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A plan to convert a downtown office building into apartments received the go-ahead for tax break from a city commission on Wednesday.
Holladay Property Services Midwest Inc., a division of South Bend-based Holladay Properties, was awarded a 10-year property-tax abatement for its proposed conversion of the Angi Inc. headquarters, 130 E. Washington St., into 180 apartments. The abatement was approved unanimously, 6-0, by the Metropolitan Development Commission and heads to the City-County Council for final consideration.
IBJ first reported on the project last week, citing public documents describing a $21.4 million investment that would see the company save $4.3 million in property taxes over a decade.
Jordan Corbin, vice president of development for Holladay, said the company’s total investment to overhaul the 236,000-square-foot building is expected to be about $40 million. That cost includes a $10 million purchase price, with the property now under contract from the current owner, Minneapolis-based Onward Investors LLC, which has controlled the building since 2017.
The interior-only conversion will focus on the third through 12th floors. Plans also call for an entertainment commercial tenant for 18,000 square feet on the second floor and a white box retail space on the west side of the first floor. There are also discussions about filling the 2,700-square-foot space that previously housed the recently closed Hinata Japanese restaurant with a similar concept. Windows will also be added in select locations across the eastern facade of the building.
Corbin said the project will start in late spring 2025. One-bedroom units will make up 80% of the apartments, with the rest being studios and two-bedroom units. The average size of the apartments will be 750 square feet and will be rented at a projected rate of about $2 per square foot per month.
At least 22 apartments are expected to be set aside for residents earning up to 60% of the area’s median income, a condition of Holladay’s tax abatement deal with the city’s Department of Metropolitan Development.
The affordability component would be in place for 15 years. The city of Indianapolis generally requires an affordability component for projects receiving incentives, either through abatements or tax-increment financing. Holladay is also applying for historic tax credits.
According to filings, the project would increase the assessed value of the building by about $28.6 million, with savings of $4.264 million in property taxes over the life of the abatement, at a level of 95% for the duration of the incentive. Holladay would still pay about $223,345 annually in new property taxes in addition to the nearly $447,000 it would owe for the building’s existing value.
After the abatement period, Holladay would pay about $677,581 in new property taxes, along with its current annual amount, totaling $1.12 million.
In addition to Angi, the building is currently home to offices for sports governing body USA Track & Field and civil engineering company T&M Associates.
Constructed in 1922 for Meyer Kiser Bank, the building has been home to numerous firms over the years, including Farm Bureau Insurance and various U.S. Olympic Committee-affiliated sports governing bodies. USA Track & Field is set to move to a new location at the planned IU Indianapolis Athletics Center, which opens in 2026.
The building was designed by local firm Vonnegut and Bohn and features an extensive lower level amenity area for office workers, including a fitness center, showers and lockers, a tenant lounge, training rooms and a game room within the former bank vault. It also includes a rooftop patio space and a connection to a 301-space parking garage immediately to the west, with rights to 250 spaces.
Holladay has been involved in numerous developments across the state, including in Indianapolis, where its local headquarters are at the former Milano Inn site on College Avenue. The company has led development of AmeriPlex, a 1,500-acre mixed-use campus near the Indianapolis International Airport, and was involved in the Grand Park Sports Campus and numerous multifamily projects in or near downtown Indianapolis, such as Union Square on South Shelby Street.
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