Bank of America has provided a $106 million acquisition loan on the eight-building Parkwood Crossing office park in a suburb of Indianapolis, Indiana, a source confirmed to Real Estate Capital.
The bank provided the loan to Rubenstein Partners and Strategic Capital Partners to purchase the park for $162.9 million—bringing the financing loan-to-value to 65 percent.
“This investment offers an exciting opportunity to acquire a market-leading property in a micro-market which we are very bullish on,” said Brandon Huffman, regional director of Midwest for Rubenstein Partners, in a statement. He added that the firm intends to implement a capital program on the property to create urban-style amenities within the suburban environment.
The partnership acquired the 1.2 million square foot office campus from Duke Realty Corporation, which developed Parkwood Crossing in Carmel, Indiana between 1989 and 2005. JLL brokered the deal and will be exclusive leasing agent for the property.
James Postweiler, managing director at JLL who worked on the deal, said that demand for high quality office assets in Indianapolis is growing and that the city’s vacancy is nearing historic lows. “Carmel and North Meridian submarkets in particular are poised for tremendous rent growth given increased tenant demand and lack of remaining quality development sites,” he noted.
Earlier this summer, Bank of America provided a $42.6 million acquisition loan on a 238,205 square foot office building in the Los Angeles area. The bank ended last year with $296.1 billion in assets under management, according to its annual report.
The bank did not respond to request for comment.