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Prominent downtown buildings offered for sale

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A trio of high-profile downtown properties are on the sale block, their owners hoping to take advantage of an improving market for financing real estate transactions.

The Capital Center, a two-building office complex at Illinois and New York streets, was listed with the local office of CBRE in early February and is under contract, said Andy Bannister, the listing broker. Bannister said he can’t reveal the potential buyer, which is expected to close on the purchase in a few months.

Also on the market is Rolls-Royce Meridian Center One and Two, which is being sold by an affiliate of Eli Lilly and Co. Lilly formerly occupied the 405,000-square-foot complex that used to be known as the Faris Campus. Marketing of the two-building property at Meridian and South streets is just ramping up, said Bannister, who got the listing last month.

The state’s tallest building, the 48-story Chase Tower at Ohio and Meridian streets, is also for sale. It was sold recently to Beacon Capital Partners LLC as part of a package of 14 office towers Beacon bought from Charter Hall Office REIT in Sydney, Australia, for $1.71 billion.

Beacon, which closed on the building earlier this year, is now marketing it for sale through the Chicago office of Jones Lang LaSalle and New York-based Eastdil Secured, a unit of Wells Fargo. JLL’s Bruce Miller, the listing broker, wasn’t available for comment.

Bannister said that while the owners of the buildings have different reasons for wanting to sell them, the common thread is that debt is plentiful and relatively cheap.

“The market’s not as frothy as five, six or seven years ago, but it’s better than it’s been for the last three,” said Bannister, whose been a broker here for 15 years.

The market is coming out of a period in which sellers and buyers were sitting tight.  “We’ve been in a cycle where there weren’t many transactions and therefore not a lot to base values on,” Bannister said.

The sales flyer for Capital Center says the two towers are 78.4 percent leased, with net operating income of $4.5 million. The 650,000-square-foot, multi-tenant property with an underground 525-space parking garage has been owned for about 12 years by an Invesco-managed German fund that is liquidating.  

Rolls-Royce Meridian Center includes more than 320,000 square feet of office space, a 48,000-square-foot fitness center and a cafeteria and conference center. It has more than 2,000 parking spaces, most of them in a multi-story garage.

The entire complex is occupied by Rolls-Royce, which announced in March 2011 that it would lease the property from Lilly. Bannister said Rolls-Royce’s commitment to the building exceeds 10 years, meaning that the buyer of the complex can count on a long-term, stable income stream.

Among large suburban properties on the market is One and Two Penn Mark, a two-building, 240,000-square-foot complex near 116th and Meridian streets that Bannister has listed. It is being sold by Chicago-based Westminster Funds.

Also up for sale is the former Eleven Fortune Park, a 150,000-square-foot building on the northwest side that is primarily occupied by Ascension Health through at least 2022. The building, which is now named Ascension Health Ministry Service Center, is owned by Netherlands-based IBUS Co. It is listed by Rebecca Wells and Jon Owens of Cassidy Turley and Ron Foster of Echelon Realty Advisors.

Jason Brown, vice president of CBRE Capital Markets debt and equity group, said a recent resurgence in the availability of financing options, such as commercial mortgage-backed securities, is good for secondary markets.

Brown said additional financing options make buying and selling easier in markets, such as Indianapolis, that are often overlooked by large banks and life insurance companies that finance big-ticket commercial real estate transactions.    

 

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  1. Now if he'd just stay there...

  2. Daniel - what about the many US citizens who do NOT follow what the Bible teaches? The Hindus, Jews, Muslims and others who are all American citizens entitled to all rights as Americans?? This issue has NOTHING to do with "What the Bible says..." Keep all Churches separate from State! Pence's ongoing idiocy continues to make Indiana look like a backwards, homophobic state in the eyes of our nation. Can't we move on to bigger issues - like educating our kids?

  3. 1. IBJ should link to the referenced report. We are in the age of electronic media...not sharing information is lazy. Here is a link http://www.in.gov/gov/files/Blue_Ribbon_Panel_Report_July_9_2014.pdf 2. The article should provide more clarity about the make-up of this panel. The commenters are making this item out to be partisan, it does not appear the panel is partisan. Here is a list of the panel which appears to be balanced with different SME to add different perspectives http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventidn=138116?formation_id=189603 3. It suggests a by-pass, I do not see where this report suggests another "loop". 4. Henry, based on your kneejerk reaction, we would be better off if you moved to another state unless your post was meant as sarcasm in which case I say Well Done. 5. The article and report actually indicates need to improve rail and port infrastructure in direct contradiction to Shayla commentary. Specifically, recommendation is to consider passenger rail projects... 6. People have a voice with their elected officials. These are suggestions and do not represent "crony capitalism", etc. The report needs to be analyzed and the legislature can decide on priorities and spending. Don't like it, then vote in a new legislature but quit artificially creating issues where there are none! People need to sift through the politics and provide constructive criticism to the process rather than making uninformed comments in a public forum based on misinformation. IBJ should work harder to correct the record in these forums when blatant errors or misrepresentations are made.

  4. Joe ... Marriage is defined in the Bible ... it is mentioned in the Bible often. Marriage is not mentioned once in the US or Indiana Constitution ...

  5. Daniel - Educate me please: what does the Bible have to do with laws? If the government wasn't in the business of marriage to begin with, then it wouldn't have to "define" marriage at all. Marriage could be left as a personal, religious, or otherwise unregulated action, with no ties to taxes, legal status, etc. Then people could marry whomever they want, and all this silliness would go away. Remember to vote Libertarian in November.

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