603 W Ray Street

INDIANAPOLIS, INDIANA

LPRI identified and acquired this underutilized 8.8-acre gravel lot on the south side of downtown Indianapolis in 2022. We procured the opportunity in an off-market fashion and purchased it for $3.8 million directly from a passive owner who viewed it as a headache to operate. At a cost of roughly $10 per square foot vs. land comps in the $40-$90 PSF range (depending on location), the purchase price is well below many comparable sales. As it’s currently configured, the site is well positioned for industrial outdoor storage and truck parking, due to high demand in the market.

The site sits directly in the path of progress as development activities expand south of Lucas Oil Stadium, home of the Indianapolis Colts. Historically, this area has been industrial in nature, but as strategic owners buy up properties in the immediate neighborhood, we expect the site to become more desirable for higher and better use over time (residential development, for example). Further, because the site sits in a Qualified Opportunity Zone, a developer could be attracted to site due to the tax benefits, which enhances our re-sale value on an exit. After we have brought the property to stabilization, we will explore all potential avenues for an exit opportunity.