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Mixed-use high rise set for old Market Sq. lot

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Market Square-North Parcel - Mixed Use Development - COURTESY OF FLAHERTY & COLLINS PROPERTIES
  • Courtesy of Flaherty & Collins Properties
  • Market Square-North Parcel Mixed Use Development


On Tuesday morning, the NUVO news desk received the following news release from the City of Indianapolis:

City Selects Flaherty & Collins to Develop Market Square Arena Lot 28-Story Retail/Apartment Tower to Begin Construction Next Spring and Open in 2015

INDIANAPOLIS - Mayor Greg Ballard announced today the City has selected Flaherty & Collins Properties to develop the north lot of the former Market Square Arena site. The company plans to construct an $81 million, 28-story tower that features 300 luxury apartments, 500 parking spaces and 43,600 square feet of ground floor retail.

"This project will alter the way people view downtown Indy living," said Mayor Ballard. "Flaherty & Collins has a great track record of success in our city, its design was the unanimous selection of my advisory team, and they are very close to finalizing a tenant for the retail space. This project will be a great addition to downtown Indy."

The Flaherty & Collins proposal features green space and a pool on the parking/retail roof, a green sky window on the tower roof, and apartments with panoramic views of Indianapolis through floor-to-ceiling windows and balconies. The project will offer one- and two-bedroom apartments with rents anticipated to range from $1,300-$2,400 per month.

"We have been pursuing the development of the Market Square parcel since our first proposal to the City in 1999," said David Flaherty, CEO of Flaherty & Collins Properties. "We thought it was a great site then and believe it to be an even better opportunity today. This iconic cutting-edge-designed tower will change the downtown skyline and make a bold statement about Indianapolis being a progressive, forward thinking city."

The City will contribute $17.8 million to the $81 million project by investing property taxes generated from the project back into the development. Pending approval by the Metropolitan Development Commission and City-County Council, construction is expected to start next spring and be completed in late 2015.

"We are so pleased to welcome this project to Downtown Indianapolis, which is experiencing an all-time high in demand for multi-family housing," said Sherry Seiwert, president of Indianapolis Downtown, Inc. "And from 2009-2014, that demand parallels an 89 percent increase in the number of multi-family rental units in our regional core, indicating a growing, vibrant and energized Downtown neighborhood."

Mayor Ballard announced the City's intention to redevelop the north lot of the former Market Square Arena site during his 2013 State of the City Address. Six companies initially submitted proposals. One later withdrew. Mayor Ballard assembled a panel of government, real estate, and community leaders to help review the proposals and make a recommendation. The other four proposals were submitted by development partnerships between: Ryan Companies and Barrett & Stokely, Browning Investments and The Whitsett Group, Keystone Realty Group and Forest City Companies, and Milhaus Development and REI Real Estate Services.


The mayor's office followed up with some additional statistics:

This $81 million project will change the way people look at living in downtown Indy.

· The 28-story tower features 300 luxury apartments, 500 parking spaces and 43,600 square feet of ground floor retail.
· Project will attract hundreds of new residents to Indy and a new downtown retail tenant.
Downtown Indy is surging with new developments and demand for new residences.

· 21 new residential projects with over 3,200 units are currently in the pipeline.
· Downtown apartments are at an all-time high 96.5% occupied, despite supply growing 89% in the last five years.
This project will generate approximately $500,000 in new income tax revenue per year for City.

· This is money that can be invested in police, fire, parks and neighborhood redevelopment
· In the property tax cap era, city's economic future is tied to attracting new residents and their income taxes.

o Recent study shows 54% of new downtown residents came from outside of Marion County.
o The average household income of residents new to Marion County was over $80,000 per year.
Urban Redevelopment does not happen without public-private partnership.
· This project was bid three-times over two administrations and no proposals were submitted that didn't require a public-private partnership.
o Even during the pre-recession construction boom, every proposal to redevelop this site required city involvement.

· City's involvement is limited to land disposition and investing property taxes from this project back into the development.

City's partnership on this project (29%) is lower than previous downtown development projects.
· City invested 43% of cost of Simon Headquarters in 2004.
· City invested 34% of Conrad development in 2004.
· City invested 29% of cost of downtown Marriott in late 90s.

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