CBRE arranged the sale of Building 4, a 120,336 square feet build-to-suit warehouse for U.S. Auto Force. Built in 2021, the building sits on 18.9 acres of th Mt. Comfort Logistics Center in Greenfield.
GREENFIELD — A recent release from CBRE Investment Properties has announced the sale of a building within the Mt. Comfort Logistic Center to a private California 1031 buyer for $13.4 million.
CBRE arranged the sale of Building 4, located at 4308 W. 300 N. It is a 120,336 square feet build-to-suit warehouse for U.S. Auto Force — a wholesale automotive tire, parts, and lubricants distributor. Built in 2021, the building sits on 18.9 acres and features 30’ clear height, 22 dock doors, two drive-in doors and ample car and trailer parking.
This building is located within the Mt. Comfort Logistics Center, a 318 acre master-planned Class-A logistic park.
The press release shared that Kevin Foley with CBRE and Jared Scaringe represented the seller, Ambrose Property Group, in the transaction. The buyer was represented by Gary Stache, Chris Martin and Bill Maher, who are also with CBRE.
Foley shared in the press release that the private buyer was in a 1031 exchange and closed this transaction in 31 days.
According to a fact sheet by Internal Revenue Services, “whenever you sell business or investment property and you have a gain, you generally have to pay tax on the gain at the time of sale. IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free.”
Duy Ngo, Investment Sales Manager with CBRE Capital Markets | Investment Properties, shared in an email that there are three main factors as to why a Calfionira investor would purchase industrial property in Greenfield.
“First, investors are always searching for opportunities that would fit their investment needs… and, increasingly, those opportunities are outside of California. Second, our platform at CBRE makes it so much easier for investors to access a national deal flow, no matter the size of their investment – we provide a one-shop stop. Third, Greenfield, Indiana, is part of the Indianapolis metro area, the manufacturing/logistic capital of America’s heartland,” Ngo said.
With this specific location, the Mt. Comfort Logistic Center provides close access to I-70. The release also stated that there are an estimated 797,000 people who live within a 15-mile radius. The park being located in the east submarket of Indianapolis, which “recorded over 2.27 million square feet of net absorptions in the second quarter of 2023, accounting for over one-third of the market’s total net absorption.”
Foley stated that California capital continues to show strong interest in the Indianapolis and Midwest markets.
“…Our team is uniquely positioned to source that capital. Amongst this capital, we’ve identified a growing number of investors who, as they trade out of their older inferior products, prefer brand-new stabilized bulk buildings with credit and term, as well as assets that require minimal management responsibilities. Indianapolis’ industrial fundamentals remain strong, and this type of capital will continue to flow here.”
