Letter: Investor bullish on Midtown Carmel

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Our firm, stREITwise, recently acquired the Allied Solutions building in Midtown Carmel [California real estate trust acquires Carmel office building for $32M, Feb. 11]. This represents a significant step towards our goal of building a portfolio of well-leased, urban-suburban office properties. We believe that the real estate equity markets, both public and private, undervalue the stability and strength of mid-sized metros such as the Carmel-Indianapolis MSA.

What’s special about Carmel, and Midtown in particular, is that it illustrates the transformative power of cohesive mixed-use redevelopments in suburban settings. People love to talk about a generational trend of “a move to the city,” particularly among millennials. But the reality is much more nuanced.

Suburbs are a fundamental part of the American fabric, and it’s evident that in many cases the growing millennial family would rather see “downtowns” created closer to their new suburban homes than to build their family life into conventional CBDs. Walkable, mixed-use developments within suburbs are the best of all worlds when it comes to raising a family or for empty nesters looking to downsize without abandoning the suburbs entirely.

Allied Solutions’ relocation to Midtown is the centerpiece of a developing community hub running along the Monon, including a public plaza, restaurants, and retail, around which additional development has already sprouted. We expect this trend to continue with new infill construction contributing to a vibrant neighborhood that serves as both a local and regional destination.

Indeed, this is an exciting time for Carmel, for stREITwise, and for the local community that takes pride in being a stakeholder in their own back yard.

__________

Eliot Bencuya

stREITwise CEO

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