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ALK Development outlines plan to redevelop the Drake Apartments using tax credits, estimates $10 million rehab
Summary
Andrea Kents, owner of ALK Development, told the Metropolitan Development Commission the firm plans a roughly $10 million rehabilitation of the Drake Apartments using 9% low‑income housing tax credits and federal historic tax credits.
Andrea Kents, owner of ALK Development, told the Metropolitan Development Commission on June 18 that her firm proposes to redevelop the Drake Apartments using 9% low‑income housing tax credits and federal historic tax credits, with an estimated rehabilitation budget of about $10,000,000.
Kents said the project aims to convert existing four‑bedroom units into smaller units and that the building would total about 30 units after rehabilitation. She told the commission the building sat vacant for about 10 years and that stabilization work has already included masonry repairs done by the city; the proposed scope includes window replacement, new mechanical systems, a new elevator and a new roof to address water infiltration.
Kents identified Old National Bank as a potential syndicator and lender for both the low‑income housing and historic tax credit equity. She said a tenant services plan for the proposed 55‑and‑over population is still being refined and that a supportive‑services provider had not yet been selected, though the developer expects to partner with local service providers.
Commissioner questions focused on financing, supportive services and parking. Kents said Stens Construction is on the team and will manage construction and initial lease‑up; she said management may not require a full‑time on‑site manager after lease‑up because the property is small. She described parking constraints at the site because of a deteriorated garage at the rear, ongoing drive access used by a nearby school and proximate museums. Kents said she has begun conversations with the neighboring school about circulation and that the rear garage roof has caved in at several places.
Kents said the company was likely to seek a tax abatement; she described prior work on 9% tax credit and historic tax credit deals and noted prior projects in Indianapolis. Commissioners encouraged the team and asked staff to remain informed as the project proceeds through financing and design.
No formal action was taken on the Drake presentation; Commissioners noted the project’s complexity and expressed support for the effort to restore the historic building.
