Lafayette Square Mall owner says revamp moving forward, fleshes out plans for apartments

A concept rendering of the revamped Lafayette Square Mall property. (Rendering courtesy of MKSK)

The developer behind the planned revamp of Lafayette Square Mall expects to break ground on the project’s first apartment building early next year and open a 14-screen movie theater as early as next month.

Fabio de la Cruz, principal of Sojos Capital, told IBJ on Monday that the 144-unit apartment project—a partnership with Indianapolis-based apartment owner, developer and manager Birge & Held—will be part of the first phase of recasting the sprawling mall property for a range of new uses.

The developer expects the first phase to be completed by the end of 2026.

The apartment building would occupy one of the northernmost parcels on the mall property at West 38th Street and Lafayette Road. Construction will be preceded by the demolition of several of the former anchor buildings for the mall, de la Cruz said.

“Next year … we’ll take all the buildings down from [around] the parcel of the mall that are vacant,” he said. “You’re going to see construction going on. It’s going to be the biggest change in the neighborhood in a long, long time.”

De la Cruz said Sojos and Birge & Held are pursuing low-income housing tax credits for the apartment project from the Indiana Housing and Community Development Authority.

A representative for Birge & Held did not return a call requesting comment.

The first phase of The Square will entail more than the apartment complex. It is also expected to include a 100,000-square-foot film production studio, boutique hotel and the redevelopment of the core of Lafayette Square Mall into a food hall, retail center and concert venue.

The Indianapolis Metropolitan Development Commission is slated this week to consider de la Cruz’s request to rezone the project site, reclassifying the 126-acre mall property from a mix of C-4 and C-5 commercial and MU-2 mixed-use designations to C-S, which allows for special commercial development. The project is being recommended for approval by staff with the Department of Metropolitan Development.

The rezone is key to moving ahead with the redevelopment of the mall property. The apartment component would be the first substantial ground-up project on the site since de la Cruz took ownership of the property in 2020, although the other elements of the phase are expected to happen concurrently with the multifamily housing.

In November 2021, de la Cruz announced an audacious plan for a transformation of Lafayette Square Mall and several adjacent properties into a multicultural hub featuring a concert center, movie theater, hotel, multifamily housing and a redefined shopping village.

Plans were updated in January of this year to reflect a significant overhaul of the project that de la Cruz said could reach as much as $1 billion in personal and outside investment by the time it is completed.

Sojos already has completed a handful of related projects, such as the $1 million redevelopment of a former Aldi into a community center at 3540 Commercial Drive, which opened in August, and a new IMPD northwest headquarters at 4005 Office Plaza Blvd. that was completed in 2022.

The Alamo Drafthouse movie theater  is expected to open in October at 3898 Lafayette Road in the former home of Georgetown 14 Cinema. Sojos owns the buildings and is investing $15 million in its renovation. Texas-based Alamo Drafthouse has agreed to brand and manage it as the chain’s first multiplex location in Indiana.

Additionally, de la Cruz’s properties in recent years have received new roofs, fresh paint and repaved parking lots with upgraded lighting. He said Sojos has spent more than $150 million on redevelopment efforts, including $80 million to acquire the extensive list of International Marketplace neighborhood properties in his portfolio.

The mall closed for renovations in August 2022 and hasn’t reopened since. At the time, the closure displaced a couple dozen retailers, eight of which ultimately were relocated to other properties within the neighborhood at their request. A few others were provided assistance to move to other parts of the city, a Sojos official said.

The updated plan for the Lafayette Square area has been further modified since it was made public, both in its scope and the location of certain elements on the property.

In January, plans called for more than 1,200 apartment units across at least eight buildings, two hotels totaling nearly 400 rooms, a 200,000-square-foot youth sports facility, a school and 533,000 square feet of retail space.

But the development now is expected to include more than 1,200 apartments and condominiums, two hotels totaling 313 rooms, a 150,000-square-foot youth sports facility, 700,000 square feet of retail and more than 115,000 square feet of office space.

A spokesperson for Sojos Capital said the firm is working on finalizing a city incentive application in hopes of meeting with Indianapolis officials in coming months to discuss a proposal for helping support the development.

“We are excited about the potential for collaboration and the positive impact this project will have on the community,” said Susan Decker, chief of staff for Sojos.

A spokesperson for the Department of Metropolitan Development said tuesday afternoon that city officials planned to met soon with Sojos Capital about the potential for granting incentives for the project.