The Indiana Finance Authority declined to sell a 19-acre development parcel between the White River and Fall Creek near downtown Indianapolis after it received only two bids at an auction Thursday.
The highest of the bids was $6.5 million, the price the state had set as a minimum bid for the property at 1401 Milburn St. between Indiana Avenue and 16th Street.
"We rejected it for not being enough and concluded the auction," spokeswoman Jennifer Alvey wrote in an e-mail.
The state years ago intended to build a psychiatric hospital on the site. Later plans, revealed in a bid packet, show what appears to be an apartment or condo development with three swimming pools.
Much of the surrounding area is part of a certified technology park. IUPUI's Biotechnology Research and Training Center on 16th Street just west of Indiana Avenue marks the edge of the park.