INDIANAPOLIS — Circle Centre Mall officially has a new owner after Hendricks Commercial Properties confirmed the deal was completed Wednesday.
Circle Centre Development Co., a partnership of 17 businesses and corporate investors, announced in a news release that Hendricks Commercial Properties has acquired the longtime downtown Indianapolis shopping mall.
Circle Centre Mall begins redevelopment after sale to Hendricks Commercial Properties
Hendricks Commercial Properties is the developer of the Bottleworks District and Ironworks on Keystone Avenue.
The deal was first confirmed in December when officials announced they would invest roughly $600 million over the next 10 years to transform the site into an “open-air, pedestrian-focused campus” featuring retail, office space and residential development, but the deal has now officially closed.
“We think this has the potential to be a world-class destination for downtown Indianapolis now and long term and into the future, and we don't think you'll see that in every downtown,” said Rob Gurbitz, president and CEO of Hendricks Commercial Properties.
But today's Circle Centre Mall is still home to many business owners trying to make a living.
“It's frustrating,” is how Naomi Pannell, owner of Zoe and Pearls at Circle Centre Mall, described her business.
She said foot traffic hadn't been strong before, but sales have worsened since it was first announced in December that the mall's ownership would be changing.
“After last year's announcement, people were given the impression that the mall was closed,” Pannell said.
Pannell heard the story from several customers. Other nearby businesses echoed the rumors. Their message? The mall isn't closing. And while there are vacant storefronts, there are still plenty of people looking to do business inside the mall.
Pannell said he has looked into Hendricks and is excited about the changes the company is planning, adding that he believes the changes were necessary for the mall to survive. Now he plans to wait and see what happens.
“If we decide to stay while construction is taking place, how much worse will the situation be than what we've been dealing with so far?” Pannell asked.
Gurbitz said he has spoken with current tenants and hopes they will be able to continue operating during the construction period.
“They're going to expect a lot of conversations from us,” Gurbitz said. “We need their input and we really need to understand where they want to go with their business.”
Pannell said he's looking forward to it.
“We're patiently waiting for these conversations, these tenant meetings and so on to give us some information and some positivity about what's going on,” Pannell said.
The agreement includes state and local incentives, including approximately $64 million in tax credits and loan forgiveness, if Hendrix Commercial Properties meets all development requirements, according to the announcement.
Indianapolis Mayor Joe Hogsett praised the agreement, saying it would “grow the economic engine” of Indiana and its capital city.
“Indianapolis has long awaited the day when a bold vision would once again re-envision our greatest asset in the city's downtown as a commercial and cultural hub for a new generation,” said Mayor Hogsett. “The partnership between the City, IEDC and Hendricks to transform Circle Center will add to Downtown's more than $9 billion economic development pipeline and help grow our state's economic engine.”
One arrest reported after Indigo Red Line bus set on fire near North Side bus depot
Indiana Secretary of Commerce David Rosenberg also spoke about the project, calling it a “transformative investment.”
“Groundbreaking investments like this cannot be made without public-private partnerships,” Rosenberg said. “We're grateful to the City of Indianapolis for sharing our commitment to ensuring Circle Centre remains a key asset in its efforts to attract and retain forward-thinking businesses, and to the stakeholders who have stepped up to take control of the situation in 2021. We all have a strong interest in seeing Hendrix Commercial Properties succeed and continue their track record of projects that make our state and city a true destination for businesses and families.”
The project will be subject to applicable development requirements set forth by the city, the Indiana Economic Development Corporation and Hendrix Commercial Properties.
Circle Centre Development Company has owned the property since 1995.