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The ongoing redevelopment of the former Center Township Trustee building on Massachusetts Avenue has received a financing boost from the state’s economic development arm.
Indianapolis-based Landmark Properties Inc. has agreed to terms on a $2 million redevelopment tax credit from the Indiana Economic Development Corp. to support the building’s $22.6 million overhaul. A contract for the credit was signed on March 14.
The tax credit deal for Landmark is structured somewhat like a loan, according to Erin Sweitzer, vice president of external communications for IEDC. Landmark will pay interest for four years and then a balloon payment of $1 million, with the balance then forgiven.
The project at 863 Massachusetts Ave. is expected to result in a new rooftop deck space, updated windows, a refreshed front facade and improved interior space for the 40,000-square-foot structure. The first floor and basement is expected to be used for a restaurant tenant, while floors two through five would be reserved for office users.
The public incentive is the second for the project. The city of Indianapolis last year approved a 10-year tax abatement that will save Landmark about $654,000. The deal was based on the company’s agreement to create 40 permanent jobs at an average wage of $25 per hour by the end of 2024.
IBJ first reported on Landmark’s plans for the trustee building in October 2021. Landmark bought the property from the Center Township Trustee for $4.6 million in a deal that closed the following April.
Landmark has completed many of the interior updates to the building, with exterior improvements including painting and window improvements now under way, J. Murray Clark, an Indianapolis-based attorney who represents the company, told IBJ.
“The project is moving forward well and as projected, and tenant interest remains high,” he said in a text message. “The exterior work, including window painting, is approaching finish with a completion date of May 31 or thereabout. White box interior work also going well with anticipation of turning leases into occupancy as early as by the end of the year.”
The changes include removing and replacing windows along Massachusetts Avenue, with the front of the structure getting get a new cast stone base and a thorough cleaning to return its original look. The company is adding 32 windows to the building’s southwestern and northeastern facades as part of the project.
An 8,000-square-foot rooftop amenity with a deck, a bar and indoor and outdoor seating is being built as part of the renovations, as well. All work on the building is expected to conclude by the end of 2023.
Constructed in 1917 as home to Hogan-Schroeder Storage Co. and a bank, the building occupies 1-1/3 acres across from the Bottleworks District. It became the township headquarters in 1975, but a process began in August 2021 to offload the building. The property was also listed for sale in 2013, but nothing ever came of the effort.
Landmark is working with brokers John Robinson and Brittany Shuler of the Indianapolis office of Chicago-based brokerage JLL to market the property.
Indianapolis firm Ratio Design is the architect on the renovation.
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This building is in arguably the hottest spot in Indiana for real estate development. Why in the world are the city and the state pouring taxpayer funds into a developer’s pockets here?