Strategic Capital Partners LLC and Goodwill of Central & Southern Indiana have broken ground on a $28.5 million, 208-unit apartment project at the southwest corner of Michigan Street and White River Parkway, the Indianapolis Business Journal (IBJ) reports.
The Riverview complex will have two, four-story buildings designed for tenants with incomes between $30,000 and $60,000 annually.
“This is nice for individuals in the 61-120 percent who make too much for low-income, but not enough for market rate … this really provides an opportunity for our police officers, nurses and teachers,” Kent Kramer, president and CEO of Goodwill of Central and Southern Indiana, was quoted as saying.
Will Zink, senior vice-president of Strategic Capital Partners, said the project will include amenities seen in market-rate and upscale projects
The business publication reports that Gene Zink, executive chairman of Strategic Capital Partners and father of Will Zink, previously chaired the Goodwill board of directors that in 2015 selected Kramer to replace longtime Goodwill president and CEO, who retired.
The Goodwill connection between Gene Zink and Kramer goes back at least 15 years, and Kramer said they’ve been discussing a project like Riverview almost as long. In 2016, Goodwill released a request for proposals from outside developers and officially partnered with Strategic Capital Partners’ proposal for workforce housing.
The partners first unveiled their plans for a $26 million, 220-unit apartment complex to Property Lines in April 2017. At the time, they hoped to begin construction by the fall of 2017. Instead, the developers faced an almost year-long delay, mostly fueled by a lack of funding, Kramer said.
After an unsuccessful attempt to finance the project with the city’s share of federal New Markets Tax Credits, the development team managed to secure $4.2 million in single-site Tax Increment Financing, with help from city officials and other community partners. Goodwill and Strategic Capital Partners split the remaining project cost.
The original Riverview plans included offices for Goodwill’s workforce training programs, but the offices were scrapped as development talks progressed. “We’re still going to utilize the site as training for our buildings and grounds employees,” Kramer told IBJ in the interview.
Goodwill trainees could serve as landscapers, maintenance workers or janitors in the space. Residents are also within walking distance of the Goodwill of Central & Southern Indiana’s headquarters, which sits west of the property, and a Goodwill Excel Center, which offers tuition-free high school programs to adults.