Plans for a 12-story apartment building on property on the canal acquired by Purdue University last year are now on pause.
In a statement to Mirror Indy, Purdue spokesperson Derek Schultz said the university is “continuing to pursue plans” to develop the property located at 501 Indiana Ave.
Any future plans will be in line with Purdue’s long-term campus development plan in Indianapolis, Schultz said. The building that was at 501 Indiana Ave. has been demolished. The property is now being paved over and will become a parking lot for short-term use.
“We do not intend for this property to sit idle,” Schultz’s statement said, in part. “We remain mindful of the tremendous history of Indiana Avenue and will continue to collaborate and support a shared vision with neighborhood partners, local stakeholders and the city of Indianapolis on a future direction, not only for the 501 Indiana Avenue property, but for the neighborhood at large.”
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In July 2024, Indianapolis approved construction of a building with 263 apartments, retail and office space and a 323-space parking garage. The project was proposed by Indiana Avenue Partners — a collaboration between Arrow Street Development and Chatham Park Development, both Indianapolis-based companies.
Shortly after the project’s approval in 2024, Purdue announced it would lease about two-thirds of the proposed apartments for student housing.
The apartments were expected to be complete by August 2027, according to a now-archived webpage from Indy-based architect CSO, Inc.
Arrow Street Development and Chatham Park Development representatives could not be reached for comment.
Schultz did not respond to Mirror Indy’s questions about what happened to the previous plans for the property. It’s unclear when the original project was put on pause.
Purdue Research Foundation, a nonprofit that acquires land on behalf of Purdue, bought the 501 Indiana Ave. property for $6.9 million in March 2025, according to property tax records. Purdue’s board of trustees approved the university’s purchase of the property last fall.
The pivot for the property comes as Purdue continues to buy up land on and around Indiana Avenue to develop its downtown campus. Last week, the board of trustees approved the $4 million purchase of the former Second Baptist Church, located on Indiana Avenue and Michigan Street.
The university also previously acquired what’s now the college’s student center on Indiana Avenue, Canal Square Apartments on West Street and the former site of the American College of Sports Medicine on Michigan Street.
Mike Klipsch, vice chairman of the board of trustees, said in the April 10 trustees meeting that Purdue’s land purchases will allow the university to expand. But he also said purchases are “a little defense” against IU Indianapolis.
“IU owns the land south of Michigan Street,” Klipsch said. “So we’re boxing them in, also, so they can’t expand into our turf.”
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Claire Rafford covers higher education for Mirror Indy in partnership with Open Campus. Contact Claire by email claire.rafford@mirrorindy.org, on most social media @clairerafford or on Signal 317-759-0429.
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