New Debt & Equity investments provide funds for additional leasing and capital improvements for Class-A development in North Meridian/Carmel submarket
Rubenstein Partners, L.P., a vertically integrated real estate investment adviser focused on value-added office property equity and debt opportunities, announced the completion of a new equity investment that fully recapitalizes the Parkwood Crossing suburban office campus in Indianapolis.
Rubenstein acquired the eight-building, 1.2 million-square-foot office park, located in the city’s North Meridian/Carmel submarket, in 2016. The company has implemented a comprehensive renovation of the Class-A property since taking ownership. The new recapitalization allows Rubenstein to continue to execute their envisioned business plan for the asset.
Rubenstein’s vision includes the continued modernization of the campus with further amenities and the addition of two large greenspaces with areas for tenants to relax, collaborate with colleagues, or even host pickup athletic events. The area also has the potential for adding new bar/restaurant options. Rubenstein has already spent over $36 million upgrading building lobbies, restrooms, entry facades and building systems, as well as adding numerous indoor and outdoor amenities to the campus.
These improvements are expected to coincide with two new roundabouts and roadway beautification projects through the center of the campus, making the corridor a fresh new gateway to the City of Carmel. The new roundabouts replace one of the last remaining signalized intersections in the city, which has become internationally known for its extensive roundabout network and is close to becoming the only American city with at least 100,000 residents and no stop lights. As part of Rubenstein’s long-term strategy, the company is planning to rebrand the campus with a new identity tied into Carmel itself.
Leasing has remained robust at the well-located property, including several major new deals which it hopes to soon execute and a long-term renewal with one of its largest tenants. The campus remains well positioned to attract regional businesses seeking a well located, easily accessible, differentiated, amenitized suburban office location, and Rubenstein plans to continue its aggressive leasing program at the campus.
This recap continues Rubenstein’s investment in top office campuses within the Indianapolis region, as the company also owns the Lakefront at Keystone office park in the market. Lakefront at Keystone is a Class-A office campus featuring 15 buildings and more than one million square feet of space which has also enjoyed substantial leasing activity after major capital improvements.
“At a time when many office buildings in Indiana, and throughout the country, are avoiding making even minor new investments, Rubenstein is taking the opposite approach and aggressively investing into our assets. Since the pandemic, business leaders have been under increased pressure to give their teams excellent, collaborative space that is clearly superior to a work-from-home environment. We have been working hard to make sure that our assets are at the absolute top of the quality spectrum,” said Brian Simel with Rubenstein Partners. “We remain proud to be part of the Central Indiana market, and the recapitalization of Parkwood Crossing supports our planned continued investment for the development. This recapitalization also gives our tenants piece of mind that they are dealing with a committed partner that is willing and able to continue to invest and enhance their office experience.”
A focal point of the development is the PARC (Parkwood Amenity and Recreation Center) amenity center. The two-story, 14,000-square-foot facility features water views, multiple dining options, a full-service fitness center, state-of-the-art meetings spaces and a tenant lounge with indoor/outdoor fireplace and wrap around deck.
Additional amenities at the property include The Village Green, an outdoor oasis with putting green, table tennis, corn hole, billiards, music and relaxing seating areas. Pickleball courts and two shuffleboard courts are also available exclusively for tenants and the development features a pedestrian and bike-friendly 1.36-mile walking trail that winds through the park.
Rubenstein focuses primarily on value-added office property investments that engage its vertically integrated team encompassing acquisitions, finance, construction, architecture, asset management, leasing, and property management. The firm has successfully completed value-added business plans to reposition and modernize urban and suburban office buildings in major U.S. markets.
About Rubenstein Partners
Rubenstein Partners L.P. is a Registered Investment Advisor and Fund Manager for a series of private equity funds focused on equity and debt office investments throughout the United States. The firm is vertically integrated and provides first-class investment services on behalf of its investor base, which consists of some of the nation’s preeminent public and private pension funds, university endowments and family offices. For more information, visit www.rubensteinpartners.com.