Commercial Real Estate and Industrial Parks and Brokers and Development/Redevelopment and Construction and Real Estate & Retail

Summit partners seek tax break for $14M distribution facility

November 4, 2013

Principals of local commercial real estate brokerage Summit Realty Group are seeking a tax abatement from the city of Indianapolis to build a 542,000-square-foot distribution facility on the city’s west side.

7600 Rockville Road LLC, the entity established by the principals, expects to invest $14 million to construct the warehouse on 33 acres at 7600 Rockville Road. The site formerly housed a commercial greenhouse and nursery, which closed within the past 10 years.

To receive the 10-year abatement, the group is willing to commit that the facility it plans to build will be leased or sold to a company that will create at least 50 jobs by 2018.

The $14 million investment should result in an increase to the city tax base of $9.8 million of assessed value, according to city development staff.

During the span of the abatement, 7600 Rockville Road is expected to save about $1.5 million in real property taxes, or about half the amount it would pay without a tax break.

7600 Rockville Road estimates that a company occupying the distribution facility will pay an average wage of $16.35 per hour.

The city’s Metropolitan Development Commission is set to hear the abatement request at 1 p.m. Wednesday.

Correction: A previous version of this story incorrectly referred to Summit Realty Group as a developer.
 

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