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Apr. 12, 2013

Hendricks Breaks Ground on $30M Redevelopment of Retail Strip in Indianapolis

by Adriana Pop, Associate Editor

Construction has begun on the $30 million Ironworks at Keystone apartment and retail development in suburban Indianapolis.

Developed by Hendricks Commercial Properties of Wisconsin, the five-story mixed-use project will replace the vacant Woodfield Centre retail strip at the southwest corner of Keystone Avenue and East 86th Street with 120 high-end apartments and 36,000 square feet of ground-level retail space. According to the Indianapolis Business Journal, a 10,000-square-feet-restaurant could soon become the property’s anchor tenant. The developer expects to have a commitment by June, the newspaper reports.

Plans also call for 350 surface parking spaces for shoppers and a 150-space underground garage for residents. Construction is expected to be complete by next summer.

“This is a great day for Hendricks Commercial Properties,” Hendricks President Rob Gerbitz said in a statement. “We are excited to build our first development in Indianapolis, and we’ve assembled a team of exceptional local companies to ensure this project is a success.”

The company’s local partners include Shiel Sexton (construction), Sitehawk Retail Real Estate (commercial leasing), Buckingham Companies (residential leasing and management), Wooden & McLaughlin LLP (legal), Civil and Environmental Consultants, Inc. (environmental and engineering), and EUA (architect).

Hendricks purchased the 6.4-acre development site in 2012 from Jacksonville, Fla.-based Everbank. Jordan Klink, an investment specialist with the local office of Marcus & Millichap told the newspaper that Ironworks could be fully leased by the time of its opening next year.

In other news, leading owner, operator and developer of industrial real estate Prologis Inc. has signed a build-to-suit agreement with Subaru of America for a new 715,000-square-foot distribution center. The facility will be located in the Northwest Indianapolis submarket at Prologis Park Lebanon.

“The record low supply of large industrial facilities continues to drive build-to-suit solutions in many markets around the country, including Indianapolis. With occupancies rising for the past two years, Indianapolis remains a compelling regional market,” said Jim McGill, senior vice president, Prologis.

Within the Indianapolis market, Prologis owns and manages approximately 5.1 million square feet of logistics and distribution space.

Photo credits: Hendricks Commercial Properties