Developer buys old baseball stadium for $1 in one of the most unique luxury apartment transformations

A developer group transformed a baseball stadium into luxury apartments after acquiring it from the city of Indianapolis for $1.

The project gained popularity when a real estate firm praised it on X as “one of the most unique residential conversions.”

The Stadium Lofts was once a baseball stadium. Still, they were transformed into 138 luxury apartments by Core Redevelopment, a Midwest developer group.

The property is owned by Michael Cox, John Watson, and their two sons.

“Initially, people thought we were crazy for wanting to turn an abandoned baseball stadium into apartments,” Michael told CNBC.

Bush Stadium hosted the Indianapolis Indians from 1931 to 1996 before being used as a dirt track and later as a car storage area.

It stood empty until 2011, when John Watson, chairing Indiana Landmarks, a nonprofit focused on preserving historic places, was tasked with finding ways to save the stadium.

John noted that the stadium had been vacant for years and was at risk of demolition.

He and the Indiana Landmarks group considered converting the baseball stadium into luxury apartments or renovating it for soccer and baseball.

However, plans to revive it for sports were hindered by financial constraints.

“About nine months later, [the city] approached me again and said, ‘If you don’t do that idea you came up with to turn it into apartments, it will be lost. They’re going to tear it down.’ So, we put together a team and explored whether it was possible to do it,” said John.

Michael, John, and his two sons obtained ownership of the stadium in 2011.

Indianapolis transferred the property to Indiana Landmarks for $10, and the nonprofit then transferred it to the partners for $1.

John clarified that cities frequently transfer properties to nonprofits for management, which was their situation.

Core Redevelopment agreed to build 144 additional luxury apartments in four nearby buildings named Stadium Flats as part of their deal to acquire the stadium from the city of Indianapolis.

Stadium Flats, completed about a year after Stadium Lofts, cost approximately $13 million. When it opened in July 2014, all apartments were leased.

The complex offers 90 one-bedroom apartments, 48 two-bedroom apartments, and 6 one-bedroom apartments with dens, with rents ranging from $1,067 to $1,470.

Michael, John, and his sons budgeted $14 million for converting Stadium Lofts but spent around $13.8 million.

This included contributions of $1 million each from them, a $6.5 million mortgage, $5.3 million in grants from Indianapolis, and a $1 acquisition cost.

John confirms that they have paid the mortgage and arranged long-term permanent financing.

The stadium underwent renovation from August 2011 to July 2013, completing it in less than two years. Upon opening, all 138 luxury apartments were fully leased.

The renovated complex includes 95 one-bedroom units, 26 two-bedroom units, and 17 lofts, with rents ranging from $900 to $1,700 monthly.

Each apartment is equipped with a washer and dryer.

John expressed initial concerns about attracting renters to the project due to the neighborhood’s limited housing and economic activity.

They approached the endeavor cautiously, mindful of being pioneers in the area.

The stadium is in Indianapolis, Indiana, where, as of April 2024, the median rent for properties of all sizes is $1,360.

This figure is 32% lower than the national average, as reported by Zumper.

Michael recognizes the group’s technical difficulties in transforming the stadium into a residential space.

They had to tackle various existing issues while maintaining the stadium’s distinctive character.

They decided to preserve several original stadium features, such as the scoreboard, old ticket booths, and the press box.

Additionally, they restored the base pads on the existing field to honor its history.

“We designed it such that when you walked in, you felt like you were walking into a historic stadium rather than an apartment building,” John said.

John described how the developers added chain link fencing balconies to evoke a stadium atmosphere in the luxury apartments.

They also opted to expose the concrete floors in each unit.

Inside the fitness center, they displayed photographs of the old stadium.

The complex includes several resident study rooms and a courtyard with a gas fireplace, tables, and chairs near the field.

For Michael, seeing the stadium transformed from abandonment into a vibrant community fulfilled a childhood dream tied to his love for baseball.

“I played baseball growing up and I always thought maybe I’d get into the Hall of Fame as a baseball player,” Michael said.

John noted a positive community response when Stadium Lofts opened.

“Almost everybody had been here for a baseball game sometime during their lifetime, so the connections were deep, and people couldn’t wait to come to the project,” he said.

Tour inside the former baseball stadium turned into luxury apartments through the video below: