By Stephen Daum, Colliers
The eyes of the sporting world once again focus on downtown Indianapolis as it hosts the 2024 NBA All-Star Game at Gainbridge Fieldhouse in mid-February. It is anticipated that the game will have a $320 million economic impact to the city. Indianapolis was set to hold the 2021 NBA All-Star Game, but the COVID-19 shutdown forced a postponement until 2024.
Similarly, the pandemic also stunted development efforts in the central business district. But like the return of the All-Star Game, downtown development projects have rebounded, with an estimated $9 billion in projects set to be completed over the next few years.
In anticipation of hosting the All-Star Game, Pacers Sports & Entertainment finished an extensive $400 million remodel of Gainbridge Fieldhouse, including new seats, expanded social gathering areas, plus the new outdoor Bicentennial Unity Plaza — offering public basketball courts and an ice skating rink in the winter. Overlooking Bicentennial Plaza is Commission Row, a 30,000-square-foot mixed-use, multi-story development.
Basketball isn’t the only sport driving downtown development. Indy Eleven, a United Soccer League (USL) franchise headed by local developer Ersal Ozdemir, has begun construction on its expansive Indy Eleven Park. This will be located just south of Victory Field, home of the Indianapolis Indians (AAA affiliate of the MLB Pittsburg Pirates) and just west of Lucas Oil Stadium, home of the Indianapolis Colts. Clustered with other nearby sports venues, the addition of this development turns the southwest quadrant into a bona fide sports district.
Keystone Group, also owned by Ersal Ozdemir, has begun demolition on the 20-acre former Diamond Chain site. Indy Eleven Park’s first phase is expected to be completed in mid-2025 with a 20,000-seat soccer stadium that will be home to the men’s and women’s Indy Eleven USL teams. The balance of the site will be developed into 205,000 square feet of office space, 197,000 square feet of retail and restaurants, 600 apartments and a 4,000-seat music venue. The balance of the set will have public plaza green space with water features and public parking garages.
Also driving downtown development is the city’s robust convention business. The Indiana Convention Center and Lucas Oil Stadium host numerous marquee events such as Gen-Con (70,000 attendees), Performance Racing Industry Trade Show (67,000) and National FFA Convention (70,000). Consequently, Indy is needing more convention space and hotel rooms.
Pan Am Plaza, originally built to host the 1987 Pan American Games, is now slated for redevelopment. This project will include two hotels and a 50,000-square-foot, two-story building connecting to the convention center. In a unique funding model, the City of Indianapolis will drive this project and Kite Realty will partner as project manager. A $625 million bond has been approved to fund the 800-room, 40-story Signia by Hilton hotel. Demolition started in August 2023 with the hotel slated to open in 2026.
Since 1995, the Circle Centre Mall has served as a connecting hub for the city’s hotel and convention business. The mall has languished over recent years, but Indianapolis received an early Christmas present when Hendricks Commercial Property released plans to purchase and redevelop the mall. Hendricks announced a $600 million tentative agreement with the city to transform the mall, parking garages and the former iconic L.S. Ayers Building.
Wisconsin-based Hendricks is also expanding its Bottleworks development in the northeast quadrant of downtown Indy — transforming the former art deco Coca-Cola Bottling Plant into a mixed-use zone including office space, a hotel, food hall, movie theater and other retail. Hendricks has a successful track record of multiple transformative developments in Indianapolis.
The first phase of the Circle Centre Mall project is reported to be $100 million with an anticipated 2028 completion. The balance of the project is targeted for 2033 completion. Plans include transformation of the enclosed mall into an open-air model with housing, retail and an entertainment district to capitalize on the nearby sporting events and convention business. Retailers at Circle Centre Mall include Ruth’s Chris Steak House, P.F. Chang’s, Nada, Harry & Izzy’s, Yard House, Punch Bowl Social, Helium Comedy Club, Regal Cinema and Sugar Factory. Hendricks plans to close on phase I in early 2024.
On the downtown east side, two additional redevelopment projects have been announced. They include the redevelopment of the Indianapolis City Market and a long-awaited redevelopment of Old City Hall. The city announced a partnership with Citimark Development and Gershman Partners to redevelop the City Market into a $175 million mixed-use development with 350 residential units, office and retail spaces.
The city selected TWG Development LLC to redevelop the Old City Hall building just north of the City Market for a 32-story tower containing 190 residential units, a 150-room hotel plus a parking garage. There are plans to transform the Old City Hall building into a 21c Museum public art gallery and retail space.
To round out the mixed-use developments taking place in the downtown core, 1820 Ventures has begun demolition of the former Jail 2 site and arrestee processing center located between Washington and Market streets. 1820 Ventures’ estimated $120 million plan calls for mixed-rate apartments, retail, coworking space and a 60,000-square-foot entertainment event space.
And just outside the downtown core to the west, 2024 will bring a new era for Indiana University Indianapolis, formerly known as Indiana Purdue University Indianapolis. Indiana University is taking over the 25,497-student public research university. Slightly north of the central business district, IU Health is constructing a state-of-the-art hospital and medical facility, estimated to be a $4.3 billon project set to open in 2026.
Stephen Daum is a vice president of retail and land advisory services with Colliers. This article originally appeared in the February 2024 issue of Heartland Real Estate Business magazine.