First floors of 28-story apartment tower at Market Square Arena site to rise this month
By James Briggs // The Indinanapolis Star
Although construction began close to 10 months ago on Indianapolis’ next high rise, there has been little indication that a 28-story apartment tower is set to emerge from the site of the former Market Square Arena.
That’s about to change.
Developer Flaherty & Collins Properties has completed underground work at 360 E. Market St., which means the bottom floors of what will become the city’s tallest apartment tower should be visible by the end of December.
The project has fallen slightly behind schedule since its February groundbreaking. Flaherty & Collins expects a first-floor Whole Foods to open during the first quarter of 2017 followed by the opening of the first apartments. The project, called 360 Market Square, is on pace to be finished by June 2017.
“All the foundations are complete, and the foundation walls are complete,” said Jim Crossin, the vice president of development for Flaherty & Collins. “They are beginning to pour the slabs now, and it’s all concrete, so you start pouring floors and working your way up. We’re just at the point that it starts coming up.” The $121 million project will include 292 apartments, a 600-space parking garage and amenities such as a fitness center and fifth-floor pool. The building will be next to engine manufacturer Cummins Inc.’s new 10-story headquarters, which also is being built on the Market Square Arena site. The Cummins project is expected to be completed by October 2016.
While 360 Market Square has received praise for its slick design, it also has drawn skepticism as the start of construction was delayed by several months and the price tag spiked by $40 million.
Catherine Esselman, the real estate development director for Downtown Indy, said she’s remained confident 360 Market Square will be completed and contribute to Downtown’s momentum.
“The biggest thing our residents want is to be in a walkable urban environment.” – JIM CROSSIN, vice president of development for Flaherty & Collins on the appeal of 360 Market Square apartments.
“No news is good news,” she said of 360 Market Square’s slow-and steady construction. “It’s fascinating to watch Cummins come out of the ground so quickly. It’s a different type of project, different construction team, different structure.”
While work has been underway on 360 Market Square, the apartment tower’s competition has been expanding. The Buckingham Cos. recently announced it is planning to add 450 apartments to its City-Way project. Also, the Louisville-based developer behind the 9 on Canal apartment building is planning a $37.25 million second phase with 194 apartments. Overall, developers are on pace to open about 3,000 new apartments Downtown between 2016 and 2019, according to Downtown Indy.
Those new apartments, even if more are announced, won’t affect plans for 360 Market Square, Crossin said.
“We’re aware, of course, there are a lot of new apartments coming online,” he said. “We’re still very bullish and think there’s plenty of demand in the market. We’re just seeing a really big shift in people wanting to live Downtown and Indianapolis has a great downtown.”
Financing for 360 Market Square includes a $57 million loan from Little Rock, Ark.-based Bank of the Ozarks, $23.4 million from the city and $28.5 million from a program called EB-5, which allows foreigners who invest up to $1 million in U.S. businesses to qualify for permanent residency.
Rent for the apartments is projected to start at $1,600 a month, which will be at the high end of the city’s apartment market. Crossinexpects renters to be drawn to the building’s 42,000-square-foot Whole Foods and other luxury amenities on site.
“The biggest thing our residents want is to be in a walkable urban environment,” he said.