Keystone at the Crossing office park ownership changes hands

The 8888 Keystone building at Keystone at the Crossing. (Photo provided by JLL)

Keystone at the Crossing, one of the city’s largest office parks, has been acquired by a pair of Los Angeles-based firms for an undisclosed price.

The nearly 1.1-million-square-foot campus, which includes five office buildings and one small retail building, was purchased by Interamar and Typerion Holdings.

The complex was listed in June—without a sale price—by owners DRA Advisors LLC and M&J Wilkow Properties, after the companies encountered problems recapitalizing or refinancing the project earlier this year with their lender. The firms acquired the campus in July 2019 for $149.7 million.

The five office buildings are located at 8888, 8900, 9000, 9100 and 9200 Keystone Crossing, and the retail building is at 8930 Keystone Crossing. They collectively occupy about 27 acres just south of Interstate 465.

IBJ first reported on Friday that the property was under contract for purchase, with the new owners planning a significant overhaul to the buildings with the addition of several new amenities.

“We are thrilled to launch our reimagination of Keystone at the Crossing,” Joe Kessel, CEO of Interamar, said in a written statement. “Our vision is to make the campus the top destination for businesses in Indianapolis by creating a vibrant and well-rounded workplace community. Our planned enhancements will provide tenants with top-tier amenities and public spaces that promote a balanced and productive work-life experience.”

Kessel declined to share how much would be spent on improving office park. He said plans call for new indoor and outdoor tenant lounges, more conference and training rooms, mother’s rooms and wellness areas, and fitness facilities throughout the campus with a mix of workout spaces, steam rooms, saunas and pickleball courts.

The property is also expected to see full renovations to its lobbies, restrooms and public areas. Currently, the office park has few amenities of its own, instead tethering itself to The Fashion Mall at Keystone as a key feature. But Kessel said he’s confident that adding features to the park will bring employees back to their offices—and attract new tenants.

“We are striving to create a differentiated office environment at every touchpoint, to position the campus favorably in the ongoing flight to quality office product,” Kessel told IBJ in an email response to questions. “That includes a first-class amenity package, fully renovated common spaces, hospitality-oriented services and proactive ownership.

“We are seeing that buildings with robust amenity packages attract more headquarters tenants and tenants looking to make greater commitments to their spaces, both in terms of term commitment and investment above their allotted tenant improvement allowances.”

The leasing for the property also has shifted to the Indianapolis office of Toronto-based brokerage Colliers International, through Matt Langfeldt, Rich Forslund and Christa Calderone. The trio steps in for John Robinson, managing director for the Indianapolis office of Chicago-based JLL, who had leased the office park for 20 years. JLL will continue to oversee property and project management for the campus.

Sources told IBJ the office park was put on the market because the loan for the property was expiring this year and the lender opted not to refinance due to the tightening market and the diminished reliability of traditional office space.

The office park, developed between 1975 and 1988 by Indianapolis-based Duke Realty, is home to dozens of the area’s largest companies, including several real estate brokerages and law firms.

According to advertising material, the current occupancy of the property is 68%, with remaining lease terms averaging about 4.4 years. IBJ reported at the time of the 2019 sale that occupancy was 83%.

“The repositioning of Keystone at the Crossing fits squarely within our focus of adding value to well-located, irreplaceable assets,” added Tryperion Founder and Managing Partner Jeffrey Karsh.  “We are excited to partner with Interamar in returning the campus to prominence as one of the premier Midwest office locations.”