Neighborhood Development Corp. is doing what it does best — which sounds boring until you consider that the nonprofit attempts to expand the borders of neighborhoods often ignored by the private sector.

In this case, NDC has bought a quarter-block of property fronting University Avenue between 22nd and 23rd streets, where it plans a $2 million, two-story, 20-unit apartment building.

If you know the area, dilapidated would be a mild description. The project has neighborhood support, including the one big neighbor in the area, Drake University.

Drake has been pressing for private development along it borders. It has entered an agreement with Nelson Construction & Development for a mixed-use project at 26th and University, and Drake President Marty Martin likes the work that NDC has completed and has planned for the area.

“One of the goals of opening up property to Nelson was to trigger additional economic development by folks other than Drake,” he said. “A rising tide lifts all boats.”

The university’s focus is an area from 25th Street west to 32nd or 33rd streets, Martin said.

“More life around the periphery means more life for the university,” Martin said.

NDC has completed a multifamily project called Forest Avenue Village at 32nd Street and Forest Avenue along the northwest edge of the university neighborhood. Interest in that development led NDC to consider the University Avenue apartment building, said NDC Executive Director Abbey Gilroy.

The organization also is considering additional commercial development in the next three to five years near Forest Avenue Village, she said.

Both apartment projects needed to happen, Gilroy said.

“We knew it was something that needed to be done for the neighborhood. We always want to make sure we are doing something that will be embraced by the neighborhood,” she said.

As with myriad NDC projects, the hope is to spur more economic development. If a private developer decides it can do a better job at an NDC site, the nonprofit will step aside, Gilroy said.

“We want to expand neighborhood borders so that economic development can occur,” she said. “It is catching the attention of the private sector.”

Because NDC is building new projects, its rents might be a little higher, around $1.30 per square foot, than those charged by other apartment owners. Still, those rents would be less expensive than average rates downtown. The idea is to push the market in areas where it works by providing a quality product, Gilroy said.

“We would like to come in and set that standard,” she said.

Foundations are being poured at University Avenue Village, with a projected completion date of June 1 for the apartments.