A downtown Muncie landmark that developers hoped to turn into apartments remains a project on hold following an auction to sell the property on Wednesday.
The Roberts Hotel, a Muncie fixture that has hosted five presidents but fell on hard times, sold for $850,000 Wednesday. The buyer was Farmers Bank from Frankfort, Ind., which held the mortgage.
James Moore, attorney representing the bank said his company hopes to resell the property to someone who can finish redeveloping the structure into apartments.
"We had people who expressed interest, but weren't in the position to have their financing together to move forward. We'll continue to work with people that have expressed interest."
Moore said he believed it was important for the building to be put back in use for the city.
"It's a beautiful building, in a good location. I think it has a lot to offer," he said. "There's obviously challenges, but there's tremendous opportunity."
Tom Powell, a local resident, attended the auction in hopes to see progress being made on the almost 100 year-old building.
"I'd like to see it happen again, but I think it's about the location," he said. "It would certainly be nice, it would bring more jobs and get people to come here. But I'm pretty skeptical."
Muncie has seen growth in its downtown area, with some of the older buildings being renovated to become apartments. The growth in its number of businesses has also attracted more people to live in the area.
Debby Gilpin, member of the rental property association, said she thinks more students could move to apartments downtown if the apartments are affordable.
"With Ivy Tech opening in Muncie, I can see many students moving to downtown," she said. "However, if these apartments are costing $1,600 or more then I can't see college students living there, unless they are married and one of them works a full-time job."
In cities across the country, downtown residential numbers have grown in recent years, partly driven by purchases by baby boomer couples who have finished raising their families in the suburbs and are moving closer to downtown amenities.
Duane Miller, vice president of community and asset management at Flaherty & Collins Properties, said he believes people are starting to move back to towns because it is closer to their jobs and because of recent community development.
"Many towns are revitalizing their downtown areas, and that makes it appealing for businesses," he said. "The sense of community is important for people. I think cities, like Muncie, are putting money into their façades downtown."
Miller said although the economy is bouncing back, the real estate business is still hurting. But as more people move to the downtown area, there may be more progress for them.
"I think you're going to see the trend of more and more people moving back," he said. "With Ivy Tech opening I think it will be of great help for the downtown area."
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