September 20, 2024 – The Deme Drive Service Industrial Portfolio is a 95,998sf, 100% occupied, industrial portfolio located in the Northeast submarket of Indianapolis. The Portfolio consists of 17 tenants with an average suite size of approximately 5,000sf, 16’-18’ clear heights, oversized drive-in doors, and office buildout less than 20%. The Portfolio caters to a wide array of service industrial tenants and aligns with CenterSquare’s Service Industrial thesis.
CenterSquare plans to complete repairs and capital improvements, including concrete and asphalt repairs, exterior painting, new signage, and other deferred maintenance. These functional and aesthetic improvements combined with the professional management of the Portfolio will allow CenterSquare to raise in-place rents in line with current market rates and drive meaningful growth in net operating income.
The investment is being made on a direct basis, on behalf of CenterSquare Value-Added Fund V. This is an off-market opportunity, in a location with limited service industrial product. The transaction is the third Service Industrial investment in Fund V in the past year, totaling 850,000sf in four CenterSquare target markets.
“This investment speaks to CenterSquare’s continued conviction in the Service Industrial sector, as well as our confidence in the Indianapolis market,” said Robert Wasenius, Senior Vice President of Private Real Estate. “With our historical and existing investments in the city, we’re familiar with the market and excited to expand our footprint. We believe the Service Industrial market is ripe for institutionalization, and with limited availability of this product across the entire metro, this acquisition presents an opportunity to capitalize on a niche subsector.”
