A highly visible parcel of land in Intech Park on Indianapolis’ northwest side has been sold to a local developer that plans to construct an office building on the site.
The local office of Chicago-based Jones Lang LaSalle, the broker for the seller, announced the deal Friday morning.
The buyer of the 50 acres, which fronts Interstate 465, is Ace Commercial Development LLC, which plans a build-to-suit development for an undisclosed client on part of the property, according to Jones Lang LaSalle.
Real estate sources say the client is Indianapolis-based Heritage Environmental Services LLC, which is planning lab space in part of the new office building. The building is expected to top 100,000 square feet.
Heritage officials did not return a phone call Friday morning seeking comment on the development.
Heritage, which has 17 locations in 13 states, was founded by the Fehsenfeld family, which also started Indianapolis-based Calumet Specialty Products Partners LP and took it public in 2006.
Part of the 50 acres includes a lake, leaving about 37 acres available for development. Ace plans to develop the rest of the land with additional Class A office buildings totaling up to 500,000 square feet, Jones Lang LaSalle said.
Jones Lang LaSalle completed the transaction on behalf of seller BMO Harris Bank, which took back the property from local developer Lauth Group. John Robinson, who helped lead the transaction for Jones Lang LaSalle, said the sale is a good sign for the local real estate market.
“There’s been an overall lack of new construction since 2008,” Robinson said. “Anytime you’re able to sell 50 acres of land, it shows new development might be heading back into the market.”
Jones Lang LaSalle declined to disclose the sale price, but the asking price was $4 million.
Established in 1999 and being built in stages, Intech Park is a 210-acre office and research park that includes nine office buildings totaling 900,000 square feet of space, as well as three hotels, a daycare center, restaurants and other businesses.
When finished, the development is expected to include 2.5 million square feet of office, hotel and retail space.