Annex Group Breaks Ground on $71 Million Affordable Housing Community in Indianapolis

The Annex Group has begun construction on Central at Old Southside, a 227-unit affordable housing community situated just south of downtown Indianapolis. This $71 million project is designed to offer one-, two-, and three-bedroom units to households earning between 50 and 60 percent of the area median income.

The development will feature various amenities, including a community center, fitness center, business center, dog park, playground, and picnic areas. A key component of the project is a partnership with the McKenzie Center for Innovation and Technology, which aims to provide hands-on learning and career development opportunities for local residents through the Annex University initiative.

Funding for Central at Old Southside comes from a mix of public and private sources. The City of Indianapolis awarded a 15-year Payment In Lieu Of Taxes (PILOT) agreement, and the Indiana Housing and Community Development Authority (IHCDA) contributed $500,000 in soft funding alongside $33.5 million in tax-exempt bonds. Bank of America supplied approximately $30 million in equity and $53 million in construction financing, while Merchants Capital provided over $30.7 million in permanent debt financing. This collaborative effort addresses the need for affordable housing and fosters community growth in Indianapolis.