Zeller Realty Plans Sale of Large Office Complex in Carmel
Chicago-based Zeller Realty Group is planning to divest the iconic Meridian Mark Plaza office complex along the North Meridian Street corridor in Carmel. The Indianapolis Business Journal reports that the company has hired the local office of CBRE to advise it on the sale.
According to the firm’s office broker Dan Richardson, the timing for this type of transaction is excellent.
“Interest rates remain historically low and lenders have a big appetite to invest in high-quality real estate,” he told the newspaper.
CBRE data indicates that Carmel’s improving Class A vacancy rate along the corridor, currently at 12.3 percent, is expected to reach single digits by the end of the year.
Zeller purchased the Meridian Mark I and II buildings, which total 385,000 square feet, in 2001 and made significant improvements to the properties, including the addition of a fitness center, new lobbies, food service, roofs and mechanical systems. Brokers estimate that the properties, which were developed by Browning Investments in the 1980s, could sell for as much as $57 million.
According to the most recent IBJ statistics, rents at the Meridian Mark Plaza complex range from $18.50 to $20.25 per square foot. Cisco, Edward Rose & Sons, Liberty Mutual and Oxford Financial are among the buildings’ tenants.
In multi-family development news, Herman & Kittle Properties Inc. is planning the construction of a 260-unit apartment complex on the southwest side of Indianapolis. According to the Indianapolis Business Journal, the $16.2 million project would consist of 29 residential buildings, a clubhouse, covered parking and a swimming pool.
The developer is seeking a three-year tax abatement, equivalent to approximately $452,000 in property taxes, which would help offset the $600,000 cost of roadway improvements at the Mann and West Mills intersection. Upon completion, the new development is expected to add $11.4 million in assessed value to the tax base.
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