Mercer Garage Delivers 340 Parking Spaces to Cincinnati’s OTR

By Adrian Maties, Associate Editor

A new parking facility is now open in Cincinnati’s Over-the-Rhine neighborhood. The Cincinnati Center City Development Corp.(3CDC) opened the Mercer Garage to the public on May 9. The new addition arrives just in ,time as hundreds of new residential units in the area are getting ready to come online.

The Mercer Garage has 340 parking spaces on five levels, with entrances on the east side of Vine Street between 13th and 14th streets and on Mercer Street between Vine and Walnut streets. Parking rates will be $1 an hour up to an $8 maximum on weekdays, or a $3 maximum after 4 p.m. and on weekends. Monthly parking is also available, at $85 per month. The 3CDC will manage the garage, which will be staffed 24 hours a day and monitored by surveillance cameras placed throughout the parking levels, elevators and stairs.

The building is part of the Mercer Commons development, a project that encompasses 19 buildings and 26 vacant parcels on 2.7 acres of land. When finished, it will deliver 96 apartments, 28 condos, 17,600 square feet of commercial space and 359 parking spaces.

The $62 million project is divided into three phases. Phase 1 was financed through the 3CDC-managed Cincinnati Equity Fund, New Markets Tax Credit equity, a JobsOhio loan and a $1.5 million grant from the city of Cincinnati. It also calls for 11 condos in four historic rehabs on Mercer Street, a mixed-use new-construction building on Vine Street with 12 condos and 3,900 square feet of commercial space, and five new-construction townhomes on Mercer.

The Mercer Garage is included in the first phase. It is large enough to serve the entire development. Right now, the structure is exposed to viewing. It will, however, soon be hidden behind new construction on Vine and Mercer streets.

UrbanCincy recently reported that the developers were making preparations for the second phase of the project. The 3CDC will break ground on Phase 2 on May 31. It includes 67 apartments and 10,600 square feet of commercial space.

Photo credits: 3CDC

Miller-Valentine Group’s Summit Pointe Apartments Reopens in Lawrenceburg

By Adrian Maties, Associate Editor

The Miller-Valentine Group held a ceremony on May 8 to celebrate the grand re-opening of the Summit Pointe Apartments, an affordable housing community in Lawrenceburg, Ind. Alan Rakowski, tax credit manager for the Indiana Housing and Community Development Authority; Tim Bete, president of St. Mary Development Corp.; and Adrian Colosimo, development risk manager for RBC Capital Markets were among those present at the ceremony.

Summit Pointe Apartments is located at 600 Deer Run. The community features 70 two-bedroom and 14 three-bedroom homes. Its affordable rates are made possible through an efficient financing package including Section 42 Housing Tax Credits provided by the Indiana Housing and Community Development Authority.

“Summit Pointe Apartments preserves a local affordable housing option. We are enthusiastic and privileged to serve the families in the city of Lawrenceburg and prove to them that our passion is to positively impact their lives,” Jim Fenwick, president of Miller-Valentine Residential Property Management, said in a statement for the press.

The Miller-Valentine Group invested $10 million to fully renovate the property. The renovation included adding a second bathroom to all two- and three-bedroom apartments as well as a new state-of-the-art fitness center and playground. The Dayton-based developer worked on the project together with St. Mary Development, RBC Capital Markets, the Indiana Housing and Community Development Authority, Community Housing Capital and the city of Lawrenceburg.

The $10 million renovation project also helped boost the local economy, creating 128 new jobs for  local contractors and sub-contractors. Jim Fenwick said that “the company is excited to reinvest in Lawrenceburg, a city that we’ve been involved with for almost 20 years. Preserving high-quality apartment homes marketable to moderate-income families is critical.”

Photo courtesy of Miller-Valentine Group.

Wright State Breaks Ground on $37M Neuroscience Engineering Collaboration Building

By Adrian Maties, Associate Editor

Wright State University broke ground on April 25 on a state-of-the-art facility within the biomedical and engineering research hub on the Wright State campus. The Fairborn-based public research university is developing the project in partnership with Premier Health Partners, the largest healthcare network in Dayton. Wright State president David Hopkins, provost Sudaram Narayanan, Neuroscience Institute director Timothy Cope and Premier president & CEO Jim Pancoast were among those present at the groundbreaking ceremony.

The new facility will be located in the heart of the campus and will be named the Neuroscience Engineering Collaboration Building. It will have four floors and 90,000 square feet of laboratory and office space for scientists, physicians, students and post-doctoral researchers. In all, 125 people will be employed at the facility. A 105-seat auditorium will provide space for seminars, workshops and advanced teaching sessions.

The L-shaped Neuroscience Engineering Collaboration Building will be home to the research arm of the Premier Health Partners—Wright State University Neuroscience Institute, a recognized Center of Excellence by the state of Ohio. The 53,000 square feet will also provide a place for engineering and associated faculty to advance their work in medical imaging and sensors.

The $37 million project is made possible by a direct partnership between the public and private sectors and will be funded through $20 million in bonds issued by Wright State, $12 million granted from the state of Ohio and $5 million in donations.  Cincinnati-based Messer Construction is building the center. Chicago’s Perkins+Will architecture and design firm was the project’s architect. Officials hope to finish the project  by February 2015.

Premier Health Partners is also involved in another construction project in southwest Ohio. The Atrium Medical Center, one of the hospitals included in the healthcare network, recently partnered with Edgewood City Schools to bring a new medical office building to Butler County. The 14,000-square-foot building will be located at 5005 Trenton Oxford Road in Trenton, on the school campus. It will house the school’s central registration offices and will bring more convenient medical services to the Edgewood community. The building is expected to open during the 2013-14 school year. It will be owned by Edgewood and financed by leasing space to Atrium.

Photo credits: Wright State University

Florence’s Village at the Mall Sold to Private Investor

By Adrian Maties, Associate Editor

The Village at the Mall, a retail center in the Cincinnati/Northern Kentucky metropolitan area, was sold to a private investor this month. The terms of the deal were not disclosed.

The Village at the Mall, located at 7606 Mall Road in Florence, Ky., was developed in 1991 at the corner of Kentucky Route 18 and Mall Road, just off interstates 71 and 75. The property includes three pad sites totaling more than 10,000 square feet and has two access points, one of them a signalized intersection that also serves the 856,000-square-foot Florence Mall.

The shopping center has 92,764 square feet of space and is fully leased. Its tenant roster includes Five Guys Burgers and Fries, a brand-new Aspen Dental, a new freestanding Vitamin Shoppe, a ground-leased Chipotle, Party City, The Tile Shop, Pier 1 Imports, Dollar Tree, Casual Male and HoneyBaked Ham.

Marcus & Millichap Real Estate Investment Services arranged the sale. Vice president of investments Joel Dumes and associate Charles Bulger of the Cincinnati office represented the seller, a private investment group from New Jersey.

“Well-performing multi-tenant retail properties in the Cincinnati area are being targeted by investors, as household formation and income growth drive retail sales,” Joel Dumes said in a statement for the press. “Northern Kentucky has been outperforming other areas of the metro as tight vacancy gives owners the leverage to raise rents,” he added.

Marcus & Millichap expects demand for retail space in the Cincinnati metro area to pick up this year. Vacancy will fall to 11.9 percent, while asking rents will rise by 1.3 percent to $14.31 per square foot and effective rents will experience an increase of 1.7 percent to $12.13 per square foot.

Charts courtesy of Marcus & Millichap.

Balluff Breaks Ground on $6M Expansion Project in Independence, Adding 24 Jobs

By Adrian Maties, Associate Editor

Balluff Inc., the U.S. subsidiary of Balluff GmbH, based in Neuhausen, Germany, started construction last week on a  $6 million expansion of its U.S. headquarters in Northern Kentucky. Gov. Steve Beshear joined local and company officials in the city of Independence on Thursday, April 11, for the project’s  groundbreaking ceremony.

Balluff is one of the world’s leading automation suppliers, specializing in products for industrial sensing, networking and identification devices. The company’s U.S. headquarters currently employs more than 150 people. It has been located in Independence since 1983, and has expanded twice, in 1994 and 2001. The facility on Holton Drive is the final assembly, distribution and training site for Balluff in the United States.

The new 48,000-square-foot building is expected to be completed next year, in March. It will be a state-of-the-art customer support, training, and sales and marketing center with “green concepts” and worker-friendly features, such as 100 percent employee access to daylight from workspaces. The $6 million expansion will add 24 new, full-time Kentucky resident jobs.

As an incentive to encourage the investment and job growth in northern Kentucky, the Kentucky Economic Development Finance Authority (KEDFA) has approved Balluff for as much as $450,000 in tax incentives under two economic development programs. The company will receive as much as $300,000 through the Kentucky Business Investment program and as much as $150,000 through the Kentucky Enterprise Initiative Act.

“Balluff has found a successful home in northern Kentucky, with steady growth here over the past 30 years,” said Gov. Beshear in a statement to the press. “We’re proud to have the company’s U.S. headquarters in Kentucky and especially happy to see the company continue to expand, adding 24 new jobs and investing $6 million in the Commonwealth.”

Photo credits: Balluff Inc.

PECo to Buy Dayton Facility, Bring 250 Jobs to the City

By Adrian Maties, Associate Editor

The Process Equipment Co. (“PECo”) has announced plans to purchase a 425,000-square-foot manufacturing facility at 2333 McCall St., near downtown Dayton. The acquisition is part of the Tipp City-based company’s plan to consolidate and expand its local operations.

The building is located on 30 acres in the Westview Industrial Park. The Dayton City Commission approved the sale on April 3. According to 2NEWS, the old factory was sold for only a dollar. Some surrounding land was also sold for $600,000. But the sale is not final. In the next three months, PECo will inspect the building. The company can cancel the deal if it considers repair costs to be too high.

The manufacturer of large precision-machined and fabricated components said the consolidation is contemplated to occur in three phases and could require as much as $10 million to be invested  in relocation renovations, including the installation of power and HVAC systems. It expects the consolidation to be completed by the end of 2014.

Right now, PECo has four facilities in the Tipp City and Huber Heights areas and 181 employees. The new building will allow the company to consolidate all of its employees in one location while doubling its capacity to meet the growing demand for its manufacturing products and services. The contract includes a $750,000 Ohio Job Ready Sites Grant and a commitment by PECo to employ no less than 200 employees at the new building. Over the next five years, the company expects to hire an additional 250 employees. In 2013, PECo was recognized as a “Top Workplace” by the Dayton Daily News and Springfield News-Sun.

Albert Naggar, PECo’s owner, said in a statement for the press that “we are excited to serve as a driver of economic growth in our community. We have confidence in the growth of our business. Dayton’s Westview Industrial Park is the most appealing location for PECo’s consolidation because of the economic partnership that the city of Dayton has fostered with PECo.” Dayton’s mayor, Gary Leitzell, added that he is “thrilled to have PECo bring its world-class engineering and manufacturing to Westview Industrial Park.”

Photo credits: The City of Dayton

Port Authority Starts Demolition at Bond Hill Site to Make Way for $75M Redevelopment

By Adrian Maties, Associate Editor

The Port of Greater Cincinnati Development started work on Thursday, March 28, on a project that will redevelop the site of Cincinnati’s first multi-store open-air mall. Cincinnati Mayor Mark Mallory, Vice Mayor Roxanne Qualls, City Manager Milton Dohoney, Jr., Laura Brunner, President, CEO, Port of Greater Cincinnati Development Authority, and Hamilton County Commission President Chris Monzel were in attendance as construction crews started tearing down a vacant restaurant and the 32-foot billboard-style Swifton Commons shopping center sign.

The 400,000-square-foot Swifton Shopping Center opened in 1956, just six miles north of downtown in the center of the Greater Cincinnati region. It was acquired by the Allen Temple Real Estate in the late 1990s and renamed Jordan Crossing. At that time the property had less than a dozen commercial tenants.

The Port of Greater Cincinnati Development Authority acquired the 25 acres in Cincinnati’s Bond Hill neighborhood from the Allen Temple Real Estate Foundation on Feb. 19. Now the economic development agency will prepare and market the site for private development of office, residential, retail and a future hotel. It will do so with the help of a $6.2 million commitment from the city of Cincinnati and its Focus 52 program.

The massive redevelopment project is expected to cost $75 million. It will be one of the city’s largest redevelopment efforts outside of the Central Business District and Over-the-Rhine in recent years. Construction at the site is expected to begin next year.

Mayor Mark Mallory called it an important day for the Bond Hill neighborhood. “This redevelopment represents the city’s first investment injection from our new Focus 52 program fund, created just for transformational projects such as this one,” he said in a statement for the press.

“Today represents the first step in a several-year process to convert this key intersection back into a vibrant place to work, shop and live,” Laura Brunner said. “The Port Authority is prepared to be creative in how we work with the community to achieve a development that creates jobs and a sense of place.”

Photo credits: Google Maps.

111-Unit Apartment Tower Planned for Downtown Cincinnati

By Adrian Maties, Associate Editor

Developers NorthPointe Group and North American Properties plan to build 111 apartment units above the 7th and Broadway Garage in downtown Cincinnati. BuildingCincinnati.com, a Web site dedicated to promoting awareness of Cincinnati’s built environment, reported that the city’s Urban Design Review Board (UDRB) got its first look at the project on Friday, March 15.

NorthPointe Group and North American Properties want to build a seven-story apartment tower over the eight-story garage, adding more than 120,000 square feet. It would include studio, one-bedroom, two-bedroom and penthouse units, ranging in size from 600 to 1,700 square feet.

The garage was built in 2003. At that time, it had only five stories but also included structural supports that would have supported a proposed 12-story, 166-unit condominium project. In order to accommodate the parking needs of more than 600 Procter & Gamble employees, the garage was expanded in 2010, when the last three stories were added. As a result, the number of residential floors that could be added was reduced.

John Senhauser Architects is designing the project. It will be an L-shape structure, with steel frame construction, glass curtain walls and lightweight ridged metal paneling systems.

According to the Cincinnati Business Courier, the high-end apartments will rent for about $2 per square foot. The project is expected to cost about $20 million.

Marcus & Millichap expects the steady job growth across Cincinnati to sustain demand for apartments this year. Deliveries for the past two years have been the largest since early 2000, and builders are expected to complete 1,000 new units in 2013. As new supply exceeds the demand growth in the metro area, apartment vacancy will increase slightly to 4.5 percent. It will, however, still remain near the lowest point in more than a decade. Asking rents will reach $759 per month and effective rents will rise to $726 per month, increases of 3.4 percent and 3.7 percent, respectively.

Rendering courtesy of NorthPointe Group via BuildingCincinnati.com.

Charts courtesy of Marcus & Millichap.

Capital Investment Group Breaks Ground on The Lofts at Ivy Pointe

By Adrian Maties, Associate Editor

Capital Investment Group Inc. broke ground on Monday, March 11, on a $13 million apartment project in Union Township, a thriving community on the outskirts of Cincinnati. It is the first urban apartment development in Clermont County.

Clermon County Commissioners David Uible and Ed Humphrey, Capital Investment Group co-founder & managing partner Kathleen Bergen, Capital Investment Group partner David Bastos and Union Township Trustees Matthew Beamer, Timothy Donnellon and Robert McGee were among those present at the groundbreaking ceremony.  The Clermont County commissioners approved a tax exemption this month for the project.

The $13 million apartment complex, to be called the Lofts at Ivy Pointe, is being developed on a three-acre site at 4380 Eastgate Blvd., near its intersection with Aicholtz Road. The building will stand four stories high and will bring 133 efficiency and one- and two-bedroom residential rental units to Union Township.

Each apartment will feature granite countertops, stainless steel appliances, vinyl plank flooring, patios or balconies, ceiling fans, nine- or 10-foot ceilings, kitchen islands and a washer and dryer. Tenants will enjoy such community amenities as a club room with wide-screen TV, pool table, card room, cyber café and full kitchen with high-top tables and seating,  a fitness center, a computer room, a swimming pool, an outdoor firepit,  an outdoor kitchen and grill,  an outdoor theater room and landscaped garden areas.

The multifamily community is located about 20 miles east of Cincinnati, in close proximity to the headquarters of Total Quality Logistics, Jungle Jim’s and the planned Cincinnati Children’s Hospital Medical Center. It was designed to attract young professionals. Since 2000, Clermont County has witnessed a 10 percent population growth that has added 20,000 new residents.

Thompson Thrift Construction is the project’s general contractor. The Lofts at Ivy Pointe is expected to be completed by March or April 2014. Rents will range between $800 and $1,200 per month, according to Clermont County’s official Web site.

Capital Investment Group Inc. built the SouthShore condominium tower in Newport, on which it is currently working on a second phase. The $15.6 million apartment building will be called Vue 180 and will include 93 high-end rental apartments along the Ohio River.

Photo credits: Capital Investment Group Inc.

$400M Horseshoe Casino Opens in Downtown Cincinnati

By Adrian Maties, Associate Editor

Ohio’s fourth and final full-service casino, the Horseshoe Casino Cincinnati, finally opened on Monday evening, March 4. More than 5,000 people witnessed the spectacular fireworks display. Among them were Gary Loveman, chairman, president & CEO of Caesars Entertainment Corp.; Dan Gilbert, chairman of Rock Gaming; Kevin Kline, senior vice president & general manager of Horseshoe Cincinnati; Cincinnati Mayor Mark Mallory; Celebrity Chef Bobby Flay; Grammy-award winning artist Michael Bolton; and others.

Rock Ohio Caesars L.L.C., a joint venture between Rock Gaming L.L.C. and Caesars Entertainment Corp., started work on the $400 million casino project on Feb. 4, 2011. The 354,000-square-foot complex is located on a 23-acre site, a former surface parking lot, in downtown Cincinnati. It houses approximately 2,000 slot machines, 87 table games, a 31-table World Series of Poker® room, high-limit gaming rooms, an Asian gaming room that pays homage to Cincinnati’s sister city Liuzhou, China, and a VIP players lounge. Horseshoe Cincinnati is also home to Jack Binion’s Steak, Bobby’s Burger Palace, Jimmy Buffett’s Margaritaville, The Spread buffet, The Rock Bar & Lounge, grab-and-go food and beverage options, a 24-hour Starbucks, a gift shop and 33,000 square feet of meeting space.

The project created more than 2,000 construction jobs, and 1,700 people are now employed at the new casino, 93 percent of them from the greater Cincinnati area. Horseshoe Cincinnati is projected to create $100 million annually in gaming tax revenue and attract six million visitors to downtown Cincinnati each year.

“Horseshoe Cincinnati represents the urban casino concept we have developed and has been quite successful for us in Cleveland, where we opened a little less than a year ago,” said Loveman. “To date, that property has attracted more than four million visitors and has injected millions of dollars into the local economy. We expect no less from Horseshoe Cincinnati.”

Caesars and Rock Gaming are also developing a Horseshoe casino in Maryland. Called Horseshoe Baltimore, the $350 million casino is expected to open in 2014.

Photo credits: www.horseshoe.com

The Christ Hospital to Open New Outpatient Center in Montgomery

By Adrian Maties, Associate Editor

The Christ Hospital Health Network officially announced on Thursday, Feb. 28, that  it is expanding in Montgomery with a new, three-story outpatient center. Construction will begin this spring, with completion expected in late 2014.

Called The Christ Hospital Outpatient Center in Montgomery, the facility will be located north of I-275 on Montgomery Road at Vintage Club Drive. It will be Christ Hospital Health Network’s first non-hospital location to provide external-beam radiation therapy and chemotherapy services for cancer patients.

“We are thrilled to bring our outpatient services and physicians to the city of Montgomery,” said Vic DiPilla, chief business development officer at The Christ Hospital Health Network, in a statement for the press. “Our physicians have provided leading care in Montgomery for many years and look forward to providing an even broader array of convenient, accessible healthcare services in this outstanding new facility.”

The 78,000-square-foot facility will include three floors of clinical and medical office space. Parking for patients and visitors will consist of both an attached parking garage and surface lots.

Bellevue, Ky.-based Brandicorp is the project’s developer. Duke Realty serves as contractor, and McGill Smith Punshun Inc. is the project’s architect. GBBN Architects is designing the interiors. The Christ Hospital Outpatient Center will be designed to be LEED-eligible for Core & Shell and Interiors.

“With these treatments often requiring multiple visits over the course of several weeks, a second location will add much more flexibility in scheduling and convenience for our patients,” said Michael Quaranta, executive director of oncology services for The Christ Hospital Health Network. “Advanced, complex cases will continue to be treated at the hospital in Mount Auburn, but many patients with cancers such as breast, lung, colorectal and prostate will be able to select a Christ Hospital treatment location closer to their homes or places of work.”

Rendering courtesy of McGill Smith Punshon Inc.

Carespring Breaks Ground on $24M Transitional Care Center in Northern Kentucky

By Adrian Maties, Associate Editor

Carespring Health Care Management broke ground on Monday, Feb. 18, on a new transitional care facility in Cold Spring, Ky. Governor Steve Beshear, State Representative Dennis Keene and Judge-Executive Steve Pendery attended the groundbreaking ceremony at 300 Plaza Drive, along with other elected officials and business representatives.

The $24 million project will deliver a 143-bed facility, the Coldspring Transitional Care Center, on seven acres just off the AA Highway and U.S. 27. The Coldspring Transitional Care Center will specialize in short-term rehabilitation and long-term nursing care, and will include both private rooms and shared suites.

The state-of-the-art complex will also house activity, dining and exercise facilities, as well as a Starbucks Coffee Shop. It is expected to open in the fall of 2014.

“We are very excited about this new facility. Carespring is recognized for providing excellent communities and care to our residents, and we will provide our Coldspring residents with an exemplary experience, “ said Barry Bortz, CEO of Carespring Health Care Management.

Carespring Health Care Management has been planning the project since 2008. Construction was delayed, however, due to the recession. When completed, the facility will employ 200 full-time workers.

With the opening of the Coldspring Transitional Care Center, Carespring, an independent, locally run assisted and independent living organization, will have 11 facilities in southwest Ohio and Northern Kentucky. It already has two operating facilities in the Northern Kentucky area, in Erlanger and Fort Thomas. Both of them employ more than 400 people. The company also plans to develop a facility in Boone County in the near future.

Photo credits: Coldspring Transitional Care Center – Facebook.

Ryan Homes Launches Two New Model Homes in Cincinnati Communities

By Adrian Maties, Associate Editor

NVR Inc. (NYSE: NVR), one of the nation’s largest homebuilding and mortgage banking companies, has recently announced the grand opening of two new model homes at two of its communities in the Cincinnati area. Both communities have been developed by NVR’s Ryan Homes division.

The Pisa Torre, a new ranch-style model home, will now be available at Fairfield Falls in Fairfield, Ohio. It provides as much as 2,445 square feet of living space, with as many as four bedrooms and four baths. The Pisa Torre includes a brick façade, full basement, morning room, hardwood floors, a spacious vaulted great room with gas fireplace, gourmet kitchen with island, granite kitchen counters, as well as an attached two-car garage, accessible through a mud room off the entrance foyer.

Fairfield Falls offers its residents three- and four-bedroom single-family and ranch-style homes. It is located in Fairfield Township, close to entertainment, restaurants and shopping destinations, and within minutes of routes  4, 747, 129 and I-75. Homes at Fairfield Falls start from the high $170,000s.

The Naples single-family model home is available at Stone Ridge Estates in Cincinnati. Priced in the low $210,000s, it offers 2,760 square feet of luxurious living, with four-plus bedrooms and two-plus baths. Just like the Pisa Tore, the Naples includes an attached two-car garage. The home is 100 percent Energy Star certified.

Stone Ridge Estates is located minutes away from the Northgate Mall and White Water Park, close to downtown Cincinnati. It offers six luxurious home models, including the brand new Naples. The community provides easy access to I-74, I-275 and Ronald Reagan Cross County Highway. Both Stone Ridge Estates and Fairfield Falls are fully Energy Star certified.

Photo credits: Ryan Homes

Anderson Birkla Buys 580 Building in Downtown Cincinnati, Plans Apartments

By Adrian Maties, Associate Editor

With downtown Cincinnati’s apartment vacancy rate far below office vacancies, some investors are purchasing office buildings and converting them into apartments. One such investor is Indianapolis-based Anderson Birkla Investment Partners. It acquired the 580 Building on Feb. 5 for $13.7 million. The company now intends to redevelop the property into a mix of residential, office and entertainment space.

The 580 Building is located at 580 Walnut St. It occupies half a city block in one of the most desirable areas in Cincinnati’s central business district. The 17-story building has more than 500,000 square feet of office space, 30,000 square feet of retail space and a 400-car underground parking garage.

The two-tower complex was completed in 1973. Hamilton County records show the building sold for $30.1 million in 2003, but it fell onto hard times after the Great American Insurance Co., its largest tenant, moved out in 2011. It now joins three other buildings that recently sold for less than $30 per square foot: the Ingalls building, the Holiday Office Park and Centennial Plaza.

Cassidy Turley was involved in the transaction and will retain property management and leasing assignments. Cassidy Turley’s Don Murphy represented Anderson Birkla in the deal, while James O’Connell, also of Cassidy Turley, represented the seller, an institutional advisory firm, which acquired the property in a Sheriff’s Sale after the previous owner defaulted on a $24.7 million mortgage.

Anderson Birkla said it will invest $40 million in the project. The purchase price is included in the sum. The Indianapolis-based company will release more details about the project in 60 to 90 days.

“The $40 million investment to redevelop the 580 Building will revitalize and bring a resurgence to a prime downtown asset, creating a quality place of work, a unique opportunity for residents to live, and an exceptional place to be entertained,” said Anthony Birkla, a principal in the company, in a press release.

Photo Credits: Cassidy Turley

Charts courtesy of Marcus&Millichap

DunnhumbyUSA Breaks Ground on New Downtown Cincinnati HQ

By Adrian Maties, Associate Editor

DunhumbyUSA broke ground on Jan. 31 on its new headquarters building at Fifth and Race streets in downtown Cincinnati. Hundreds of people were present at the groundbreaking ceremony, among them Cincinnati Mayor Mark Mallory and other city, state and company officials.

Dubbed the ”Dunnhumby Centre,” the new building will cost $122 million to build. It will sit in the heart of downtown and will have 280,000 square feet of office space, 30,000 square feet of street-level retail space and an above- and below-ground parking garage with 1,000 spaces.

The Dunnhumby Centre will have nine floors and will cover half a city block. Its garage will feature three above-ground floors and three below ground. The above-ground garage floors are taller than usual, making the structure the same height as a 14-story building. This feature will give dunhumbyUSA the possibility to expand in the future.

The city of Cincinnati, the state of Ohio, the Cincinnati Center City Development Corporation (known as the 3CDC) and dunhumbyUSA are all working together on the project. The city owns the site. Turner Construction Co. is the construction manager, with Gensler Architects as the project designer.

The project will be funded through new market tax credits, state and conventional loans, private capital and corporate loan funds managed by the 3CDC. Construction is expected to be finished in December 2014.

Mayor Mallory called it ”a truly great day for the city of Cincinnati” as he expressed his happiness that a long-vacant lot in the heart of the city’s downtown will soon be turned into a world headquarters and that dunnhumbyUSA, one of the fastest-growing businesses in the region, will not be leaving the city. DunnhumbyUSA now has 650 employees in Cincinnati and plans to grow to 1,100  by 2018. The project is also expected to spur further development and lead to the revitalization of Race Street.

Charts courtesy of Marcus & Millichap.

Heidelberg Renovates Former Cooper Tire Facility, Preparing for Move-in

By Adrian Maties, Associate Editor

The Heidelberg Distributing Co. is preparing to renovate the former Cooper Tire & Rubber Co. warehouse at 3601 Dryden Road in Moraine. It acquired the facility on Sept. 17, 2012, paying $7.3 million for the 779,000-square-foot building that it will occupy after it invests $21.2 million in upgrades, according to the Dayton Daily News.

Miller-Valentine  Construction is redeveloping the property. That will include the removal of an existing rail system that runs throughout the building, which will require replacing approximately 125,000 square feet of concrete floor slab.

The new facility will have 186,000 square feet of CEW (Controlled Environment Warehouse), a 32,000-square-foot draught cooler and approximately 50,000 square feet of high-end office space, with a 40,000-square-foot mezzanine space above for future expansion. A large portion–550,000 square feet–of the concrete floor will be ground and polished.

Work will also address insulation; parking; dock door repairs; floor replacement; roof repairs and replacement; facade improvements; improvements to the heating, ventilation and air conditioning and electric systems; and more. The office space will have skylights, a small exterior terrace and a large meeting room accommodating as many as 300 people.

The Dayton-based distributor of beer, wine and spirits acquired the Cooper Tire building from Covington Capital. As part of the deal, Covington Capital purchased Heidelberg’s 244,000-square-foot facility on Leo Street, where its Dayton operations have been located since 1956; the new owner is now seeking tenants for the space. Heidelberg Distributing plans to move its North Dayton operations to the new building in about six months, bringing between 270 and 300 jobs to Moraine.

Heidelberg is one of the Midwest’s larger distributors of beer, wine, spirits and non-alcoholic beverages. It operates facilities in Cincinnati, Columbus, Lorain, Cleveland, Evendale and Toledo, Ohio, and Hebron, Ky., and employs 1,400 people. The move to Moraine will help revitalize the community.

Rendering courtesy of The Miller-Valentine Group

Intelligrated Celebrates Grand Opening of Corporate HQs Expansion in Mason

By Adrian Maties, Associate Editor

Intelligrated Inc., a leading North America-based, single-point provider of automated material handling solutions, held a ceremony on Jan. 9 to celebrate the grand opening of a $10 million expansion that nearly doubled its headquarters in Mason, Ohio. Company CEO Chris Cole, city of Mason Mayor David Nichols and Sherri Carbo, Southwest Ohio regional liason for Ohio Gov. John Kasich, were present at the event.

With the 122,000-square-foot addition, Intelligrated’s headquarters, located just off I-71, now has a combined area of 262,000 square feet. It will accommodate an ongoing increase in engineering, research and development staffing. The company added more than 160 employees in Ohio during the past year and 275 companywide. It plans to add 150 more by the end of 2013.

An approximately $15 million incentive package from the state of Ohio and city of Mason made groundbreaking possible. It included an extension of Intelligrated’s existing Job Creation Tax Credit, state and local loans, property tax abatement and a State of Ohio Grant.

“We appreciate the incentives from the state of Ohio and the city of Mason that allow us to expand our footprint, increase our technical staff and continue to meet an increasing demand for innovative automated material handling solutions,” said Cole. “The state-of-the-art facility is designed to attract and retain world-class talent,” he added.

Intelligrated is one of Greater Cincinnati’s largest privately held companies. The expansion of its corporate headquarters is just the latest milestone in the company’s ongoing development. Within the past year, Intelligrated has also expanded facilities in Texas and Illinois.

“Intelligrated is yet another example of a successful business continuing investment in Mason. As a former CEO of a publicly traded company located here, I appreciate what it takes to grow a company,” said Mason Mayor David Nichols. “Having that perspective and a city council and city manager that think like businesses, means our focus is to not only remove barriers, but leverage every advantage available. Intelligrated has been an ardent supporter of the city and the benefit of doing business here, as well as a leader in Mason’s growing business community.”

Photo credits: Intelligrated

Rumpke Invests $32M to Rebuild Former St. Bernard Recycling Center

By Adrian Maties, Associate Editor

Rumpke Consolidated Cos., one of the nation’s largest privately owned residential and commercial waste and recycling firms, on Jan. 10  announced it plans to invest $32 million to build a recycling center in St. Bernard, Ohio. The new center will replace the former facility, destroyed by a fire in April 2012.

Rumpke will build one of the largest and most technologically advanced residential recycling systems in the country. It will be 85,000 square feet and capable of sorting 55 tons of material every hour, more than doubling the capabilities of the previous system.

The new plant will use optical sorting technology to identify and separate recyclable materials by type. It will sort all the traditional acceptable recyclables, including glass bottles and jars, paper, cardboard, aluminum and steel cans, and plastic bottles.

“Rumpke is committed to recycling,” said Jeff Rumpke, company vice president, in a news release. “We are making our largest investment to date with this recycling center, ensuring the region has access to the best available recycling technology.”

Expected to open in late fall, the system will be able to process nearly 15,000 tons of material each month and will serve more than 4.5 million residents in Cincinnati and beyond. It will provide about 100 new jobs, most of them full time. Rumpke Recycling’s hauling operation employs an additional 100 people.

Dugan & Meyers Construction is the contractor and Steven Schaefer Associates Inc. the project’s architect. Machinex will design the processing system.

Rumpke Consolidated is headquartered in Colerain Township, Ohio. The family-owned company was created in 1932 and provides services to areas of Ohio, Kentucky, Indiana and West Virginia. “As a leader in recycling, we never rest. We are always out there searching both domestically and internationally to identify new manufacturers that are willing to take and use additional types of materials. This operation is being built with future expansion in mind,” said company director Steve Sargent. “We are committed to growing the recycling effort.”

Photo Credits: Rumpke Consolidated Cos.

Two Downtown Cincinnati Office Buildings Auctioned Off for $3.5M

By Adrian Maties, Associate Editor

Two downtown Cincinnati Class A office properties were sold at auction on Dec. 11, according to the Hamilton County Auditor’s Web site. The Cincinnati Enquirer reports that Neyer Properties was the buyer.

The two properties are part of the three-building Centennial Plaza office complex on Central Ave. Dan Neyer, president of Neyer Properties, told the Enquirer he acquired the two properties via the online auction house Auction.com for $3.5 million. The seller was an affiliate of New Boston Citimark, New Boston Centennial L.L.C. In 1999, New Boston Centennial paid $13 million for the properties.

Centennial Plaza I is the smallest of the two and the oldest, built in 1985. It is a five-story building, totaling 75,000 square feet, and is located at 705 Central Ave.  Neyer Properties acquired it for $1.2 million and sold it the same day to Miami Township-based Jedson Engineering for an undisclosed price. Jedson Engineering, currently based in Park 50 in Clermont County, plans to relocate its headquarters and bring 100 or more new jobs to downtown Cincinnati. The city has offered the company a tax credit for creating 300 jobs in Cincinnati over the next five years.

Centennial Plaza III was built in 1988. The 12-story, 175,000-square-foot building located at 895 Central Ave. was sold for $2.3 million. According to the Cincinnati Enquirer, Neyer Properties will hold onto the building long term as part of its goal of buying and redeveloping 2 million square feet of commercial property in the next two years. The building will undergo renovations in early 2013 to help it attract new tenants and fill the remaining vacant space. Among its current tenants are the U.S. Postal Service, Key Bank TSC Apparel and the Epilepsy Council of Greater Cincinnati.

Centennial I and III are located in the heart of Cincinnati`s Central Business District, directly across the street from Cincinnati City Hall. The two buildings are on either side of Centennial Plaza II, a 200,000-square-foot office building constructed in 1986 and currently owned by  the city of Cincinnati.

Photo credits: www.newbostonfund.com

Two Dayton Hospitals Start Expansion Projects

By Adrian Maties, Associate Editor

The healthcare industry continues to be an important economic player in the Dayton area. Two hospitals in the region have recently announced plans to expand, according to the Dayton Business Journal.

The first, the Upper Valley Medical Center, will invest approximately $8 million to add a 40,000-square-foot physician’s office building to its campus at 3130 N. County Road 25A in Troy. The project is expected to be completed by the end of 2013.

The Upper Valley Medical Center is the ninth-largest hospital in the region by revenue. It has 202 beds and 148 physicians. Since opening in 1998, it has invested many millions of dollars in expansion projects. This latest project is part of the hospital’s 10-year plan to add office space for primary-care and specialty physicians. It will bring new jobs to the region, as well.

Miami Valley Hospital has also started work on the first phase of a five-phase renovation and expansion project in its emergency department. The total cost of the project is $12 million. It is expected to be completed by November 2013.

The emergency department will be significantly renovated, while the space adjacent to the current emergency department, formerly occupied by a specialty clinic, will be converted to additional patient exam rooms. All of the existing department patient rooms will also be upgraded and expanded.

The first phase of the project is expected to be completed by next month. It will deliver 17 newly renovated patient rooms. When the entire project is finished, the emergency department will have a total of 80 patient treatment spaces. The project’s architect is Pinnacle Architects of Dayton. Skanska USA is the construction manager.

Photo credits: Google Maps