JLL Secures $167M Sale of Indianapolis Industrial Portfolio

Biynah Industrial joined forces with Olympus Ventures on the acquisition of an eight-building industrial portfolio in Indianapolis.
Aerial view of Indianapolis industrial development

Aerial view of Indianapolis industrial development

IndianapolisBiynah Industrial Partners and Olympus Ventures have teamed up on the acquisition of an eight-building, Class A industrial portfolio in Indianapolis, Ind., from affiliates of Transpacific Development Co., for $167 million.

“Collectively, the portfolio offered us critical mass in a distribution market we love,” Andy Bennett, Biynah Industrial Partners’ co-founder & managing principal, told Commercial Property Executive. “Moreover, the portfolio has great tenants with solid credit profiles and significant, but staggered lease terms remaining.  The properties themselves were impeccably maintained by the previous owner and are otherwise highly functional distribution buildings in excellent locations.”

JLL represented the seller in the transaction.

“The portfolio consists of high-quality assets and provides scale. Also, the average lease term is five years,” John Huguenard, JLL’s international director, told CPE. “Industrial is one of the most preferred properties types among investors.”

The acquisition consists of nearly four million square feet of space, and nearly 42 acres of vacant land.

The properties in the sale include four buildings in the Airwest Industrial Park in Plainfield totaling 1.56 million square feet; two 281-580-square-foot buildings in the AmeriPlex at Indianapolis development; a 1.34 million-square-foot building located at 710 S. Girls School Road in Indianapolis; and EaglePoint 3, a 396,000-square-foot building located at 901 E. Northfield Drive in Brownsburg.

Seven of the eight properties are located within close proximity to the Indianapolis International Airport. In total, the buildings are 94.4 percent leased to a roster of global supply chain companies.

“Our joint venture maintains a long-term hold position for this investment,” Bennett said. “While there are some elements of the portfolio that harken back to our beginnings as a ‘value-add shop,’ such as the two near-term vacancies totaling around 532,000 square feet, we aim to operate what will hopefully be a stabilized portfolio over time. The stability of this kind of investment provides a solid foundation for a boutique firm such as ours.”

The buildings in this portfolio allow easy access to I-70, I-65 and I-74, as well as the Indianapolis International Airport, giving tenants the opportunity to deliver their goods to 80 percent of the U.S. and Canadian population within a day.

According to Huguenard, demand for high-quality industrial space in Indianapolis, especially near major interstates, has grown, and absorption has reached strong positive levels in each of the last four years.

JLL’s senior vice president Sean Devaney and vice president Ed Halaburt also helped with the transaction.