Developers Selected to Build $22.9M Office Facility at IUPUI Campus

by Adriana Pop, Associate Editor

In a public-private development deal, REI Real Estate Services and its partner, Vermillion Enterprises LLC of Chicago, have been selected to build a 100,000-square-foot office facility at the IUPUI campus. According to the Indianapolis Business Journal, the proposed five-story building would house the university’s School of Philanthropy, as well as the offices of Chancellor Charles R. Bantz.

The IU Trustees have received a total of 18 development proposals for the $22.9 million project. Pending a final approval from the Commission for Higher Education and the State Budget Committee, construction could begin this summer and be complete next year.

Ratio Architects will design the building, which will be located at the northeast corner of New York Street and University Boulevard. IU has agreed to lease space in the building for 20 years, after which it would take ownership of the property.

The developers are currently lining up financing for the project, which is expected to generate a solid income stream. The university’s estimated annual cost of occupying the facility would amount to approximately $2.6 million, $1.7 million of which would be rent.

In other news, the Indianapolis Business Journal reports that the city’s Metropolitan Development Commission has approved a $30 million mixed-use apartment project that would be built at the corner of 86th Street and Keystone Avenue in suburban Indianapolis.

Developed by Hendricks Commercial Properties of Wisconsin, the five-story Ironworks at Keystone Village building would replace the long-vacant Woodfield Centre retail strip with 120 high-end apartments and 36,000 square feet of ground-level retail space. On March 25, the development proposal will go before the City-County Council. If approved, construction on the project would begin this year.

Photo credits: www.iupui.edu

Milhaus Redevelops Former Bank One Center into Apt., Office Space

by Adriana Pop, Associate Editor

Milhaus Development is currently redeveloping the former Bank One Operations Center in downtown Indianapolis into a five-story mixed-use structure with 258 apartments and up to 68,000 square feet of commercial space. Inside Indiana Business reports that the estimated price tag of the reconversion plan is around $30 million.

Located at 451 East Market Street, the “Artistry” project is centered on the arts theme, reflecting the neighborhood’s history of craft and skill. Marketing and experience-design firm Q7 Associates will brand and market the residences, while the Gene B. Glick Company will provide property management services.

Upon completion, the new development will feature two interior courtyards, which will include a fountain, a vegetable garden, a bocce court, as well as green and sitting areas. On the third floor, residents will have access to an open pool and recreation deck, with stunning views of the city. Concierge services will be provided and will include valet trash, recycling and laundry.

Furthermore, the “Artistry” will offer an art gallery, theatre, café, wellness studio, aqua lounge and outdoor kitchen. Parking will be available within the building, as well as at an existing nearby garage.

“The former building belonged to the city of Indianapolis and its redevelopment today is the result of the vision and hard work of many people. We are excited to bring yet another form of creativity downtown to synergize with the city’s existing support of the arts,” said David Leazenby, principal of Milhaus Development. “Artistry is designed to embrace individuality for those who value style over status.”

The new development will be LEED-certified, bringing cost savings through the use of environmentally sensitive features such as energy-efficient systems, appliances and materials.

“Artistry will be the next great addition to our downtown landscape,” said Indianapolis Mayor Greg Ballard. “This development will turn a long vacant and blighted building into a vibrant and exciting new downtown neighborhood. It also helps set the stage for future development in the area including the Market Square Arena site.”

The first residences will be available for occupancy by October and are expected to rent from $800 to $1,800. Milhaus Development is also considering a second phase of the “Artistry” project, consisting of 200 apartments planned for a site adjacent to the main building.

Photo credits: www.milhausdevelopment.com

Luxury Hotel in Downtown Indianapolis Open for Business

by Adriana Pop, Associate Editor

A new four-star hotel has recently opened in the heart of downtown Indianapolis, as part of the CityWay development.

Called The Alexander, in honor of Alexander Ralston, the engineer and architect who in 1820 led the creation of the city’s plan, the property offers 157 guest rooms with stunning views of the city, along with 52 extended stay suites. Amenities include a fitness center, multiple restaurants and meeting rooms totaling 16,500 square feet of indoor and outdoor event space.

The new hotel has been developed by Indianapolis-based Buckingham Companies and designed by the Gensler architecture firm. Dolce Hotels and Resorts, of Rockleigh, N.J., is managing the property.

“The Alexander is our new model for urban hotels, a hybrid between a center-city lifestyle and conference hotel,” said Steven Rudnitsky, Dolce president and CEO.

CityWay is a $155 million project north of South Street that will encompass high-quality residences, office and retail space, as well as a public park and state-of-the-art YMCA.

In regional news, developers have broken ground on a $14.4 million health and wellness center in Avon. Inside Indiana Business reports that the new community is a joint project between Life Care Services and Mainstreet.

Scheduled to open in July 2013, Wellbrooke of Avon is expected to generate up to 100 full-time jobs and as many as 300 construction jobs. The center will feature 70 all-private accommodations for physical, occupational and speech rehabilitative and long-term care, as well as 30 service-rich apartments for full-time residential living.

According to Mainstreet’s Chairman and CEO Zeke Turner, Wellbrooke guests experience concierge-based health services in a hotel-like atmosphere.

“The design will feature multiple social destinations, including several different dining venues and private and public areas with fireplaces,” Turner stated. “An emphasis on social features encourages interaction with family and friends, making Wellbrooke of Avon a destination for the entire community.”

Currently, there are three similar communities under construction in Crawfordsville, Wabash and Westfield, Indiana.

Photo credits: www.thealexander.com

Flock Real Estate to Spend $1M Renovating Historic Apartment Buildings in Indianapolis

by Adriana Pop, Associate Editor

Two Old Northside apartment buildings at the northeast corner of 13th and Alabama streets in Indianapolis are about to get a $1 million makeover. Built in the late 1800s, the three-story properties comprise approximately 20,000 square feet of living space.

The Indianapolis Business Journal reports that locally based Flock Real Estate Group will apply for historic tax credits to finance the renovation project. Upon completion, the buildings will offer 12 one-bedroom units, three two-bedroom units and three three-bedroom units, with refurbished hardwood floors, high ceilings, new windows, track lighting and new kitchens with stainless appliances. Rents for the 18 market-rate units will range between $750 and $1,600 per month.

Renovation work is expected to begin in the next few months and be complete by August. Flock Real Estate Group purchased the properties known as The Arletta and The Hartwell late last year for about $300,000. The company will now rename the buildings The Veston and The Maude, after their former owners.

In regional news, Samaritan Properties of Plainfield, Ind. has recently purchased the Abbey Court Apartments, a 250-unit garden apartment community in Evansville (pictured). According to the RE Journals, Tikijian Associates represented the seller, Indianapolis-based Hearthview Residential.

Built in 1976, the property features a unique architecture in a terrific location, with easy access to Green River Road and Lloyd Expressway. Amenities include a swimming pool with sundeck, a fitness center, a play area, a business center and an expansive clubhouse.

In 2010, Hearthview Residential purchased the community from lender Berkadia Commercial Mortgage following property’s foreclosure. Hearthview then renovated the property and changed its name from Stonehedge to Abbey Court.

Photo credits: www.abbeycourtapts.com

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Duke Realty Divests Six-Building Office Portfolio in Indianapolis

by Adriana Pop, Associate Editor

A joint venture between Middleton Partners and Romanek Properties has acquired the six-building Hillsdale Technecenter in suburban Indianapolis from locally based Duke Realty Corp. John Huguenard and Peter Harwood of Jones Lang LaSalle represented the seller in the transaction. Financial terms were not disclosed.

According to the Indianapolis Business Journal, the sale of the 446,000-square-foot office complex is part of Duke’s plan to reduce its ownership of suburban office properties. The company’s long-term goal is to have 60 percent of its holdings in industrial, 25 percent in office and 15 percent in medical office.

The Hillsdale Technecenter was developed in 1986 and 1987 and its single-story buildings range in size from 64,000 square feet to 84,050 square feet. The property’s overall occupancy rate is 88 percent and its tenants include Verizon Wireless, with about 38,400 square feet; Community Health, with 34,300 square feet; and Ingersoll-Rand, with 29,300 square feet.

“The Hillsdale complex is highly regarded in the marketplace and considered an excellent infill location close to major highways and local demand drivers,” Romanek Principal Peter Holstein told the newspaper.

In other news, Hendricks Commercial Properties is planning a $30 million, mixed-use apartment project at the corner of 86th Street and Keystone Avenue in suburban Indianapolis. Dubbed Ironworks at Keystone Village, the new five-story development would replace the long-vacant Woodfield Centre retail strip near the Fashion Mall with more than 36,000 square feet of ground-level retail space and 130 high-end apartments.

Mike Cook, the local attorney representing the developer, told the Indianapolis Business Journal that construction could start this spring and be complete by the end of the year. The project is expected to go before the full Metropolitan Development Commission on Feb. 6.

Photo credits: www.amichaelpublishing.com

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Gershman Brown Crowley to Begin Construction on First Phase of $100M Mixed-Use Project in Carmel

by Adriana Pop, Associate Editor

Indianapolis-based Gershman Brown Crowley Inc. will soon break ground on the first two components of its $100 million mixed-use development in Carmel.

According to the Indianapolis Business Journal, the developer is seeking design approval from the city for a 9,600-square-foot retail building at the southwest corner of 116th and Illinois streets and a 13,200-square-foot CVS pharmacy planned at 116th and Springmill.

Gershman Brown Crowley expects to start construction in March. The pharmacy is scheduled to open in September, while the retail building is slated to be finished by October.

Dubbed The Bridges, the 62-acre project could bring as much as 250,000 square feet of retail space, 500,000 square feet of office space and 300 apartments. Construction will depend on market demand and could take up to 15 years. The Carmel City Council approved the developer’s rezoning request from residential to commercial in June 2011. The name of the project has been inspired by the old-style stone bridges planned over the site’s landscaped water features.

Bill French, a retail broker at Cassidy Turley, told the newspaper that Gershman Brown Crowley’s new retail development would serve the Meridian Street office corridor and the residents west of Meridian.

“I’m glad they’re breaking the ice with CVS and the small shops. I suspect that once that happens we’ll see a great deal more activity there,” he said.

In other news, south-side entrepreneur Joe Wolfla has announced plans for the conversion of the former Saint Francis Hospital in Beech Grove into a $20 million mixed-use senior housing complex.

The Indianapolis Business Journal reports that the new Franciscan Place development would offer more than 150 apartments, along with shops and restaurant space. Wolfla has acquired the 14-acre campus from Franciscan Saint Francis for $10.

The 900,000-square-foot Beech Grove property became available in March, when the hospital system ended all inpatient operations at the facility. Five years ago, Franciscan announced it would consolidate its Beech Grove operations into another facility located near Interstate 65 and Emerson Avenue.

Photo credits: treefroggroup.com

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Pedcor Cos. to Break Ground on Carmel City Center’s Second Phase Next Spring

by Adriana Pop, Associate Editor

The Pedcor Companies will begin construction on the second phase of the major Carmel City Center project next spring.

According to the Indianapolis Business Journal, the first structure to be developed will be The Nash. Located on the west side of Rangeline Road, the three-story, $10 million mixed-use building will feature 31 one-, two- and three-bedroom apartments. The new development will also offer 8,000 square feet of commercial space at street level. Infrastructure costs and 42 underground parking spaces will be financed through a $2 million contribution from the city of Carmel.

According to brokerage firm Tikijian Associates, the area’s apartment demand is strong and the trend is expected to continue in the near future. Upon completion in two years’ time, the Nash units are projected to rent for about $1.25 per square foot.

In August 2010, the first phase of the Carmel City Center development brought 106 apartments to the market. The units are 90 percent occupied and rent for approximately $1.15 per square foot. The project also included 62,000 square feet of commercial space, the newspaper reports.

In other news, Duke Realty’s 1,700-acre mixed-use development in Anson will soon welcome its first hotel. Inside Indiana Business reports that developer Yagnash Patel is building a new Hampton Inn property in Boone County, on the northwest side of Indianapolis.

Slated to open next summer, the 56,708-square foot, four-story hotel will offer 92 guestrooms. Amenities include an indoor swimming pool, a fitness center, wireless connectivity and free breakfast.

“Anson is an ideal location for this new Hampton Inn because of its convenient highway access and the absence of other quality hotels in the area,” Patel told the newspaper. “There is definitely a need for quality lodging along this corridor of I-65 given the ongoing growth of Whitestown and Zionsville and the increased traffic counts between Indianapolis and Chicago. Now area residents and businesses can find comfortable and affordable rooms nearby when they need guest lodging.”

Photo credits: www.pedcorcompanies.com

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Local Investor Group Acquires 188,000SF Office, Storage, Industrial Space in Indianapolis

by Adriana Pop, Associate Editor

Private investor group Alcatraz Investments, LLC has acquired the 188,000-square-foot Indianapolis Enterprise Center on the near-east side of the city. Financial terms of the transaction were not disclosed.

The facility features office as well as storage and industrial space, and serves small business customers in the downtown Indianapolis market. Alcatraz Investments now plans to upgrade the property, which has experienced four years of deferred maintenance. Scott Meyers, the company’s principal, has owned the center once before, from 2005 to 2007.

“We’re genuinely excited about the opportunity to add this property back into our portfolio, having sold it back in 2007,” said Meyers. “The timing was perfect, as demand for storage and Industrial space is growing in this market, and the need for small, affordable office space has never been greater than during the recession.”

According to the Indianapolis Business Journal, San Francisco-based Wells Fargo Bank attempted to foreclose on the 78-year-old building in January. The bank sued former owner Indianapolis Enterprise Center LLC to recoup a $3.1 million loan balance.

In regional news, the Bloomington City Council has approved a plan to vacate a downtown property to allow for the construction of a $27 million Hyatt Hotel.

The Herald-Times reports that REI Investments and White Lodging are planning to develop a 168-room Hyatt on West Kirkwood Avenue between Gentry Street and the B-Line Trail. Construction on the project is expected to begin next spring. Upon completion during the second quarter of 2014, REI would own 75 percent of the new hotel, while White Lodging would own 25 percent and be in charge of the property’s management.

Photo credits: www.ntea.com

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General Hotels Plans $8M Renovation for Downtown Crowne Plaza

by Adriana Pop, Associate Editor

General Hotels Corp. is planning a major renovation of the Crowne Plaza Hotel in downtown Indianapolis. According to Inside Indiana Business, the $8 million project will include extensive upgrades to the hotel’s 273 guest rooms, as well as improvements to the meeting space and food and beverage areas.

In order to ensure minimal impact to hotel guests, the renovation will be conducted in phases. It is scheduled to begin during the first quarter of 2013 and be completed by October.

“The hotel’s historical, architectural charm and proximity to downtown’s entertainment districts, sporting venues and attractions, combined with newly renovated state-of-the art comfort will offer planners and visitors an exclusive meeting / lodging experience distinctly set apart from other area hotels,” said Jim Dora, Jr., General Hotels Corp. president and CEO.

Owned by B&D Associates LP, the Crowne Plaza Hotel Indianapolis Downtown Union Station is best known for its 26 authentic Pullman train car sleeper rooms. It opened in 1986 under the Holiday Inn brand before becoming a Crowne Plaza. The property is now the 14th largest hotel in the Indianapolis area in terms of number of guest rooms.

In regional news, Kite Realty Group Trust has closed on an $18.4 million construction loan for its Rangeline Crossing redevelopment in Carmel. The construction loan has been financed by Associated Bank and has a two-year term with an option to extend for another three years.

The 84,000 square feet retail center is approximately 90 percent pre-leased or committed and will be anchored by Earth Fare. Other tenants include Walgreens, Old National Bank, Panera Bread, and Verizon Wireless.

“We are pleased to obtain financing for another outstanding re-development opportunity in the Indianapolis area,” said John A. Kite, the company’s Chairman and CEO. “We are seeing significant demand from high-quality tenants for this project.”

Construction on the first phase of the project is already under way, with completion scheduled for the fourth quarter of 2012.

Photo credits: www.hotels.com

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Eli Lilly Plans $140M Plant Expansion in Indianapolis

by Adriana Pop, Associate Editor

Eli Lilly and Co. has announced plans for a $140 million expansion of the company’s Indianapolis insulin manufacturing operations. The company’s initiative represents one of the largest economic development investments in both the city and state in 2012.

Construction on the 80,000-square-foot expansion will begin immediately with completion expected in March 2014. More than 100 permanent jobs for highly skilled technicians, scientists, and engineers will be created once the facility becomes operational in 2015.

The new center will manufacture insulin cartridges for people with diabetes. It will be the first-of-its-kind facility for Lilly in the U.S.

“Lilly’s expansion brings new jobs and investment of new capital to our local economy, demonstrating the company’s confidence in doing business in Indianapolis and strengthening our advanced manufacturing and bioscience industries,” said Indianapolis Mayor Greg Ballard. “We are pleased to see this industry leader that calls Indianapolis home continuing along its growth path, which is good for our community and the Central Indiana region as a whole.”

In other news, officials have broken ground on the first permanent supportive housing facility for homeless veterans in Indianapolis. Called Lincoln Apartments, the 75-unit project will be developed on the site of an iron works foundry along Holmes Avenue on the city’s near west side.

According to Inside Indiana Business, the City of Indianapolis donated the land, which had sat vacant since 1962, and remediated environmental problems with the help of federal and state grants. The total cost of the new development amounts to approximately $11.6 million and includes the value of grants and federal housing tax credits.

The community will offer fully furnished apartments, and it is expected to open by next fall. The development team is comprised of Building Blocks Non-Profit Housing Corp., Volunteers of America of Indiana Inc., Milner and Caringella Inc., Roudebush VA Medical Center, and Keystone Construction.

Photo credits: www.bdmd.com

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