Buckingham Cos. Commences Rebranded CityWay Project in Indianapolis
- Aug 16, 2011
Indianapolis–Buckingham Cos. has just broken ground on its new upscale mixed-use development in downtown Indianapolis. Designed as a transformative development, the $155 million project will mark another big step in bringing together two areas of the city.
Previously known as North of South for its location, the project has been rebranded CityWay, a name that is more indicative of the role it will serve. “This development will bridge the gap between existing properties on the Near-Southside and the central business district,” Scott Travis, senior development executive with Buckingham, tells MHN.
CityWay will feature several hundred luxury apartments, complemented by 40,000 square feet of restaurant and retail offerings, a new flagship YMCA and a world-class business hotel.
The project, which will sprout up on land that Buckingham is leasing from Eli Lilly & Co., is being financed with both private and public resources. “We have a $15 million infusion of city and state funds, and the city is using consolidated Tax Increment Financing to back $86 million in municipal bonds,” Travis says.
Jobs will be the source of demand for the residential segment of CityWay. “The development is situated between four of the largest employers in Indianapolis–Eli Lilly, the Indiana Farm Bureau, WellPoint and Rolls Royce,” Travis notes.
Premier apartment accommodations are a hot ticket in Indianapolis. According to a report by Marcus & Millichap Real Estate Investment Services, during the first six months of 2011, the average vacancy rate for Class A properties dropped 80 basis points to just 5.8 percent, marking the lowest level in more than 10 years. As demand continues to increase, owners are slowly but surely hiking up rental rates. Marcus & Millichap anticipates that asking rents will jump 3 percent this year to reach an all-time high in Indianapolis.