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The owners of the 19-building Precedent Office Park are poised to unload the massive property, but at a price much cheaper than what they gave nine years ago during the height of the real estate boom.
Brokers say Chicago-based LaSalle Investment Management is paying about $100 a square foot, or a total of around $100 million - far shy of the $143 million that Cayman Islands-based Global Property Investment Fund shelled out in 2005.
"It's a significant difference and obviously not something that they had planned on," said Sam Smith, chairman of Colliers International's Indiana region. "Some of that was just the timing."
LaSalle Investment Management also is buying two buildings within The Precedent not owned by Global Property but by St. Louis-based Pace Properties. Brokers say LaSalle is paying $20 million for those, bringing its total investment in the office park to roughly $120 million.
The Precedent - developed in the 1980s by Howard Peterson, the father of former Indianapolis Mayor Bart Peterson - sits southeast-of East 96th Street and Keystone Avenue. It is the second-largest office park in the area, behind only Park 100 on the northwest side.
The sale is set to close in June and brings to the Indianapolis office market a large institutional investor with an international presence. LaSalle Investment Management has 700 employees in 16 countries managing an asset portfolio topping $47 billion, according to its...