Steak n Shake to Acquire Historic Office Building in Downtown Indianapolis
- Sep 07, 2012
The sale of the historic Ober Building in downtown Indianapolis has been approved by the Metropolitan Development Commission on behalf of the Capital Improvement Board of Marion County.
According to the Indianapolis Business Journal, an affiliate of the locally based Steak n Shake restaurant chain will pay $3.8 million to purchase the 62,500-square-foot office building and another $2 million for improvements.
Steak n Shake plans to move its headquarters to floors three through six in the six-story Ober Building located at 107 S. Pennsylvania St. The company’s local offices are currently in the Century Building on the opposite corner of Pennsylvania and Maryland streets.
The acquisition will not have any near-term impact on the existing tenants at the property, which is about half-leased to tenants such as NuOrbit Media and Ratio Architects, the city’s fourth-largest architectural firm. With lease rates of about $14 to $15 per square foot, the building produced total operating revenue of $557,000 in 2011, generating a profit of approximately $316,000.
In 1999, the Capital Improvement Board acquired the Ober Building for $5.5 million. The structure dates back to 1910 and received its name after C.S. Ober, the founder of the Business Furniture Corp. and Stationers Inc. Its current purchase price is not inferior to the average of the two most recent appraisals, the newspaper reports.
In other news, Browning/Duke Realty, a joint venture between the two Indianapolis-based developers, announced it would build a new 599,870-square foot industrial building in AllPoints at Anson along I- 65 in Whitestown.
With flexibility for expansion to 1.1 million square feet, the facility will be the only available bulk warehouse in the northwest submarket, and the only speculative development in the Indianapolis metro area. The project is scheduled for completion in January 2013.
AllPoints at Anson is one of the region’s largest modern bulk distribution parks. At full build-out, it is expected to accommodate more than seven million square feet of distribution, build-to-suit, data centers and advanced manufacturing facilities.
Photo credits: indianapolis-downtown-hotels.com