In a $114 million deal, W.P. Carey has purchased a 1.5 million-square-foot, Class A bulk regional distribution center in the Indianapolis-area community of Frankfort, Ind. The property is triple net leased to ConAgra Brands. JLL marketed the property on behalf of the seller, Founders Properties LLC.
ConAgra Distribution Center was completed in 2015 as a build-to-suit for ConAgra, the nation’s 11th-largest food and beverage maker. The building has 10 rail docks served by CSX and Norfolk Southern and features a 34-foot clear height, concrete truck courts, 125 dock-high doors plus 125 knockouts, four drive-in doors, 853 trailer parking stalls, ESFR fire protection and LED lighting.
The 180-acre site is at 3500 W. County Road O NS in Frankfort, 41 miles from Indianapolis and only 5 miles from I-65.
The JLL Industrial Capital Markets team that represented the seller was led by Senior Managing Director John Huguenard and Senior Director Kurt Sarbaugh.
According to a prepared statement by Huguenard, the building is one of the largest modern distribution centers in the Midwest, playing an integral role in ConAgra’s ability to deliver food to a significant portion of the country. “These types of infrastructure-driven offerings continue to attract institutional capital,” he added.
The construction pipeline for industrial space in metro Indianapolis more than doubled from the first to the second quarter, according to a recent report from Cushman & Wakefield. Spec development surged, constituting more than two-thirds of the total; barely a quarter of that space is preleased.
The average vacancy for modern bulk space in the Greater Indianapolis market is 8.5 percent on an inventory of 113.5 million square feet. Year-to-date direct net absorption is about 3.4 million square feet, and 19.4 million square feet is under construction, also according to Cushman & Wakefield.
In January, Ambrose Property Group sold a 660,400-square-foot Class A cross-dock warehouse in Greenfield, Ind., just east of Indianapolis. The property is fully leased to Amazon as a fulfillment center.