By Kevin Collison
Construction is expected to begin this fall on a $24 million apartment project that will replace a vacant, decrepit block at 27th and Troost with 182 market-rate residences.
The new development is next to the Beacon Hill neighborhood and a major market will be employees and students at the nearby Hospital Hill district of downtown. It’s being developed by Indianapolis-based Milhaus and locally-based UC-B Properties.
“This is an exciting project and we see the potential for pushing market-rate development east of Troost,” Brad Vogelsmeier, Milhaus director of development, told the board of the Planned Industrial Expansion Authority Thursday.
“It’s a risk for investors and lenders because there’s nothing else to compare it to. That’s why we’re here today.”
The PIEA board agreed and unanimously approved a now-rare full, 25-year property tax abatement for the project; 10 years at 100 percent, 15 years at 50 percent.
The development is on a city block owned by another development agency that is currently paying no taxes that’s in an area designated by the city as a distressed Census tract.
Vogelsmeier said that even with the tax breaks, the development will yield $2.5 million in property taxes during the 25-year life of the abatement.
The project will include 182 apartments in three-story buildings on the block bound by Troost and Forest, from 26th to 27th streets. A 10,000- to 12,000 square-foot commercial building also is part of the development. The apartment breakdown is 35 studios, 93 one-bedroom and 55 two-bedroom with an interior 183-space surface parking lot.
Amenities include indoor bicycle parking, a coffee bar, dog park and outdoor courtyards. The project also is next to the Troost MAX bus rapid transit station. Security measures will include substantial lighting, video cameras at all entrances and resident smartphone access to the video feed.
“We don’t want to wall ourselves off from the community,” Vogelsveier said, “but provide security that’s safe and welcoming.”
Monthly rents will range from under $800 for a studio, an average of $922 for a one-bedroom and two-bedrooms going at $1,425.
The developer wants to attract restaurants, a small grocery store and similar businesses to the retail space in the commercial building.
The project is expected to be completed by winter 2018.
Milhaus also is developing a $64 million residential project six blocks west of the 27th and Troost product near Crown Center. The 361-unit apartment development at 27th and Gilliam Road is expected to have its first units available next August.
Vogelsmeier said Milhaus specializes in developing projects in the urban core of Midwestern cities and has built 7,200 apartments over the past seven years.