Darius Anderson, CoStar News Staff

The redevelopment of a historic office building created a new high-end hotel destination for visitors to Indiana’s largest city.

Keystone Group’s transformation of the Illinois Building, a 1926 landmark, into the InterContinental Indianapolis was selected by local industry professionals as winner of the 2025 CoStar Impact Award for redevelopment of the year in the Indianapolis area. The February debut marked Indianapolis’ first luxury hotel opening in nearly 20 years.

By the early 2000s, the Illinois Building had fallen into disrepair, lacking functional infrastructure and modern amenities. It was listed as one of Indiana’s 10 most endangered landmarks. Indianapolis-based owner and developer Keystone set out to revitalize the 11-story property while maintaining its architectural integrity.

Collaborating with state preservation agencies, the firm completely refurbished the first-floor lobby, showcasing the ornate details within the millwork and century-old moldings. Three new cabs were added to the elevators, bringing them up to current safety standards.

About the project:

An ambitious aspect of the $120 million conversion was the addition of an entire rooftop floor, offering hotel guests a 360-degree view of downtown. The space includes a cocktail bar called Astrea overseen by award-winning Indiana chef Craig Baker, who is also behind the second-floor restaurant Serliana. The hotel’s existing Hyde Park Steakhouse remains open on the ground floor.

A new private 1,800-square-foot penthouse suite is the most lavish option among the hotel’s 170 rooms. Outside, the facade’s original lighting installation was restored, and a newly engineered canopy welcomes guests.

What the judges said:

“Preserving a historic Indianapolis building while removing square footage from a greatly oversupplied office market exemplifies thoughtful redevelopment that will positively impact downtown Indianapolis for many years to come,” said Sara Coers, associate director at the Indiana University Center for Real Estate Studies.

“This office-to-luxury-hotel conversion which involved maintaining the building’s historic integrity while adding modern upgrades, was truly exemplary,” added Julia Evinger, first vice president of investments for Marcus & Millichap. 

“The re-engineering of this property was exceptional The impact of this project will be huge for downtown,” noted Lora Moore, executive managing director for ALO Property Group. 

They made it happen:

The Keystone Group team that oversaw the conversion of the InterContinental Indianapolis was led by Ersal Ozdemir, the firm’s owner, joined by Izabela Ozdemir, a principal with Ovas Design; Chris Gricar, chief operating officer with Keystone Group; Mark Tomyn, vice president of development with Keystone Group; Debra Klinger, director of development with Keystone Group; Dustin Eggink, a principal with Ratio Architects; Michelle​​​​ Heltzel, senior associate interior designer with Ratio Architects; and Ross Maue, chief executive officer with Circle Design Group.