The latest indication the Indianapolis-area industrial market is humming on all cylinders is NorthPoint Development’s deal to build a massive $25 million speculative distribution center in Lebanon.
The suburban Kansas City, Mo.-based developer said Wednesday that it has broken ground on the 741,000-square-foot warehouse, expandable to 1 million square feet, on 67 acres at State Road 32 and Interstate 65 near the Lebanon Business Park. The building should be finished by the end of the year, NorthPoint said.
The firm received a 10-year tax abatement from the city of Lebanon to help offset the cost of the project and expects to save between $2.5 million and $3 million during the life of the abatement, NorthPoint project executive Bob Gude said.
NorthPoint is developing the project with Indianapolis-based GDI Construction. Mark Writt and Tom Cooler of CBRE Inc. are the leasing agents.
Its Northpoint's first foray into the Indianapolis market, which speaks volumes about the strength of the area's industrial sector, said Charlie Podell, senior vice president of Duke Realty Corp.’s Indiana operations.
Duke’s industrial developments include the Lebanon Business Park and AllPoints at Anson, both in Boone County.
“With that spec building,” Podell said, “it’s going to get more people coming up and looking around.”
Earlier this month, Duke announced that its 600,000-square-foot speculative distribution center is fully leased at its AllPoints at Anson joint venture in Whitestown with Browning Investments Inc. The tenants are Chattanooga, Tenn.-based Kenco, a third-party logistics provider, and Pittsburgh-based General Nutrition Centers.
Maplehurst Bakeries LLC announced July 14 that it planned to spend $77.8 million to open a manufacturing plant in Lebanon for its cake and cupcake products.
And in June, Indianapolis-based Ambrose Property Group announced it is building a $17 million, 403,200-square-foot headquarters and distribution facility at 450 Airtech Parkway in Plainfield for Hanzo Logistics. Hanzo will move in September about a half-mile north to the new facility.