The Annex Group Starts Old Southside Apartment Project

Work is underway on a $71 million housing community in Indianapolis designed for residents with lower incomes.

Updated on Oct. 21, 2026 in Commercial

Screen-print poster illustration of a multi-story residential building under construction with exposed steel and timber framing, reflecting affordable urban housing development. — The Annex Group has commenced construction on Central at Old Southside, a 227-unit affordable housing community in Indianapolis costing $71 million. AI Illustration. Upload story photo >

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The Annex Group officially began construction in October 2026 on the Central at Old Southside, a 227-unit apartment development. Located at 1406 S. Capitol Ave., the project represents a $71 million investment in new affordable residential space.

Why it matters

The development aims to provide housing for individuals earning between 50 and 60 percent of the area median income. By integrating supportive services and professional development classes, the initiative seeks to foster long-term residential stability in the neighborhood.

The 227-unit development features two garden-style four-story buildings with one- to three-bedroom floor plans. Residents will benefit from a 15-year Payment in Lieu of Taxes program enrollment granted by the City of Indianapolis.

The players

The Annex Group

This is a real estate development firm specializing in multifamily housing projects across the United States.

Bank of America

This multinational investment bank and financial services holding company is a primary provider of capital for the project.

Merchants Capital

This financial institution provides specialized debt and equity financing for affordable and market-rate housing developments.

Indiana Housing and Community Development Authority

This state agency oversees affordable housing initiatives and provides financial assistance for development projects.

Impact Housing Indiana Corp.

This organization manages and provides necessary supportive services to residents living in affordable housing communities.

The details

The project is backed by a complex financial structure including $53 million in construction financing from Bank of America and a $30.7 million Freddie Mac TEL loan from Merchants Capital. Additional support includes $500,000 in soft funding and $33.5 million in bonds issued by the Indiana Housing and Community Development Authority.

In June 2026, the committee reviewed 21 affordable housing proposals in Indianapolis.
Construction on the development officially began in October 2026.

Culture Shift

This project reflects a broader movement toward utilizing targeted tax incentives and public-private partnerships to address regional housing shortages. It highlights a shift in urban planning where affordable developments are increasingly integrated with localized professional support services.

The new community will specifically serve local residents earning between 50 and 60 percent of the area median income. Prospective tenants will also gain access to on-site professional development classes offered through the McKenzie Center for Innovation and Technology.

The takeaway

This development showcases how large-scale institutional financing can be leveraged to address specific income-based housing needs in growing urban centers. Residents benefit from combined housing and service-oriented models that go beyond mere rent stabilization.