The Indianapolis Airport Authority has agreed to sell two parcels of land in Plainfield—145 acres in all—to real estate developers for a total price of nearly $9 million.
SCP Acquisitions LLC, which is affiliated with Indianapolis-based Strategic Capital Partners, plans to purchase a 97-acre site at the northeast corner of Ronald Reagan Parkway and Stafford Road. The firm wants the land so it can expand its existing MetroAir business park, said Senior Vice President of Development John Cumming.
“Our hope is that we’ll be able to start development on the project in 2018,” Cumming told IBJ.
The existing MetroAir development sits on the northwest corner of Ronald Reagan Parkway and Stafford Road. It houses six tenants, including Rolls-Royce Corp. The business park is nearly fully built-out, Cumming said, so purchasing the additional parcel will allow Strategic Capital to launch a new phase of the development.
On Friday, the airport authority’s board of directors approved an agreement to sell the property to Strategic Capital for $6.2 million.
The property formerly was residential land but the airport purchased it as part of a noise mitigation program, said Marsha Stone, senior director of commercial enterprise at Indianapolis International Airport.
Separately, the board also approved an agreement to sell a 48-acre tract at 2800 South County Road 1050 East to Prologis LP for $2.6 million.
The airport authority originally purchased the land as part of a conservation program for the Indiana bat, but the property is no longer needed for that purpose, Stone said.
Prologis is a San Francisco-based global real estate company that specializes in logistics facilities for lease. Its holdings in the Indianapolis market include more than a dozen facilities that occupy a combined 5 million square feet of space, said Indianapolis Market Officer Cody Riles.
Prologis’ local holdings include an Amazon.com distribution center. The online retailer is the real estate company’s largest overall customer.
Prologis intends to build a new logistics facility on the land it’s purchasing from the airport authority, but it’s too soon to say how large the building will be or who might occupy it.
“We’re still working through that,” Riles told IBJ.
The deals are part of a larger effort by the airport authority to sell or develop land it does not need for aviation purposes.
Since 2014, the airport has sold 359 acres, Stone said. Sales are pending for another 171 acres—a figure which includes the parcels that Prologis and Strategic Capital intend to purchase.
The airport is also working to transfer 1,900 acres of conservation land to the town of Plainfield.