When Ellise Nikki Johnson opened her vegan restaurant The Alkaline Electric Goddess in the Circle Centre Mall food court in June 2023, she was thrilled to finally have a retail space of her own — next to crowd pleasers like Subway and A&W, no less.
“It’s so refreshing to be able to see small businesses that look like myself stand next to national brands,” Johnson said.
But all that could change soon.
In December, the Indianapolis Business Journal broke the news that the mall had been purchased by Wisconsin-based Hendricks Commercial Properties and would be redeveloped into a mixed-use campus featuring housing, offices, restaurants, retail and a public outdoor space.
The decision was not out of the blue. As national stores have continued to leave, the mall has become a shadow of itself. After Simon Property Group sold its share of the mall at the end of 2021, the mall’s ownership group announced it was thinking about redevelopment. The long-rumored project is supported by both the city of Indianapolis and the Indiana Economic Development Corp.
But something perhaps unexpected has happened as the chains have packed up and left. In recent years, Circle Centre Mall has become a haven of sorts for at least a dozen local businesses — many of them Black-owned — to set up relatively affordable brick-and-mortar shops as bigger stores like Nordstrom and H&M have departed.
And now many are worried about the future. How long can they stay? Can they be a part of the future Circle Centre? Will they find new affordable places to open near large customer bases? Will they close forever?
In an email obtained by Mirror Indy, mall general manager Luke Aeschliman assured tenants that there would be no immediate impact to their leases. Business owners like Johnson, though, are worried about their livelihoods.
“This is how we feed our families,” she said.
How will Circle Centre be redeveloped?
The redevelopment will cost $600 million and encompass about one million square feet of space in the heart of downtown Indianapolis, though Hendricks president and CEO Rob Gerbitz said both the cost and the size is subject to change.
Notably, Gerbitz said the new space will not function as a traditional indoor mall, and never will again. The company plans to create an open-air campus that hearkens more to its Indianapolis sister project at the Bottleworks District in Mass Ave.
Plans include attracting coworking spaces and entertainment companies — Gerbitz said the developer is eyeing an esports company — and retaining big-name permanent tenants like Yard House, St. Elmo Steak House and Harry & Izzy’s. Smaller businesses, said Gerbitz, will be “more kitschy stores that are unique.”
“We want it to become a very locally flavored development, but yet we also know that some regional players and maybe some nationals will be able to come into the mix as well,” Gerbitz said.
Business owners have some time to make decisions about whether to close for good or where to relocate. It could take between a year and a half to two years just to plan the redevelopment, Gerbitz said. The project will include at least four phases of construction.
“This is a 10-year project,” Gerbitz said. “For what we want to do and what we want to put our stamp on, we take our time and we want to make sure we do it right.”
Hendricks hopes to complete its acquisition of the property by the end of March. After that, the company plans to meet with tenants and talk through the vision for the redevelopment.
While there hasn’t been a guarantee that everyone will be able to stay, Gerbitz said, the company hopes to communicate openly.
“We want to work with all the existing businesses,” Gerbitz said. “This is no effort to push anybody out by any stretch of the imagination.”
Circle Centre continues to struggle
Circle Centre is in an odd place financially. The mall turned a profit of $4.3 million last year for its consortium of 17 owners, which operate together as Circle Centre Development Company. But a stroll through the hallways and its many empty storefronts shows that many businesses clearly have been struggling.
Kamilah James previously owned two businesses side-by-side on the mall’s third floor — Kemet 360 Jewelry and Accessories and Café at the Circle. She championed Circle Centre’s future, even helping others to get started by hosting the mall’s monthly small business showcase.
Recently, though, it’s been hard to keep her head up. She had to close Kemet in October because she lacked foot traffic, and her cafe’s been struggling, too.
While James said she thinks the redevelopment would be a positive, she doesn’t have high hopes for her cafe’s long-term viability — unless something changes dramatically, or if she’s guaranteed a spot in the new space.
“I love this space in the mall,” she said. “I honestly do. It’s just not working.”
She’s not the only one who anticipates a possible departure.
Apollo Bean, who owns clothing and accessory shop Apollo’s Fine Fashions, said he’s pessimistic about his store’s future at Circle Centre. Bean said he expects the developers to prioritize higher-end, pricier boutiques in the new mixed-use development.
Still, he’s never made more than $1,000 a day since moving his store from Tippecanoe Mall in Lafayette last summer. It’s been a struggle — and he’s not sure whether he’ll renew his lease, given the economy and Circle Centre’s circumstances.
“I don’t want to continue like this,” Bean said.
Claire Rafford covers higher education for Mirror Indy in partnership with Open Campus.
Are you an Indianapolis college student, staff or faculty member? Contact Claire at claire.rafford@mirrorindy.org.
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