IBJNews

Glick partners on $30M downtown apartment development

Back to TopCommentsE-mailPrintBookmark and Share

The lead developer on a long-delayed proposal to redevelop the former Bank One Operations Center has landed a powerhouse partner: apartment developer Gene B. Glick Co.

Milhaus Development and Glick hope to break ground late this year on the $30 million first phase of The Residences at 451 E. Market St., which would recast the rundown and vacant downtown office building into 258 high-end apartments and first-floor retail space.

City officials are eager to close on the project soon, both to add new residential units to downtown and to clean up the blighted building between Washington, East, Market and New Jersey streets, said Deputy Mayor Michael Huber.

"The more companies that we have investing in real estate downtown—especially companies with Glick's history and credibility—the better it looks for downtown," he said.

The project—which the city approved in late 2009 as part of an unusual public-private partnership—ran into delays as Indianapolis-based Milhaus worked to secure financing so the city could close on a deal to privatize publicly held parking assets, including thousands of metered spaces.

The plan for the former Ops Center calls for Milhaus to acquire the building, surface parking lots and an adjacent parking garage from a private owner for $18.5 million. Then Milhaus will sell the 1,680-space garage to the city for the same price.

City officials have argued the deal will provide a boost to a blighted area and give it control of enough parking to support the future redevelopment of the former Market Square Arena site—all without any upfront cash, no issuance of bonds, and an automatic tenant for the garage. The developer would take out a loan to buy the property, and the city would make the payments over 20 years using revenue from the garage.

The deal calls for Milhaus to buy back 600 spaces in the garage over 20 years by repaying $6.6 million in tax abatements and pitching in additional payments to the city totaling $2 million.

Milhaus Principal Tadd Miller said the project will begin six to nine months after the city closes on the parking garage. He said Glick will use its decades of experience in apartment development and management, while Milhaus' contributions include its creativity in designing a public-private partnership to pull the deal together.

"I wish we could get rolling on it tomorrow," he said. "We're ready to go."

The deal is only the latest partnership for Glick and Milhaus, which first teamed up to acquire downtown's The Maxwell apartments out of foreclosure in late 2010. The project is almost 100-percent leased, and several more potential renters have joined a waiting list, Miller said.

The two companies also are collaborating on the Penn Circle development at 126th Street and Old Meridian in Carmel, and are working on two others outside Indiana. He said Glick has been on board as a partner in the Ops Center redevelopment since Day 1.

Some critics of the project have questioned whether the city is taking on too much risk and overpaying. Sales disclosures show the properties most recently sold in July 2004 for a total of $13.5 million—$3 million for the former operations center and $10.5 million for the parking garage.

The agreement allows the city to take control of the entire property if the deal doesn't materialize within 18 months of closing.

Milhaus was founded in 2009 and is operated by four principals: Miller, Andrew Lahr, Gregory Martin and David Leazenby. Miller, Lahr and Martin are former employees of Kosene & Kosene, which developed the $24 million Maxwell project.

Indianapolis-based Glick, founded in 1947, manages more than 18,500 apartment units in 10 states and recently has stepped up its acquisition and development efforts. The Maxwell was Glick's first foray into the downtown market.

ADVERTISEMENT

  • groceries
    Grocery stores make very small margins. You have the Marsh downtown and the Kroger at 16th. Plus, anyone w/ a car probably goes to the Glendale Kroger / Marsh, 38th Meijer or Southport Target. Trying to put another one downtown would probably run one of the downtown stores out of business.
  • Huh?
    There are plenty of gas stations downtown, one within a block of this development, another near Mass Ave, one on Deleware among others. We'll eventually see more grocery options downtown in the future I'm sure, but it's not like they don't exist. There is Marsh and Goose.
  • food and gas
    I agree with person who eats. what's the deal with almost no gas stations or grocery stores downtown? looks like we'll all be going to marsh or o'malia's for the rest of our lives.
  • Easy choice
    Keep throwing your money downtown without any thought as to how urbanites are supposed to feed themselves. Build a grocery store and you'll make your money back with the quickness. Ya hear that developers? MAKE YOUR MONEY BACK!
  • location, location
    apartments next to the lighthouse mission. slam dunk!
  • Glick
    Glick financing Bank One Ops Center redev

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

  2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

  3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

  4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

  5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...

ADVERTISEMENT