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Developer puts Cosmopolitan complex on block

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The owner of downtown's Cosmopolitan on the Canal has put the property up for sale, calling it "unequivocally the city’s finest residential asset."

Indianapolis-based Flaherty & Collins Properties finished the high-end, 218-unit apartment community in 2010, and it is already 98-percent occupied.

The local office of CB Richard Ellis is marketing the property to investors without an asking price, seeking either to sell it outright or to bring in an equity partner. The project, which is bordered by the Central Canal, Senate Avenue, Michigan Street and North Street, cost more than $33 million to build.

Also on the block:  An adjacent, triangle-shaped parcel bordered by Michigan Street and Senate and Indiana avenues. The property could accommodate a second Cosmopolitan phase with 162 additional apartment units and 5,365 square feet of commercial space at a cost of about $24 million.

Flaherty & Collins' preference is to retain an ownership interest in the property and bring in an equity partner, said CEO David M. Flaherty. The company has several deals in the works and would like to free up some capital.

The Cosmopolitan should command a premium valuation and could attract a new-to-market buyer, Flaherty said.

"There is no more trophy property on the multifamily side than this, and multifamily is the preferred property type today," Flaherty said. "From a desirability perspective, it would be way up there."

Offering materials note the Cosmopolitan's upscale health and fitness center, yoga and pilates studio, salt-water infinity pool and grilling area, indoor/outdoor aqua lounge and attached parking garage with 342 spaces.

It says about 10 percent of residents earn more than $150,000, and "numerous" residents earn more than $500,000.

Another selling point is the potential for rent growth of 6 percent or more per year, given the high demand for Cosmopolitan apartments.

Flaherty has been bumping up rent rates, which range from $1,000 up to $2,500, as terms expire, and would charge more initially for new units in a second phase, Jim Crossin, the company's vice president of development, told IBJ in February.

The first phase of Cosmopolitan had been set for completion by 2009, but a devastating fire in March 2009 delayed the opening by about a year.

The 16,000 square feet of commercial space on the first floor of Cosmopolitan has been less of an overnight success, though the branding and advertising firm Three-Sixty Group agreed in February to take about 5,000 square feet and move from its current home in the Century Building.

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  • not exactly
    From the dozens of times I have visited the Cosmopolitan it seems as though about 75% of those tennants are either in college or less than 5 years out of college. That income stat must be regarding their parent's income. FYI
  • They Need Money
    Mr. Flaherty sounds great, but they NEED money
    to survive, they are CASH poor and everybody
    knows it. They also are not very well thought of in the neighbor hood. 10% of their clientele makes $150,000 a year???, when you consider that college students supported by wealthy parents support this
    statement, they are in deep trouble... good luch Mr. Flaherty - you are a sub par Landlord....
  • cosmopolitan
    i wish somebody would purchase the cities "worst residential liability" at st. clair and capitol. this 1 year old building is a tear down.

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  1. The east side does have potential...and I have always thought Washington Scare should become an outlet mall. Anyone remember how popular Eastgate was? Well, Indy has no outlet malls, we have to go to Edinburgh for the deep discounts and I don't understand why. Jim is right. We need a few good eastsiders interested in actually making some noise and trying to change the commerce, culture and stereotypes of the East side. Irvington is very progressive and making great strides, why can't the far east side ride on their coat tails to make some changes?

  2. Boston.com has an article from 2010 where they talk about how Interactions moved to Massachusetts in the year prior. http://www.boston.com/business/technology/innoeco/2010/07/interactions_banks_63_million.html The article includes a link back to that Inside Indiana Business press release I linked to earlier, snarkily noting, "Guess this 2006 plan to create 200-plus new jobs in Indiana didn't exactly work out."

  3. I live on the east side and I have read all your comments. a local paper just did an article on Washington square mall with just as many comments and concerns. I am not sure if they are still around, but there was an east side coalition with good intentions to do good things on the east side. And there is a facebook post that called my eastside indy with many old members of the eastside who voice concerns about the east side of the city. We need to come together and not just complain and moan, but come up with actual concrete solutions, because what Dal said is very very true- the eastside could be a goldmine in the right hands. But if anyone is going damn, and change things, it is us eastside residents

  4. Please go back re-read your economics text book and the fine print on the February 2014 CBO report. A minimum wage increase has never resulted in a net job loss...

  5. The GOP at the Statehouse is more interested in PR to keep their majority, than using it to get anything good actually done. The State continues its downward spiral.

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