The sale of a large, fully leased Indiana industrial property stood out last year as an example of interest in the Midwest from wealthy individual investors who have become more active in property trades as they tend to make property purchases without having to rely on debt.
CBRE in January 2024 brokered the private $24.5 million transaction of a 356,900-square-foot building at 5828 Commerce Drive in Whitestown, Indiana, about 19 miles northwest of downtown Indianapolis, to the Chicago-based investment group
The deal was selected by local industry professionals as winner of the 2025 CoStar Impact Award for sale of the year in the Indianapolis area.
The market has experienced an industrial real estate boom over the past few years, according to CoStar analysis, with one of the most significant increases in the amount of industrial space nationally since the pandemic.
About the deal: The Whitestown building is triple-net leased to global manufacturer Maxxis Tires. The lease structure is considered a favorable arrangement for property investors as the tenant pays for the costs of property taxes, insurance and maintenance. Completed in 2019, the warehouse sits on nearly 22 acres within the larger Park 130 industrial development.
The Class A property features a 32-foot clear height, 42 insulated dock doors, and two drive-in doors. It's accessible from South Indianapolis Road and minutes from Interstate 65.
“This offering received significant interest, including 12 different offers from all different buyer profiles, with a high-net-worth investor ultimately prevailing in the bid process at a 5.6% capitalization rate,” Kevin Foley, first vice president at CBRE, said in a statement announcing the deal.
“Private capital is often less dependent on debt, frequently bringing 50%-plus equity to deals, and has longer-term hold periods than institutions. As a result, these investors have been winning industrial deals and will increasingly penetrate the Indianapolis and Midwest markets,” Foley said.
What the judges said: "The size and impact of the deal to the surrounding real estate carries a larger impact," said Blake Beaver, regional director of leasing for Kite Realty Group.
"The sale price point and cap rate associated with the deal make it noteworthy, as does the buyer, a private high-net-worth investor involving capital crossing geographic areas," added Julia Evinger, first vice president of investments for Marcus & Millichap.
"The sale price and cap rate alone for this deal made it the most impactful last year," added Lora Moore, executive managing director, ALO Property Group.
They made it happen: CBRE Investment Properties First Vice President Kevin Foley and Vice Chairman Anthony DeLorenzo, along with Executive Vice Presidents Andrew Morris and Jeremy Woods, represented the private seller in the transaction.