The Challenge

While the property presented strong fundamentals, the impending vacancy posed significant investment risk. To achieve their targeted returns, CLM Holdings required a brokerage partner capable of:

– Securing the asset at a favorable basis below market value.
– Executing a rapid lease-up strategy to eliminate income disruption.
– Identifying and securing a long-term, creditworthy tenant to ensure stable cash flow and maximize property appreciation.

Allies’ Success Story

Allies Commercial Realty delivered comprehensive brokerage solutions throughout the acquisition and leasing lifecycle:

Expert Negotiation

Allies leveraged our market knowledge and seller relationships to negotiate a 20% reduction from the original asking price. This immediate discount provided CLM Holdings with significant Day 1 equity and a built-in margin for value-add improvements.

Targeted Marketing Strategy

Following the successful closing, Allies launched an aggressive, multi-channel marketing campaign targeting industrial users, regional distributors, and national credit tenants seeking east side Indianapolis flex space. Our strategy generated multiple competitive lease offers from both local operators and national firms within just three months of acquisition.

Securing a Fortune 500 Tenant

Allies successfully executed a five-year lease with Fastenal, a Fortune 500 company and national credit tenant. The lease agreement includes multiple renewal options, ensuring long-term income stability and positioning the asset for future value appreciation.

Premium Lease Rate Achievement

Through competitive positioning and skilled lease negotiations, Allies secured a lease rate 10% above the initial asking rate, maximizing cash flow and demonstrating the property’s true market value.

Conclusion

The strategic collaboration between CLM Holdings LLC and Allies Commercial Realty at 8846 East 33rd Street demonstrates the power of local expertise, disciplined execution, and aggressive marketing in Indianapolis industrial real estate.

Key outcomes included:

Optimized Cash Flow: The secured lease rate generated returns 163% above the property’s debt service, delivering robust, predictable income.

Substantial Equity Growth: By securing a premium lease with a Fortune 500 tenant, Allies unlocked over $500,000 in additional property value based on the in-place lease terms.

Benchmark Transaction: This acquisition and lease-up serves as a model for successful value-add industrial investing, transforming a vacant flex facility into a high-performing, income-producing asset anchored by national credit.

For investors seeking to acquire or reposition industrial assets in the Indianapolis MSA, Allies Commercial Realty provides the market intelligence, tenant relationships, and transaction expertise required to unlock superior returns.