227-Unit Affordable Apartment Project Begins
New construction in Old Southside adds rental units for middle-income households in Indianapolis.
Updated on Oct. 21, 2026 in Commercial
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Construction is underway on the Central at Old Southside apartment community in Indianapolis, a 227-unit project targeting residents earning 50 to 60 percent of the area median income. The project, which broke ground in October 2026, utilizes a 15-year Payment in Lieu of Taxes program to support its affordability goals.
Why it matters
This development addresses local housing needs by providing new rental inventory specifically for middle-income households in the Old Southside neighborhood. By securing tax incentives and diversified financing, the project aims to stabilize costs for residents in a competitive urban market.
The $71 million community features 227 garden-style residential units situated at 1406 S. Capitol Ave. Financing includes a $30.7 million Freddie Mac TEL loan and $33.5 million in bonds alongside a 15-year tax-abatement enrollment.
The players
The Annex Group
A developer managing a $1.1 billion U.S. portfolio focused on multi-family residential communities.
Indiana Housing and Community Development Authority
A state agency responsible for overseeing housing affordability and allocating infrastructure financing.
Impact Housing Indiana Corp.
A social services organization providing resident support and outreach programs for affordable housing tenants.
Merchants Capital
A financial institution specializing in multi-family lending and government-backed housing finance.
Bank of America
A national financial services corporation providing construction financing and LIHTC equity investments.
The details
The project comprises two four-story buildings offering one- to three-bedroom floor plans. Residents will benefit from on-site supportive services provided by Impact Housing Indiana Corp., while the McKenzie Center for Innovation and Technology will facilitate professional development courses for the community.
Timeline
Construction began in October 2026.
City officials reviewed 21 affordable housing proposals in June 2026.
The Home Front
This development utilizes the Low-Income Housing Tax Credit to facilitate new construction in an urban environment. It highlights the growing trend of pairing tax-increment financing with institutional loans to deliver workforce housing in high-demand municipal corridors.
Residents seeking stable housing options in the Old Southside neighborhood should monitor the development's progress for leasing availability. Those interested in professional development opportunities can check in with the McKenzie Center for Innovation and Technology as site work nears completion.
The takeaway
This development signals a shift toward incentivized, service-supported housing in urban Indianapolis. Interested applicants should monitor the progress of the 227-unit site to determine when leasing cycles begin.
Further reading
Learn more about new building projects in the area on the Indianapolis Commercial page.
Source note: This article includes information reported by 301 Moved Permanently.
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