A new Aldi grocery store is slated to take over part of a north-side shopping center space once occupied by Marsh.
The Germany-based discount grocery chain plans to open a 22,000-square-foot store at 5151 E. 82nd Street, in the Clearwater Springs shopping center owned and leased by Indianapolis-based PK Partners LLC.
The grocery chain has signed a lease with the company for the space, said Wes Podell, senior vice president of PK Partners. Aldi said it plans to open the store in late fall.
This will be the second Aldi to open along the busy north-side corridor, following one that debuted last year in Nora, 1440 E. 86th St. That space also was formerly occupied by a Marsh. Aldi has at least 23 stores in the Indianapolis area.
“We looked at a range of potential tenants for the building,” Podell said. “But we felt the center has been strong as a grocery-anchored shopping center and we wanted to continue that.”
He said Aldi is a “strong company with a great business model," and the company made a "long-term commitment" to staying at the center.
According to a public notice, Aldi is seeking a permit to sell alcohol through a license transfer from the owners of the former Lafayette Square-area Lee Orient Foods Inc., which closed in 2018.
The building’s interior has been stripped down to the studs as part of ongoing demolition work.
The grocer will occupy part of the former 65,000-square-foot Marsh space that was once floated as a site for a potential Kroger, but those plans never moved forward. Marsh closed the store after filing for bankruptcy in 2017.
A firm opening date has not yet been set for the store
Podell said PK Partners is working with another potential tenant that would occupy the remaining 43,000 square feet but declined to comment further.
Marsh bought the land on which its store was built in the late 1990s as part of its expansion efforts. The company sold the property to an investment firm in 2008 for $14.3 million to help cut down its real estate costs.
The property changed hands a few more times, before Dallas-based buyer Spirit Property sold the building in June 2018 to PK Partners for $5.6 million. PK now owns most of the 250,000-square-foot shopping center, the only exceptions being Petsmart and Houseworks.
In an email to IBJ, Aldi said all of its new locations are part of a $3.4 billion investment the company is making to expand to 2,500 stores nationwide by the end of 2022.
Founded in 1913, Aldi historically has been known for its no-frills approach to grocery shopping, mostly selling non-perishable items under its own brands direct from the packing boxes. As part of the revamp, some of its brands are aiming at a more upscale buyer, as Aldi expands its meat and wine offerings while jumping into the organic and gluten-free markets.