Local developer plans low-income senior project at former site of Ritz Theatre

The former site of the Ritz Theater on the northwest corner of Illinois and 34th streets. (Image courtesy of Google)

An Indianapolis-based developer plans to build a senior housing project on the former site of the historic Ritz Theatre on the near-north side of the city.

DTM Real Estate is seeking low-income housing tax credits for its project at the northwest corner of 34th and Illinois streets, which it plans to call The Ritz on Illinois as an homage to the 1920s movie house, which was torn down in early 2023, nearly 100 years after its debut.

The project, for which DTM has not yet disclosed a price, is expected to consist of 102 apartments across four floors, with a mix of one- and two-bedroom units. All of the units would be targeted to low-income seniors—specifically, those whose income is no more than 30% of the area median income.

The developer has petitioned the city’s Metropolitan Development Commission to rezone the property from the D-8 and C-4 designations to D-10, which allows for senior housing development. The hearing is set for June 26.

The apartment stock at The Ritz on Illinois would be broken down into 83 one-bedroom units and 19 two-bedroom units. The project would offer a 44-space surface parking lot at its rear and 20 street parking spaces along Illinois Street.

The development would occupy most of its nearly 1.8-acre parcel, with trees lining the front of the structure. Units along Illinois Street would also have patios or balconies, according to site plans filed with the Indianapolis Department of Metropolitan Development.

The Ritz is expected to feature a community room, a kitchen and at least one service provider office. According to city filings, the developer plans to offer several services to its residents, including Meals on Wheels, transportation, clubs and other activities, as well as health care services through a partnership with a local clinic or network. The project will also be one block from the 34th Street stop on IndyGo’s Red Line.

DTM said in filings that it’s pursuing 4% low-income housing tax credits and housing vouchers for the project, meaning its development is largely dependent on whether the Indiana Housing and Community Development Authority selects the project as a recipient for funding in the next funding round.

In November, the agency directed $557 million in funding to dozens of affordable housing projects across the state, including $118 million in 4% tax credits.

For developers, low-income housing tax credits can be an effective tool for building more accessible housing. Created as part of the Tax Reform Act of 1986, the Low-Income Housing Tax Credit (LIHTC) offers developers nonrefundable and transferable tax credits to subsidize the construction and rehabilitation of housing developments that have strict income limits for eligible tenants and their cost of housing.

In addition to tax credits, DTM also plans to use a traditional construction loan and other gap financing. It is also seeking a payment in lieu of taxes from the city to reduce costs. The land is currently owned by Redline Holdings XII LLC, a subsidiary of the Indianapolis Neighborhood Housing Partnership.

The organization acquired the property in June 2023 for $625,000, buying it from Henderson Development LLC, which is owned by former NBA player and Indiana University basketball star Alan Henderson.

Henderson purchased the property in 2017 in hopes of fixing up the property, but the building’s conditions only deteriorated, particularly after a neighboring building partially collapsed.

While the property was initially a neighborhood movie theater—opening in 1927, during the silent movie era—it shut down in the 1950s and adopted numerous other uses. According to The Indianapolis Star, the property was a controversial burlesque house, a rock club called Middlearth, a TV studio and a drag queen performance venue. The building sat vacant for decades before its demolition, however.

DTM, which has not yet acquired the property, did not return a call on Monday requesting comment for this story. Its website describes the company as a minority-owned development, acquisition and management firm. Its founder and president is Ezra Burdix.

An architect has not yet been finalized for the project.