Indianapolis will be seeing new affordable-housing construction: a new project is planned for land at the southeast corner of Illinois and 22nd streets. Two local groups – one a community group and one a development company – are partnering to create a mixed use project that should see completion in 2021…
Near North Development Corp. and RealAmerican LLC, (a Fishers-based company) is partnering to create the $12.5 million project on 1.2 acres. They have not announced a name for the project yet; however, they do note that they expect to build 60 affordable one- and two-bedroom apartments. The project will also include commercial space and amenity space.
They estimate the rent will come in around $800/$950 for one/two-bedroom, and that’s given at 80% of the area’s median income of approximately $59,500. Rent will be adjusted down for renters in lower income brackets, according to the project plans.
The plan calls for two buildings: a three-story building facing Illinois Street and a four-story building facing 22nd street. While the Illinois property will have only apartments, the 22nd street building will have apartments, commercial space, a lobby, fitness room, and other amenities. The existing property requires remediation before construction begins, and construction is currently estimated to begin summer of 2020 with completion expected by the end of 2021. The project’s financing will be both private debt and federal low-income housing tax credits.
Although new multifamily construction has remained relatively constant, many developers are seeing construction costs rise due to price hikes from subcontractors. While the U.S. is still embroiled in an ongoing trade dispute with several main trade partners, subcontractors have passed prices along to developers in anticipation of tariffs, while still not paying much of an increase for material themselves. Currently, multifamily construction is seeing an increase in costs as well, as subcontractors inflate bids to offset anticipated impacts of tariffs. Costs of lumber have gone up after briefly stabilizing, and some developers are seeing delays in their projects.
With what many have called an “affordable-housing crisis” still in effect, adding to the city’s inventory, including a mixed-use building with amenities, will be a welcome addition to the Circle City’s residential options. While many developers have seen increasing costs and delays in recent months, by the time remediation is done and construction begins, the Trump administration may have nailed down trade agreements and construction materials’ cost may stabilize.