Kimco Realty Sells Indianapolis Retail Center

Big V Property Group and Equity Street Capital have acquired a 232,284-square-foot open-air shopping center in Carmel, Ind. The purchase of Merchants’ Square marks the entry of Big V into the Indianapolis market.

Big V currently owns and operates more than 50 neighborhood and community shopping centers, totaling in excess of 9.5 million square feet, mainly located in the southern region of the U.S. Last year, the firm obtained $125 million for the refinancing of a 846,467-square-foot lifestyle retail center in Murfreesboro, Tenn.

An Indianapolis-area shopping center

Merchants’ Square is a six-building asset completed in 1974, CommercialEdge data shows. Originally a Target-anchored and enclosed Keystone Square Mall, the property was renamed and redeveloped to the current configuration in the 1990s, according to Indianapolis Business Journal.

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The property previously traded in 2004, when Kimco Realty purchased it for $37.3 million. Current tenants include Planet Fitness, Flix Brewhouse, Cost Plus World Market, Dollar Tree and Petco. Harvest Market is set to shadow-anchor the property, opening its 76,000-square-foot storefront this fall.

Located at 2100 E. 116th St., in the third-largest city of the Indianapolis metro, Merchants’ Square is 22 miles from downtown Indianapolis and 31 miles from Indianapolis International Airport. The shopping center serves more than 168,000 residents living within a 5-mile radius and earning, on average, $143,557.

The Indianapolis retail market ended last year on a high note, according to a fourth quarter report by Cushman & Wakefield. The metro’s vacancy rate dropped to 4.5 percent, down 100 basis points over the quarter and 70 basis points over the year. The Carmel submarket, alongside Avon, Fishers and Mooresville, recorded vacancies of less than 2 percent at the end of 2023.