Developer reveals plans for new, larger project to revitalize former Lafayette Square site

Editor's Note: This story has been updated to correct Lucille Moore' age. She is 89 and has not yet had a birthday this year.

The developer working since 2021 to revitalize the former Lafayette Square Mall property announced plans Thursday for an even bigger project that would require taking on debt and will also involve razing more than half the existing structure.

Sojos Capital unveiled its updated master plan for the former mall site and surrounding properties, outlining a bolder vision approaching nearly $1 billion. The original plan was for the developer to self-fund the work, but the company now intends to seek assistance from the city and state to transform the distressed mall on the northwest side.

More: Lafayette Square Mall community eager for multi-million dollar transformation

The updated master plan for the property — which the company is now calling The Square — comes more than two years after Sojos Capital said it would redevelop the mall into The Window to the World, a $200 million mixed-use development. Sojos CEO Fabio de la Cruz said he's already spent millions toward making the initial plan a reality, but acknowledged the project stalled due to economics and the feedback he received.

"The feedback that I was receiving was, 'I like what you're doing, but it reminds me of Epcot, reminds me of Las Vegas, etc.,' the more that I was thinking is — it's going to be impossible to recreate the neighborhood that tried to be authentic," he said during a press conference held in the former Sears department store at the mall on Lafayette Road north of 38th Street.

Increasing construction costs after the pandemic also worked against the original project, said de la Cruz.

"As a leader, I believe that if I think that I took a wrong turn, and I'm not willing to be humble enough to correct it, my ego will be more important than the people that depend on me," said de la Cruz, whose real name is Fabricio Perez according to public records.

Now, in order to make the project work in terms of the numbers, de la Cruz said he realized he needed to have more density, go bigger, find new partners and take on debt — something he initially didn't want to do.

"As we were doing that, I started to find a lot of opportunities, as I see that this neighborhood can be a way to show the best that Indiana has to offer to bring the talent that will make this place better and more than anything retain the talent," he said. "Unfortunately, if the opportunities are not here, we'll leave."

The new plan reflects a vision for the mall that best uses its existing structure while creating a vibrant immersive neighborhood, Sojos Capital said. The project elements remain focused on dining, shopping, housing, office space, youth education and sports, entertainment, infrastructure improvements and public safety. Under the new master plan, the company plans to demolish portions of Lafayette Square Mall's existing structure.

Less than 50% of the mall structure will remain, de la Cruz said. Current plans call for keeping the segment that housed the Sears department store, taking down the south part of the mall and portions of the north and east sides. New roadways will be added. Buildings will be constructed throughout the property. Window to the World, which initially was the name for the planned mixed-use development, will now be the banner of an on-site food hall.

The Square will also have a film studio, youth sports complex, k-12 school, two hotels, apartments, medical office space, retail and townhomes.

De la Cruz noted that last year Indiana adopted a law permitting tax credits for film productions.

He said the company will focus on developing smaller parcels for city incentives that will enable it to build out the bigger development. Sojos also is seeking partnerships with developers to accommodate larger density buildings. In a press release, the company said development agreements are being finalized and will be announced soon.

"The idea was that we deploy the cash that we have, and with a cash flow we finish the whole project," de la Cruz explained. "Now, because again, in order to make this possible, we need to pull debt, and we need the incentives because if it's not the numbers just don't work."

De la Cruz did not detail a concrete timeline for the project, but said the goal is to have the rezoning and incentives agreement with the city completed in roughly six months. Construction would start soon after with the first phase complete by the end of 2025.

Initially announced in November 2021, Sojos Capital's revitalization of Lafayette Square Mall called for the creation of a mixed-use development called Window to the World. It was to include the renovation of the mall's interior as well as the addition of a 200 apartments, a boutique hotel, office and event space, a public walking trail, infrastructure improvements, and new stores.

The project was to take place in phases under an accelerated timeline with the first wave expected to be completed in 2022 or 2023. While improvements to the roof, electrical, HVAC system, parking lot and painting took place, the project strayed from its original timeline and remained incomplete. De la Cruz has said Sojos Capital spent $50 million on the improvements, but he doesn't see the money spent as being wasted.

"Mistakes are not wasting," he said laughing. "The other thing for me is the way that you get better. That's why I've never seen the things that I do — that I have to redo again — as a mistake, because the only way that you can get better is to take full force the route that you choose and if you think that is not the right one, you turn and go to the thing that you think is right. That's not waste."

Still, he said he would do things differently if he could go back and start over.

Since Window to the World was announced, the mall property has gone through periods of short closures as Sojos worked on the building. Some of the mall's tenants have either left on their own or relocated to other locations. There also have been some bright spots. Sojos Capital has announced it is turning a former Aldi in the 3500 block of Commercial Drive into a community center and the addition of Texas-based Alamo Drafthouse in the location of Georgetown Cinema.

Many community members remain hopeful and excited about what could come.

"This was a good mall. It did a lot of business and I believe that it could do it again," said 89-year-old Lucille Moore, a former Lafayette Square Mall retail worker who still lives near the property. Moore speaks fondly of her days working at the mall and wanted to impress on de la Cruz the importance of carrying out his project plans.

Joan Servaas, owner of the Indianapolis Healthplex, said she's been working with de la Cruz to establish walking trails. Servaas acknowledges that the developer has had challenges, but she said the area needs investment and access to transportation.

"I want him to succeed," she said.

The Lafayette Square Mall site is located in the International Marketplace district, a vibrant community in northwest Indianapolis.

Contact IndyStar reporter Alexandria Burris at aburris@gannett.com or call 317-617-2690. Follow her on Twitter: @allyburris.

This article originally appeared on Indianapolis Star: Sojos Capital updates plan for stalled Lafayette Square redevelopment