Kite plans to secure funding for Pan Am Plaza project by year end – Indianapolis Business Journal

A rendering of the restaurant at the new Signia by Hilton hotel in Pan Am Plaza. (Courtesy of Kite Realty Group Trust and Ratio Architects)

Indianapolis-based developer Kite Realty Group Trust said this week that it plans to consolidate financing for its proposed $550 million hotel and convention center expansion on Pan Am Plaza by end of this year.

The company, which largely specializes in shopping malls, said through a spokesperson it remains committed to the project, which it has been involved with since 2018. The development requires a $120 million expansion from the Indiana Convention Center, as well as an upscale 40-. story, 800-room hotel with the Signia by Hilton flag, both slated for completion in early 2026.

See the gallery of new images for the project below.

Marion County Kite and Capital Improvement Board officials said that while current market conditions for major real estate projects have been difficult, they are on track to meet a deadline to complete all pre-construction work. construction and financing by the end of 2022. This requirement is within the framework of a project agreement signed in early 2021 specifying the responsibilities of each.

There are no plans to change the scope of the development from current plans last updated in 2020, which include a later phase that would add a 600-room hotel adjacent to the Signia.

“The project is moving forward, and while rising construction costs have posed a challenge, the team is on track to secure funding by the end of the year,” said Bryan McCarthy, senior vice president. of Kite’s marketing and communications, in written remarks. . “The expansion plans for the Indiana Convention Center and the Signia by Hilton branded hotel have not deviated from the shared designs. We look forward to helping create a historic development for the city of ‘Indianapolis’.

Tom McGowan, Kite’s chief operating officer, also told IBJ that elements of the project should be in place by the end of the year.

Andy Mallon, CIB’s chief executive, said the hotel and convention center addition is expected to open in early 2026, “assuming we maintain our current pace.” Several major conventions have committed to the city with the possibility of the project being completed in time for their events. These conventions include the American Dental Association and Gen Con.

Some underground construction could begin as soon as this fall following the completion of the NBA 2K League’s season-long stay at the Pan Am Pavilion, which will be demolished as part of the convention center’s expansion plan. However, no date has been set for a groundbreaking ceremony.

Mallon said design documents for the project are being finalized. CIB and Kite provided several new and updated renderings of the project to IBJ. Ratio Architects is the design office for the project.

Renderings include a first look at the convention center’s main ballroom and hotel suites, as well as updated designs for the hotel’s lounges, bars and dining areas.

Another rendering shows the full extent of the development, including the second-phase hotel and a third tower on the northeast corner of Capitol Avenue and West Louisiana Street. Kite’s McCarthy said the tower was a “potential opportunity for future development”, but declined to elaborate.

  • A rendering of the Pan Am Plaza redevelopment project in downtown Indianapolis. (Courtesy of Kite Realty Group Trust and Ratio Architects)

  • A rendering of the main ballroom planned for the new Indiana Convention Center expansion. (Courtesy of Kite Realty Group Trust and Ratio Architects)

  • A rendering of the main ballroom planned for the new Indiana Convention Center expansion. (Courtesy of Kite Realty Group Trust and Ratio Architects)

  • A rendering of the lobby bar of the new Signia by Hilton hotel at the Pan Am Plaza. (Courtesy of Kite Realty Group Trust and Ratio Architects)

  • A rendering of the restaurant at the new Signia by Hilton hotel in Pan Am Plaza. (Courtesy of Kite Realty Group Trust and Ratio Architects)

  • A rendering of the meeting room at the new Signia by Hilton hotel at Pan Am Plaza. (Courtesy of Kite Realty Group Trust and Ratio Architects)

  • A rendering of the elevator bay of the new Signia by Hilton hotel at Pan Am Plaza. (Courtesy of Kite Realty Group Trust and Ratio Architects)

  • A rendering of a hotel room at the new Signia by Hilton hotel in Pan Am Plaza. (Courtesy of Kite Realty Group Trust and Ratio Architects)

  • A rendering of the lobby bar of the new Signia by Hilton hotel at the Pan Am Plaza. (Courtesy of Kite Realty Group Trust and Ratio Architects)

  • A rendering of a meeting room at the new Signia by Hilton hotel at Pan Am Plaza. (Courtesy of Kite Realty Group Trust and Ratio Architects)

  • A rendering of a meeting room at the new Signia by Hilton hotel at Pan Am Plaza. (Courtesy of Kite Realty Group Trust and Ratio Architects)

  • A rendering of the Sky Bar Lounge at the new Signia by Hilton hotel at Pan Am Plaza. (Courtesy of Kite Realty Group Trust and Ratio Architects)

  • A rendering of the Sky Bar Lounge at the new Signia by Hilton hotel at Pan Am Plaza. (Courtesy of Kite Realty Group Trust and Ratio Architects)

  • A rendering of the Sky Bar Lounge at the new Signia by Hilton hotel at Pan Am Plaza. (Courtesy of Kite Realty Group Trust and Ratio Architects)

Efforts to mitigate any cost overruns for the project are also underway, Mallon said, especially as inflation continues to hamper development projects in Indianapolis and beyond.

“Cost volatility is a challenge for all construction projects right now,” he said in email responses to questions from IBJ. “We are working in real time with designers, contractors, Kite and the Signia by Hilton design team to address these challenges and more. Optimizing the program, design details and constructability of the project to mitigate cost escalation is a high priority.

In a statement, a city spokesperson said work was continuing behind the scenes to ensure the project progressed efficiently.

“Despite all the challenges with construction costs and supply chain issues as we emerge from the pandemic, the schedule for project closure, construction and completion remains on track,” said Mark Bode. , communications director for Mayor Joe Hogsett. “Over the past year, City, CIB and Kite have worked diligently on the build and operate agreements, as well as financing matters and have made tremendous progress on the hotel design and ballrooms. They also worked closely with Hilton on the design elements and operations of Signia.”

Michael J. Birnbaum