The Pyramids, an iconic office complex on Indianapolis’ North Side, has been acquired by local company KennMar, which plans to update the property with an upgraded facade and upgraded interior common areas, the buyer announced Monday.
The 50-year-old office park, 3500 Depauw Blvd., totals nearly 367,000 square feet across a trio of 11-story buildings on 45 acres near Interstate 465 and Michigan Road. It was purchased for an undisclosed price this month from New York-based Sterling American Property Inc., which has owned it since 2004.
KennMar President and CEO Brent Benge said the company is continuing to redevelop the property despite pandemic pressures on office utilization as it is confident there will be renewed demand for space high-end in the years to come.
“As an Indianapolis-based real estate investment firm, we were very interested in purchasing one of the city’s most recognized office properties,” he said in written remarks. “While the pandemic has created uncertainty around the office market, we are optimistic for the sector and expect businesses to eventually return to an in-person work environment over the next few years.”
Benge did not share details of KennMar’s plans to update the property, including scope, timing or investment, but said the company plans to update the exterior of structures and d improve the interior common areas and exterior amenities of the property.
The move is intended to “compete with new office developments” in the Indianapolis area, Benge said.
The Pyramids, the 20th-largest office complex in Indianapolis, according to IBJ statistics, was about 72% occupancy in 2021. Tenants include the American Academy of Osteopathy, AT&T, Cushman & Wakefield brokerage firm, Indiana Institute of Technology, Katzman & Katzman PC, National Multiple Sclerosis Society, and Transitions of Indiana.
The towers were built from 1967 to 1972 by the College Life Insurance Co., to a design by famed architect Kevin Roche. Roche is known for his work in Columbus, Indiana, where he designed the U.S. Post Office and Cummins Headquarters. He was also design partner for architect Eero Saarinen on the home of industrialist and philanthropist J. Irwin Miller.
Kevin Gillihan and Beth Sallee of the Indianapolis office of Chicago-based brokerage firm JLL will oversee the leasing and marketing of the property.
“KennMar took advantage of a great opportunity to invest in the community by purchasing this historic office park,” said Gillihan, senior vice president. “The Pyramids are home to some of Indy’s most highly regarded businesses and KennMar’s determination to redevelop areas of our city is something many of us look forward to. We are confident that KennMar will get the most out of this investment.
In addition to The Pyramids, KennMar has recently been involved in several other local projects. They include the Indy Hotel in downtown Indianapolis and a redevelopment of the former Caribbean Cove property a few hundred yards from the office park at 3850 Depauw Blvd. This parcel is being transformed into a 10,000 square foot shopping center called College Park Shoppes, which will include a Panera and an independent Starbucks.
This story will be updated.