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Castleton Park acquired by New York real estate investor

July 8, 2015

One of the city's largest and oldest office parks has been sold.

Castleton Park, a 120-acre property containing 31 office buildings, was acquired by New York-based Group RMC, a real estate management company.

The local office of CBRE Group Inc., which helped facilitate the sale, announced the deal Wednesday. Terms of the acquisition, completed June 23, were not disclosed.

The seller was BREOF Castleton Park REO LLC, an affiliate of New York-based Northstar Realty Finance Corp.

The park, bordered by 82nd Street, Interstate 465 and Interstate 69, contains 912,243 square feet of leasable office space.

The property is 79-percent occupied after seeing 176,000 square feet of new leases being signed in the last two years, CBRE said.

Castleton Park, originally known as Castleton Commercial Park, was pieced together by late developer Howard Peterson in the late 1960s and 1970s. Peterson, the father of former Indianapolis Mayor Bart Peterson, sold the park for $73 million in 1985 to Citimark Development Corp. in the largest private real estate transaction in the state up to that point.

The property has had several other owners since that time. New Boston Fund Inc. paid $40.3 million for it in 1995 and sold it to Zeller Realty Corp. for an estimated $49 million to $60 million in 1999.

Zeller sold it for about $68 million to Northstar Realty in 2004.

Major tenants in the park include National Government Services, Kroger Co., Community Health Network and Royal United Mortgage.
 
“Castleton Park was a rare opportunity for Group RMC to purchase a substantial presence in a stable Midwestern market,” said CBRE Senior Vice President Richardson in a written statement. “Its size provides a major market presence, while the diversity of the product type provides the opportunity to compete for every potential lease deal in the market.”

Group RMC isn't a stranger to Indianapolis. The firm acquired Parkstone, a 201,000-square-foot building on the northwest side, in November 2012, and two buildings totaling 163,000 square feet in Park Fletcher in April 2014

 “Our partners, who are principally international investors, strongly believe the Midwest is the backbone of America,” Group RMC said in a written statement.

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