Taking Advantage of Decade-High Apartment Market Demand in Indianapolis

Ground has been broken by Flaherty & Collins on a 28-story mixed-use development in downtown Indianapolis on the former site of Market Square Arena.

Indianapolis—Ground has been broken by Flaherty & Collins on a 28-story mixed-use development in downtown Indianapolis on the former site of Market Square Arena. The property will consist of 292 apartment units and a 40,000-square-foot Whole Foods Market. There will be also be an additional 2,000 square feet of retail space and a 600-space parking garage, including EV charging stations.

The property will include one-, two- and three-bedroom units with floor-to-ceiling glass, solar shades, kitchens with energy-efficient appliances and recessed balconies. Some units will include private terraces.

Common amenities include a Sky Terrace at the top level, with panoramic views of downtown. A fifth-level deck will offer a resort-style heated saltwater pool with sundeck and cabanas, aqua lounge, elevated “bark park” with pet grooming area, and an outdoor kitchen, fireside lounge and grilling areas. Concierge services will include dry cleaning and laundry drop off service.

According to MPF Research, apartment completions outpaced the Indianapolis market’s modest demand in the fourth quarter of 2014. Due to strong demand in second quarter last year, however, overall apartment demand reached a decade-high in 2014, when the metro absorbed 4,879 units.

Occupancy eased 0.2 points quarter-over-quarter in Q4 2014, but was up 1.7 points year-over-year, to 93 percent. While relatively good for Indianapolis, that’s one of the weakest overall occupancy rates among core 100 U.S. metros. Meanwhile, rents declined marketwide by 0.2 percent quarter-over-quarter in Q4 but, increased 2.7 percent year-over-year.