From Kelley School of Business Indiana Real Estate Professional-Winter 2022
This February, the Commercial Real Estate Workshop (CRW) presented their “Highest and Best Use” case study on the Tree Tops at Mt. Airie located at West Baden, IN. Property owner, longstanding Advisory Board member, and former IU two-time football team captain and Holiday Bowl Championship team captain Terry Tallen led the question and answer portion of the presentation. Tree Tops at Mt. Airie is a 17-acre “view” future high-end residential development located directly across N. County Road 1040 from the internationally renowned Pete Dye Golf Course. At an elevation of almost 1,000 feet, the spacious hilltop development is located on irreplaceable real estate and offers unobstructed mountain, valley, and resort views. The project is a joint venture with the McCrea and Tallen families who met while Terry was an IU student-athlete. The Dye Course at French Lick is ranked 19th by Golf Digest of America’s Best Public Golf Courses and the #1 ranked public golf course in the state of Indiana. The aesthetics and topography are nearly perfect on this difficult and classic Dye course, where accuracy off the tee is a premium. From the gold tees the course is 8,100 yards and the undulations provide speed slots, layup areas, and spots to avoid. The volcano bunkers add a unique, memorable element to the design. The outstanding views and setting – playing on the top and the side of a mountain –are unimaginable for Southern Indiana. The approach shot on the 12th is uphill to an infinity green that looks like you are hitting to the sky. The backdrop of the historic Mt. Airie Mansion adds to the extraordinary aesthetics. The golf course is a component of the historic French Lick Springs and West Baden Hotels owned by the Cook family.
Senior finance students and Commercial Real Estate Workshop leaders Solomon Weistreich, President, and Cale Phillips and Ryan Kline, Vice Presidents, worked collaboratively with Professor Cockerham and Tallen Capital Partners in leading the five groups of Kelley students on their in-depth presentations. The five case studies included the following product categories: Luxury RV Park, Luxury Apartments, Golf In – Golf Out Single-Family Homes, Luxury Condominiums, and Build to Rent (Golf In and Golf Out Rentals). Build to Rent (BTR) is one of the fastest growing asset classes in commercial real estate. Representing Tallen Capital Partners were Terrence Tallen CEO, Mark Salma, EVP, Elizabeth McCrea, PhD, Clinical Professor Emerita Indiana University Department of Speech, Language and Hearing Sciences, past president of the New Hope for Families in Bloomington and project partner, David McCrea, Esq., Clevenger award winner, I-Man, and former judge, and IU Kelley student and Tallen Capital intern, Chris Carrol. In addition, the students also received considerable and relevant input from outstanding local leaders including Lisa Abbot, Vice President of Economic and Community Development of Regional Opportunity Initiatives and adjunct professor, and Cristal Painter, Executive Director of the Orange County, IN Economic Development Partnership, along with Professor Cockerham. The students’ feasibility presentations were thorough and covered all aspects of real estate development including market analysis, proforma development, entitlements, and the ultimate development and underwriting the projected returns of the various product types. The project is approximately a one-hour drive south of Bloomington and all the CRW students toured the property and surrounding market with Mark Salma and Professor Cockerham.
Professor McCoy and Terry Tallen are grateful former students of the IU Center for Real Estate Studies Founder and Professor Emeritus Jeff Fisher, PhD, and spoke glowingly about their longstanding relationships with Dr. Fisher. Tallen Capital Partners a privately held California and Indianapolis based vertically integrated retail, mixed-use and residential investment, development and asset services organization doing business nationally. Terry Tallen leads the company’s multidisciplinary approach in the acquisition, financing, entitlement and redevelopment of retail, multifamily and mixed-use projects located throughout the United States. Prior to Tallen Capital Partners, Terry served as a principal or senior executive with several large public REITs and private real estate organizations, directing the acquisition, redevelopment, entitlements, and leasing of more than 320 retail properties comprising 40M sq. ft. of GLA. Terry Tallen graduated from the Kelley School of Business in 1982 and is a member of Indiana University’s President’s Circle, a 2016 Clevenger Award winner, benefactor of the Terry Tallen Football Leadership Scholarship, and the Terry Tallen Indiana Football Complex. Mark Salma is an Indianapolis resident, a retail real estate veteran, and former senior executive and real estate director in the Midwest for Kroger. Next up for the Tree Tops at Mt. Aerie project will be to finalize the product type and then begin the capital formation process.
It was truly a great evening at Kelley!