For this next development in our series, I wanted to talk about one that's been around for quite some time now, been in the making for years, which we actually all use now. It's the Bottleworks District. We'll talk about the expansion here in a second, but I wanted to just break down the numbers, talk about land use within our Indianapolis Downtown CBD district, and what this is for any other retailer or investor looking to put some infill mixed-use properties with a retail component. Let's hop into it.
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I wanted to start off with a little bit of history. This property where the site stands today was once home to the world's largest Coca-Cola plant, bottling 2.2 million bottles per week. The iconic Art Deco building shows an intricate terracotta façade, a true symbol of the old industrial era. However, with the rise of aluminum cans, this facility largely went unused up until about 2017 when the current developer, Hendricks Commercial Properties, acquired it to make way for a historic redevelopment of the site. Fast forward to today, and this is by far one of the most beautiful and expansive redevelopment sites we have within our whole city.
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So, who are the developers? Hendricks Commercial Properties is known for leading these developments of historical sites. They also have another, more modern facility with a boutique hotel called Ironworks, located in the Keystone at the Crossing submarket. This property was designed in tandem with renowned architects RATIO Design and EUA to blend historical charm with modern amenities. According to an Urban Land article, their vision was simple: "To make a place where we work, live, and play." We've heard this many times before, and they truly delivered. And that's exactly what they're becoming.
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So let's dive into the numbers. Bottleworks sits on 12 acres. They have a 139-room boutique hotel, a 38,000-square-foot food hall called The Garage, 180,000 square feet of flexible Class A office space, and 175,000 square feet of prime retail space. Phase two is currently under construction and is set to open sometime next year. This phase will add more office space, more retail space, and introduce tenants like Indiana Members Credit Union and the well-known venture capital firm High Alpha.
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These are large companies taking up prime Class A office space, and it's some of the priciest real estate in the city. When we talk about where people want to work, live, and play, this is it. And that's why big companies are flocking to the space.
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Now, let's discuss the economic impact. We’re talking about vacancy rates and retail space downtown. The Central Business District (CBD) of Indianapolis is comprised of 224 buildings totaling over 5 million square feet of space. Of course, this includes office space on top of retail space.
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The asking rent for retail space is $22.79 per square foot, with vacancy rates extremely low at just 2.5%, down from 4.3% a year ago.
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When it comes to walkable retail space, there are only 284 land parcels left in the CBD, which covers a small footprint of just 3.89 square miles. Given the size of the parcels, the average size is only 0.1 acres, so developing new commercial spaces in the CBD is typically not an option unless it’s for residential buildings.
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Development here requires assemblage of parcels, which is easier said than done. For example, we have 828 North Park Avenue, which consists of eight plots suitable for residential townhomes. Similarly, 537 Leon Street is another property geared for high-end townhomes, owned by the same entity. And finally, we have several small parcels near Lucas Oil Stadium, like those on South Kenwood and South Capitol, many of which have been flipped for a substantial profit in recent years. These small plots, originally bought for around $5K to $10K, are now being sold for $60K, $70K, or even $100K. Prices per acre have skyrocketed, reaching $1.1 million per acre.
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If you’re looking for a new place to eat or want to learn more about Class A office spaces for your mid or large company, Bottleworks is definitely worth checking out.
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Jumha Shatara
SKYRISECRE
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