Pedcor to start second phase of Carmel's City Center

Back to TopCommentsE-mailPrintBookmark and Share

Buoyed by strong demand for apartments in Carmel, Pedcor Cos. expects to break ground next spring on the first building in phase two of its massive City Center project.

The Nash, a three-story, $10 million mixed-use building, is to be built just south of City Center on the west side of Rangeline Road. It will contain 31 one-, two- and three-bedroom apartments on the second and third floors and 8,000 square feet of commercial space at street level. The city of Carmel will contribute $2 million of the total for infrastructure and 42 underground parking spaces.

A residential building proposed for a site immediately west of The Nash is still on the drawing board, as are two commercial buildings in phase two that would be built immediately north of the Nash site, said Melissa Averitt, director of marketing and sales for Pedcor.

The first phase of City Center included 106 apartments and 62,000 square feet of retail/commercial space. Averitt said about 6,500 square feet of retail/commercial space remains. And the apartments, which began coming on line in August 2010, are about 90 percent leased. They range in size from 800 to 3,000 square feet and rent for about $1.15 a square foot.

The Nash units will be roughly 800 to 1,400 square feet, with rents projected at $1.25 to $1.30 a square foot by the time they open two years from now.

The apartment market is red hot, and Carmel is no exception, said George Tikijian of apartment brokerage firm Tikijian Associates.

Tikijian said a pair of projects illustrate the demand. One One Six Apartments, a 191-unit development by J.C. Hart Co. at 116th Street and College Avenue, was fully leased six months after it opened in April. Sophia Square, a 202-unit Keystone Group project in the Carmel Arts & Design District, was 94-percent leased within nine months of its opening in May 2011.

Another project, the 193-unit Penn Circle at Old Meridian Street and Carmel Drive, started leasing in September and is seeing strong demand, Tikijian said. That project, developed by Milhaus Development, is leased and managed by Gene B. Glick Co.

Tikijian said the only cloud on the horizon for the apartment market in Hamilton County is the strengthening market for single-family homes. Apartment dwellers in places like Carmel and Fishers are more likely than their downtown Indianapolis counterparts to opt for home ownership, he said.

Pedcor is counting on continued strong demand from young professionals and empty nesters to fill The Nash apartments, Averitt said.

The building's 8,000 square feet of commercial space shouldn't be hard to fill, said Donna Hovey, a retail broker at CBRE. She said the space should easily command the $23 to $24 per square foot Pedcor plans to charge.

Hovey said the center of gravity for retail in Carmel has shifted from the Keystone Square area along Keystone Parkway to Rangeline, and small users the Nash is targeting will benefit from being along that busy stretch of road.



  • Join the discussion
    For further discussion on this project and other Carmel news, visit us at CarmelChatter.com. Here's a link to our current discussion on this specific project: http://carmelchatter.com/showthread.php?521-Nash-Building
  • Clarification
    I fellow poster on another forum provided a little more detail. The footprint of the building is actually 16,000, with the first floor being half commercial and half apartments. That provides 8000sf of retail and 40,000sf of apartments in total, making the math much less fuzzy.
  • Cap Rate?
    How do you get $10MM? With no underwriting, 8000sf of retail at $24 and say 15,000 of apt at $1.30 get an NOI of $426,000. Using a 4.26% cap rate? Fuzzy math at best.

    Post a comment to this story

    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

    facebook - twitter on Facebook & Twitter

    Follow on TwitterFollow IBJ on Facebook:
    Follow on TwitterFollow IBJ's Tweets on these topics:
    Subscribe to IBJ
    1. I never thought I'd see the day when a Republican Mayor would lead the charge in attempting to raise every tax we have to pay. Now it's income taxes and property taxes that Ballard wants to increase. And to pay for a pre-K program? Many studies have shown that pre-K offer no long-term educational benefits whatsoever. And Ballard is pitching it as a way of fighting crime? Who is he kidding? It's about government provided day care. It's a shame that we elected a Republican who has turned out to be a huge big spending, big taxing, big borrowing liberal Democrat.

    2. Why do we blame the unions? They did not create the 11 different school districts that are the root of the problem.

    3. I was just watching an AOW race from cleveland in 1997...in addition to the 65K for the race, there were more people in boats watching that race from the lake than were IndyCar fans watching the 2014 IndyCar season finale in the Fontana grandstands. Just sayin...That's some resurgence modern IndyCar has going. Almost profitable, nobody in the grandstands and TV ratings dropping 61% at some tracks in the series. Business model..."CRAZY" as said by a NASCAR track general manager. Yup, this thing is purring like a cat! Sponsors...send them your cash, pronto!!! LOL, not a chance.

    4. I'm sure Indiana is paradise for the wealthy and affluent, but what about the rest of us? Over the last 40 years, conservatives and the business elite have run this country (and state)into the ground. The pendulum will swing back as more moderate voters get tired of Reaganomics and regressive social policies. Add to that the wave of minority voters coming up in the next 10 to 15 years and things will get better. unfortunately we have to suffer through 10 more years of gerrymandered districts and dispropionate representation.

    5. Funny thing....rich people telling poor people how bad the other rich people are wanting to cut benefits/school etc and that they should vote for those rich people that just did it. Just saying..............