New Indianapolis-Area Industrial Facility Fetches $43M

Westpoint II. Image courtesy of JLL Capital Markets

Ambrose Property Group LLC has just pocketed $43 million on the sale of Westpoint II, its newly developed industrial facility in Mooresville, Ind. With the assistance of JLL Capital Markets, Ambrose sold the 507,600-square-foot Indianapolis-area asset to Cambridge Holdings.

“The investment received double digit offers, showing how in demand industrial product is right now,” Ed Halaburt, senior director with JLL Capital Markets, told Commercial Property Executive. “The depth of the interest came from core funds, REITs and private capital.” JLL Capital Markets’ John Huguenard and Brian Seitz joined Halaburt in representing Ambrose in the sale.

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Carrying the address of 2633 Westpoint Blvd., Westpoint II is located roughly 22 miles from Indianapolis’ central business district on a site within the 550-acre Westpoint Business Park, a new master-planned compound that will ultimately encompass more than 9 million square feet of offerings across Monrovia and Mooresville and hold the distinction of being one of the largest distribution centers in the state of Indiana. Fronting Interstate 70, Westpoint II also provides a prime position within the highly desirable Southwest Industrial submarket and close proximity to the Indianapolis International Airport.

Ambrose built Westpoint II as a speculative development but signed Deckers Outdoors Corp. to a 10-year lease of the entire facility shortly before completing the project in the first quarter of 2021, with Cresa representing the tenant in the transaction and JLL standing in for the landlord.

The Class A building boasts institutional-quality features and is expandable to approximately 685,300 square feet. “Investors were drawn to the physical quality of the asset—new construction, expansion capability—the exceptional performance of the Indianapolis market and long lease term with a publicly traded tenant,” Halaburt added. Designed by Curran Architecture, Westpoint II is also expected to meet the qualifications for LEED ID+C Gold certification.

Moving up in the world

Demonstrating enviable fundamentals, Indianapolis is rising higher on the investment community’s radar. “Indianapolis is an institutionally accepted market for distribution assets and is growing in importance with the overall rise of e-commerce and the expansion of the FedEx air hub. The market continues to set records for net absorption and is experiencing demonstrable rent growth,” Halaburt said.

In the second quarter of 2021, net absorption totaled approximately 5 million square feet in metropolitan Indianapolis, marking the highest amount ever recorded in the market in a single quarter, according to a JLL report. Additionally, tenants continue to claim inventory soon after delivery, keeping vacancy rates at record lows.