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Ambrose jumping into Plainfield industrial market

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Ambrose Property Group, whose multi-family and office deals have made headlines recently, is staking a claim in the industrial sector with plans for a $12 million, modern bulk warehouse building in Plainfield.

Last month, the company bought a 21-acre site at Metropolis and Airtech parkways from the Federal Deposit Insurance Corp. The FDIC ended up with the property after the failure of Irwin Union Bank. Irwin had taken it back from Chris White, the bankrupt developer of the Metropolis retail project, which is just west of the property.

Aasif Bade, who founded Ambrose in 2008, said his firm is looking for a capital partner for the proposed 300,000-square-foot industrial building. Bade said the project could start yet this fall. If a deal isn’t assembled in the next several weeks, Ambrose will wait until spring to pursue the project.

The speculative building would be the first in the industrial segment for Ambrose, although the 15-employee company has plenty of background on the industrial side. Bade worked in industrial leasing and development for Duke Realty Corp. before striking out on his own. And Kyle Powell, an Ambrose vice president, was formerly an industrial broker with Cassidy Turley.

The Plainfield industrial submarket is among the strongest in the metro area and is awash in construction, including a 622,000-square-foot spec building Browning Investments and ProLogis started in July. The modern bulk warehouse building, on Ronald Reagan Parkway just north of Stafford Road, is expandable to 889,000 square feet. It comes online in December.

Other spec developments include a 450,000-square-foot building at Stanley and Perry roads being developed by Kansas City-based VanTrust Real Estate LLC. It broke ground in May. Atlanta-based Industrial Developments International is building 795,000 square feet of spec space in Ameriplex.

Because of their size, the Browning and IDI buildings are likely to compete for some of the same tenants, said Dennis Dye, Browning’s executive vice president. Ambrose and VanTrust would go after smaller users.

Bade said the Ambrose building would appeal to tenants as small as 120,000 square feet, distinguishing it from the larger projects being built nearby.

Ambrose wasn’t necessarily trying to break into the industrial market, Bade said. The company’s goal is simply to find opportunities to add value. “It’s an awesome opportunity for industrial,” he said of the Plainfield site.

The company has found numerous opportunities in recent months to add value in other real estate sectors.

Ambrose recently put under contract the 16-story Circle Tower office building on Monument Circle, a landmark property it intends to buy for about $6 million from Boston-based Winthrop Realty Trust. Bade told IBJ last week his firm would move its offices there from 96th and Meridian streets.

The company is also partnering with locally based The Whitsett Group on two high-profile downtown apartment projects. The conversion of the 10-story American Building at 333 N. Pennsylvania St. from offices to apartments is about to begin. Ambrose and Whitsett, an experienced developer of apartments, are also negotiating to buy the vacant Consolidated Building at 115 N. Pennsylvania St. for an apartment conversion.

 

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  1. Cramer agrees...says don't buy it and sell it if you own it! Their "pay to play" cost is this issue. As long as they charge customers, they never will attain the critical mass needed to be a successful on company...Jim Cramer quote.

  2. My responses to some of the comments would include the following: 1. Our offer which included the forgiveness of debt (this is an immediate forgiveness and is not "spread over many years")represents debt that due to a reduction of interest rates in the economy arguably represents consideration together with the cash component of our offer that exceeds the $2.1 million apparently offered by another party. 2. The previous $2.1 million cash offer that was turned down by the CRC would have netted the CRC substantially less than $2.1 million. As a result even in hindsight the CRC was wise in turning down that offer. 3. With regard to "concerned Carmelite's" discussion of the previous financing Pedcor gave up $16.5 million in City debt in addition to the conveyance of the garage (appraised at $13 million)in exchange for the $22.5 million cash and debt obligations. The local media never discussed the $16.5 million in debt that we gave up which would show that we gave $29.5 million in value for the $23.5 million. 4.Pedcor would have been much happier if Brian was still operating his Deli and only made this offer as we believe that we can redevelop the building into something that will be better for the City and City Center where both Pedcor the citizens of Carmel have a large investment. Bruce Cordingley, President, Pedcor

  3. I've been looking for news on Corner Bakery, too, but there doesn't seem to be any info out there. I prefer them over Panera and Paradise so can't wait to see where they'll be!

  4. WGN actually is two channels: 1. WGN Chicago, seen only in Chicago (and parts of Canada) - this station is one of the flagship CW affiliates. 2. WGN America - a nationwide cable channel that doesn't carry any CW programming, and doesn't have local affiliates. (In addition, as WGN is owned by Tribune, just like WTTV, WTTK, and WXIN, I can't imagine they would do anything to help WISH.) In Indianapolis, CW programming is already seen on WTTV 4 and WTTK 29, and when CBS takes over those stations' main channels, the CW will move to a sub channel, such as 4.2 or 4.3 and 29.2 or 29.3. TBS is only a cable channel these days and does not affiliate with local stations. WISH could move the MyNetwork affiliation from WNDY 23 to WISH 8, but I am beginning to think they may prefer to put together their own lineup of syndicated programming instead. While much of it would be "reruns" from broadcast or cable, that's pretty much what the MyNetwork does these days anyway. So since WISH has the choice, they may want to customize their lineup by choosing programs that they feel will garner better ratings in this market.

  5. The Pedcor debt is from the CRC paying ~$23M for the Pedcor's parking garage at City Center that is apprased at $13M. Why did we pay over the top money for a private businesses parking? What did we get out of it? Pedcor got free parking for their apartment and business tenants. Pedcor now gets another building for free that taxpayers have ~$3M tied up in. This is NOT a win win for taxpayers. It is just a win for Pedcor who contributes heavily to the Friends of Jim Brainard. The campaign reports are on the Hamilton County website. http://www2.hamiltoncounty.in.gov/publicdocs/Campaign%20Finance%20Images/defaultfiles.asp?ARG1=Campaign Finance Images&ARG2=/Brainard, Jim

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