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Developer of government building sees potential for more

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A real estate firm founded at the dawn of the Great Recession hoping to break into commercial development has landed its first project: a $4 million office building it will lease to the federal government.

Ambrose Property Group broke ground last month on a 13,000-square-foot building at Intech Park on the northwest side that will house about 75 Social Security Administration employees who are moving from leased space in the Lafayette Square Mall area.

The Social Security office could be the first of many projects Ambrose develops for the government’s General Services Administration. The firm is in various stages of bidding for 15 other government projects as close as Kentucky and Ohio and as far away as Texas and New York, said Patrick M. Chittenden, a vice president at Ambrose who is also one of its founders.

Chittenden said Ambrose spent 18 months getting up to speed on the government bidding process and assembling a proposal. “Hundreds of pages go into a bid,” he said, and the firm wants to put that experience to use to win other government jobs.

Ambrose found out last Dec. 31 that it was the successful bidder. At the same time it learned it had won another project in Muncie, but the government’s budget for the Muncie office was subsequently eliminated and that project is on hold.

The Indianapolis development, at 6745 Network Place, is being financed by M&I Bank. General contractor Shiel Sexton is to complete the building by December. Ambrose purchased the 1.5-acre site in March from an affiliate of Lauth Group Inc., which developed Intech Park.

The one-story building was designed by American Structurepoint. Chittenden said it will include several security features not found in a standard office building, such as shatter-proof glass and a secure perimeter that prevents cars from parking close to or crashing into the building.

Those security features, required by the government, are among the reasons the GSA didn’t simply lease space in an existing building, Chittenden said. They’re also why the GSA will pay more than market rent to lease the building over the course of the 10-year lease.

Chittenden said because it’s a project built for government, the construction wages it requires are higher. And the small size of the building means there are “not a lot of economies of scale” that can be realized. The government is also requiring that the developer pursue Leadership in Energy and Environmental Design, or LEED, certification for the project.

John Merrill, managing director of the local office of CB Richard Ellis, said he’s not surprised Ambrose is pursuing government development work.

“The government sector has been one of the few where there’s any activity,” he said. “It’s one of the more active segments of the market. But I don’t know that there’s enough activity for anyone to specialize in that, especially if they’re based here.”

Ambrose was founded in November 2008 by Chittenden, who has a background in construction, and Aasif Bade, a former executive at Duke Realty. The seven-person firm isn’t relying solely on development. It also has brokerage and property management divisions.

Earlier this year, the company was hired by Brenwick Development to handle commercial sales and leasing for the non-residential portions of Village of West Clay, Brenwick’s massive housing development at 131st Street and Towne Road in Carmel. The project includes development sites for office and retail space.

 


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  • Are you kidding?
    This is a joke...there is plenty of cheap vacant space in Indianapolis. This is a total waste tax payers dollars and the reason the government is bankrupt.
  • REALLY ??
    No offense to the local developer for pursuing this project, but with all of the empty space around town, the feds couldn't buy and retrofit a property for 75 people for less than +53,000 per person ???? wow. Is the Social Security Administration THAT much of a target ? double wow. Is there much question why the government is in so much debt ? Unfreakin-believeable

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  1. something to take iman's mind off CART,,,the league itsownself doesn't do it

  2. Someone mentioned a green roof. Every designer of a new urban building should be required to at least explore the feasibility of a green roof. The ability to cut carbon dioxide, save precious rainwater (drought this summer??) and re-use grey water, cool the building cheaper, and improve the view for neighbors, should be, not only the good neighbor thing to do, it should be the responsible neighbor thing to do. Too bad the city didn't require it when they gave up downtown green space for the Simon Building. Surprised they aren't requiring it now.

  3. About the same means down, like the TV ratings.

    My favorite tradition that needs to be brought back is the 25/8 rule.

  4. Your stats are incorrect. The 85k Government employees working in Marion County includes all government workers in Marion county. That is state, federal, non profit agencies, city and county. The stats the article list is the number of employees for all of the city/county employees and it is correct. That number includes the library, airport, convention center, and so on. The policy of extending benefits to domestic partners is consistent with private sector companies of the same size. Isn't the mantra of most conservatives "run the government like a business."

    Also, too say the "fiscal proposil is huge" without considering the actuarial factors involved is a bit of an overstatement. We really don't know if it is huge or not. If all of the people added to the plan are healthy and don't have claims then it could bring cost done or hold them neutral.

  5. There are 85,346 government employees in Marion county according to Stats Indiana.

    My understanding is that this proposal covers not only same sex partners and children, but opposite same sex partners who are not married and any kids.

    It also covers all city and county employees, plus municipal corporations which use city/county benefits packages including Health and Hospital Corporation (Wishard), Indianapolis Airport Authority, Indianapolis Convention Center,Lucas Oil,Bankers Life, Indianapolis Marion County Library, and Indianapolis Public Transportation Corporation (IndyGo).

    Certainly Indianapolis Public Schools will also want more benefits also.

    The fiscal cost on this proposal is huge.

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