GREENFIELD, Ind.– Some Hoosiers might remember Marsh grocery stores. The grocer operated 116 stores at the time of its sale in 2006. While some properties have been redeveloped, others have sat vacant for years.
“Sun Capitol bought them, and that was the beginning of the end for Marsh Supermarkets as we know it,” said Keith Stark, founder and CEO of Consortium CRE.
After the sale, in 2007 just 44 stores remained. Needlers and Kroger purchased 28 of them, and the remaining 16 were sold to various developers and investors.
“For the most part, everyone wants to get these properties repurposed as quickly as possible,” said Bill French, executive director at Cushman & Wakefield. “It’s tough sometimes to find the right tenant.”
Developers said there are a few considerations when deciding which Marsh properties should be repurposed.
“It really just depends upon building you’re dealing with, the market it’s in and those attributes or characteristics,” Stark said.
The former Marsh along East Greyhound Pass in Carmel will become Academy Sports and Outdoors. The location at Keystone and 62nd in Indianapolis was purchased by Traders Point Christian Church, with a Chase Bank being constructed out front. The former Marsh site in Greenfield was split into two, with an Ace Hardware Store opening inside one part of the building next month.
Stark said developers are opting for repurposing properties rather than new construction for several reasons.
“Rising interest rates, rising land costs and construction costs are through the roof,” Stark said. “They’re up 30, 40, 50 percent.”
More than half of the remaining store locations have been repurposed. Brownsburg just announced the former Marsh site will be home to HMD Motorsport Company.
French said more repurposing is on the way.
“I think we’re going to see within the city or general metro, only two or three will be vacant by the end of the year,” French said. “The rest will be sold.”