Ambrose sells fully leased Whitestown industrial building for $38M
The sale prices the 233,348-square-foot building at about $163 a square foot; Connect CRE's report named neither buyer nor tenant.
Ambrose has sold a 233,348-square-foot modern distribution building in Whitestown, Ind., for $38 million, or roughly $163 a square foot, according to Connect CRE's report on the announcement. The property at 5163 Perry Worth Road sits in Indianapolis Logistics Park – Northwest, a 95.5-acre park Ambrose developed, and is fully leased to a global healthcare services and products company. The coverage names neither buyer nor tenant and discloses no capitalization rate, so the sale reads as a dollar figure and an occupancy story rather than a read on where the buyer set its yield.
What $163 a square foot does not settle
Industrial has been the dependable half of single-tenant investment sales: Northmarq's research put second-quarter single-tenant volume near $13.5 billion, up 19.1% year over year, with industrial taking nearly two-thirds of that. Fund formation has followed this month: J.P. Morgan closed a $1.1 billion net lease fund, and CBRE's purchase of Tenet Equity landed in the same coverage. A fully leased building in a park the seller itself built is the product capital has been shopping for — modern, occupied, and small enough to trade as a single asset.
Industrial repricing has run in two directions at once: infill and supply-chain-linked product clears at premiums while commodity flex and older buildings trade at vacancy discounts. A newly built, fully leased facility sits on the stronger side of that split, which makes the likely read a stabilization sale by a developer recycling capital into the three buildings it still owns in the park — nothing in the coverage confirms it.
Nor does one closing say much about sellers generally returning. In our September coverage, 46% of Deloitte's survey respondents expected no sales at all and nearly 80% were planning repositioning work instead — a market where owners were sitting out rather than repricing. One Whitestown trade does not reverse that, but it does suggest the modern, leased end of industrial still finds a bid when it comes to market.
The rest of the park is still in play. PRED's records show Ambrose closed two other deals in late September, and three buildings in Whitestown are still its to sell. Whether they move one at a time or as a package is where the next mark on this submarket gets set.
Save this analysis and keep the funds you follow together in My Desk.
Sign in to save articles or follow funds.