Dear Investors and Partners,
In this update, we will share progress across the Merrillville portfolio, including retail being down to one remaining vacancy, an updated leasing strategy for the flex building, the office building getting closer to full occupancy, and upcoming prefs for Merrillville portfolio investors.
We will also cover three deals outside Indiana that are currently in due diligence.
First time reading? Join other investors. Sign up here.
And, as always, send us feedback at [email protected].
Retail Building, 29,771 RSF
Unit 64 is demoed and ready for built-to-suit.
In the retail building, we signed leases for two vacant units. Of those two, one needed a remodel, which is now finished, and the other was leased as-is with a small allowance for tenant improvements. We also finished remodeling another unit for a tenant whose lease had already been signed.
One of the tenants we signed earlier is expanding into two adjacent units. Those spaces are currently occupied by businesses on month-to-month leases or approaching the end of their lease terms, and one of them is considering relocating into the unit the expanding tenant will vacate.
If this sequence comes together as expected, we will be at 95% occupancy and down to only one remaining vacancy: Unit 64, shown in the photo above. One of the existing tenants is already interested in that space.
We are also mostly done with the HVAC work and are now focusing on the roof, replacing the back doors, and other smaller capex items.
Flex Building, 31,564 RSF
The building continues to get interest from tenants looking for larger spaces that can combine uses such as office, training, and behavioral therapy. These tenants need a combination that is hard to find locally: single-story access, a presentable facade, higher ceilings, and proximity to US-30 and Broadway. As a result of this interest, we are currently in two active negotiations that, if completed, would absorb all of the vacancy.
Units 359 and 251 are occupied by high-credit tenants.
Because of that, we decided to move away from our initial small-bay flex plan and market the vacancy as two larger blocks: Units 335, 329, 301, and 291, totaling 9,239 SF, and Units 373, 375, and 397, totaling 7,394 SF.
More than 50% of the square footage in these two blocks has already been remodeled as office space, which helps tenants who want to reuse existing buildouts and move in quickly. If we can lease the space this way, we would fill the vacancy with two larger high-credit tenants on 5- to 10-year terms instead of converting the units into small-bay flex on three-year leases.
Office Building, 18,358 RSF
One of the units we finished remodeling.
Since the last update, we finished remodeling three units and found tenants for all of them. Two leases are signed, and one is still in process.
We also signed one more lease for another unit, with some work to be completed before the tenant moves in.
We are also in negotiations with a potential tenant that would take the last remaining vacant 4,659 SF unit. If that happens, the office building will be at 100% occupancy.
We may lose one of our current tenants. If that happens, and the larger company we are negotiating with moves forward, they would also take the vacated unit.
Since the smaller remodeled spaces are leasing well, if the larger tenant does not work out, our plan is to split up the unit into smaller spaces and remodel.
Upcoming Pref Payments
For our current investors, please be prepared: we will soon be reaching out individually to set up the wires.
Deals in Due Diligence
We are working through due diligence on three deals under contract.
South Carolina. This is a vacant/value-add industrial project. The current due diligence period has been extended through June 22, 2026, with 30 days to close after that.
Ohio. The office/flex property is approximately 73,740 SF. The due diligence period is scheduled to expire on July 13, 2026, with closing scheduled for July 28, 2026.
Illinois. This is a 12,480 SF retail center on 1.5 acres. The current closing date is scheduled for July 11, 2026.
Invest with Us
If we already have a relationship, please text Alex or Ivan if you would like to invest.
If we have not met yet, please reply to this email if you would like to learn more. We would be glad to meet you, walk you through what we are seeing, and share how we evaluate new opportunities.
Ivan & Alex
Principals
Columbia Creek Development, LLC