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New apartments in 2012 on track for a 25-year high

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Developers in central Indiana expect to deliver more new apartment units in 2012 than they have in 25 years, according to data collected by the Indianapolis-based apartment brokerage Tikijian Associates.

A survey of developers suggests up to 3,438 new units could hit the rental market next year, which would be the highest total since 1987, when central Indiana gained about 4,500 units. The nine-county market added 2,526 apartments in 2010 and is on track to add 1,752 in 2011, Tikijian reports.

George Tikijian, the firm's senior managing director, cautioned that some of the projected new units could be delayed or never materialize because of a still-difficult financing environment. But he said at least 2,300 of the units should be bankable.

Among the projects in the works for 2012: a roughly 300-unit development along Keystone Avenue at 78th Street on the site of the failed Renaissance Bay condo development; a 294-unit project called Addison Landing along State Road 37 at 131st Street in Fishers on the site of a failed water-park project; and a 227-unit project south of State Road 32 in Westfield called Union Street Flats at Grand Junction.

The Renaissance Bay deal is a partnership of Gene B. Glick Co. and Milhaus Development, both based in Indianapolis. The Fishers project is by locally based Carr Homes, and the Westfield deal is one of several projects in the works by Carmel-based J.C. Hart Co.

The figures from Tikijian don't actually include the Renaissance Bay project or a proposed redevelopment of the former Bank One Ops Center into a 258-unit community called The Residences at 451 E. Market St. The firm leaves out projects that still face substantial financing—or in the case of the Ops Center deal, legal—hurdles to completion.

"The projects we've identified have all been zoned and are presumably feasible but may be waiting for financing or permitting," Tikijian said. "What the numbers say is there is strong demand and developers with a lot of projects they're trying to get done."

Many of the new units slated to hit the market in 2012 already are under construction or are slated to break ground soon. Among them: The 320 apartment units at downtown's CityWay by Buckingham Cos.; J.C. Hart's 224-unit The Fort Apartments in Lawrence and 191-unit One One Six at College project in Carmel; and the 219-unit Domain at Bennett Farms by REI Investments along State Road 421 in Zionsville.

Construction is set to begin this month on a $20 million apartment project called Penn Circle in Carmel. The project, a partnership of Milhaus, Glick and Gershman Brown Crowley Inc., calls for 193 studio, one-bedroom and two-bedroom apartments on six acres near the corner of Old Meridian and Pennsylvania streets.

The developers said in a statement Tuesday that they have closed on financing from PNC Bank.

Locally based Hearthview Residential plans to spend about $54 million adding large new apartment communities adjacent to the Rivers Edge shopping center in Indianapolis and the Metropolis mall in Plainfield.

Hearthview’s plan calls for 230 high-end apartment units behind the Clearwater Crossing shopping center at 82nd Street and Dean Road, within walking distance of the renovated Rivers Edge shopping center anchored by Nordstrom Rack and The Container Store.

The project—set to take seven acres including an undeveloped field, part of a parking lot and the long-vacant former Blockbuster Block Party building—will cost about $24 million, Hearthview Principal Jim Thomas told IBJ for a story Oct. 28.

Hearthview also plans to build 300 units on a parcel near the Metropolis mall in Plainfield in a $30 million project. That development is not as far along as the Clearwater proposal, Thomas said.

Other projects in the works include two smaller, mixed-use projects called The Hinge and The Mozzo along Virginia Avenue near downtown, as IBJ reported in October.

A chunk of the projects in the works, including a $27 million development in Lockerbie by Indianapolis-based The Whitsett Group, include affordable apartments.

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  • 78th & Keystone
    Step 1: Tear down apartments
    Step 2: Build ridiculous looking condos right as the market crashes
    Step 3: Build apartments
  • Waiting Lists...
    I've been looking for an apartment in the Mile Square for months now. Units will come onto the market and will be rented within days. The occupancy rate at most of the buildings along the canal is at 98% (with only the most expensive units available). There are plenty of condos available, and honestly I'm surprised more condo owners aren't offering their units up for rent, considering the prices they could demand. While the city of Indianapolis and the metro area may have an abundance of apartments, downtown is hot, and that's where we need more rentable housing.
  • Census.....
    I am speaking of actual DT Indianapolis. The census tracts don't exactly match up with DT's borders. They also probably account for home rentals and other marginal rental units. Developers wouldn't dump more units onto a sinking market. The demand is above the supply.......
  • DT apts
    Those of you who didn't open dweller's pdf, the number of apartments in Downtown increased 12% from prior year, yet vacancy decreased 19% in the same time period (although to be true, the vacancy rate is at 5.6% -- little higher than I thought, but to be expected with so many new units on the market). To put it in the right perspective, the growth in units since 1994 was 79%, and vacancy rate decreased 5% in the same time period. It appears that building apartments in the Downtown would have been one of the best real estate investments in the past 20 years in Indiana.
  • Dtown
    http://www.indydt.com/IDIEconomicIndicators2010.pdf?&lm=ai

    Page 2, downtown apartment vacancy rate of 5.6% in 2010. I've lived in one that had a waiting list, so reaching 100% is not far fetched for many complex's.

    Crazy right, different parts of Indianapolis have different vacancy rates? Next you'll be astounded when you learn properties have different fair market values depending on what part of town they are located! Sarcasm for those that thought the census stats were uniform across the city!
  • 100% occupancy?
    "The 5.2 percent home vacancy rate in Indianapolis ranks it fifth in the country, while the 13.5 percent rental vacancy rate places it 10th. With these levels, the city is more vacant than nearly every other major U.S. metro area."
    ---------------------------------------------
    So, umm, since you seem to know more than the Census Bureau perhaps you can tell us your "source" that shows downtown occupancy rates at "nearly 100%"...
    • where is my brother
      hey where is bro alsharpton recently?
    • Indy Apartments.....
      The occupancy rate for Downtown apartments in Indy is nearly 100%. Many buildings have waiting lists and new buildings have sign up lists. I am not sure what the surrounding areas numbers might be, but DT numbers are very strong.

      You are not stuck in an apartment. I can walk out of my door and go to bars, restaurants, colts games, libraries, museums, parks, greenways. DT is a huge playground. While you are stuck mowing your meaningless lawn, I am enjoying time with friends and family.
      • Right cost
        If you are going to build apartments, find out who wants to live in an apartment. If minimum wage workers can't afford it, who is going to live there? Older people can't afford much either. My husband and I live on $1300 a month. Thank God our home is paid for, his sister and her husband pay $900 a month in rent. After utilities and food, they are stuck in that dang apartment all month long. At least we have a yard to go out in and work on. Build all the apartments you want, price the so regular people can afford to live in them.
      • More Apartments!?
        "2. Indianapolis, Indiana
        Rental vacancy rate: 13.5%
        Homeowner vacancy rate: 5.2%


        Indiana's capital is vacant all around.


        The capital of Indiana is also one of the emptiest major cities in the country, according to data from the Census Bureau. The 5.2 percent home vacancy rate in Indianapolis ranks it fifth in the country, while the 13.5 percent rental vacancy rate places it 10th. With these levels, the city is more vacant than nearly every other major U.S. metro area."
        ---------------------------------------------
        -Second emptiest city in the U.S. and we're building MORE unit?
        Somebody's making money off this and it's not from rental income...and something tells me we taxpayers sre gonna end up footing the bill when these new complexes start having financial trouble!
      • Diane.....
        The reason these units are mostly in DT is beacuse the services for lower income people exist. There is a transportation system, proximity to social services and other programs. Suburbs exist because people wanted to move away from low income situations. People consider low income to mean crime and minority and the mostly white suburbs reject them so Marion County and DT especially are stuck with the full burdon of carrying the regions poor. It might serve you well to live Downtown as you would be close to many services and not dependent on a car for transportation.
      • Not so great news!!
        While to some people in a certain age bracket might find living downtown a plus, there is another certain age bracket (55+) that desparately needs MORE low-income housing (not downtown)....there are many of us, through no fault of our own, that are on disability, etc. and cannot afford to live in 'regular' priced apartment complexes. WHY so many in Carmel/Fishers....we need more ALL over Indpls. While some neighborhoods don't seem 'worthy'....this type of housing is desparately needed!! I've been to 5 places so far and waiting lists are CLOSED or so long it will take years to find something. I don't have THAT MUCH time!! Mr. Glick, I hope, will continue to use some of those federal funds to build more of these types of units (instead of always focusing on "HIGH-END"!!!!!!
      • Great news
        This is all very good news, though I wish that more of the developments were occuring in the downtown core. The addition of new residents in downtown will result in demand for services and land uses that will keep the ball rolling.

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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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