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Duke Realty land auction nets $1M; pricier properties go unsold

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Duke Realty Corp. netted more than $1 million during a Tuesday auction of surplus development parcels in Indianapolis, Fishers, Plainfield and Lebanon, but the locally based real estate company failed to sell two pricier properties.

The company sold seven parcels totaling 36 acres during the auction in Carmel, which drew about 100 people. Each of the parcels that sold were offered with no minimum bid.

Two parcels offered with reserves, a 13-acre office site in the Woodland Corporate Park and a Lebanon site with frontage on Interstate 65, did not sell. The Woodland parcel was offered with a reserve, or minimum bid, of $110,000 per acre, or about $1.4 million, and the Lebanon piece was offered at a minimum of $30,000 per acre, or about $360,000.

The parcels that were auctioned ranged in size from a 1.85-acre plot in Park Fletcher business park that sold for $53,000, to a 7.5-acre spread in Lebanon for $133,000. The land fetched an average of $30,000 per acre. The priciest parcel, 7 acres in the heart of Plainfield's industrial alley, went for $350,000.

Duke officials said the attendance and sale prices were in line with expectations. End users bought five of the parcels, while investors snapped up the other two. The land sold for a discount of 20 percent and 40 percent from previous market sales.

Duke has moved to sell dozens of surplus, non-income-producing properties across the country in an effort to strengthen its balance sheet and pay down some of its roughly $3.7 billion in debt. Wes Podell, the company’s manager of land disposition, emphasized that the sale represented only a small fraction of the company's roughly $2 billion in Indianapolis-area assets.

The sites Duke is selling don’t match its short-term focus on leasing up existing properties and, in general, are more appropriate for owner-occupants or smaller developers, Podell said. He said the company now will consider whether to launch similar sales in other markets.

Land broker Ross Reller said the company was wise to move quickly and aggressively to unload the land parcels. He expects the land market to get worse before it gets better.

"Unless you have an immediate use for land, it's pretty tough to buy it right now," said Reller, of Resource Commercial Real Estate. "There will be a tsunami of real estate coming onto the market over the next 24 months, and land is the toughest category. We just don't know what anything is worth anymore."

Reller worked on assembling the land for Duke's Lebanon Business Park about 15 years ago. Duke paid about $15,000 per acre for undeveloped land, then spent millions more on zoning, roads and utilities. On Tuesday, the company sold three parcels in the park, one of them for just $14,300 per acre.

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  1. I had read earlier this spring that Noodles & Co was going to open in the Fishers Marketplace (which is SR 37 and 131st St, not 141st St, just FYI). Any word on that? Also, do you happen to know what is being built in Carmel at Pennsylvania and Old Meridian? May just be an office building but I'm not sure.

  2. I'm sorry, but you are flat out wrong. There are few tracks in the world with the history of IMS and probably NO OTHER as widely known and recognized. I don't care what you think about the stat of Indy Car racing, these are pretty hard things to dispute.

  3. Also wondering if there is an update on the Brockway Pub-Danny Boy restaurant/taproom that was planned for the village as well?

  4. Why does the majority get to trample on the rights of the minority? You do realize that banning gay marriage does not rid the world of gay people, right? They are still going to be around and they are still going to continue to exist. The best way to get it all out of the spotlight? LEGALIZE IT! If gay marriage is legal, they will get to stop trying to push for it and you will get to stop seeing it all over the news. Why do Christians get to decide what is moral?? Why do you get to push your religion on others? How would legalizing gay marriage expose their lifestyle to your children? By the way, their lifestyle is going to continue whether gay marriage is legalized or not. It's been legal in Canada for quite a while now and they seem to be doing just fine. What about actual rules handed down by God? What about not working on Sundays? What about obeying your parents? What about adultery? These are in the 10 Commandments, the most important of God's rules. Yet they are all perfectly legal. What about divorce? Only God is allowed to dissolve a marriage so why don't you work hard to get divorce banned? Why do you get to pick and choose the parts of the Bible you care about?

  5. Look at the bright side. With the new Lowe's call center, that means 1000 jobs at $10 bucks an hour. IMS has to be drooling over all that disposable income. If those employees can save all their extra money after bills, in five years they can go to the race LIVE. Can you say attendance boost?

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