National Insurance Co. is the seller of the property.

The center is fully leased and includes TJ Maxx, HomeGoods, Burlington Coat Factory and Shoe Carnival among its tenants. It is located at 5520 E. 82nd Street, near the intersection of I-465 and Allisonville Road and serves a 5-mile trade area with average household incomes of $87,600 and a population density of 168,400.

“Castleton Crossing is an excellent addition to our retail portfolio reflecting our continued success in acquiring high-quality shopping centers in off-market transactions. This property is located at one of the premier intersections in Indianapolis,” company Chairman and CEO John A. Kite said in a written statement.

In April, the Indianapolis-based real estate investment trust has also purchased the 224,000-square-foot Cool Springs Market in Franklin near Nashville for $37.5 million. The property is 95 percent occupied, with Dick’s Sporting Goods, Marshall’s and JoAnn Fabrics as anchor tenants.  

In regional news, the Indianapolis Business Journal reports that Investment Property Advisors of Valparaiso and the city of Muncie are planning to develop a $60 million mixed-use project near the Ball State University campus.

The development would replace the University Square building located in the Village commercial district. Plans call for 228 apartments, as well as commercial space and an approximately 340-space parking garage.

The project is currently being reviewed by the Muncie Redevelopment Commission. Construction on the parking facility could be completed by November, while the first residents are expected to move in by the fall of 2014.

Photo credits: kiterealty.com

Milhaus’s $26M Downtown Redevelopment Obtains Rezoning, Design Approvals

by Adriana Pop, Associate Editor

Milhaus Development has received design and rezoning approvals from the Historic Preservation Commission to repurpose the former Mitchell & Scott industrial site in downtown Indianapolis into a five-building apartment complex.  

Located in the Chatham-Arch historic district, the $26 million project will bring a total of 236 apartments, including studio, one-, two- and three-bedroom units. Rents will range between $900 and $2,000 per month, Milhaus announced. 

Plans call for the construction of four new buildings, about four or five stories tall, and include the complete renovation of the historic two-story former office facility of Mitchel & Scott Machine Co. Approximately 7,000 square feet of first floor space could be developed as either residential or commercial.

Construction on the project is expected to begin this summer and be complete by next spring. Upon completion, the complex will offer residents an abundance of community space, an outdoor entertainment deck, a plaza, pool, an indoor bar, art gallery and lounge. 

“This new project reflects our company mission to rebuild neighborhoods and is an important link between Lockerbie and Chatham-Arch. It will bolster the local economy with additional shoppers, diners and ticket buyers,” said David Leazenby, principal of Milhaus Development.

For the project’s design, Milhaus has partnered with Blackline Studio for Architecture, Anderson + Bohlander Landscape Architecture and CEC Engineering. Milhaus Construction LLC is in charge of construction, while The Gene B. Glick Co. will handle leasing.

In downtown Indianapolis, Milhaus is also developing the mixed-use, multi-phase residential project known as “Artistry”. The company’s recently completed projects in the region include the Mozzo apartments in the heart of the city’s downtown, the Solana Apartments at the Crossing near Keystone at the Crossing, as well as the Penn Circle Apartments in Carmel.

Photo credits: http://www.milhausventures.com

Fishers Medical Office Building Wins BOMA’s TOBY Award

by Adriana Pop, Associate Editor

The Building Owners and Managers Association (BOMA) has named the St. Vincent Medical Center Northeast, a medical office building in Fishers, the North Central Region winner of The Outstanding Building of the Year (TOBY) program.

Developed and managed by Duke Realty, the approximately 119,800-square-foot facility at 13914 Southeastern Parkway opened in 2008. The building is part of Ascension Health’s newly built St. Vincent Fishers Hospital.

“When St. Vincent Medical Center Northeast opened, it was the first freestanding emergency department in the state. We’re very proud that this successful facility is being replicated by other hospital systems in Indiana and throughout the United States,” said Ryan Rothacker, Duke Realty’s vice president of Asset Management & Customer Service.

Earlier this year, the facility won the local Indianapolis TOBY award, qualifying it to compete in the North Central Region program. Regional winners will now enter the final, international level of the competition. The finalist will be announced live at the TOBY banquet on June 25 during the BOMA International 2013 Every Building Conference & EXPO in San Diego.

In other news, during a meeting of the Broad Ripple Village Association, local developer Browning Investments has unveiled its plans for a proposed $18 million mixed-use apartment project on College Avenue north of Broad Ripple Avenue in Indianapolis.

According to Indystar.com, the five-story building will be anchored by a 35,000-square-foot ground floor specialty grocer. Plans also call for 80 to 88 apartments and a 275-space parking garage.

The developer and its partner Sheehan Construction will now need to rezone a portion of the site to allow for retail. They may also apply for tax increment financing, the newspaper reports.

 “This would be a good location for a specialty-type grocer because of the abundance of nearby housing and upscale incomes”, said Jamie Browning, vice president of real estate development for Browning.

Photo credits: http://www.northwestradiology.com

Hertz Investment Acquires 650,000 SF Office Property in Indianapolis

by Adriana Pop, Associate Editor

Hertz Investment Group of Santa Monica has closed on the purchase of the 650,000-square-foot Capital Center Office Tower Complex in Indianapolis.The seller was Invesco Real Estate, which was represented by the local office of CBRE.

According to the Indianapolis Business Journal, the complex is the 12th-largest in the city and the fifth-largest downtown.

Located on Illinois Street, between Ohio and New York streets, the two-building Class A office property is comprised of the 17-story North Tower and the 22-story South Tower. Amenities include an underground parking structure with 525 spaces, two restaurants, conference facilities, a sundry shop, a coffee shop and a fitness center.  

Connected by a lobby atrium, the buildings are 78 percent leased to tenants including Cummins, the Associated Press, BKD CPAs & Advisors, Fifth Third Bank, Burgess and Niple, HCC Medical Insurance Services, RCR Technology and The Huntington National Bank. The property’s net operating income is $4.5 million, the newspaper reports.  

“We are delighted to take on the Capital Center towers, with an extraordinary existing roster of national and regional leaders who need to be here, at the very epicenter of Indianapolis. The project has high quality amenities – on site and nearby – which are simply not matched in the City of Indianapolis,” Gary Horwitz, president of Hertz Investment Group said in a prepared statement.

In other news, the Indianapolis Business Journal reports that two local developers are repurposing the former Litho Press building into 111 apartment units.The 105-year-old historic property is located on North Capitol Avenue in downtown Indianapolis.

The Whitsett Group and Ambrose Property Group are behind the $16 million redevelopment project known as 800 North Capitol Apartments. About forty percent of the units will be affordable.

Upon completion towards the end of the year, the new complex will include an interior courtyard and rooftop pool. Local architecture firm DkGr Architects is the designer of the project.

According to George Tikijian of brokerage firm Tikijian Associates, the downtown apartment market has very good absorption. Currently at 96 percent, the area’s occupancy level is expected to remain strong this year, even as new units are being delivered.

Photo credits: http://www.hertzgroup.com/capitalcenter.html