Scannell Kicks Off 3.8 MSF Industrial Park

The first buildings at the Indianapolis logistics center will come online next year.

Ronald Reagan Logistics Center @ I-74. Image courtesy of Scannell Properties

Scannell Properties has broken ground on the first phase of Ronald Reagan Logistics Center @ I-74, a project that officials of Brownsburg, Ind., describe as the city’s largest commercial development to date. The center’s initial phase will yield just over 1.4 million square feet of industrial space, while at full buildout, the project is slated to include as much as 3.8 million square feet. Scannell has tapped CBRE to handle leasing for the logistics center.

“We target many logistics and distribution companies. The building sizes that we can get on a particular property drive the potential tenant mix,” Shaun Cofer, development manager with Scannell Properties, told Commercial Property Executive. “While single-tenant users are great from a property management perspective, our smaller buildings tend to target smaller companies that may only need 50,000 square feet or so.”

The property will materialize on a site at the intersection of Ronald Reagan Parkway and Interstate 74 in Hendricks County, roughly 15 miles northwest of downtown Indianapolis. Scannell completed the acquisition of two parcels totaling roughly 85 acres at the aforementioned location in September 2021 for a total of approximately $7.2 million, according to Town of Brownsburg property records.

Phase one of the development will consist of four buildings, three of which will be built by the Peterson Co. and deliver in June 2022 and the fall of 2022. Pepper Construction will serve as the general contractor for the fourth building, which is scheduled to reach completion in the fall of 2022.

Moving up in the world

The Town of Brownsburg, which is within a day’s reach of 60 percent of the U.S., is increasing in prominence as a prime location for industrial real estate. As noted in a third quarter report by JLL, developers are now “looking into historically underserved areas like Brownsburg.” And Hendricks County overall continues to perform well, having recorded positive absorption totaling 1.6 million square feet and a vacancy rate of 4.6 percent for the quarter.

Additionally, metropolitan Indianapolis is on the rise as an industrial cluster. With a wave of signings and occupancies on tap in advance of the holiday season, net absorption is on track to approach the 20 million-square-foot mark by year-end.

“This is a number usually associated with industrial markets such as Atlanta, Dallas, [the] Inland Empire and New Jersey, to name a few. The same can be said as it relates to the amount of industrial product currently in development across the Indy MSA. This speaks to Indy cementing itself as a major industrial hub both now and into the future,” according to the JLL report.

Scannell expects to commence the second phase of Ronald Reagan Logistics Center @ I-74 in the fall of 2022. The second and final phase will encompass five buildings totaling up to 2.4 million square feet, in addition to several retail offerings. Brownsburg officials are confident that the premier development will spark additional industrial and commercial projects in the suburban Indianapolis town.

You May Also Like