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North of 96th - Lindsey

Welcome to North of 96th, your source for business news from Carmel, Fishers, Noblesville, Westfield and Zionsville. Your host, Lindsey Erdody, can be reached at lerdody@ibj.com.

Carmel / Commercial Real Estate / Hamilton County / Regional News / Restaurants

Former Shapiro's in Carmel sells in $2.1M cash-debt deal

October 1, 2014

A year after rejecting a pair of offers for the former Shapiro’s Delicatessen on Range Line Road, the Carmel Redevelopment Commission on Wednesday accepted a $2.1 million bid from principal City Center developer Pedcor Investments LLC.

The deal, expected to close within two weeks, calls for Pedcor to pay $1 million and forgive $1.1 million in existing CRC debt tied to the first phase of Carmel City Center construction.

“We are reducing debt and still providing some cash flow now,” CRC Executive Director Corrie Meyer said.

Commissioners also considered a $2.1 million all-cash offer from an unidentified bidder, she said, but they chose Pedcor largely because it intends to pursue tenants in the “food-services industry”—likely drawing customers to City Center.

She told IBJ it’s unlikely the 11,500-square-foot building will be occupied by a single restaurant, saying it could accommodate multiple complementary uses such as a café and high-end food market.

The other bidder proposed a mix of office and retail uses, including a bank branch.

Shapiro’s erected the building at 918 S. Range Line Road in 2001, kicking off Carmel’s ambitious downtown redevelopment project. But it took time for the rest of City Center to materialize, and the deli struggled financially until closing in June 2013.

The CRC bought the restaurant’s $2.5 million mortgage in 2010. Deli President Brian Shapiro relinquished his company’s stake in the building to avoid foreclosure.

The redevelopment commission accepted sealed bids for the property last year, but members turned down the two offers that public process produced: $2.1 million from Indianapolis-based LOR Corp. and $500,000 from locally based Eclipse Real Estate. The minimum asking price was $2.1 million, the average of two appraisals.

In December, the CRC hired Colliers International to market and sell the property.

Pedcor CEO Bruce Cordingley told IBJ in May that his firm had expressed interest in the former Shapiro’s site. He said then it was too soon to discuss possible uses. On Wednesday, he told IBJ that the company is "working on several ideas" but nothing has been finalized.

The developer has a vested interest in City Center’s success. In December, Pedcor announced plans to build a $100 million second phase of the ambitious project in the heart of Carmel.

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