The former Lafayette Square Mall property on the northwest side would become its own neighborhood under new plans from a development firm that first announced renovations more than two years ago.
The vision for The Square, as the project is called, includes multifamily housing, office space, retail, hotels, a medical campus and even a K-12 school. A traditional street grid would run through the 115-acre area.
If all of that sounds expensive, that’s because it would be.
Fabio De La Cruz, principal of Indianapolis-based Sojos Capital, said at a press conference Thursday, Jan. 25, that he wouldn’t be surprised to see the final price tag approach $1 billion.
De La Cruz said he’ll have to take on debt with the project — something he was originally hoping to avoid — and is looking for development partners. He said the firm also has started talking to the city about incentives.
A city spokesperson told Mirror Indy there aren’t any incentives involved with the project as of now.
Without incentives, De La Cruz said “the numbers just don’t work.”
When Sojos Capital first announced redevelopment plans in November 2021, the estimated cost for the project was about $200 million. Back then, the project was called Window to the World. Sojos Capital purchased the mall in December 2020 and now owns 300 acres, including other properties in the neighborhood.
Much of the new plan involves elements from the original, but rather than trying to salvage the existing mall structure, more than half of it would be torn down to make room for roads and higher building density.
De La Cruz said part of the feedback he received from the community is the need to create an authentic neighborhood that doesn’t feel replicated from other similar developments around the country.
De La Cruz spoke inside a former Sears department store, which is part of the section that would remain standing.
De La Cruz acknowledged setbacks — the original project was supposed to be done by November 2022 — and he may lose money he’s already put into the project, including for HVAC and electrical updates.
Still, he said he’s focused on creating a vibrant neighborhood.
“If I think that I took a wrong turn, and I’m not willing to be humble enough to correct it, my ego would be more important than the people that depend on me,” De La Cruz said.
What’s in the new plan?
Among his aspirations for the development are two hotels with a total of 370 rooms, about 1,300 housing units in multifamily buildings and townhomes and a 105,000-square-foot school.
A 200,000-square-foot sports facility would be added to the northwest side of the property, and part of the mall would be repurposed as a film studio.
In total, the plans call for 533,000 square feet of retail space and 187,000 square feet of office space.
Some parts of the project are already underway.
In October 2023, the firm broke ground on Alamo Drafthouse Cinema, a 14-screen, dine-in movie theater set to open this year.
A new community center also will open this year.
Mirror Indy reporter Tyler Fenwick covers economics. Contact him at 317-766-1406 or tyler.fenwick@mirrorindy.org. Follow him on X @ty_fenwick.
Republish our articles for free, online or in print, under a Creative Commons license.
