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NORTH CENTRAL INDIANA

MARKET STUDYth annualCOMMERCIAL REAL ESTATE24

2016-2017

CENTRAL INDIANA


NORTHEAST INDIANA

NORTHWEST INDIANA

WEST MICHIGAN

Cass St. Joseph BranchBerrien

Van BurenKalamazoo

Calhoun

Allegan EatonBarry

IoniaOttawa

Kent

Montcalm

Muskegon

Bartholomew

Monroe

DecaturOwen

FranklinClayVigo

UnionRushFayette

Putnam

Hendricks Marion HancockParke

WayneHenry

Ver

mill

ion

BooneMontgomeryHamilton

Randolph

Fountain

DelawareMadison

TiptonClinton

WarrenHoward

BlackfordJay

Grant

BentonCarroll

CassWhiteWells

Adams

Miami

HuntingtonWabash

Pulaski FultonNewton

AllenJasper

Whitley

Starke KosciuskoMarshall

Noble DeKalbLake

Porter

LaGrange SteubenLaPorte

ElkhartSt. Joseph

Brown

Morgan JohnsonShelby

Tippecanoe

Lake Michigan

/company/bradley-company @bradley_company /bradleycompanyCRE @bradleycompany

TABLE OF CONTENTS

RESEARCH | ANALYSIS

STEVEN [email protected]

GAGE [email protected]

LUCAS [email protected]

LAYOUT | DESIGN

JONATHAN [email protected]

MICHELLE [email protected]

KYLIE [email protected]

02 13PRESIDENT’S LETTER RETAIL

05INDUSTRIAL

17MULTI-HOUSING

09OFFICE

20SERVICES & PROFESSIONALS

2

PRESIDENT’S LETTER

As a regional leader of commercial real estate services in the Midwest, we understand that critical market knowledge is foundational to the value we provide to our clients. This 24th Edition of our Market Study reflects the collective insights and experience of

the growing team of skilled Bradley Company professionals.

We first thank our sponsors, who are recognized in the back of this report, for helping deliver this 24th Edition that again provides in-depth analyses on the regions we serve throughout Indiana and Michigan. Within this report you will find market activity from several aspects of our business, which reflect the local, regional, and national economic landscape. While we continually look for ways to enhance our insight into the regions we cover, we believe this study to be an invaluable tool for anyone with exposure to the commercial real estate industry.

Our pursuit of excellence, to be the premier commercial real estate service provider in the Midwest, has led to the expansion of our geographic footprint as well as the evolution of our lines of business through the addition of talent. In 2016 we made significant strides to expand our presence in two leading Midwest markets, Indianapolis and Grand Rapids, where we have deepened our talent pool with many new, seasoned professionals in our brokerage and property management lines of business. These professionals bring a wealth of experience and technical expertise that augment our platform to meet an increasingly sophisticated set of client requirements as they seek to gain insights into real estate markets and best advantage their investor or occupier needs. With a presence in eight primary markets from West Michigan through North and Central Indiana, the Bradley Company platform is well positioned to serve the regions’ dynamic, economic growth.

While on the surface 2017 is poised to be a year of improved, yet modest, growth in our markets, the current expansion of the US economy is in its seventh year, with forecasted GDP hovering just above 2%. Equity markets have been robust, with several indexes topping historic highs in recent quarters, as the labor market approaches a return to full employment. Aging demographics are playing in to skilled labor challenges in many sectors. The prospect of Federal tax and regulatory reform could unleash additional capacity, however, on the balance, a tempered climate for international trade could cool opportunities for economic expansion.

The two recent Federal interest rate bumps of 25 basis points to reach a 1% total rate and two more increases anticipated in 2017 have spurred active real estate owners to either sell, or lock in low rates and convert from even lower floating rates. This is in direct correlation to what will be rising cap rates and, thus, shrinking real estate values. However, as real estate has been a favored asset class as a tangible investment and significant capital has been parked on the sidelines for this category, cap rates will likely not move up at a matched pace to interest rates, which will mean shrinking investment margins. This environment will require better management and will rely on a continued moderate supply creation environment.

E-commerce continues to disrupt traditional retail practices, with total sales in 2016 estimated at nearly $400 billion, up about 15% year over year, far outpacing the 2.9% increase in overall retail sales. The implications for real estate in a mobile economy places demands on the need for additional warehouse facilities to serve growing logistics and distribution needs. Ironically, the competition from the online market has led many national retail anchors to reduce their physical footprint while online retailers, such as Amazon, have opened their first brick and mortar stores to strengthen their dominance.

Across the country, population centers continue to trend toward urban density, which translates to an unprecedented volume of multi-family construction in the urban cores of major metropolitan centers as well as secondary and tertiary communities. Simultaneously, traditional suburban retail and office centers are being creatively redeveloped into mixed-use town centers that combine complimentary uses for residential, office, medical, retail, and entertainment uses in a pedestrian friendly format. The evolving consumer patterns and tenant requirements have driven a need for new mixed-use redevelopment construction.

3

PRESIDENT’S LETTER

Bradley J. Toothaker, CPM, SIORPresident & CEO

The industrial sector is performing extremely well, with market vacancies remaining at or near historically low levels in most markets, fueled by consumer products and e-commerce distribution as the largest demand drivers for industrial space in 2017. Growth in the manufacturing and goods-producing sectors will be areas to watch as the new presidential administration focuses to spur these fields.

In 2015, the Indiana Economic Development Corporation launched the Regional Cities Initiative, a challenge to the State’s seven regions to compete for three $42 million place-making grants with a purpose to improve the quality of life in these communities by attracting new residents and investment to the state. The $126 million in collective, state, local, and private matching funds is poised to leverage over $2.1 billion in investment across the North Central, Northeast, and Southwest regions of the state. As much of this investment will occur in the form of new or rehabilitated real estate, the impact in the communities served by Bradley Company will be transformational. 2017 is poised to be a watershed year as many of the landmark projects spurred by the Regional Cities’ effort become open for business.

In Central Indiana, 2016 was a historic year for the industrial market, where net absorption hit its highest total ever in the market. Downtown Indianapolis continued its growth trajectory, as evidenced by Salesforce expanding into the former Chase Tower building, occupying 250,000 square feet and renaming the building to Salesforce Tower.

In North Central Indiana, the RV industry continues to pave the way for economic growth. RV shipments hit their highest total in 40 years, ending 2016 with 430,691 total units shipped with momentum continuing throughout 2017 and shipments expected to total 438,000 units.

In Northwest Indiana, the region’s economic growth is expected to increase and with the South Shore Commuter Rail line approving a $1 billion capital plan that outlines improvements over the next five years to increase capacity, expedite travel times and expand and renew the fleet. The economic impact of these upgrades are expected to be over $2 billion annually, once completed.

For Northeast Indiana, Downtown Fort Wayne has been the focus of regional market attention. Projects such as the Skyline Tower and Cityscape Flats mark the first significant residential projects developed in the past five years for the downtown market. The new riverfront development, combined with the proposed $100 million arena, are expected to add new energy to the downtown and surrounding areas.

West Michigan markets continue to see companies making large capital investments. Pfizer and Stryker are investing over $100 million in their campuses, while the largest data center in the eastern United States, Supernap, continues its $5 billion campus at the site of the former Steelcase Pyramid building in Grand Rapids.

As we delve much deeper in to the statistics and facts of our markets herein, we hope you find our 24th edition useful and beneficial in your everyday decisions. Should you wish to further engage in any of our data and information contained herein, feel free to contact us. Bradley Company’s team of professionals look forward to a prosperous growth year for all!

Warm regards,

NORTH CENTRAL INDIANA The foundation for the North Central Indiana region was built upon the manufacturing industry. However, recently, the region is seeing a shift towards establishing a “Regional Innovation District Network.” In the past few years, market activity has primarily taken place in downtown South Bend, the Grape & Main corridor in Mishawaka, and northern Elkhart near the I-80/90 Toll Road. Several redevelopment and new construction projects are generating positive momentum for the downtown areas of South Bend, Mishawaka, and Elkhart. The continued development is expected to fuel growth for the region in the foreseeable future.

CassWhite

Miami

HuntingtonWabash

Pulaski FultonJasper

Whitley

StarkeKosciusko

MarshallNoble

Porter

LaGrange

LaPorte

ElkhartSt. Joseph

DEMOGRAPHICS BY COUNTY1Population 1Households

1Median HH Income

2Labor Force

2Unemployment Rate

County 2016Annual Growth

Rate*2016

Annual Growth

Rate*2016

Annual Growth

Rate*2015 January ‘17

St. Joseph 269,123 0.18% 104,653 0.26% $45,288 2.84% 130,912 4.7%

Elkhart 205,173 0.73% 72,656 0.69% $47,933 2.13% 104,616 3.4%

Kosciusko 80,786 0.70% 30,198 0.60% $53,416 2.32% 40,808 3.8%

Marshall 47,885 0.15% 17,747 0.17% $50,888 2.00% 24,078 4.2%

North Central 602,967 0.44% 225,254 0.44% $47,985 2.37% 300,414 4.0%1Source: ESRI BAO | 2Source: STATS Indiana | *2016-2021 Projected Annual Growth Rate

4

Elkhart County is responsible for 80 percent of global RV production, serving as home to multiple industry giants, such as Thor Industries and Forest River. Per the Recreational Vehicle Industry Association, RV shipments hit their highest total in 40 years in 2016, with 430,691 total units sold. As RV shipments continue to increase, the industrial real estate market will continue to experience a tightening in inventory, which will open up opportunities for speculative development and expansion projects, and boost the velocity of land purchases.

NORTH CENTRALINDIANA | INDUSTRIAL

5

RV Shipments

100K

200K

300K

400K

500K

0

2006 2008 2010 2012 2014 2016

SOUTH BEND

ELKHART

NEWCARLISLE

MISHAWAKA

BREMEN

GOSHEN

WARSAW

NAPPANEE

PLYMOUTH

MIDDLEBURY

Industrial Clusters

2017

PRO

JEC

TED

BLACKTHORN DEVELOPMENT AREA SNAPSHOT - SOUTH BEND

Since 2016, five projects added 608,000 SF of industrial space.

From 2010-2015, only a combined 287,989 SF of industrial space added.

Built in 2016, the South Bend Distribution Center I (SBDC1), became the first full 100 percent spec building to be constructed in St. Joseph County within the last eight years.

Before construction on the building was completed, South Bend-based Great Lakes Capital (GLC) signed AM General to a ten-year lease. Due to the success of the SBDC1 project and the significant interest large corporations are showing for space in that submarket, GLC is planning additional industrial development in the Blackthorn area.

Source: RVIA

BLACKTHORN DEVELOPMENT AREA

NORTH CENTRAL INDIANA | INDUSTRIAL

Availability & Asking Rates

The industrial markets in Kosciusko County and Marshall County have seen minimal new construction activity over the past several years. Since 2014, two industrial buildings totaling 107,775 square feet were constructed in the Warsaw Technology Park. The 45,000-square-foot Commerce Shell Building in Plymouth was purchased in September 2016 by Bluffton-based Pretzels Inc., after sitting vacant for two years.

St. Joseph County and Elkhart County have seen steadily declining rates year over year, while Marshall County and Kosciusko County finished 2016 around 1 percent availability. Marshall County and Kosciusko County have smaller industrial markets, therefore as large transactions occur or space is added, their availability rates fluctuate significantly more than those of St. Joseph County and Elkhart County.

The tightening of industrial inventory has added upward pressure on asking rates throughout the region. Most new construction projects have been owner-user projects, creating an indirect effect on rental rates, leading to tenants in the market paying higher rates because of space being quickly absorbed. SBDC1, whose product did not exist in the market and was built to user specifications, commanded a higher rental rate than the average for the region.

> South Bend Distribution Center I Rendering

Asking Rates | Manufacturing - $/SF NNN

$0

$1

$2

$3

$4

$5

Asking Rates | Warehouse - $/SF NNN

$0

$1

$2

$3

$4

$5

Asking Rates | Flex - $/SF NNN

$0

$1

$2

$3

$4

$5

$6

Availability Rates

Q4 ’12 Q4 ’13 Q4 ’14 Q4 ’15 Q4 ’16

2%

4%

6%

8%

10%

12%

Q4 ’12 Q4 ’13 Q4 ’14 Q4 ’15 Q4 ’16 Q4 ’12 Q4 ’13 Q4 ’14 Q4 ’15 Q4 ’16

Q4 ’12 Q4 ’13 Q4 ’14 Q4 ’15 Q4 ’16

6


The strong activity in industrial building permits over the last few years throughout St. Joseph and Elkhart County is reflective of the low inventory numbers in both markets. It is expected to see a continued dose of new construction and addition projects in the years to come.

Building Permit Activity

2013 2014 2015 2016$0

$20M

$40M

$60M

$80M

Notable Transactions

ADDRESS CITY SF TENANT TENANT OFF MARKET

2935 Van Vactor Rd. Plymouth 300,000 Bay Valley Foods Renewal Q4 ‘16

1601 Fieldhouse Ave. Elkhart 247,440 MVB Wood Group Expansion Q3 ‘16

5448 Dylan Dr. South Bend 210,000 AM General New Q2 ‘16

54722 Chelsea Elkhart 120,824 Patrick Industries Inc. New Q4 ‘16

1241 E. 12th St. Mishawaka 98,738 Patrick Industries Inc. New Q1 ‘16

405 Kesco Dr. Bristol 79,575 CGT Real Estate Renewal Q1 ‘16

3507 Olive Rd. South Bend 56,000 Hilti Expansion Q2 ‘16

2666 S. Country Club Rd. Warsaw 54,000 Zimmer Biomet New Q3 ‘16

ADDRESS CITY SF SALE PRICE BUYER OFF MARKET

10758 C.R. 2 Middlebury 142,608 $3,000,000 Heartland Recreational Vehicles Q3 ‘16

3601 & 3605 Charlotte Ave. Elkhart 120,375 $5,250,000 DEHCO Inc. Q2 ‘16

1140 All Pro Dr. Elkhart 109,654 $3,800,000 Heartland Recreational Vehicles Q3 ‘16

4701 Nimtz Pkwy. South Bend 106,375 $5,800,000 Schafer Industries Q1 ‘16

51700 W. Lovejoy Dr. Middlebury 97,180 $2,500,000 Keystone RV Q2 ‘16

2910 Commerce St. Plymouth 45,000 $2,200,000 Pretzels Inc. Q3 ‘16

Sale

Lease

New Construction & Additions

7

Growth & Development


2016 NOTABLE PROJECTS 2017 NOTABLE PROJECTS15 PROJECTS TOTALING 1,551,000 SQUARE FEET COMPLETED

11 PROJECTS TOTALING 868,000 SQUARE FEET UNDER CONSTRUCTION

General Stamping & Metalworks, South Bend • Completed Q3 2016• 188,000-square-foot state-of-the-art manufacturing

plant • $22.7 million facility, with room for expansion

Universal Trailer, Bristol

• 200,000-square-foot manufacturing plant• 43-acre site near Indiana Toll Road• Site allows for an additional 200,000-square-foot

expansion

Waterford Commons Business Park, Goshen• 20,000-square-foot speculative building• Development by Hoogenboom Nofziger • Marks first speculative building development in

Goshen since 2005• Located on a 28-acre parcel, with room for 10

developments

St. Joseph Energy Center, New Carlisle

• $4.5 million infrastructure project to create an industrial park

• Expected to be completed by May 2017• Opens 1,000 acres for new development• The Toyota Group and Ares Private Equity Group

have already begun Phase 1 work on the site for its $500 million St. Joseph Energy Center project

8

Rendering

RenderingRendering

NORTH CENTRAL INDIANA | OFFICE

The office market in North Central Indiana is primarily situated in the downtown core of South Bend and the Edison Lakes Corporate Park on Mishawaka’s north side; areas that are home to two major hospitals, Memorial Hospital in Downtown South Bend, and the Saint Joseph Regional Medical Center in Edison Lakes. The role of the healthcare industry continues to dominate the office market, as medical users continue to vie for space proximal to these hospitals.

The lack of Class A inventory for the market is adding pressure on owners operating lower quality buildings to consider renovation work. 100 E. Wayne Street, formerly known as One Michiana Square, underwent a $7 million renovation project in 2016, upgrading the 99,000-square-foot building to Class A status. The building’s occupancy grew from 72 percent in 2015 to 95 percent in 2016, due in large part to the renovation.

SOUTH BEND

MISHAWAKA

GOSHEN

WARSAW

PLYMOUTH

ELKHART

DOWNTOWN SOUTH BEND

EDISON LAKES CORPORATE PARK

> Edison Lakes Corporate Park, Mishawaka

WINDSOR PARK CONFERENCE CENTER

GR

AP

E R

D.

MA

IN S

T.DAY RD.

> Downtown South Bend

AM GENERAL HEADQUARTERS

MA

IN S

T.

MIC

HIG

AN

ST.

JEFFERSON BLVD.

COLFAX AVE.

MONROE ST.

LASALLE AVE.

ED

ISO

N L

AK

ES

PK

WY.

9

Secondary Submarket

Primary Submarket


10

SOUTH BEND – A TECH HUB

The high-tech industry continues to bolster the South Bend region. Catalyst One, Catalyst Two, the Studebaker renovation, and Ignition Park have generated national attention, largely attributed to research from the University of Notre Dame.

As the region continues to capitalize on its 100-mile, dark fiber-optic network, the region can anticipate more high-tech companies relocating to the area.

> Ignition Park Rendering, South Bend > Catalyst One, South Bend

> Catalyst Two, South Bend

Ignition Park• 180-acre technology park• Potential for 3 to 3.5 million square feet of

high-tech, office and support space

Catalyst One• 48,000-square-foot innovative coworking incubator• In 2016, 7 tenants; Data Realty, Aunalytics,

Qumulus, Graham Allan, Microintegration, Lachesis, LLC, and Lippert Components, opened offices, while 5 additional members utilize the coworking space

Catalyst Two• $36 million Notre Dame Turbomachinery Facility

Partnership between Notre Dame and General Electric

Renaissance District – Studebaker Campus• Midwest’s largest mixed-use technology campus• Converts 1.3 million square feet of industrial space

into office, coworking, residential, retail, conference and entertainment space

Innovation Park at Notre Dame Phase II• 55,000-square-foot state-of-the-art collaborative facility

RenderingRendering


Availability & Asking Rates


ADDRESS CITY SF TENANT TYPE OFF MARKET

Commerce Center; 401 E. Colfax South Bend 14,529 Indiana Family & Social Services New Q4 ‘16

One Michiana Square; 100 E. Wayne St. South Bend 11,966 Internal Revenue Service Renewal Q1 ‘16

17390 Dugdale Dr. South Bend 12,101 Hopebridge New Q4 ‘16

225 E. Jackson Blvd. Elkhart 10,540 Indiana Family & Social Services New Q4 ‘16

909 Executive Dr. Warsaw 10,250 Warsaw Health Systems Renewal Q2 ‘16

Lease

ADDRESS CITY SF SALE PRICE BUYER OFF MARKET

JMS Building; 108 N. Main St. South Bend 98,216 $3,350,000 JMS Development Q1 ‘16

2810 Dexter Dr. Elkhart 20,100 $1,965,000 Nelson Development Q3 ‘16

NRC Building; 1920 E. McKinley Ave. Mishawaka 20,034 $1,400,000 BRN Jackson Q1 ‘16

Camdon Park; 1001 Hickory Rd. South Bend 17,364 $1,425,000 Camdon Park Investors Q2 ‘16

Investment Sales

Availability Rates

0%

5%

10%

15%

20%

Q4 ’12 Q4 ’13 Q4 ’14 Q4 ’15 Q4 ’16

11

Availability rates for the primary office markets of St. Joseph County and Elkhart County have been steadily declining since 2012. Recent redevelopment projects, such as the former Chase Tower building and JMS building removed aged office space from the market, while at the same time, added attractable space marketable for a variety of uses.

Co-working spaces are becoming a valuable tool for helping start-up companies that may not be able to afford conventional office space. Catalyst One at Ignition Park and Innovation Park at Notre Dame have become key sites for attracting and retaining a talented workforce. Expansion plans for each site are generating a positive outlook for the region.

The recent completion of Beacon Parkway, just off Capital Avenue, has opened up nearly 250 acres of land primed for new office construction projects. Beacon Health and Memorial Health partnered to complete the first development in the area, a $15 million, 67,000-square-foot health and fitness center. Additional developments are in the pipeline for the site.

Asking Rates - $/SF NNN

Q4 ’12 Q4 ’13 Q4 ’14 Q4 ’15 Q4 ’16$0

$2

$6

$10

$14

$4

$8

$12

$16



Two significant, new construction/addition projects highlighted the office market in 2016. Notre Dame’s Innovation Park Phase II is estimated at $4.5 million, and the new VA clinic in Mishawaka is estimated to cost $32 million. Elkhart County saw an uptick in 2016, largely attributed to Child and Parent Service’s new $5.5 million, 27,000-square-foot facility.


2013 2014 2015 2016$0

$10M

$20M

$30M

$40M


St. Joseph County Health Care Center, Mishawaka

• $38 million, 71,000-square-foot VA outpatient clinic• Constructed by McShane Construction Company• Expected to open in September 2017

Innovation Park at Notre Dame Phase II, South Bend

• $13 million, 38,500-square-foot incubator facility• Aimed to supply space needed for Notre Dame

students and entrepreneurs looking to launch high-tech startups

2016 NOTABLE PROJECTS 2017 NOTABLE PROJECTS4 PROJECTS TOTALING 151,074 SQUARE FEET UNDER CONSTRUCTION

4 PROJECTS TOTALING 88,269 SQUARE FEET COMPLETED

12

“With Catalyst I and II, we have created a high-tech, innovative atmosphere that has drawn well-known tenants to the space and continues to incite interest from cutting-edge tech manufacturers and Silicon Valley ventures who are interested in relocating to the development. As a whole, we haven’t just created synergy and catalyzed interest in Ignition Park; the project has also drawn individuals and companies to the greater South Bend area, who have seen what our community has to offer and as a result, the economic vitality of our region has and continues to be positively impacted in a large way.”

RYAN RANS - MANAGING PARTNER, GREAT LAKES CAPITAL

Catalyst One, South Bend

• 48,943-square-foot innovative coworking incubator facility

• Developed by Great Lakes Capital

Rendering

Rendering

In 2016, the University Park Trade Area (UPTA) benefited from the rejuvenation of Wilshire Plaza. Six tenants leased over 103,446 square feet in the shopping center, increasing the occupancy rate from 75 percent in 2015 to 96 percent in 2016. The plaza brought in multiple regional and national quality tenants such as Fresh Thyme, SkyZone, DSW, and HomeGoods. The revitalized shopping center, along with several other retail projects, have helped renew national interest in the Grape and Main corridor.

The retail market in Elkhart County has picked up over the last couple of years. This uptick in development is in part due to an increase in disposable income for the county, driven by high employment in the RV industry. Shoppes on Six, a 115,000-square-foot development completed in 2015, created a new shopping destination for the entire Elkhart trade area. Concord Town Center, previously known as the Concord Mall, began plans in 2016 on a $60 million overhaul, transforming the existing indoor mall into an open-air, mixed-use destination. The project is reportedly expected to generate $150 million to $200 million annually for the Elkhart and Michiana region once completed.

We are thrilled about the

transformation that is occurring by

adding these best-in-class retailers to the

merchandising mix at Wilshire Plaza. We

successfully executed a plan to retenant

the shopping center and create significant

value.

BENNETT MORRISON - SENIOR VICE PRESIDENT OF LEASING, CHASE PROPERTIES

”

“

> Concord Town Center Rendering, Elkhart

> Wilshire Plaza, Mishawaka

13

NORTH CENTRAL INDIANA | RETAIL


Availability & Asking RatesThe region’s availability and asking rates remained fairly level since 2012, and the retail sector continues to attract a wide variety of best-in-class retailers, anchored by the Grape and Main corridor in Mishawaka.

Over 13 mixed-use projects are either under construction or proposed for the region, and are expected to bring high-class, ground-floor retail space to the market over the next couple of years. These developments are expected to increase area rental rates, creating an opportunity for unique retail concepts to enter the market.

Depending on the location throughout St. Joseph County, retail rental rates can vary significantly. Retail space in Eddy Street Commons near Notre Dame is around $35/square-foot, while new construction space in Downtown Mishawaka is around $20/square-foot. Quality spaces along the Grape and Main corridor in Mishawaka are generally asking $20-$25/square-foot.

Availability Rates

Q2 ’12 Q2 ’13 Q2 ’14 Q2 ’15 Q2 ’16

2%

4%

6%

8%

10%

Asking Rates - $/SF NNN

Q2 ’12 Q2 ’13 Q2 ’14 Q2 ’15 Q2 ’16$8

$10

$12

$14

$16

DOWNTOWN PROJECTS

The River District – Elkhart• “New urbanistic extension,” of Downtown Elkhart

• $60 million aquatics and fitness center

• $29 million luxury apartment complex

• Streetscape improvements and other mixed-use developments

• One of 39 projects chosen to receive funding from the Regional Cities Initiative

> The River District Rendering, Elkhart

14

Smart Streets – South Bend• Instrumental in attracting redevelopment of the JMS

Building, LaSalle Hotel, new Courtyard Marriot, Berlin Flats, and other projects that will add several hundred new residents to the downtown area

• Two-way traffic and street improvements on Main Street triggered the redevelopment of Main Street Row

• Catalyst for nearly $200 million worth of investments in downtown

Current Main Street Row>

Main Street Row Rendering>


ADDRESS CITY SF SALE PRICE BUYER OFF MARKET Kmart Plaza; 420-424 W. McKinley Ave. Mishawaka 125,667 Undisclosed Midland Atlantic Q2 ‘16

4850 W. Western Ave. South Bend 94,130 $850,000 4850 Western Ave, LLC Q3 ‘16

Granger Station; 12810 S.R. 23 Granger 17,114 $1,600,000 Granger, LLC Q2 ‘16

Investment Sales

ADDRESS CITY SF TENANT TYPE OFF MARKET

Erskine Village; 1290 Ireland Rd. South Bend 28,000 TJ Maxx Renewal Q4 ‘16

4850 Western Ave. South Bend 26,000 Planet Fitness New Q2 ‘16

Erskine Village; 1290 Ireland Rd. South Bend 20,087 PetSmart Renewal Q1 ‘16

Heritage Square; 7321 Heritage Square Dr. Granger 7,207 Heavenly Goat

Brewing Company New Q1 ‘16

Lease



The uptick in 2016 for Elkhart County is largely due to the new construction projects of Martin’s Super Market and Walmart, who will both replace their existing stores located near their new sites. St. Joseph County saw more remodeling projects in 2016 compared to new construction. Wilshire Plaza underwent a drastic facelift to attract quality tenants for their previously vacant spaces.


2013 2014 2015 2016$0

$5M

$10M

$15M

$20M

$25M

$30M

15

> Granger Station, Granger > Heavenly Goat Brewing Company, Granger



NEW WALMART SITE

2016 NOTABLE PROJECTS 2017 NOTABLE PROJECTS9 PROJECTS TOTALING 74,970 FEET COMPLETED

6 PROJECTS TOTALING 244,600 SQUARE FEET UNDER CONSTRUCTION

Martin’s Super Market, Elkhart• Opened in October 2016• New 41,000-square-foot store replaces former store just

north of property

Walmart, Goshen• New 151,000-square-foot store in Market Centre Plaza• Expected to be completed in the summer of 2017 • New store will replace current store located on the

same site

The Shoppes at Edison Lakes, Mishawaka• Opened late 2016• 9,600-square-foot strip center housing three tenants

Martin’s Super Market, South Bend• Slated to open in spring of 2017• New store will replace current store located at 4401

Western Ave.

16

*Projected

NORTH CENTRAL INDIANA | MULTI-HOUSING

City 2013 2014 2015 2016 2017* 2018* 2019*

South Bend 0 0 0 32 542 44 0

Mishawaka 0 0 0 73 303 809 0

Granger 100 0 0 0 203 0 0

Elkhart 0 0 0 0 100 0 195

Total 100 0 0 105 1,148 853 195

Occupancy & RentOccupancy Rates

2011 2012 2013 2014 2015 2016

90%

92%

94%

96%

98%

100%

Rental Rates | St. Joseph County

Apartment Units Added

$0

$200

$800

$1,000

$1,400

$1,200

$1,600

$400

$600

2012 2013 2014 2015 2016

17


Rental Rates | Elkhart County

2012 2013 2014 2015 2016

$0

$100

$200

$300

$400

$500

$600

$700

$800The high-density housing boom

in the urban core is a result of efforts

to attract and retain young people

and give them more urban options

for living. Their efforts are critical to

the efforts to grow population in our

area as each contributes to our area

having attractive places for people to

work, live and play. New construction

in South Bend and Mishawaka has both

communities positioned to capitalize on

new people discovering our region.

JEFF REA - PRESIDENT & CEO, SOUTH BEND REGIONAL CHAMBER OF COMMERCE

”

“


18

COMPLEX ADDRESS TOTAL UNITS SALE PRICE PRICE/UNIT

Williamsburg on the Lake 1000 Portsmouth Dr., Elkhart 190 $8,700,000 $45,789

Georgetown Apartments 4315 Wimbleton Ct., South Bend 200 Undisclosed n/a

> Williamsburg on the Lake, Elkhart > Georgetown Apartments, South Bend


Growth & Development2016 NOTABLE PROJECTS 2017 NOTABLE PROJECTS

3 PROJECTS TOTALING 105 UNITS COMPLETED

5 PROJECTS ADDING 417 UNITS UNDER CONSTRUCTION

19

Rendering

Colfax@Hill, South Bend• Opened in August 2016• $3 million, 17-unit apartment complex• Features ground-floor retail space expected to be fully

occupied by mid-2017

River Rock Apartments, Mishawaka• Opened in October 2016• $15 million, 73-unit apartment complex including

ground-floor retail space

GrandView Flats and Townhomes, Granger• Phase I slated to be completed in April of 2017• $100 million mixed-use development expected

to bring their first 203 units online in May 2017 completed by 2020

Aloft, South Bend• $40 million project expected to open in late 2017• Redeveloped by Washington Square Realty• New mixed-use development will feature a 183-room

hotel, 83 apartment units, and ground-floor retail space

20

BRADLEY COMPANY SERVICES & PROFESSIONALS

A seasoned and talented team of real estate professionals serving the Midwest region since 1978.

Founded in 1978, Bradley Company is a diversified real estate firm offering clients a full range of commercial brokerage and asset services. With regional offices throughout Indiana and Michigan, we employ nearly 250 knowledgeable professionals. Our experienced team manages 10± million square feet of commercial property including office, retail, industrial and medical office buildings among our many clients. In addition, we act as brokerage agents for over 550 commercial properties. We also manage more than 3,000 multi-housing units varying from conventional to student and associations.

CREATING REAL VALUE IN PROPERTY.

BROKERAGE

• Commercial sales and leasing• Property marketing• Proprietary market research• Market/competitive analyses• Strategic planning• Property positioning• Analytics and consulting• Buyer and tenant representation

CAPITAL MARKETS

• Real estate finance advisory• Creative debt and equity capital

solutions• Financial model and packaging• Extensive rolodex of local,

regional and national debt and equity providers

MULTI-HOUSING

• Property management• Leasing• Resident relations• Financial management• Maintenance, repair and capital

planning• Grant writing and funding source

management• Strategic planning• Development and market rent

studies• Receivership

TAX CONSULTING

• Property assessment and comparison

• Property tax monitoring and control

• Property evaluation• Analysis• Tax liability savings• Review business uses of property

ASSET SERVICES

• Property management• Financial management and

administration• Lease administration and

tenant relations• Receivership• Contract management• Cost containment• Parking management• Route maintenance

CORPORATE SERVICES

• Integrated facility management• Project management• Portfolio strategy/planning• Alternative workplace solutions• Space management• Energy management• Lease administration• Safety & compliance• Vendor & contract management• Asset management

21


SOUTH BEND112 W. Jefferson Blvd., Suite 300 South Bend, IN 46601T | 574.237.6000F | 574.237.6001

ELKHART300 NIBCO Pkwy., Suite 250 Elkhart, IN 46516T | 574.522.7100

WARSAW523 S. Buffalo St. Warsaw, IN 46580T | 574.267.2323

ALEX REED Office & [email protected]

KIRK ZUBER Industrial & [email protected]

GARY SALYER Retail & [email protected]

MATT WETZELLand & [email protected]

JEREMY MCCLEMENTS [email protected]

THERESE GEISE Office & [email protected]

RUDY YAKYM IIISenior Vice President, [email protected]

GREG PINKIndustrial & Office [email protected]

LUCAS DEMELRetail & [email protected]

PATRICK MAGLIOZZIIndustrial & [email protected]

KARA MCGUIRE Executive Vice [email protected]

GAGE HUDAK Office & [email protected]

MICHAEL ZINK Vice President, [email protected]

JOHN O’BRIEN, CCIM Industrial & [email protected]

AUTUMN PSAROS [email protected]

AL KOCH Retail & [email protected]

JANEE CARLILE Director, Brokerage [email protected]

JOHN MESTER Retail & [email protected]

JOHN JESSEN Office & [email protected]

JENA MAE SMOROSKE Office & [email protected]

STEVE ELLISON Industrial & [email protected]

BRAD TOOTHAKER, CPM, SIOR President & [email protected]

SCOTT FORD Executive Vice [email protected]

MARK NEAL [email protected]

JAMIE RUIZ Vice President, Tax Consulting & Business [email protected]

DAN SKODRAS, CPA Managing Director, Corporate Services & [email protected]

INDIANAPOLIS8604 Allisonville Rd., Suite 150Indianapolis IN 46250T | 317.588.1334

CASEY CUPP Marketing [email protected]

DAVID ELLIS Retail & [email protected]

BILLY MCCLAMROCH [email protected]

ALEX COHN [email protected]

W. SHAWN CONWAY [email protected]

JIM LOGAN Managing [email protected]

CENTRAL INDIANAINDIANAPOLIS

SOUTH BEND

ELKHART

WARSAW

JEFF NORRIS Senior Vice President, [email protected]

22

FORT WAYNE111 E. Ludwig Rd., Suite 101 Fort Wayne, IN 46825T | 260.423.4311

STAN PHILLIPS Retail & [email protected]

STEVE CHEN Office & [email protected]

TYLER BINKLEY Industrial & [email protected]

KIENAN O’ROURKE Office & [email protected]

MIKE DAHM Investment & [email protected]

PAUL REFAKIS Industrial & [email protected]

KALAMAZOO277 S. Rose St., Suite 3500 Kalamazoo, MI 49007T | 269.327.0089

GRAND RAPIDS250 Monroe Ave., Suite 426 Grand Rapids, MI 49503T | 616.254.0005

JODI MILKS, CCIM Retail & [email protected]

JEFFREY TUCKER Office & [email protected]

DREW NELSON Office & [email protected]

SALLY TUCKER Managing [email protected]

KEVIN VANHAITSMA Office & [email protected]

MIKE LOPATIN [email protected]

MITCHELL PATZER Office & [email protected]

NORTHWEST INDIANA

MERRILLVILLE359 W. 84th Dr. Merrillville, IN 46410T | 219.650.6500

STEVE NICKSIC Office & [email protected]

TONYA O’ROURKE Office & [email protected]

TODD DICKARD Office & [email protected]

ROSS BROWN Office & [email protected]

MATT REARDON Investment & [email protected]

MICHELLE DEVINE Land & [email protected]

JIM NICKSIC Office & [email protected]

WEST MICHIGAN

NORTHEAST INDIANAFORT WAYNE

MERRILLVILLE

KALAMAZOO

GRAND RAPIDS

ANNA BOWMAN Office & [email protected]

DAN DICKEYPresident, Northeast [email protected]

GREG CONKLING Land & [email protected]

TOM DEITCHE Managing [email protected]

DENNIS CALLISON Vice President, Brokerage [email protected]

Member FDIC

ServiceExcellence

Relationship Banking

LocalDecision Making

Family Values

BEST Bank for Business

Since 1895

Indiana’s Largest Private Family-Owned Bank

(574) 243-2822 • CENTIER.COM

303 County Road 17, Elkhart108 N. Main St., South Bend

537 N. Oak Dr., Plymouth

255 East Day Road, Mishawaka, IN

Action, meet results.Too many law firms mistake activity for action. As they churn away on unnecessary tasks, your matters drag on. At Barnes & Thornburg, we are focused on keeping things moving and helping your business grow. Delivering results you can count on.

Uncommon Value

ATLANTA CHICAGO DALLAS DELAWARE INDIANA LOS ANGELES MICHIGAN MINNEAPOLIS OHIO WASHINGTON, D.C.

btlaw.com

24

LET US HELP YOUR

BUSINESS GROW Call Judd McNallyCHIEF LENDING OFFICER

574-400-4606

Independent of the University

www.klcpas.com

Elkhart/Goshen - 574.264.2247South Bend - 574.289.4011St. Joseph - 269.983.0131

Your Business. Your Family. Your Future. Accounting for Your Every Need.

Tax Consulting l Estate Planning l RetirementBusiness Succession l Assurance l Business Valuation

Litigation Support l Bookkeeping l Management Search

25

www.greatlakescapital.com

develop | invest

Stephen A. StuderPARTNER [email protected] TO THE 2017 INDIANA SUPER LAWYERS® LIST

Scott J. FandrePARTNER [email protected]

John LloydOF COUNSEL [email protected]

Christopher D. LongPARTNER [email protected] TO THE 2017 INDIANA SUPER LAWYERS® LIST

Paul G. ReisPARTNER [email protected]

www.kriegdevault.com

Krieg DeVault is honored to be named to the 2016 Midwest Real Estate News “BEST OF THE BEST” “Top Law Firms” list for Real Estate Transactions Completed*

*2016 Best of Best List Top Law Firm data collected by Midwest Real Estate News for total 2015 transactions completed.

J. Brian HittingerPARTNER [email protected]

Krieg DeVault LLP4101 Edison Lakes Parkway Suite 100Mishawaka, Indiana 46545P: 574.277.1200

Lori JeanPARTNER [email protected]

John B. BaxterPARTNER [email protected] TO THE 2017 INDIANA SUPER LAWYERS® LIST

© 2017 Krieg DeVault LLP. Krieg DeVault LLP, Indianapolis , IN is responsible for this content.

®

Krieg DeVault LLP8001 BroadwaySuite 400Merrillville, Indiana 46410P: 219.227.6100

Sarah E. [email protected]

Stephanie T. EckerlePARTNER [email protected] TO THE 2017 INDIANA SUPER LAWYERS® RISING STARS LIST

Andrew C. StrobelASSOCIATE [email protected]

OUR NORTHERN INDIANA REAL ESTATE PRACTICEBEST BESTOF TH

E“

“

26

Elkhart401 W. High St.

Elkhart, IN 46516574-293-2341

Angola101 Growth Pkwy, Ste. A

Angola, IN 46703 260-638-5012

Mishawaka4215 Edison Lakes Pkwy.

Mishawaka, IN 46545574-257-2711

Our financial strength is undisputed and our local experience is undeniable.

$5.0 billion Investment Portfolio

Your client’s money is safe with us.

If you’re not using Fidelity, can you be certain your client’s money is safe?

FIVE CONVENIENT LOCATIONS IN NORTH CENTRAL INDIANA TO SERVE YOU:

Warsaw108 W. Main St.

Warsaw, IN 46580 574-268-0065

Syracuse905 S. Huntington St.Syracuse, IN 46567

574-457-4845

Duke Mabry, Sr. Account Executive | C: 574-532-2066 | E: [email protected]

Elkhart401 W. High St.

Elkhart, IN 46516574-293-2341

Angola101 Growth Pkwy, Ste. A

Angola, IN 46703 260-638-5012

Mishawaka4215 Edison Lakes Pkwy.

Mishawaka, IN 46545574-257-2711

Our financial strength is undisputed and our local experience is undeniable.

$5.0 billion Investment Portfolio

Your client’s money is safe with us.

If you’re not using Fidelity, can you be certain your client’s money is safe?

FIVE CONVENIENT LOCATIONS IN NORTH CENTRAL INDIANA TO SERVE YOU:

Warsaw108 W. Main St.

Warsaw, IN 46580 574-268-0065

Syracuse905 S. Huntington St.Syracuse, IN 46567

574-457-4845

Duke Mabry, Sr. Account Executive | C: 574-532-2066 | E: [email protected]

27

LOANS DEPOSITS INSURANCE INVESTMENTSERVICES

©2017 Teachers Credit Union. The cost of membership is $12, $7 membership fee and $5 initial deposit. TCU Insurance Agency, LLC is a subsidiary of TCU Insurance products are offered through various approved carriers. Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC , a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. FR-1659016.1-1216-0119

Your savings federally insured to at least $250,000and backed by the full faith and credit of the United States Government

National Credit Union Administration, a U.S. Government Agency

NCUA

Business ServicesBusiness Services

• Business Share Draft Accounts• Account Protection and Security• Electronic ACH Services• Internet Banking• Bill Payment and Presentment• Remote Deposit• Merchant Services• Commercial Real Estate• Equipment Loans• Working Capital Loans• Approved SBA Lender• Business and Commercial Insurance• Employee Benefits Programs from

TCU Insurance Agency• Health Savings Accounts• Investment and Trust Services

tcunet.com/mybusiness

28

10± million commercial square

feet managed

Commercial Management

Over 50 brokers in 8 o�ces & an average

of 700 listings per year

Brokerage

Over $1 million saved in tax liabilities

since 2011

Real EstateTax Consulting

Over $1.5 billionin experience

CapitalMarkets

3,000± Conventional, A�ordable, Senior,

Student and Special Needs units under management

Multi-Housing

Strategic partner serving corporate clients in all classes

of property

Corporate Services

Founded in 1978, Bradley Company is a diversified real estate firm providing commercial brokerage services, commercial and multi-housing management, real estate tax consulting, maintenance services, project and facilities management, research services, corporate services and strategic planning. Bradley Company is the largest full service commercial real estate solutions provider in Indiana and West Michigan.

250+ 35+ $160M+EMPLOYEES YEARS IN BUSINESS

VALUE OF BROKERAGE TRANSACTIONS IN 2016

commercial real estate market study - · pdf files a regional leader of commercial real estate...

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