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Glick partners on $30M downtown apartment development

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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.

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  • 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

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  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

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