Diamond Properties Buys 198 KSF Indianapolis Industrial Campus

Diamond Properties has acquired Shadeland Industrial Park, a fully leased industrial park with three Class B buildings totaling 198,000 square feet in Indianapolis. Indianapolis-based real estate investment firm i3 Investors sold the asset for an undisclosed price. JLL Capital Markets represented the seller.

Built in 1979, the industrial park comprises two 57,000-square-foot buildings and one 84,000-square-foot building. Features include clear heights ranging from 18 to 22 feet, 27 dock doors, 15 drive-in doors and wet sprinkler systems. The property also includes truck courts and office space.

Kroger and Drexel Interiors are tenants at the campus. Drexel occupies 114,000 square feet across two buildings, having operated at the property since 2009 and expanded its footprint over time. Kroger occupies the remaining 84,000-square-foot building.

In a prepared statement, Diamond Properties CEO Jim Diamond said the property has the characteristics the company looks for in an industrial investment: functional buildings, established tenants and convenient access to major transportation routes.

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Located at 3221, 3223-3229 and 3241-3243 N. Shadeland Ave., the park is in the city’s Eastside industrial corridor, about one mile from the Interstate 465 and Interstate 70 interchange. Downtown Indianapolis is about 15 minutes away, and Indianapolis International Airport is about 25 minutes away.

Indianapolis’ industrial momentum

The Indianapolis metro industrial space market posted 3.8 million square feet of net absorption in the third quarter, which brought the year-to-date total to 11.9 million square feet, a 48 percent year-over-year increase, according to a recent report from Cushman & Wakefield.

The metro’s Eastern submarket has a vacancy rate of 7.1 percent across 64.9 million square feet of inventory. According to the report, just 352,000 square feet are currently under construction.

Last month, Ambrose broke ground on Buildings V and VI at Indianapolis Logistics Park-Northwest in Whitestown, an Indianapolis suburb. The project is the speculative second phase of the master-planned campus. Building V will total about 182,000 square feet and Building VI about 765,000 square feet. Fifth Third Bank is providing construction financing for the project.