7/1/15
N.J.-Based Real Estate Investment Firm Drawn to 12-Floor, Class-A Building’s Excellent Condition, Stable Tenant Roster and Ideal Location
Fairbridge Properties (“Fairbridge”), a privately held real estate investment company, announced today that it has acquired Landmark Center, a 304,946-square-foot, Class-A office tower in Indianapolis, Indiana. Fairbridge paid $21.5 million for the 12-story building, located at 1099 N. Meridian Street in the city’s central business district.
Purchased by Fairbridge at a cap rate above 10 percent — more than 50 percent below replacement cost — Landmark Center offers a rich amenity package that includes a new fitness center and yoga studio, a conference facility, indoor bike storage, a full-service cafeteria and a parking ratio of 4 spots per 1000 square feet. Floor plates at Landmark Center measure 25,000 square feet, thus enabling open-space configurations that are ideal for large national companies, government agencies and other team-intensive businesses.
Currently, the building is 94 percent leased, with six years remaining on the average lease term. Fairbridge expects that Landmark Center will be 100 percent leased by late summer. Full-floor and multi-floor tenants include Angie’s List, Consolidated Care, Disciples of Christ, United States Citizenship and Immigration Service, and Jacobs Engineering.
“Fairbridge Properties is known for its rigorous due diligence and quantitative analysis of a property, including tenant mix, neighborhood dynamics, local growth and investment trends, as well as the property’s overall physical condition,” said Dr. Dmitry Gordeev, Fairbridge Properties’ founder and managing partner. “We look for investments that present both a strong, immediate cash flow and long-term potential for appreciation relative to purchase price. On every one of these counts, Landmark Center perfectly fits the profile of assets in our portfolio. It is in outstanding condition with first-rate tenants and a location in a low-vacancy area.”
Over the past five years, employment in Indianapolis has grown at nearly twice the national average and is expected to continue to outpace the national average in the foreseeable future. As a result, the area has seen a recent trend of millennial workers returning after graduating from out-of-town universities. Developers have responded to the city’s economic growth with more than $2.6 billion invested in current projects, including more than 3,000 new residential units planned for the downtown area. Indianapolis’ largest employers include Eli Lilly Corporation, FedEx, St. Vincent Hospital and Health Services, Roche Diagnostic Corporation, Anthem, Inc., Rolls Royce, Dow AgroSciences and Indiana University-Purdue University Indianapolis.
In order to ensure seamless onsite operations and tenant relations, Fairbridge has appointed DTZ, a global real estate services firm to manage the property’s day-to-day operations.
“DTZ has a stellar reputation and track record for management of Class-A properties,” Gordeev said. “We are certain that, under our direction, DTZ will play a major role in improving building-wide energy efficiencies and world-class customer service – both of which are critical in ensuring long-term value.”
- See more at: http://newyork.citybizlist.com/article/280380/fairbridge-properties-acquires-indianapolis-landmark-center-for-215-million#sthash.ZKOJJy5s.dpuf