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TWG Development LLC plans to spend $17 million to revamp an aging apartment tower along Meridian Street north of downtown.
The Indianapolis-based company expects to renovate all 96 units in the vacant Grand Meridian apartment building at 3470 N. Meridian St., as well as replace its windows, roofing and other building infrastructure. The building, constructed in 1951, is expected to consist entirely of affordable housing units, intended for individuals and families making up to 60% of the area’s median income.
“There’s housing needs across the board, and one of our missions is housing for all,” said Ryan Kelly, vice president of tax credit development at TWG. “Part of that includes affordable housing, and there’s a huge need for that. This seems to be one of those sites that is a good fit to be a catalyst for revitalization.”
By offering the affordable units, TWG is eligible to pursue low-income housing tax credits for the project. TWG plans to apply for the tax credits this summer, through an upcoming funding application from the Indiana Housing and Community Development Authority.
Developers typically sell the tax credits to finance part of their project. Kelly said the credits are expected to bring about $11 million in equity to the project.
Grand Meridian has been vacant for several years. It has 70 studio units and 26 one-bedroom units. Kelly said the renovation will focus mostly on the interior, with the facade of the building expected to remain largely the same.
The development firm acquired the property for $1.2 million in December from Richard & Son LLC. The Indianapolis Metropolitan Development Committee has approved a $1.2 million loan for TWG to to initially defray that expense. TWG is also in discussions about other potential incentives for the project, Kelly said.
The firm expects to learn in November whether it receives tax credits for the project. If it does, it expects to begin work on the building by spring 2024, with a one-year turnaround. It will begin leasing the building once construction is completed.
“Just driving by and seeing an eyesore and vacant building like this, it’s always rewarding to be able to look at those in a different lens and make an improvement,” Kelly said.
The Meridian Street corridor north of downtown has received a lot of attention from developers in recent years, in part because IndyGo’s rapid-transit Red Line runs between 38th Street and 18th Street.
A 195-unit apartment high-rise at 3710 N. Meridian St. was sold in 2021 for $11.4 million to an out-of-state development partnership that plans to renovate the property.
TWG is also working on a 166-unit apartment project at 1815 N. Meridian St. And the city of Indianapolis is trying to acquire the historic Drake apartment tower at 3060 N. Meridian St. from The Children’s Museum of Indianapolis as part of an ongoing effort to preserve the structure.
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This is wonderful news.
Cool!
Who will qualify for these units and what will they rent for? So folks, TWG really didn’t have to pay for the property, the tax payer did, as well as receiving tax credits they will sell to offset construction. Then the money rolls in and TWG moves on the the taxpayer funded project. There must be a better way to fund these projects.