2/18/2005
Media Contact:
Justin Ohlemiller, [317] 327-6709 |
 |
City, Market Square Partners agree to revised project agreement; redevelopment of former MSA site moving forward
Developers retool project, add high-rise expertise to development team
INDIANAPOLIS - The City of Indianapolis and Market Square Partners, LP have agreed to terms on a revised project agreement that will keep the development of The Residences at Market Square moving forward, city officials said today.
As part of the revised agreement, Market Square Partners is retooling the upscale, high-rise development, which calls for two, 29-story towers housing more than 400 condominiums, as well as ground level retail space - and tapping into the high-rise expertise of Chicago-based Mesa Development, LLC. Changes include creating new unit types and sizes on the east and west sides of the high-rise tower to reflect the high demand for units with downtown views. These modifications will create additional entry level units providing more opportunities for a wider range of buyers.
Revised floor plans, pricing and other project design information will be available in June.
"Market Square Partners' vision for the former MSA site has tremendous potential to further enhance our vibrant downtown, and they have shown a commitment to ensuring this bold project takes shape," said Mayor Bart Peterson. "We believe the addition of Mesa Development to the project team, as well as other changes to the pricing and unit design, are positive steps that will ultimately lead to the success of The Residences at Market Square and the creation a new Market District on the near-eastside."
Mesa Development is a real estate developer and investor with proven leadership in the development and design/build of a wide range of residential, mixed-use and corporate developments. Recent developments of Mesa's include The Heritage at Millennium Park, a 365-unit luxury residential high-rise across from the world-acclaimed Millennium Park in Chicago. Mesa is also developing The Heritage San Jose, a 21-story condominium tower in San Jose, Calif., and Park Boulevard, a project that encompasses the redevelopment of 40-acres of a near south-side Chicago neighborhood and will provide more than 1,300 new homes for low-income and market rate buyers.
"We are excited to bring Mesa Development to this incredible project," said Lewis Smoot, Sr., a principal with Market Square Partners, LP. "I have personally known the principals of Mesa Development for 15 years and we share the same values of quality, commitment to community and performance that will be the foundation of success in this endeavor."
Market Square Partners, which has been selling condominiums and leasing commercial space for the planned high-rise residential towers and ground-level retail destination, told city officials last December that they could not meet a 50 percent presales benchmark calling for the sale of approximately 100 units by the targeted date, preventing them from closing on the city-owned land. The city agreed to work with Market Square Partners through February to evaluate proposed project changes and a new development schedule.
The project agreement between the city and Market Square Partners will be amended to reflect a new timeline, including a 50 percent presales target date of November 2005. Developers also expect to break ground in late 2005. Market Square Partners has sold 41 units to date and would provide current contract holders the first opportunity to purchase the revised units.
"Circle Centre Mall faced a series of delays and underwent a complete project overhaul that set the development back more than three years," Peterson said. "Because city leaders and developers took the time necessary to make changes and remained focused on the vision, we now have one of the best urban malls in the country.
The Mayor pointed to several examples of Market Square Partners' dedication, including:
* the non-refundable payment to the city of $1 million for the sale of the land, which will be used to
promote more affordable housing opportunities in Indianapolis;
* its purchase of the nearby Bank One parking garage;
* a fulfilled commitment to the City Market to provide a team for developing an interior design master plan and facilities assessment for the historic building;
* its commitment to develop residences on site for people at or below 80 percent of the area's median income; and
* its investment of more than $3 million of equity to date with a commitment of additional equity necessary to meet its obligations under the project agreement.
The Mayor also applauded the successful efforts to lease commercial space at the Shoppes at Market Square, the retail component of the development. Market Square Partners have seen tremendous interest from retailers. Hubbard & Cravens Coffee Company, Cio's Pizza, and Nothing But Noodles restaurant have all committed to the project.
|
