More than a year after it was abandoned, an unfinished condo tower will get a new owner next week with less-lofty plans for the building.

Instead of holding condominiums selling for up to $3 million, the tower will be renovated with federal stimulus funds for modestly priced rental housing.

The new design for the eight-story midrise at 707 E. North St. calls for 40 apartments, while renovating the top floor to hold offices of the project's developer, the Whitsett Group.

As on-site landlord, "We'll make sure it stays real nice," said Joseph Whitsett, who co-owns the small development company with son-in-law Tony Knoble.

Whitsett said his 2-year-old Indianapolis company will close on the sale of the tower next week from Fifth Third Bank and the court that's handling a foreclosure against the property. The original developer was a partnership put together by Beilouny Luxury Properties of Indianapolis.

Work on the condo project ground to a halt last year after the recession hit and a national credit crunch dried up funding for high-end condos and other commercial development. The tower is a shell with an unfinished interior.

Contractor Shiel Sexton will start work later this month to build out the interior of the building, which includes a two-level garage.

When the renovation is complete in June, 32 of the units will be rented under government affordable housing guidelines. One-bedroom units will rent for $570 to $620 a month and two-bedrooms for $372 to $740, Whitsett said. Eight units will be rented at market rates of more than $900 a month.

"We expect to fill up quickly," he said.

The only tenant amenity will be an exercise room.

Funding comes from two loans totaling $10.4 million through the Indiana Housing and Community Development Authority, using federal stimulus money, Whitsett said. PNC Bank will lend $6 million,which will help repay the federal loan, he said.

A long-term private loan will be arranged later, "when the credit market lightens up a little," Whitsett said.

Reported by IndyStar.com

Labels: 707 E. North St. Indianapolis, Affordable Indianapolis Housing, Whitsett Group