Developers propose $324M in apartment developments in Carmel

The Concourse, a $55 million mixed-use project, would include the first workforce housing units in Carmel's central core. (Rendering provided by Carmel Redevelopment Commission)

Four new apartment-dominated development projects totaling $324 million are in the works for Carmel’s central core.

The Carmel Redevelopment Commission and developers will present plans for the projects to the Carmel City Council at its meeting Monday night.

They will also ask the Carmel Economic Development Commission and the council to approve up to $54.5 million in developer-backed tax increment financing bonds to fund the projects. Those approvals could come as soon as April 25.

If all four projects are developed according to their plans, they would add 872 new apartment units and more than 1,600 parking-garage spaces to the city.

Carmel Redevelopment Commission Director Henry Mestetsky told IBJ the four projects include Carmel’s first significant workforce housing development in the city’s core, a large number of for-sale condo units and new headquarters for both Carmel-based Merchants Bank of Indiana and Indianapolis-based Pure Development Inc.

Henry Mestetsky

“It’s tough to not be excited about a giant corporate expansion and the new corporate headquarters for Pure Development coming. The economic development person in me is just geeked out about that,” Mestetsky said. “But, then, the urban planning person in me is just hyped for workforce housing right in the core.”

Mestetsky said the projects would generate $430,000 a year in tax dollars for Carmel schools. Each of the four projects would also include a solar component.

Carmel taxpayers would not be directly responsible for the costs associated with the developer-backed TIF financing if the council decides to approve it, Mestetsky said.

“Each of them have something about them that makes them different than anything else, whether it’s condo units, or workforce units or a corporate headquarters component,” Mestetsky said.

The council will consider the following projects:

The Concourse, a $55 million mixed-use project, would include the first workforce housing units in Carmel’s central core. (Rendering provided by Carmel Redevelopment Commission)

The Concourse

The Concourse is a $55 million mixed-use project that would be built just south of the water tower in Midtown near the Monon Greenway by Carmel-based Pedcor Management Corp. It would include 99 luxury apartments, 23,000 square feet of office and commercial space, and a 229-space public parking garage.

Mestetsky said 22% of the building’s apartment units would be classified as workforce housing and be offered at a reduced rate for households who make 50% of the area median income relative to the Indianapolis-Carmel-Anderson metropolitan statistical area. Median household income in the MSA is $63,545, according to 2020 Census statistics.

“There’s sometimes a stigma associated with trying to bring affordable units to a part of town,” Mestetsky said. “There’s sometimes people with their pitchforks who show up and people have this idea about what affordable or workforce housing looks like, and it doesn’t look like this project.”

Pedcor is asking the city to issue up to $9 million in developer-backed bonds for the project. It would receive 90% of the TIF funds for the life of the bond. Indiana limits new TIF bonds to 25 years.

A $133 million project would redevelop the site of the former AT&T building in Carmel and include 244 luxury apartments and corporate headquarters. (Rendering provided by Carmel Redevelopment Commission)

AT&T site development

Pure Development Inc., Merchants Bank of Indiana, Indianapolis-based Buckingham Cos. and Indianapolis-based Third Street Ventures plan to redevelop the site of the former AT&T building at 210 3rd Ave. SW.

The $133 million project would include 244 luxury apartments, an 80,000-square-foot Merchants Bank corporate headquarters expansion, a 37,000-square-foot boutique headquarters—including for Pure Development, two single-family homes that would replace existing homes at the site and a 443-space public parking garage.

The companies requested a TIF of up to $20.5 million, although Mestetsky said the bond size will likely be closer to $16 million. The developers would receive 95% of the TIF funds for the life of the bond.

A $76 million mixed-use development project at Old Meridian and Main streets in Carmel would replace an old shopping center. (Rendering provided by Carmel Redevelopment Commission)

ERS Old Meridian and Main

Carmel-based Edward Rose & Sons is proposing a $76 million development that would include 266 luxury apartments, 22 for-sale condo units, 9,720 square feet of office and commercial space and a 581-space public parking garag

The project would replace an old shopping center, Eastridge Plaza, at the corner of Old Meridian and Main streets.

Edward Rose & Sons is asking for a TIF that would not exceed $15.5 million. It would receive 90% of the funds for the life of the bond.

A $60 million mixed-used development project on Old Meridian Street in Carmel would include 263 luxury apartments. (Rendering provided by Carmel Redevelopment Commission)

Old Meridian Apartments

Carrollton, Texas-based Cross Development is planning a $60 million project between Bru Burger Bar and Home2 Suites by Hilton on Old Meridian Street that would include 263 luxury apartments, 10 for-sale condo units, 9,000 square feet of office and commercial space, and a 395-space public parking garage.

The TIF would not exceed $9.5 million and the developer would receive 75% of the TIF funds for the life of the bond.

Mestetsky said the parcel currently pays $120 a year in taxes. Once the project is built, it would generate $784,000 of increment tax financing. The assessed value per acre would also increase from $1,000 to $9.65 million, he said.

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10 thoughts on “Developers propose $324M in apartment developments in Carmel

  1. Another whiff by an IBJ reporter ….
    The Carmel version of “affordable housing” … which as you should know, Mr Bradley, is a term of with a specific definition in the housing industry.
    So, how does the Carmel version: “workforce housing … for residents who make 50% of the area median income” compare to actual” compare to “affordable housing” (and what is being used as the definition of AMI, Hamilton County or the MSA?) Not too late to update this story.

  2. Im not sure why anyone should be surprised or offended by the ecosystem suburbs like Carmel, Fishers and others are developing nationwide. Fluent areas like these have always had a hidden agenda to attract a certain type of clientele. I personally don’t have an issue with a community setting standards and a quality of life that can only be afforded by those that have the income. There’s always been the have’s and the have not. This is an example of standard capitalism society make up.

  3. Not racism; that’s dumb. There are just as many Scots Irish appalachains — “hillbillies” to use JD Vance’s word — who wld be cultural misfits in Carmel.

    And this is most certainly NOT “standard capitalism.” Capitalism has NOTHING to do with class separation; in fact, historically, quite the opposite.

    My only point is that it is negligent journalism to let this news release promote the idea of “workforce housing” as if it is somehow “affordable housing” … which as the principal tenant of this develpment knows better than anyone, has a very specific meaning and this ain’t it.

    It is very difficult to have an informed public when a paper like the IBJ can’t produce high quality journalism. To produce good journalism, you actually need some reporters who are old enough and experienced enough to know something …. OR certainly editors who are paying attention to missing details and questioning the spin of the promotional news release. This one was just an obvious gaffe.

  4. BUT …. KUDOS for updating the story.
    Sometimes I don’t think the IBJ understands that it is the “paper of record” in Indianapolis and far and away the most important journalistic enterprise in our city.

    1. The IBJ has historically been a good business news journal, and it remains so, but to state that it is the “most important journalistic enterprise in our city,” either is something said with your tongue planted firmly in your cheek, or a not very flattering comment about the state of the local news media in Indianapolis.

  5. …. and by the way, when it comes to getting lower skilled workers — lower paid workers — into a local workforce, THE public investment in this TIF is infinitely better public policy than misguided efforts to subsidize “mass transit.”

    While there are still way too many “gated communities” — an oxymoron — this is a hopeful sign of a return to a “neighborhood” that includes many strata of income living in community. In those olden days, it was common culture, not common income, that created community. That will take more effort, but would be well worth it.

  6. Carmel Needs to post signs at all borders of its city : “Come Back Later, City Under Construction” If you are hoodwinked into trying to move or do business here Don’t. As if you do (Our round about construction and “Diet sizing our streets with new medians will cut off your customers access”.. Oh yes we are told by a council person that traffic planning is not a serious issue for our growth as indicated here, since most are now working from home due to the pandemic. Planning and solid architectural standards is lacking big time and inconvenience of and to our citizens with continual detours year after year and now with higher gas prices goes with a blind eye to this administration. A complete change of the character of our city and its demographics so big buildings can generate more tax revenue so our administration can continue to spend spend spend all in the guise of progress.. SAD. Don’t blame the developers taking advantage of the ability to be welcomed by an administration who hates traffic signals, prefers high density and is welcoming significant New York style living. Check it out folks, Planning with strong emphasis on future and aesthetics is a complete void and failure here. Nuff said/

    1. I agree with some of your position but Carmel has left the station and the train is full steam head. There’s obvious no turning back now for Carmel or Fishers at this point. Its almost to be expected the growth that’s going on it Carmel, Fishers, Westfield and Noblesville eat

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