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Numerous real estate developments are well underway across central Indiana, with plenty more set to start in 2025 and beyond.
IBJ has reported extensively on numerous projects throughout this year in the core of Indianapolis and across the area—some that made significant progress and others that ground to a halt.
Here’s a look at some of the biggest Indianapolis-area projects that IBJ reported on in 2024.
Hogsett administration walks away from Indy Eleven deal, Diamond Chain site
Indianapolis Mayor Joe Hogsett’s administration this year offered to buy the former Diamond Chain Manufacturing Co. site from Keystone Group, two months after negotiations broke down between the parties for the development of the proposed Eleven Park soccer stadium project at the site.
The city said it wouldn’t move ahead with negotiations for the Eleven Park project after evaluating Keystone’s funding requests and upon determining the site could have hundreds or even thousands of human remains dating from when it was occupied by the historic Greenlawn Cemetery in the 1800s. The administration’s decision to effectively stop the project could have a major impact on future development of the property, which Keystone purchased in 2022.
Keystone had been planning to build a residential and entertainment district on the site, anchored by a stadium for the Indy Eleven soccer team, but Hogsett’s staffers ended negotiations with Keystone about the project on March 22, about a month before announcing the city planned to pursue a Major League Soccer franchise with an unnamed group of potential owners. The city has since taken steps to establish a stadium site on the east side of downtown.
Keystone initially pushed back on the city’s plan, stating that it was “ready to build” the $1.5 billion Eleven Park project immediately if the city returned to the table. But in the months since, the company has quietly stopped working on the Diamond Chain property.
Hogsett has said he would like most, if not all, the Diamond Chain site to remain undeveloped.
City eyes redevelopment of heliport as part of MLS effort
Just hours after IBJ first reported in April that the city had walked away from negotiations with Keystone Group, Mayor Joe Hogsett announced he was pursuing a Major League Soccer team with a separate group of investors.
In the months since, the mayor has secured approval of a funding mechanism—a professional sports development area—from the City-County Council, but state officials have yet to consider the measure. Likewise, an ownership group has not yet made itself public.
Already, the city is trying to facilitate acquisitions of at least two properties in its proposed stadium district, including the Indianapolis Downtown Heliport that it has sought to have decommissioned for nearly four years. The Indianapolis Airport Authority is set to close the heliport at the end of 2025 and sell the property to the city for fair market value in early 2026.
The city is also expected to buy a Herb Simon family affiliate-owned property at 301 E. Washington St. for the stadium development. The holding company also owns the nearly six-acre parking lot next to the Virginia Avenue Garage that is expected to play a key role in the stadium efforts, if they move forward. The group purchased the property in May. The Simons have sought to distance themselves from the Major League Soccer conversation.
CSX building redevelopment plan moves forward
The Herb Simon-backed Boxcar group in July announced revamped plans for the site of the former CSX warehouse across Pennsylvania Street from Gainbridge Fieldhouse. The $312 million project includes a 13-story luxury hotel and a connected 4,000-seat theater on the property, with both venues expected to open by late 2027.
The Indianapolis Historic Preservation Commission approved the designs in September; the city and developers are still negotiating incentives.
The proposed Shinola hotel would be the upscale hotelier’s second location, joining Detroit, and is expected to feature a mix of deluxe rooms and suites, as well as an upscale restaurant, a bar and, potentially, a Shinola retail store.
The project calls for an 87,000-square-foot live performance hall operated by Live Nation, which also manages the Murat Theater and Everwise Amphitheater downtown and Ruoff Music Center in Noblesville, among other venues.
LEAP district picks up steam
The Indiana Economic Development Corp. inched closer to its vision for its LEAP Research and Innovation District in Lebanon this year by securing more than $100 million in additional state funding, steps to secure water for the site and additional private investment.
The state also secured more project commitments from Eli Lilly and Co., bringing the drug giant’s total expected investment at the site to more than $13 billion. It also reached a data center agreement with Facebook owner Meta Platforms Inc.
The agreement with Meta could net Lebanon an investment of up to $4.8 billion for development across multiple phases on a massive parcel in the district. The company, which also owns Instagram and What’s App, is planning a six-phase development over the next decade or longer, said Lebanon Mayor Matt Gentry.
Citizens Energy and Lebanon Utilities plan to expand Citizens’ existing infrastructure to Lebanon and provide 25 million gallons of water a day to the LEAP district and surrounding developments. News of the project emerged publicly in August when the utility and the state began work to secure financing for the project.
The Citizens project is separate from a possible Wabash pipeline project, which would send as much as 100 million gallons of water a day to the development from Wabash River aquifers near Lafayette via a 35-mile pipeline. That project has been put on hold until the Indiana Finance Authority finishes a 28-county Wabash headwaters study.
Morse Village project earns Noblesville council support
An Indianapolis-based developer’s plans for a 175-acre residential and commercial development near Morse Reservoir moved forward in mid-December, following 2-1/2 hours of comments from the firm and housing experts, council members and the public.
The contentious $250 million Morse Village Project at the intersection of East 206th Street and Hague Road calls for 240 high-end single-family houses, 185 town houses and condominiums, and 250 to 300 multifamily flats. Morse Village, a development by LOR Corp., would also feature 30,000 square feet of retail space and restaurants, plus a new roundabout on the city’s northwest side at the intersection of East 206th Street and Hague Road.
The Noblesville City Council voted 6-3 to approve a contentious rezoning plan for the project
The plan for Morse Village drew criticism from nearby residents who opposed rezoning the property, particularly on the west side of the site nearest an established neighborhood and in proximity to a bald eagle nest. Noblesville Mayor Chris Jensen said prior to the meeting that some city officials had received threatening messages tied to the project.
More than 800 people also signed a petition calling for the city to reject the proposed zoning change. Construction is expected to begin in 2025 and will be phased over seven to 10 years.
CNO seeks buyer for 78-acre Carmel campus
Carmel-based insurance and financial services company CNO Financial Group is working on a deal to sell its 78-acre campus near U.S. 31 for a complete redevelopment of the property.
The firm, which said in June that it would move its operations to the OpenLane Inc. building at 11299 N. Illinois St., has not shared specific details related to its efforts to sell, including an asking price or who might be considering acquisition. But the firm expects to offload the property—which includes more than 611,000 square feet of office space and 2,700 parking spaces at 11825 N. Pennsylvania St—in early 2025.
CNO is being represented in the effort by Andrew Urban, senior vice president of occupier services for the Indianapolis office of Toronto-based commercial brokerage Colliers International. Urban said the six structures on the campus occupy only 21% of the land at the site. The rest is parking lots and undeveloped green space.
Indianapolis office properties get new life
Two of Indianapolis’ largest office parks, Parkwood Crossing and Keystone at the Crossing, received new injections of capital this year after facing financing challenges.
Philadelphia-based Rubenstein Partners, which acquired the 1.2 million-square-foot Parkwood Crossing park in 2016, completed a recapitalization of the multi-building campus in September, while Keystone at the Crossing was sold in early December to a pair of Los Angeles-based firms.
Meanwhile, the two-tower Capital Center in downtown Indianapolis was sold for $35 million in October, with plans to redevelop at least part of the property into a hotel.
The transactions were part of a continued shift in the office market across central Indiana and beyond that has seen other properties fall into foreclosure or delinquency.
Parkwood Crossing’s recapitalization—a long-term refinancing of the property that allows the owner to retain control while bringing in more equity—includes a new investment from Rubenstein as well as a replacement loan.
About $36.4 million has been invested into the campus over the past eight years, with updates to building systems, indoor and outdoor amenities, lobby spaces, restrooms and facades. Tens of millions of dollars more are expected to be poured into the property in the coming years.
The Keystone complex was listed by previous owners DRA Advisors LLC and M&J Wilkow Properties after the companies encountered problems recapitalizing or refinancing the project earlier this year with their lender.
The five office buildings, 8888, 8900, 9000, 9100 and 9200 Keystone Crossing, collectively occupy about 27 acres just south of Interstate 465.
Westfield inks partnership for management of Grand Park
After a year of negotiations, Westfield agreed to a 30-year, $184 million public-private partnership with a consortium of firms to manage and further develop the 400-acre Grand Park Sports Campus.
The Westfield City Council unanimously approved a 91-page agreement that sets the terms for Grand Park Sports & Entertainment, a joint venture between Indianapolis-based Indy Sports and Entertainment and Westfield-based Bullpen Ventures LLC, to take over the 10-year-old sports campus.
Indy Sports & Entertainment consists of Indianapolis-based commercial development company Keystone Group LLC and the Indy Eleven professional soccer club, with each led by real estate developer Ersal Ozdemir. Bullpen Ventures operates Bullpen Tournaments, which organizes baseball and softball tournaments at Grand Park.
“This is by far the biggest decision that our city has had to weigh in on, at least in modern-day history,” Westfield Mayor Scott Willis said of the agreement. “This park and this agreement are going to transform the city of Westfield, beyond what happens at that 400-acre sports campus.”
Westfield will retain ownership of Grand Park under a deal that will go into effect Jan. 1. The city and Grand Park Sports & Entertainment will manage and develop the sports campus for up to 30 years, which includes an initial 10-year term and four five-year extensions.
Other big projects
Several other projects took steps forward in 2024, with more progress expected to come from those developments in 2025.
— The city of Indianapolis is tearing down the former Jail I building at Alabama and Maryland streets, with plans to begin efforts to redevelop the site starting in 2025.
— Hendricks Commercial Properties closed on its acquisition of Circle Centre Mall and continues to discuss next steps with the city and the Indiana Economic Development Corp.
— The developer behind plans for Lafayette Square Mall said he hopes to break ground on the first apartment building on the property in 2025, as well as continue the overhaul of other aspects of the development. Fabio de la Cruz opened the Alamo Drafthouse across from the former shopping center in November.
— The now-$264 million Old City Hall project from TWG Development and 21c Hotels received design approvals and is moving ahead with construction.
— After more than six years of work by Keystone Group, the InterContinental Hotel at the southeast corner of Illinois and Market streets was expected to open this fall. But InterContinental Hotels Group delayed the opening until at least early next year. The $101 million project, which included a complete rehabilitation of the historic Illinois Building, is the highest-end hotel to open in Indianapolis since The Bottleworks Hotel in 2020.
— Speedway officials continue to look for a way to move forward with the long-delayed Wilshaw hotel project, but a lawsuit has prevented the developer from moving forward on its plans.
— The split of IUPUI pulled into focus the future of downtown real estate, including the city’s effort to get Purdue University in Indianapolis into a building on Monument Circle, which incidentally is now for sale.
— The redevelopment of Pan Am Plaza, a $750 million project bringing a 37-story Signia by Hilton hotel tower and a massive expansion of the Indiana Convention Center, will continue through 2025, including the topping out of the hotel in December.
— Noblesville is set to open its new arena and event center along Interstate 69 in May, with the venue playing host to the Pacers-affiliated Indiana Mad Ants starting in the summer.
— While plans are in the works for a new Grand Universe development in Westfield, the developers have hit a speed bump in the form of a lawsuit from an employee who alleges he’s owned millions in back pay.
— The White River State Park Development Commission broke ground on its $65 million expansion of the park on the west bank of the river as part of the redevelopment of the former General Motors Stamping plant site.
— The Indianapolis Symphony Orchestra will continue fine-tuning its proposed renovation plans for Hilbert Circle Theatre and is working with the Indianapolis Historic Preservation Commission to receive additional feedback and approvals.
— Construction will start in January on the James T. Morris Arena at IU Indianapolis. The $110 million project received board and state approval earlier this year and will be named after the former civic leader who died in July.
— The newly established Indianapolis Economic Development Inc. will take over responsibilities for driving major employers and projects to the city in the new year, replacing Develop Indy and putting those efforts more under the control of the city’s mayor.
— Neighbors of the dilapidated Devington Plaza property on the east side of Indianapolis are pushing back on an out-of-state property developer’s plans to raze the site and outfit it with a mix of market-rate and affordable housing.
— The Fishers Event Center opened in November to mostly high marks, although some visitors have said they were miffed at the venue’s automatic paid-parking policy. The venue will host dozens of events in 2025, including Indy Fuel, Fishers Freight and Indy Ignite games.
— Planners sought to offload most of the former GM stamping plant site earlier this year, but have since moved ahead with plans for a mixed-use campus to accompany Elanco Animal Health Inc.’s headquarters and the company’s proposed venture with Purdue University.
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Was there another hotel approved for the southwest corner of Pennsylvania and Maryland? Haven’t seen any activity on that site.
How is it possible that the list of major developments omits the largest single hospital construction project in the country at the corner of 16th Street and Capitol Avenue? IU Health’s new $4 billion downtown campus will combine Methodist and University hospitals and is expected to open in late 2027.
Brent, we should have included this, but it is part of our feature on the year’s biggest health care stories and our year in review.
https://www.ibj.com/articles/ibjs-top-ten-health-care-stories-of-2024?utm_source=ibj&utm_medium=home-carousel
https://www.ibj.com/articles/2024-year-in-review-iu-health-rolls-out-indy-health-district-as-construction-continues
I’m surprised the Old City Hall development hasn’t broken ground yet. The project got financial approval for over $360 million. So what’s the hold up, unless TWG lacks expertise to do the historic rehab and build a tower that high?