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Broadbent sells part of Fashion Mall Commons

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The Broadbent Co., the retail real estate developer that spent much of last year battling lenders in court, has sold one of its prime properties.

Broadbent recently sold the building that houses Kohl’s department store at Fashion Mall Commons for $15.3 million, or about $177 per square foot, according to a CoStar Group report.

The 86,634-square-foot building at East 86th Street and Union Chapel Road was built in 1997. The Kohl’s lease runs through 2023, said Susan Brixius, a representative in the New York office of Marcus & Millichap, the firm that represented the buyers.

The sale, to James Huck LLC of Marietta, Ohio, and Arloma Corp. of Santa Barbara, Calif., did not involve the multi-tenant portion of Fashion Mall Commons, which comprises about 160,000 square feet.

Brixius said she did not think the sale was forced by Broadbent’s lenders. Representatives of Broadbent could not be reached to comment on the sale.

Brokers with no knowledge of the financial details of the Kohl’s lease said it would appear the new owners got the property for a price typical in the hot Keystone at the Crossing trade area.

Jeffrey Merritt, a broker with Summit Realty Group, said the location and the long-term Kohl’s lease would have made the property attractive to buyers.

“Kohl’s is a great credit. They’re going to pay their rent wherever they are,” said Merritt. Buying a single-tenant building further reduces risk for investors in the property, he said.

The price paid for the Kohl’s space is more than Broadbent might expect to get from its downtown headquarters at 117 E. Washington Street. That three-story building with office and retail space was for sale as recently as last summer as the developer tried to stave off foreclosure proceedings initiated by Huntington and PNC banks. It was appraised at $6.5 million last April.

Huntington and PNC had previously won four court judgments against Broadbent totaling $17.3 million over unpaid loans the banks had made for Broadbent’s retail developments.

Broadbent, a prolific developer of retail strip centers, is among many such companies that have struggled to pay debt since the country’s 2008 financial crisis.

 

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  1. What became of this project? Anyone know?

  2. Scott, could you post an enlarged photo of the exterior of the building? This will be a great addition to Walnut Street. This area will only continue to develop with additions like this. Also, please give us more updates on the "Cultural Trail light" expansion. Also a great move for the city, as long as there is maintenance money set aside.

  3. Great story IBJ! Citizens don't have a real sense of the financial magnitude of supporting Indy's sports and tourism sector. The CIB was a brilliant idea for creating a highly integrated public-private partnership to support this sector from the economic activity it generates. Unfortunately, most folks think the benefits of that economic activity accrue directly to the City budget, and it doesn't. So though the CIB is facing lean times (covering its costs while maintaining minimally acceptable reserves), the City is operating with deficit - less tax revenue than expenses each year - with a very fragile reserve balance. That's why it's so challenging for the City to fund basic needs or new intitatives (e.g. pre-k education; new jail), and some credit rating agencies have downgraded Indy from it's past stellar AAA status. More reporting on City finances would be welcomed.

  4. Sure, I'll admit that it bugs me to see that the IBJ.COM censors it's blog posts almost as much as the D of I does when someone points out the falsehoods and fabrications. _____But I think it bothers me almost as much that Captain/Defender/Disciple get his yanked too. You see, those of us with a sense of integrity, humanity, compassion, and a need for fact based opinion WANT to see all of his screeds posted. It makes our point so much better than we can do it ourselves.

  5. We're conflating two very different topics. Voter fraud is a myth and excessive gun violence is all too real. I just hope rational gunowners decide to stop being shouted down by the, well, let's call them "less rational" ones.

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