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Indianapolis, Ind.\u2014 REI Investments has acquired the former GM Indianapolis Stamping Plant property from RACER Trust.<\/p>\nBy Keith Loria, Contributing Editor<\/p>\n
Indianapolis, Ind.\u2014 REI Investments has acquired the former GM Indianapolis Stamping Plant property from RACER Trust.<\/p>\n
The price of the sale was not disclosed.<\/p>\n
\u201cIt became available for us to actually sell about two years ago,\u201d Bruce Rasher, RACER\u2019s redevelopment manager, told Commercial Property Executive<\/i>. \u201cIt is right across the river from the amenities that make Indianapolis such an important entertainment destination, including a number of hotels, Lucas Oil Stadium, the baseball field, and it\u2019s adjacent to the zoo. It possesses the location amenity for being incorporated into the central business district.\u00a0It took the demolition to help the market meet the real potential that this property has, and we should be done with removal of the building by about mid-Fall. And it will be a blank canvas for our buyer to begin creating a new investment in Indianapolis.”<\/p>\n
The property totals approximately 102 acres, and is located just across White River from downtown Indianapolis. The new owners plan to redevelop the property and reuse.<\/p>\n
According to Racer, it was the right time for such a deal because it made economic sense, unlike past discussions.<\/p>\n
\u201cThe Trust received a number of expressions of interest in the property both for potential users of the building\u2014none of which really made economic sense\u2014and from a variety of developers that had some ideas about the future use of the property,\u201d he said. \u201cYou just reach a certain point where you sense the market is ready to move and we reached that point, so that\u2019s why today we announced the sale.\u201d<\/p>\n
The City of Indianapolis has an option to acquire approximately 56 acres at the western edge of the property, which it is considering for construction of a consolidated city-county justice center. The remaining acreage will be developed pursuant to a development agreement to be reached between REI Investments and the city.<\/p>\n
\u201cThe west portion of the property was designated by the city as its proposed location for its proposed new consolidated criminal justice center,\u201d Rasher says. \u201cIf the city is able to prove out this proposal, then RACER would close with REI and then do things to prep the site, and in turn sell to the entity that the city selects for the construction of the new facility.”<\/p>\n
If not, then the portion of the contract for the west parcel would actually terminate and RACER would resume its marketing. With respect to its east parcel, which is on the river and has a view of the Indianapolis skyline, RACER will sell to REI if REI and the city are able to conclude a mutually agreeable written and binding development agreement for the new use of that.<\/p>\n
RACER announced last summer that it would market the Indianapolis property as vacant land for redevelopment. It invited 10 firms, including REI Investments, to submit redevelopment proposals, and it won the bidding process.<\/p>\n
\u201cRACER did evaluate a number of proposals that were solicited via an invitation-only RFP process,\u201d Rasher added. \u201cAnd we felt that REI\u2019s proven track record of success, their capabilities and experience and capacity and access to capital markets positioned them as the best choice for bringing new investment and jobs to the property.\u201d<\/p>\n
RACER will require the execution of a development agreement between REI Investments and the City of Indianapolis as a condition of closing.<\/p>\n
\u201cThe opportunity to acquire and redevelop an iconic property like the Indianapolis Stamping Plant doesn\u2019t come along very often, and we\u2019re thrilled that RACER selected our firm to write the next chapter in its history,\u201d Michael W. Wells, REI Investments\u2019 president, said in a company release. \u201cThis is a great property in a terrific location. We\u2019re eager to get started and to help create a new and prosperous hub for the community.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
REI Investments has acquired the former GM Indianapolis Stamping Plant property from RACER Trust. The City of Indianapolis has an option to acquire approximately 56 acres at the western edge of the property, which it is considering for construction of a consolidated city-county justice center.<\/p>\n","protected":false},"author":451,"featured_media":1004101747,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21782,1590,21742],"tags":[39441],"class_list":["post-1004101746","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development","category-indianapolis","category-latest","tag-indianapolis"],"acf":[],"yoast_head":"\n