IBJNews

Local developer Keystone buys north-side office park

Back to TopCommentsE-mailPrintBookmark and Share

An affiliate of local developer Keystone Realty Group has purchased a four-building office park along the highly desirable North Meridian Street corridor with hopes of having it leased up within a year.

Keystone closed Jan. 31 on the acquisition of Waterplace Office Park, which is on the east side of the thoroughfare and just south of East 91st Street.

Keystone CEO Ersal Ozdemir declined to divulge how much he paid but said he expects to invest $9 million when including the sale price and renovation costs. Office brokers familiar with the office park say the firm likely paid between $6 million and $6.5 million to buy the office park out of receivership.

REW waterplace office mapWaterplace has struggled in recent years to attract tenants and has occupancy of about 72 percent. The relatively low occupancy, though, gives Keystone an opportunity to capitalize on its investment, said Darrin Boyd, an office broker at Cassidy Turley.

“Keystone diversifies its holdings with this suburban acquisition and is the ideal entrepreneurial, hands-on owner to take Waterplace Park to the next level,” he said.

Boyd is quite familiar with the property. He sold the 114,000-square-foot park in 1998 to locally based Equicor Cos. LLC. Nearly 15 years later, he and Cassidy Turley colleague Dave Moore represented the brokerage as court-appointed receiver on behalf of lender AIG, which took the property back from Equicor.

The purchase of Waterplace is Keystone's second major purchase in three months. In November, a Keystone affiliate bought downtown's Illinois Building from an affiliate of locally based HDG Mansur for $5.5 million. Keystone is considering converting the 145,000-square-foot, vacant building into a boutique hotel, or office and retail space.

In the meantime, Waterplace caught the eye of Keystone CEO Ersal Ozdemir.

“I live close to there and I drive by every day,” he said. “It’s a great location.”

The property's proximity to Interstate 465, visibility along the highly traveled North Meridian corridor and the quality of the buildings piqued his interest in the roughly 12-acre property, he said.

Locally based Jackson Cos. developed the office park in the early 1980s. The buildings, which are bounded by a small lake, have seen some upgrades through the years. For instance, the lobbies have been renovated.

By investing in interior and exterior improvements, Ozdemir thinks he can have it leased and stabilized within a year.

“Because of the circumstances [with the receivership], vacancy has gone up,” Ozdemir said. “We have the ability to spend some money to attract tenants.”

Working in his favor is the dwindling space available along the corridor, which saw occupancy improve to 84 percent at the end of the year from roughly 80 percent in 2012.

“The location’s obviously very good, being on Meridian Street, and comparable space in that area has sold,” said Joseph DiSalvo, an office broker at the local office of Marcus & Millichap. “I think it’s a good deal for Ersal.”

Interest in Waterplace was strong and attracted attention from at least three other investors, brokers said.

The only downside, Ozdemir said, is a lack of retail in the area except for the strip center north of the office park.

Major tenants in the park include Indiana Mentor, Decatur Vein Clinic, American Legion, Nursefinder, Pyramid Life Insurance and Indiana Nephrology.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Of what value is selling alcoholic beverages to State Fair patrons when there are many families with children attending. Is this the message we want to give children attending and participating in the Fair, another venue with alooholic consumption onsite. Is this to promote beer and wine production in the state which are great for the breweries and wineries, but where does this end up 10-15 years from now, lots more drinkers for the alcoholic contents. If these drinks are so important, why not remove the alcohol content and the flavor and drink itself similar to soft drinks would be the novelty, not the alcoholic content and its affects on the drinker. There is no social or material benefit from drinking alcoholic beverages, mostly people want to get slightly or highly drunk.

  2. I did;nt know anyone in Indiana could count- WHY did they NOT SAY just HOW this would be enforced? Because it WON;T! NOW- with that said- BIG BROTHER is ALIVE in this Article-why take any comment if it won't appease YOU PEOPLE- that's NOT American- with EVERYTHING you indicated is NOT said-I can see WHY it say's o Comments- YOU are COMMIES- BIG BROTHER and most likely- voted for Obama!

  3. In Europe there are schools for hairdressing but you don't get a license afterwards but you are required to assist in turkey and Italy its 7 years in japan it's 10 years England 2 so these people who assist know how to do hair their not just anybody and if your an owner and you hire someone with no experience then ur an idiot I've known stylist from different countries with no license but they are professional clean and safe they have no license but they have experience a license doesn't mean anything look at all the bad hairdressers in the world that have fried peoples hair okay but they have a license doesn't make them a professional at their job I think they should get rid of it because stateboard robs stylist and owners and they fine you for the dumbest f***ing things oh ur license isn't displayed 100$ oh ur wearing open toe shoes fine, oh there's ONE HAIR IN UR BRUSH that's a fine it's like really? So I think they need to go or ease up on their regulations because their too strict

  4. Exciting times in Carmel.

  5. Twenty years ago when we moved to Indy I was a stay at home mom and knew not very many people.WIBC was my family and friends for the most part. It was informative, civil, and humerous with Dave the KING. Terri, Jeff, Stever, Big Joe, Matt, Pat and Crumie. I loved them all, and they seemed to love each other. I didn't mind Greg Garrison, but I was not a Rush fan. NOW I can't stand Chicks and all their giggly opinions. Tony Katz is to abrasive that early in the morning(or really any time). I will tune in on Saturday morning for the usual fun and priceless information from Pat and Crumie, mornings it will be 90.1

ADVERTISEMENT