Developing story: Indiana's major real-estate development companies.

• Author: McKimmie, Kathy
• Position: Cover Story

INDIANA REAL-ESTATE companies are making their mark around the state and across the country Two Indianapolis-based companies continue to dominate their sectors nationally while Indiana's major developers are catering to demand for office, retail and distribution space.

When Kite Realty Group launched its IPO last year (NYSE:KRG), it became the fourth publicly traded real estate investment trust (REIT) headquartered in Indiana. Kite is focused on development of high-quality neighborhood and community shopping centers in selected growth markets in the U.S. It owns interests in 42 operating properties totaling about six million square feet, and 14 properties under development with a projected 2.1 million square feet.

In Indiana, Kite's shopping-center properties include eight in Hamilton County, four in Indianapolis and single locations in seven other cities. Prior to its IPO, Kite Development Corp. and Mansur Real Estate Services, Indianapolis, were selected by the city of Indianapolis to develop the long-vacant and highly desirable property on the northeast corner of Washington and Illinois streets. With Kite's IPO, principals Al Kite, Paul Kite, John Kite and Tom McGowan took over the project under Circle Block Partners LLC, a privately held entity, and own the home of the city's newest luxury hotel, the 23-story Conrad Indianapolis, set to open in the spring.

Indianapolis-based Simon Property Group (NYSE:SPG), is the country's largest retail REIT and a member of the S&P 500 index. It continues to grow throughout the U.S. and internationally, with a Hong Kong office opened earlier this year. Expanding beyond its regional mall moniker, it also focuses on development of its Premium Outlet centers and open-air community and lifestyle centers in upscale areas, such as Clay Terrace, a joint venture with Lauth Property Group, opened in Carmel last year. An even bigger open-air Hamilton Town Center in Noblesville, with a mix of retail shops, restaurants, office space and landscaped acres, will open in 2007.

Simon, led by president and CEO David Simon, is cementing its Indiana base with the construction of its new headquarters just south of the Statehouse in downtown Indianapolis. The $55 million, 14-floor, 350,000-square-foot facility will be ready for occupancy next fall.

Windrose Medical Properties Trust (NYSE: WRS), Indianapolis, is a self-managed specialty medical properties REIT that was formed and went public in 2002 and owns property in 10 states. Although headquartered in the Hoosier state, the REIT doesn't own medical facilities here. It's an evolution of Hospital Affiliates Development Corp., Nashville, Tenn., which has been involved in medical facility planning and development for 27 years. HADC is now a wholly owned subsidiary.

In September Windrose completed the acquisition of its 14th property in Atlanta, part of a $92 million acquisition blitz in 2005. Its strategy is to acquire $25 million in outpatient medical properties per quarter. Fred Klipsch, chairman of Klipsch Audio, Indianapolis, is chairman and CEO of Windrose.

Duke Realty Group (NYSE: DRG) is the largest mixed office and industrial REIT, according to NAREIT, the industry's trade association. It has 115 million square feet of office and industrial...