The Annex Group Kicks Off $71M Indianapolis Affordable Project
This marks the developer’s third community in the metro.
The Annex Group has broken ground on the 227-unit Central at Old Southside, a $71 million affordable housing project in Indianapolis, marking the developer’s third community in the market.
Construction partners include BVH Architecture and civil engineer CEC. Upon completion, the community will encompass two garden-style, four-story buildings consisting of one- to three-bedroom units. Apartments will cater to residents earning between 50 and 60 percent of the area median income.
Impact Housing Indiana Corp. will provide supportive services for residents, while the McKenzie Center for Innovation and Technology is set to offer professional development classes.
Located at 1406 S. Capitol Ave., the construction site is in Indianapolis’ Old Southside neighborhood, which includes mostly industrial space, particularly near the White River. Interstate 70 runs less than 1 mile away.
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The capital stack includes $53 million in construction financing from Bank of America, as well as $30 million in total LIHTC equity from the same company. Merchants Capital provided a $30.7 million Freddie Mac TEL loan, while the Indiana Housing and Community Development Authority provided $500,000 in soft funding.
IHCDA also issued $33.5 million in Freddie Mac-enhanced bonds with Argent Institutional Trust Co. placement, according to Yardi Matrix data. The City of Indianapolis enrolled Central at Old Southside in a 15-year Payment in Lieu of Taxes program.
Central at Old Southside is among the largest PILOT ground-up multifamily projects that broke ground or reached completion across the metro. One finalized property that also benefited from the program is Forty Six Flats, a 173-unit income-restricted community developed by Partnership for Affordable Housing.
PILOT programs boost Indianapolis affordable projects
PILOT projects continue driving affordable housing development across Indianapolis. Just in June alone, there were 21 proposals considered by the Metropolitan and Economic Development Committee of the City-County Council. These properties amounted to 2,438 affordable units.
Among the items on the committee’s list was another project by The Annex Group, a 241-unit development dubbed Union at Astor. The firm’s portfolio includes more than $1.1 billion in multifamily housing projects across the U.S.
