Property Lines - Scott Olson

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Real Estate & Retail

Borders bankruptcy claims downtown bookstore

February 16, 2011

Indianapolis BordersIt seemed inevitable but now it's official: Borders plans to close the downtown Indianapolis store as part of a Chapter 11 bankruptcy reorganization. It also plans to close its store at the southwest corner of 116th Street and Keystone Avenue in Carmel. The beleaguered bookstore chain two years ago began looking for a replacement tenant to sublease its 22,000-square-foot store at the corner of Meridian and Washington streets downtown, but its precarious financial position prevented the chain from offering any tenant-improvement allowance to a potential replacement. Under bankruptcy protection, the chain can simply reject the lease, meaning it will be up to building owner Barnes & Thornburg to fill the space. The store was operating under a 20-year lease it signed in 2001, paying in the range of $25 per square foot, market observers said. The prime downtown space most likely will be divided to accomodate multiple users, with restaurants and other retailers the prime candidates. The bookstore has sections on either side of the building's lobby, each with mezzanine levels. No word yet on when the liquidation sale will begin. An earlier post is here.

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