Welsh Buys 2 Warehouses in Groveport, Obetz as Part of $100M, 2.7 MSF Deal

By Adrian Maties, Associate Editor

Minnesota-based Welsh Property Trust has purchased two industrial properties in Groveport and Obetz from KTR Capital Partners as part of a $99.5 million, five-building portfolio. The two warehouses, which total nearly 1.5 million square feet between them, accounted for $47 million of the price tag, reported Columbus Business First.

Located in Groveport, the larger of the facilities is a 754,000-square-foot warehouse on a 42-acre site at 6766 Pontius Road. Honeywell International, the sole tenant, occupies 594,000 square feet. The property features 32-foot clear ceiling heights, 86 dock doors, four drive-in doors and parking for 502 cars and 157 trailers.

Zulily, Inc. leases the entire 737,471-square-foot distribution center at 3051 Creekside Parkway in Obetz. Located on a 37-acre site, the facility includes 32-foot clear ceiling heights, 75 dock doors (expandable to 179), six drive-in doors and parking for 506 cars and 220 trailers.warehouse situated on a 42-acre site.

“This offering represented a rare opportunity for Welsh Property Trust to acquire five debt-free, newer built industrial facilities in one transaction – one that will allow them to complement their existing portfolio and provide an immediate presence in primary distribution markets,” commented John Huguenard, an international director with Jones Lang LaSalle Inc. and co-leader of the team that arranged the deal.

 “The portfolio has been extremely well maintained by committed institutional ownership and requires minimal capital improvement in the near term,” Huguenard added. In addition to the Central Ohio properties, Welsh’s newly acquired 2.7 million-square-foot portfolio includes assets in Chicago, Indianapolis and Cincinnati.

Charts courtesy of CBRE.

Market Uptick Prompts Plans to Build 2 Hotels on Olentangy Rd.

By Adrian Maties, Associate Editor

Ohio’s recovering hospitality market is motivating developers to start building new hotels in the Columbus area. According to Columbus Business First, two such projects will start in the near future along Olentangy River Rd.

Sintel Hotel Group Inc. plans to start construction late this year on a 95- to 98-key hotel at 3121 Olentangy River Rd. The $12.5 million, eight-story property will include a two-level parking structure with spaces for 99 vehicles and meeting space that can accommodate up to 75 guests.

Sintel, which owns the nearby Holiday Inn Express at 3045 Olentangy River Rd. plans to unveil the hotel’s flag next month.

Not far from the Sintel project, David Patel, a local hotel investor and operator, plans a May construction start for an $18.5 million Hampton Inn & Suites. Located on a long-vacant site at 3160 Olentangy River Rd., the hotel would include 36 two-room suites, 114 standard guest rooms and meeting space for up to 100 guests. Brackett Builders Inc., the general contractor, is expected to complete construction next year.

The announcements of the new projects coincide with steady improvement in the hospitality market. According to Marcus & Millichap Real Estate Investment Services Inc., occupancy has risen to 56.5 percent.

In other hospitality  news, the AAA auto club has recently awarded its Four Diamond Award to five hotels in Columbus:

• the Westin Columbus;

• the Hilton Columbus at Easton;

• the Renaissance Downtown Columbus;

• the Hilton Columbus at Polaris;

• the Embassy Suites Columbus Airport.

Only 14 Ohio hotels have received the AAA Four Diamond rating.

Chart courtesy of Marcus & Millichap Real Estate Investment Services Inc.  

CMA Plans Spring Launch for $38M Final Phase of Renovation

 By Adrian Maties, Associate Editor

The Columbus Museum of Art is getting ready to launch the $37.6 million final phase of its Art Matters renovation and expansion project. The institution presented plans for its new wing to the City of Columbus Downtown Commission on Jan. 22 and expects to start two years of construction in late spring.

Plans call for the renovation and expansion of the Ross Wing and the lobby that were added in 1974. The third phase will expand the current 96,000-square-foot complex by 50,000 square feet. On tap are a sculpture garden, restaurant, museum store and entrance. The project’s third phase is designed by the Columbus-based architecture firm DesignGroup. Tod Williams Billie Tsien Architects of New York City developed the master plan.

“This is a defining moment for the Museum,” commented Nannette Maciejunes, CMA’s  executive director. “Moving forward with this project allows us to fulfill our promise to the community of continuing to create great art experiences for everyone. The Museum’s growth is a reflection of our community’s vision for the arts and culture in Columbus and the priority each of our donors places on supporting a thriving arts community.”

According to CMA’s website, it has secured $56 million in pledges through its Art Matters capital endowment campaign toward the project’s estimated $90 million cost.

In the project’s first phase, completed in Sept. 2009, the museum renovated Beaton Hall. Next, CMA’s historic Broad Street building was renovated. Renamed the Elizabeth M. and Richard M. Ross Building, that building reopened Jan. 2011. Both phases were both completed on time and on budget.

Rendering: The Columbus Museum of Art

Team Gemini Advances $300M Process Complex in Grove City

By Adrian Maties, Associate Editor

Team Gemini plans to invest at least $312 million in industrial processing and research facilities near the Franklin County Sanitary Landfill in Grove City, Ohio. The Orlando-based sustainable project design and development company signed 99-year leases with the Solid Waste Authority of Central Ohio on Jan. 8 for two parcels totaling 365 acres.

The largest component, the Gemini Synergy Center, will be a $300 million industrial and research park located on 343 acres.  It will include 35 acres of state-of-the-art automated greenhouses, a digester, a fish farm, and process and/or manufacturing facilities powered by green energy produced from waste materials. Colliers International will serve as leasing agent for the park, which will be anchored by Team Gemini.  

On an adjacent 22-acre parcel, Team Gemini will build a $12 million to  $18 million,  85,000 square-foot landfill receiving facility(LRH), which will be owned and operated by the solid waste agency. Team Gemini will also build, own and operate a 100,000 square-foot materials recovery facility, which will be linked to the industrial park by a conveyor belt and pedestrian walkway.  

The landfill receiving facility and the material recovery plant are expected to be completed in two years; Team Gemini is targeting completion for the entire project by 2017.

Photo credits: The Solid Waste Authority of Central Ohio

Fairfield Medical Center Plans $35M Expansion in Lancaster

By Adrian Maties, Associate Editor

Fairfield Medical Center will pursue a $35 million renovation and expansion on its main campus at 401 N. Ewing Street in Lancaster. The plan was approved Dec. 12 by the institution’s board of directors. Design will continue through 2013, followed by groundbreaking in 2014 and completion in time for the hospital’s centennial in 2016.

Plans call for an addition that will centralize surgical functions and link the main hospital building to the surgical pavilion. It will improve efficiency and make transporting patients to other sections of the hospital smoother and safer. The addition’s new operating rooms will be sized to accommodate advanced technology and robotic equipment.

Fairfield Medical Center will also add 36 new private rooms. Once the expansion is complete, all the hospital’s rooms will be private. In addition, plans call for renovating existing patient rooms and expanding family waiting areas.

“This plan not only protects our current patient base in an increasingly competitive environment, but also allows for expansion in areas with demonstrated potential for market growth,” said Mina Ubbing, FMC president and CEO, in a news release. “This is an ideal time for FMC to make this investment in our future as interest rates are extremely low and construction prices favorable. The project helps to maintain the value of FMC’s assets, which keeps with our commitment to remain an independent community hospital.”

Image credit: Fairfield Medical Center