Fairbridge Properties Acquires Indianapolis’ Landmark Center for $21.5 Million
N.J.-Based Real Estate Investment Firm Drawn to 12-Floor, Class-A Building’s Excellent Condition, Stable Tenant Roster and Ideal Location
INDIANAPOLIS (June 29, 2015) - Fairbridge Properties (“Fairbridge”), a privately held real estate investment company, announced today that it has acquired Landmark Center, a 304,946-square-foot, Class-A office tower in Indianapolis, Indiana. Fairbridge paid $21.5 million for the 12-story building, located at 1099 N. Meridian Street in the city’s central business district.
Purchased by Fairbridge at a cap rate above 10 percent — more than 50 percent below replacement cost — Landmark Center offers a rich amenity package that includes a new fitness center and yoga studio, a conference facility, indoor bike storage, a full-service cafeteria and a parking ratio of 4 spots per 1000 square feet. Floor plates at Landmark Center measure 25,000 square feet, thus enabling open-space configurations that are ideal for large national companies, government agencies and other team-intensive businesses.
Currently, the building is 94 percent leased, with six years remaining on the average lease term. Fairbridge expects that Landmark Center will be 100 percent leased by late summer. Full-floor and multi-floor tenants include Angie’s List, Consolidated Care, Disciples of Christ, United States Citizenship and Immigration Service, and Jacobs Engineering.
“Fairbridge Properties is known for its rigorous due diligence and quantitative analysis of a property, including tenant mix, neighborhood dynamics, local growth and investment trends, as well as the property’s overall physical condition,” said Dr. Dmitry Gordeev, Fairbridge Properties’ founder and managing partner. “We look for investments that present both a strong, immediate cash flow and long-term potential for appreciation relative to purchase price. On every one of these counts, Landmark Center perfectly fits the profile of assets in our portfolio. It is in outstanding condition with first-rate tenants and a location in a low-vacancy area.”
Over the past five years, employment in Indianapolis has grown at nearly twice the national average and is expected to continue to outpace the national average in the foreseeable future. As a result, the area has seen a recent trend of millennial workers returning after graduating from out-of-town universities. Developers have responded to the city’s economic growth with more than $2.6 billion invested in current projects, including more than 3,000 new residential units planned for the downtown area. Indianapolis’ largest employers include Eli Lilly Corporation, FedEx, St. Vincent Hospital and Health Services, Roche Diagnostic Corporation, Anthem, Inc., Rolls Royce, Dow AgroSciences and Indiana University-Purdue University Indianapolis.
In order to ensure seamless onsite operations and tenant relations, Fairbridge has appointed DTZ, a global real estate services firm to manage the property’s day-to-day operations.
“DTZ has a stellar reputation and track record for management of Class-A properties,” Gordeev said. “We are certain that, under our direction, DTZ will play a major role in improving building-wide energy efficiencies and world-class customer service – both of which are critical in ensuring long-term value.”
With its highly accessible location – between the entrance/exit ramps of Interstates 65 and 75 and at the intersection of two major streets – its world-class corporate environment and its attractive leasing rates, Landmark Center is well positioned to benefit from the ongoing increase in demand for office space that is in close proximity to restaurants, museums, parks and sports stadiums.
“Indianapolis is a vibrant and growing city, which we’re certain can support this asset’s long-term appreciation,” Gordeev added. “Because Landmark Center is close to two major highways and two central streets, the building is situated in a convenient spot for the two groups that are driving the city’s growth: suburban commuters and downtown millenials.”
Andy Banister, first vice president at CBRE, and Dan Richardson, senior vice president at CBRE, represented the seller in this transaction. Eli Mills, senior vice president at CBRE, and Tucker White, vice president at CBRE, represented Fairbridge.
Fairbridge Properties was founded in 2012 by Dmitry Gordeev. Headquartered in Skillman, N.J., Fairbridge acquires, develops and manages its properties via a network of regional and national property management firms.
Fairbridge is well-known for its in-house asset management expertise and responsiveness to investors’ needs. The company holds a superior track record in acquiring premium central business district (CBD) office buildings, suburban office centers and flex/R&D projects. Our tenants in these buildings are primarily Fortune 500 companies.
Fairbridge’s main goal is to generate, maximize and preserve value for investors. With this goal in mind, Fairbridge is set us up like no other real estate investment partnership. It is cost-effective, nimble and agile in order to rapidly take advantage of marketplace opportunities within a short response time. Fairbridge is strategically positioned to purchase properties below replacement cost in stable yet growing markets, with tenants that possess top credit ratings. Through skillful property and asset management, efficient operation and abundant access to capital, we have consistently maximized profitability for our investors. For more information, visit www.fairbridgeproperties.com.