Hendricks fine-tuning plans for $300M first phase of Circle Centre revamp

Plans for revamping Circle Centre Mall include creating a north-south "Main Street" pedestrian thoroughfare in place of the mall's central hallway. (Rendering courtesy of Hendricks Commercial Properties)

The developer behind the planned overhaul of Circle Centre Mall in downtown Indianapolis could start construction work on the $600 million project by the end of this year.

Officials with Beloit, Wisconsin-based developer Hendricks Commercial Properties LLC expect the first phase of the project—focused on the southernmost of the site’s two blocks—will result in apartments, entertainment space, an outdoor shopping district and, potentially, a hotel.

Rob Gerbitz, CEO of Hendricks, told IBJ that while the company is still working with city officials to finalize plans for the south block, they hope to finalize the construction scheme in coming months. He said redevelopment of the south block—bounded by Maryland Street to the north, Illinois Street to the west, Georgia Street to the south and Meridian Street to the east—will cost more than $300 million.

“On that south block, we’ve really taken that next step,” Gerbitz said.

“We’re on pace for where we wanted to be,” he said. “You’re not going to see a lot of stuff starting to get busted up—if you will—probably not for most of this year. But if we get lucky, we might get close … at the end of the year, maybe to being able to start moving some of that [dirt] around.”

Hendricks officials have said the multiphase project could take as long as a decade to complete. The company closed on its $85 million purchase on most of the mall structure, intellectual property and management contracts in April 2024, buying it from longtime ownership group Circle Centre Development Co. The 17-member group had owned the property since it opened as a mall in 1995.

Hendricks is known locally for such major mixed-use projects as Bottleworks and Ironworks that incorporate retail, hotel, office and/or residential elements. The company was first approached by the city and state in mid-2022, with the parties asking Hendricks to make a pitch for the Circle Centre property.

The project has already received approval for up to $25 million in redevelopment tax credits from the Indiana Economic Development Corp., with more potentially coming from the IEDC in later parts of the project. Hendricks is also continuing to work with Mayor Joe Hogsett’s administration on local incentives for the project, including whether it could secure tax-increment financing for a portion of the work.

Dan Parker, chief deputy mayor for the city of Indianapolis, declined to “get too much into the weeds or details” of ongoing discussions with Hendricks about potential incentives for the first phase of the project, but he said the administration is enthusiastic about the company’s proposals.

“We trust Hendricks’ ability to do this redevelopment, but from the perspective of the city’s priorities, we want it to be a destination and the housing component,” Parker told IBJ. “So those are things that Hendricks has taken into account when they’re looking at what they’re going to do. We look forward to seeing those plans become public.”

Gerbitz said he expects the south block redevelopment to begin with tearing out the main hallway within the mall structure, with new storefronts constructed along the way to build a pedestrian-only Main Street offering front-door access to retailers, restaurants and other tenants.

As a whole, Hendricks still envisions the mall property as a mix of one dozen or more four-story buildings offering nearly 2 million total square feet of space in a more village-like environment. It’s continuing to fine-tune its designs ahead of plans to go before the Indianapolis Historic Preservation Commission later this year for approvals, given the project’s location within the historic Wholesale District.

Some of the buildings could be torn down—either in part or entirely—while others will be retrofitted and given new facades and partitions to help them operate as stand-alone structures. The project would include a large promenade with plazas and green spaces.

Lance Evinger, vice president of acquisitions and dispositions for Hendricks, said the company is currently considering about 1 million square feet of space planned for the first phase, with about 65% of that allocated to the existing 700-space underground parking facility.

About 200,000 square feet of space will be used for retail, restaurants and entertainment spaces at street level and on the elevated pedestrian plaza level, with retail spaces starting from 1,200 square feet and entertainment spaces ranging from 20,000 to 70,000 square feet. 

Gerbitz said the space that was previously home to the Regal Cinemas movie theater will have a new use but declined to elaborate further.

The south block could accommodate 60 to 100 apartments, likely in upper floors of the buildings containing Yard House and Burn by Rocky Patel, Gerbitz said. Street-level retail spaces and restaurants already occupying the two-block site—such as Yard House, Burn, St. Elmo Steak House and Nada—are expected to remain and become part of the project.

The south block could also offer up to 60,000 square feet of build-to-suit office space, Evinger said. No specifics were provided on the potential hotel, including the expected number of rooms or the market segment to which it could cater.

The developer plans to share additional details about the first phase of the project in the next few months, Evinger said, before seeking approval from the historic preservation commission.

The company is also continuing to evaluate its plans in the north block for the historic L.S. Ayres building at 1 W. Washington St., which it expects to turn into 30,000 to 50,000 square feet of ground-floor retail and 70,000 square feet of office space. The building is expected to have a lobby at street level, as well as a connection to the elevated plaza on the north block, once that phase is completed.