Project Announcement Historic Tax Credit

NTCIC Finances Historic Office to Hotel Conversion in Indianapolis

Written By: NTCIC

Historic Illinois Building will Become InterContinental Hotel with Historic Tax Credit Investment

WASHINGTON, DC, March 30, 2023 – The National Trust Community Investment Corporation (NTCIC) is excited to announce the successful financial closing of the Illinois Building, an iconic office building located in the heart of the Mile Square business district of Indianapolis, Indiana. The revitalization project, led by Keystone Group, a development, construction, property management, and investments company specializing in transformational mixed-use projects, will transform the building into a 170-key full-service luxury InterContinental hotel and restaurant space. NTCIC provided an equity investment in federal Historic Tax Credits (HTC) generated by the preservation efforts.

Historic image of the Illinois Building, soon to be a new InterContinental Hotel

Historic Origins

Constructed in 1926, the Illinois Building was designed by the renowned architectural firm Rubush & Hunter, who were responsible for several iconic landmarks in Indianapolis, such as the Masonic Temple, City Hall, Circle Theater, Indiana Theater, and the Stutz Motor Company complex. Commissioned by the president of what is now Levi Strauss & Company, the building served as luxurious office space for nearly 70 years before becoming predominantly vacant by the mid-2000s. Indiana Landmarks listed the building on its 10 Most Endangered list in 2006, spurring interest in its revitalization.

The Revitalization of Downtown Indianapolis

Keystone Group will oversee the transformation of the 10-story, 135,004 square-foot Illinois Building into a 170-key luxury InterContinental hotel managed by IHG. The project will retain the two ground-floor restaurants currently occupying and operating the space, add a 2nd-floor hotel restaurant and bar, and create a rooftop bar and venue.

“The restoration of the Illinois Building is a testament to our commitment to preserving the architectural heritage of downtown Indianapolis,” said Ersal Ozdemir, Keystone Group CEO. “With the transformational development of this long-vacant historic treasure, we are not only reinvigorating the central business district but also attracting more activity and fostering a vibrant, thriving urban core that benefits residents and visitors alike.”

NTCIC’s Historic Support

To facilitate the restoration of the Illinois Building, NTCIC financed federal Historic Tax Credits generated by the project through its Climate Impact and Revitalization Fund. NTCIC provided underwriting and transaction management services and will provide asset management services through the HTC compliance period.

“We are proud to collaborate with Keystone Group for the Illinois Building restoration, who have demonstrated exceptional stewardship, commitment to quality preservation, and dedication to the local community,” said Amanda Bloomberg, NTCIC’s Senior Acquisition Manager. “Their track record of thoughtful development reinforces our confidence in the project’s potential to make a lasting impact on downtown Indianapolis.”

The conversion of the historic downtown Illinois Building into a hotel exemplifies the shift of companies to more remote and flexible work arrangements and a reduction in the demand for traditional office spaces. This trend has led to an increased interest in repurposing these historic spaces into other types of properties, such as hotels, housing, and retail, which can cater to the evolving needs of urban centers.