Historic Bush Stadium once hosted the Indianapolis Indians and was used as a dirt track and even a car storage site – before being converted into the luxury Stadium Lofts complex which today rents units between 900 and 1,700 dollars per month.
Michael Cox, John Watson and his two sons transformed the old baseball stadium into 138 residential apartments for $13.8 million after purchasing the property for just $1. Core Redevelopment, an Indianapolis-based developer, completed the conversion.
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“Our biggest concern when we started this project was, ‘Who’s going to come and rent it?’ There wasn’t much housing in the area. There wasn’t a lot of economic activity,” Watson said. Do It from CNBC.
“We were sort of pioneers when we did this project, so we were concerned about its success and we underwrote it cautiously.”
Renovations began in August 2011 and lasted less than two years. By the time Stadium Lofts officially opened in July 2013, all apartments were already rented.
A surprising project to revitalize a historic building
In 2011, Watson was serving as chairman of the board of Indiana Landmarks, a historic preservation nonprofit, when he was asked to brainstorm ideas for saving the abandoned Bush Stadium, which had stood since 1931.
Watson says he and others in the organization considered revitalizing the space again for football and baseball, but that plan fell through due to lack of funding. Their other idea was to transform the stadium in residential apartments.
“A lot of times, cities turn over their properties to nonprofits,” Watson said. “That’s what happened here.”
Indianapolis transferred the deed to Indiana Landmarks for $10 and the organization then sold it to Cox, Watson and his two sons for $1.
“Initially, people thought we were crazy for wanting to turn an abandoned baseball stadium into apartments,” Cox, director of Core Redevelopment, told Make It.
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Stadium renovation cost nearly $14 million
The developer group initially budgeted $14 million for conversion costs and ultimately spent around $13.8 million. Cox, Watson and each of his sons paid $1 million, took out a $6.5 million mortgage and received $5.3 million in grants from the city of Indianapolis.
Many states and cities across the country provide grants and tax credits to developers working on projects to preserve and reuse historic buildings. For example, the state of Indiana offers a matching grant program for the rehabilitation of historic properties that will produce income (such as apartment complexes) or that are owned and used by a nonprofit organization or corporation.
Stadium Lofts includes 95 one-bedroom apartments, 26 two-bedroom apartments and 17 lofts. Each apartment has a built-in washer and dryer, and rent ranges from $900 to $1,700 per month — the average rent in Indianapolis is $1,195 per month, according to RentCafé.
Core Redevelopment also built 144 additional apartments outside the stadium, in four adjacent buildings, as part of the deal with the city to take on the project.
The addition, named Stadium Flats, was completed in 2014, cost about $13 million to build and rents for the apartments range from $1,067 to $1,470 per month.
While many investors across America are undertaking such projects to tackle a neglected property and high demand for housing — it is also important to consider the original historic features of these buildings.
Stadium Lofts is unique for its screen balconies, exposed concrete floors and, of course, its original baseball field, which has been preserved intact. Watson and Cox even kept the scoreboard, old ticket booths and press box, and residents get a glimpse of the past with photos of the old stadium hanging in the complex’s fitness center.
“We designed it so that when you walk in, you feel like you’re walking into a historic stadium rather than an apartment building,” Watson said.
Proponents say the project has generated a lot of interest from Indianapolis residents.
“Almost everyone had been here for a baseball game in their life, so the connections ran deep and people were eager to come to the project,” Watson said.
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This article provides information only and should not be considered advice. It is provided without warranty of any kind.
