The outpatient facility will accommodate numerous specialty clinics. Many of the clinical services to be officed there are already available at the campus, but moving them to the new medical office building is intended to free up space in the hospital.

The expansion will also include the construction of a four-story hospital building that will add 72 new inpatient beds, as well as four operating rooms, three new surgical procedure rooms, eight new rooms for imaging and 10 more rooms for the emergency department. Delivery is expected by summer 2028.

READ ALSO: Why the Medical Outpatient Sector Is Poised for Growth in 2025

Cincinnati Children’s estimates that the initial overall investment in the Liberty Campus expansion will be $365 million, to include design, construction and medical equipment.

Hospital media staff have not replied to Commercial Property Executive’s request for additional information.

The 61-acre Liberty Campus opened in August 2008. It handled about 109,000 visits in its first year, a volume that has ballooned to more than 282,000 patient encounters a year, including an average of 60 surgeries a day.

Cincinnati health-care real estate on the rise

The health-care real estate market in Cincinnati saw several upticks in the third quarter of 2024, according to a Colliers report. The occupancy rate increased to 93.8 percent, up by 10 basis points over the quarter and 50 basis points over the year.

Meanwhile, absorption totaled 192,732 square feet in Q3, up from 124,770 square feet year-over-year. However, construction activity slowed down to only 137,000 square feet, signaling a tendency of stabilizing existing properties rather than building new product.

The post 150 KSF MOB to Rise on Cincinnati Campus appeared first on Commercial Property Executive.

Cincinnati Children’s Hospital Medical Center has purchased a 180,000-square-foot, six-story office building in Cincinnati, Ohio.

Terrex Development & Construction sold the asset for an undisclosed price.

JobsOhio, the state’s private nonprofit organization in charge of economic development, originated a $32 million low-interest acquisition loan, funded by its initial $100 million investment in Cincinnati Innovation District.

As part of this deal, Cincinnati Children’s will create 100 new research jobs with a minimum payroll of $10 million. Additionally, the new owner also committed to increase research opportunities that rely on federal funds.

READ ALSO: Life Science Prospects Are Looking Up: JLL

The health-care system services provider will occupy two floors at the Class A office property, which will host the company’s more than 200 current employees. Cincinnati Children’s will take up a total of 60,000 square feet in the building, while the remaining four floors will be available for lease, with Cushman & Wakefield as exclusive leasing agent.

Cincinnati’s newest innovation and technology hub

Dubbed Digital Futures Building 2, the new location is at 3090 Exploration Ave., and is part of the three-building Digital Futures complex. Completed in 2022, the space includes floor-to-ceiling glass windows, energy efficient systems, an outdoor plaza and other on-site amenities, such as conference and meeting spaces.

The buildout of the interior spaces that Cincinnati Children’s will occupy will take nine to 12 months for completion. TriVersity Construction is overseeing the project, while BHDP Architecture is in charge of design. The team also includes Motz Engineering, which will oversee mechanical, electrical and plumbing, RCF Group will provide the furniture and Kolar Design will be in charge of graphic design.

The building is close to Interstate 71 and Martin Luther King Jr. Drive interchange. Sitting on 3 acres, Digital Futures Building 2 is 4 miles from downtown Cincinnati, 16 miles from Cincinnati/Northern Kentucky International Airport and within 50 miles of Dayton, Ohio.

Big office projects coming in the area

The complex is part of the Cincinnati Innovation District, a 65-acre technology and innovation hub that includes notable tenants in the research field, such as the University of Cincinnati, UC Health, TriHealth, The Environmental Protection Agency and The Center for Conservation and Research of Endangered Wildlife. The more than 1.1 million-square-foot life science campus totaled more than $1 billion in investments and is Greater Cincinnati’s most recent development.

Last month, another large office project moved forward in the area. Skanska was tapped as developer for Medpace’s upcoming 562,000-square-foot, nine-story office building, in Cincinnati’s Madisonville neighborhood. The $164 million project is slated for delivery in 2027.

The development is part of the clinical research company’s $327 million expansion of its corporate campus, that will total 654,000 square feet across two buildings and is expected to become the largest office project in the city.

The post Cincinnati Children’s Buys 180 KSF Life Science Asset appeared first on Commercial Property Executive.

The project will feature a six-story office building atop a three-floor parking garage and conference center. It will be developed at 5355 Medpace Way, the site of a 57,340-square-foot building constructed in 2011 that is currently home to the company’s Clinical Pharmacology Unit. The CPU building will be demolished to make way for the new tower. The building will have a front courtyard, connecting stairs on all six floors, open office spaces, collaboration spaces, private offices, a fitness center and conference rooms, according to additional details released by Skanska.

Preparatory work began in February and the project is slated for completion in March 2027.

Skanska is also working on a new 75,000-square-foot CPU building that will include a loading dock, reception areas, conference rooms and sleeping rooms for inpatient study subjects.

READ ALSO: Tenants Are Leasing More Office Space in Prime Buildings

Stockholm-based Skanska is overseeing the campus expansion on behalf of the project’s developer, RBM Development, which is owned by the Medpace CEO August Troendle. The Medpace expansion will be the largest office construction project in the city.

Project incentives, grants

The project received several incentives totaling more than $120 million in May from both the city of Cincinnati and the Port of Greater Cincinnati Development Authority after reaching an agreement to form a tax-increment financing district worth $3.4 million annually. It is believed to be the largest economic incentive deal in Cincinnati history and calls for Medpace to add approximately 1,500 new jobs at the site and keep the existing 3,000 jobs. The deal included about $33 million through a 55 percent payroll tax credit for 14 years and at least $90 million from the TIF over 30 years, according to local12.com.

The city will also contribute $1.5 million for public improvements at the site and $200,000 for infrastructure upgrades to the intersections of Medpace Way and Hetzell Street, the campus’ surrounding streets, Commercial Property Executive previously reported.

Other funding includes $55 million worth of lower-interest bonds issued by the port authority and a $23 million development grant from JobsOhio, the state’s private development arm. The Ohio Department of Transportation is providing $325,000

Creating a mixed-use campus

Founded in 1992, Medpace is a global clinical research organization for development of drugs and medical devices. Medpace began making plans to move to the former NuTone manufacturing site in 2008. Following several years of construction, Medpace moved from Norwood, Ohio, to the new space in Madisonville in 2012. Over time, the campus grew to include five buildings with about 600,000 square feet of total space.

Skanska has worked on several other projects at the Medpace campus in recent years as it has been transformed into a mixed-use district. In 2018, Skanska completed the adaptive reuse redevelopment of a former NuTone warehouse and parking garage into a 239-key, 426,000-square-foot full-service boutique hotel and conference center, known as The Summit.

Two years later, Skanska completed Madison Square, which includes street-level retail, a plaza level public commons and seven-story, 263,000-square-foot Class A office building.

The post Skanska to Construct $164M Building in Cincinnati appeared first on Commercial Property Executive.

Medpace, a publicly traded clinical research company, is moving forward with a two-building 654,000-square-foot expansion of its corporate campus in Madisonville, Ohio.

According the Cincinnati Business Courier, the $327 million project recently secured several incentives from both the city and the Port of Greater Cincinnati Development Authority, after the parties reached an agreement to form a tax-increment financing district worth $3.4 million annually.

When groundbreaking begins, the expansion will be the largest office construction project in the city.

Agreements, incentives, improvements

Within the new agreement, the expansion’s developer RBM Development Co., which is owned by Medpace’s CEO, will be able to reinvest property taxes back into the project. Additionally, the city of Cincinnati will contribute $1.5 million to public improvements at the development site, as well as $200,000 to improve the infrastructure surrounding the intersections of Medpace Way and Hetzell Street, the campus’ surrounding streets. To that end, Medpace is contributing an additional $30,000, while the Ohio Department of Transportation is set to chip in $325,000.

READ ALSO: Where Office Work Is Heading Now: CoreNet Global Survey

In June of last year, the project gained an additional $33 million in job-creation tax credits, as well as additional incentives from JobsOhio, the Cincinnati Business Courier reported. Upon the buildings’ completion, Medpace plans to bring 1,500 new jobs to the campus. Presently, Medpace has roughly 2,300 employees around its hometown, with a total of 5,600 also working out of Dallas, Denver and Mexico City.

Medpace’s Madisonville footprint

Skanska is overseeing the project’s development on behalf of RBM. The newly agreed-upon development will consist of a nine-story, 579,000-square-foot office tower to be built at the site of the Building 300 of the Medpace Corporate Campus, located at 5355 Medpace Way. According to CommercialEdge information, the current 57,340-square-foot facility, built in 2011, is home to the company’s Clinical Pharmacology Unit.

That property will be demolished, and the unit, devoted to testing early-stage clinical trials for a variety of drugs, will move operations to the second planned building, a two-story, 75,000-square-foot facility at 5401 Hetzel St. Additionally, the company plans to build two parking garages totaling 1,300 spaces. The new facility will include an outdoor plaza and walkways, which connect to the existing buildings at the campus.

The new base of operations for the company’s Clinical Pharmacology Unit is taking shape at a vacant lot that Medpace bought for $850,000 in 2020, the same source shows.

The expansion of Medpace’s Madisonville campus dates to 2022, when the Cincinnati Planning Commission approved the project’s initial proposal. The Planning Commission approved the most recent amendment to the project’s zoning back in October of last year.

Initially, the project called for a 485,000-square-foot first building, while The Clinical Pharmacology Unit’s new abode measured 85,630 square feet. At the time, the estimated costs added up to $265 million, the Cincinnati Business Courier reported.

According to CommercialEdge information, the existing campus includes five buildings totaling more than 575,000 square feet across 30 acres. Amenities at the campus include a fitness center, day care facility and dining hall.

The Medpace Corporate Campus lies adjacent to two hotels, and roughly a quarter mile northeast of The Christ Hospital’s Red Bank Outpatient Center. Access to the Red Bank Expressway, which merges with the Interstate 71, is equidistant in the opposite direction. Downtown Cincinnati is roughly 7 miles to the southwest.

Cincinnati’s slow start

A recent analysis from Newmark shows that outside of Medpace’s expansions, The Queen City has only 43,000 square feet of space in its pipeline, owed to a project in Northern Kentucky. When it breaks ground, Medpace’s expansion will expand the city’s pipeline nearly 15 times over.

On the medical office front, Remedy Medical Properties purchased a six-building, 145,308-square-foot portfolio of buildings around the city’s outskirts and Northern Kentucky submarket.

The post Medpace Plans $327M Campus Expansion appeared first on Commercial Property Executive.

Remedy Medical Properties has purchased a six-building, 145,308-square-foot portfolio of medical office buildings located around Northern Kentucky and the outskirts of Cincinnati.

Zalla Cos., a Kentucky-based service company, sold the assets for an undisclosed amount. The firm was represented by a CBRE team led by Senior Vice Presidents Steve Timmel and Chris Prosser, Vice President Will Roberts and First Vice President Travis Likes.

Profiles of the practices

All of the buildings in Remedy’s latest acquisition are leased to St. Elizabeth Physicians, a multi-specialty organization with practices in Kentucky, Ohio and Indiana. Services that the group provides include primary and urgent care, concierge medicine, women’s health, MRI and podiatry as well as physical therapy. The organization has 169 offices around the larger tri-state area, where it employs 695 physicians.

The buildings are located in the towns of Florence, Fort Mitchell, Crittenden, Walton, Alexandria and Butler, the furthest located roughly 23 miles to the southeast of downtown Cincinnati.

Florence hosts the largest building in the portfolio, a 50,000-square-foot multi-practice medical office located at 8726 US Highway 42. According to CommercialEdge information, the Class A property was built in 2015, and spans two stories over a 4-acre parcel. With direct highway access, the facility feeds into intersections within and around the larger Cincinnati metro.

Fort Mitchell claims second place with 2300 Chamber Center Drive, a 45,000-square-foot primary care and family medicine center that CommercialEdge shows as being situated within the Chamber Office Park, a three-building campus located 5 miles to the southwest of Cincinnati. The building was completed in 2008.

Critten hosts 405 Violet Road, a 19,500-square-foot urgent care center built on 3.8 acres. The property sits within roughly 1,000 feet from an onramp to the Interstate 75.  

READ ALSO: Medical Office Real Estate Trends to Watch in 2024

13260 Service Road, located in Walton, is home to another primary care center. CommercialEdge shows that this 13,063-square-foot building was previously owned by Walton Medical Properties.

The final two properties in the portfolio are 300 Commercial Circle, a primary care facility located in Alexandria and 79 Country Club Drive, a family practice in Butler.

Remedy treats its investments

Remedy’s purchase of the portfolio marks its second significant acquisition in under two weeks. Earlier this month, the firm has teamed up with Kayne Anderson Real Estate to acquire a four-building portfolio of medical office properties located around several gateway markets for $86 million. The buyer appears to have a recent interest in the Midwest, this latest purchase following a $71 million acquisition of RUSH Oak Brook Medical Center, a 93,386-square-foot facility in Chicago.  

The post Remedy Medical Adds 145 KSF to MOB Footprint appeared first on Commercial Property Executive.

Brennan Investment Group has acquired a 263,000-square-foot industrial facility in Cincinnati, Ohio, from Intelligrated, a subsidiary of Honeywell International.

The buyer paid $14.9 million for the property and took out a $10.4 million bridge loan from Byline Bank, according to CommercialEdge data.

Prior to the acquisition, the buyer secured a full long-term lease with Trew, a provider of automated material handling solutions.

The 1986-completed property was expanded and renovated in 2000. Features at the Class A building include 25-feet clear heights, 130-foot truck courts, 390 parking spaces, along with nine dock-high loading doors and four drive-in doors. There is also an outdoor storage area.

The 17.5-acre property is within World Park industrial campus at 10045 International Blvd., providing easy access to interstates 275 and 75. Downtown Cincinnati is less than 20 miles from the asset, while Cincinnati/Northern Kentucky International Airport is some 53 miles southwest.

Brennan’s Midwest industrial inventory

Brennan Investment Group’s portfolio in the Midwest totals more than 26.7 million square feet of industrial space, Kevin Brennan, managing principal & head of Brennan’s Midwest Region, said in prepared remarks. Currently, the firm is working on a two-building campus outside of Indianapolis, expected to measure some 826,687 square feet. Completion is scheduled for this July.

Additionally, the company is redeveloping a 485,000-square-foot office building into a Class A industrial park. Located in Rolling Meadows, Ill., the property was formerly the Midwest headquarters of 3Com Corp.

According to the latest CommercialEdge industrial report, the Cincinnati metro saw some $645 million in industrial space transacted during the first eleven months of last year. The average price per square foot clocked in at $101, well below the $130 national average.

The post Brennan Investment Expands Cincinnati Industrial Portfolio appeared first on Commercial Property Executive.

400 Oak St. and 2905 Vernon Place. Image courtesy of JLL

Azora Exan has acquired a pair of Cincinnati office buildings affiliated with Cincinnati Children’s Hospital from 90 North Real Estate. Public records show the two assets traded for a total of $78 million. JLL Capital Markets represented both the seller and buyer and arranged financing for Miami-based Exan.

According to the Hamilton Country recorder of deeds, the two properties, as well as a third, were subject to a $50 million loan issued in mid-January, issed by Abanca USA, also based in Miami. The third building, 401 E. University Ave., is located right next to the Children’s Hospital office campus.

The Class A office complex, which comprises 400 Oak St., known as Vernon Manor, and 2905 Vernon Place, also called Offices at Vernon Place, totals 303,130 square feet and is fully leased to Cincinnati Children’s Hospital Medical Center through 2032, with extension options for two five-year terms. The seven-story, 156,000-square-foot 400 Oak St. was originally built in 1924 as a luxury hotel. The property underwent renovations in 2011 after closing as a hotel in 2009. The 147,130-square-foot 2905 Vernon Place, which was completed in 2017, stands at four stories.

A JLL team including Senior Managing Directors Jaime Fink and Bruce Miller, alongside Senior Directors Sam DiFrancesca and Patrick Shields, advised 90 North. The JLL Capital Markets debt advisory team advising Exan on the debt financing was led by Senior Managing Director Keith Largay and Director Lucas Borges.

Fully leased Cincinnati office campus

Both properties are fully leased to the Cincinnati Children’s Hospital Medical Center for administrative functions and non-clinical uses and are situated near the hospital’s network of clinical campuses.

The buildings, located within the 65-acre Cincinnati Innovation District, are near the city’s central business district, as well as some 15 miles from Cincinnati/Northern Kentucky International Airport.

London and Chicago-based 90 North acquired the office duo for $75.3 million, in partnership with Kuwait’s KAMCO Investment Co., in 2018. The firm also owns the headquarters of Bon Secours Mercy Health’s headquarters in Cincinnati, which it recapitalized in a debt and equity deal in 2021.

The post Cincinnati Office Portfolio Trades for $78M appeared first on Commercial Property Executive.

Summit Woods. Image courtesy of Marcus & Millichap

Shelbourne Global has acquired Summit Woods, a two-building portfolio totaling 214,570 square feet of office space in Sharonville, Ohio, a Cincinnati suburb. Marcus & Millichap procured the buyer and represented the seller, a private owner who sold the assets for $22 million. According to CommercialEdge data, the properties are subject to $19.8 million loan, originated by First Financial Bank.

Located at 50 and 400 E. Business Way, the buildings are roughly 18 miles from downtown Cincinnati and close to Interstate 275. Large businesses within a 6-mile radius include a Ford Motor Co. plant, General Mills and UnitedHealth Group.

The two four-story buildings completed in 2006 and 1015 occupy some 12 acres in total. Summit III is occupied by a mixture of tenants, ranging from startups to companies in the medical and education fields, including Clarify Wealth Management, QC Software and Brixey & Meyer. Summit Wood IV is home to Shoptech Software.

The Marcus & Millichap team included Senior Managing Director Joseph DiSalvo, Senior Associate David Peirce and First Vice President Alexander Nulf.

The office sector continues to be affected by the crosswinds of hybrid work and more recent economic turbulence. Nonetheless, office-using sectors of the U.S. economy added 100,000 jobs in June, for a total of roughly 1.6 million for the first two quarters of 2022.

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Bots used in Kroger’s Monroe, Ohio, Customer Fulfillment Center. Image courtesy of The Kroger Co.

Nearly three years after teaming with Ocado Group, a global grocery e-commerce technology company, America’s largest supermarket retailer Kroger Co. has launched its first automated Customer Fulfillment Center near Cincinnati.

The grocery chain giant will open its next CFC in Groveland, Fla., and has announced plans for more CFCs throughout the U.S.

READ ALSO: Micro-Fulfillment Centers Present Big Opportunities

Kroger and U.K.-based Ocado formed an exclusive partnership in May 2018, and began planning for automated e-commerce facilities long before the pandemic hit. Rodney McMullen, Kroger’s chairman & CEO, noted 2020 was a pivotal year for grocery e-commerce, as Kroger’s digital business surged 116 percent to more than $10 billion.

McMullen said in prepared remarks the momentum Kroger has experienced is well-timed with the evolution of its Kroger Delivery business and underpins the permanent shift in grocery consumer behavior and need for modern e-commerce and last-mile solutions.

Located at 6266 Hamilton Lebanon Road in Monroe, Ohio, the $55 million, 375,000-square-foot fulfillment center combines vertical integration, machine learning and robotics to enable Kroger to quickly process e-commerce orders and deliver fresh food in a 90-mile radius. That coverage area will increase as spoke locations are integrated into the system.

Over 1,000 bots whiz around giant 3D grids at the newly built facility, orchestrated by a proprietary air traffic control system. Known as The Hive, the grid contains totes with products and ready-to-deliver customer orders. As the orders near their delivery times, the bots retrieve the products from The Hive and are brought to pick stations to be sorted for delivery. Algorithms ensure the items are packed properly with evenly weighted bags and fragile items on top. The orders are loaded into a temperature-controlled Kroger Delivery van. Machine learning algorithms will optimize the delivery routes, considering factors including road conditions and optimal fuel efficiency. The CFC will be able to fulfill thousands of orders each day and also has the capability to support fulfillment of pickup orders.

Expansion plans

In January, the Kroger Co. announced plans for a new automated facility in Phoenix, where it operates as Fry’s Food Stores. The company said it was making a capital investment of $80 million for a CFC development of approximately 222,900 square feet. At that time, the location was not identified but Kroger expected to be ready to open the CFC 24 months after breaking ground. Also this spring, Kroger will open a CFC in Groveland, Fla., near Orlando, Fla., a new area for Kroger operations. In addition to the Phoenix center, Kroger has also announced plans to open CFCs in Dallas; Forest Park, Ga., near Atlanta; Frederick, Md., Pleasant Prairie, Wis.; Romulus, Mich., outside Detroit; as well as sites throughout the Pacific Northwest and West regions. Kroger is expected to announce additional locations as the network expands.

At every CFC, on-site associates will support delivery operations and help process, package and load orders. The Monroe CFC will employ nearly 400 associates and the Phoenix site is expected to hire about 700 workers.

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Capital Center Industrial Park

Dalfen Industrial has finalized the disposition of Capital Center Industrial Park, an 896,523-square-foot ensemble of 14 light industrial buildings in Cincinnati. TradeLane Properties paid $51.3 million to acquire the asset in the sought-after Tri-County submarket. JLL Capital Markets represented the seller.

Dalfen purchased the portfolio in February 2018. Located on 43.5 acres at 4554-4860 Interstate Drive in West Chester Township, Ohio, the properties are situated 3 miles of the junction of interstates 75 and 275, while central Cincinnati is within 20 miles south.

READ ALSO: Rexford Industrial Seals Deals Worth $73M

At the time of the sale, the industrial park was 93.5 percent leased to 65 tenants. Most of the buildings were erected in the 1970s and have undergone renovations throughout the years.

Senior Managing Director & Co-Head of JLL’s Industrial Capital Markets group John Huguenard and Senior Director Kurt Sarbaugh led the JLL team representing the seller, with the assistance of Executive Vice President Mark Volkman.

A recent JLL Industrial Outlook shows that leasing velocity has remained steady throughout 2020, with e-commerce, traditional retailers and 3PL players driving demand. Construction activity reached historical highs in Cincinnati, with more than 5 million square feet delivered last year. Coming into 2021, active projects are dispersed mainly in the Airport, Florence/Richwood and Tri-County submarkets.

In mid-2020, Dalfen announced its investor partnership with Goldman Sachs Merchant Banking Division. Throughout the year, the duo picked up more than 50 last-mile industrial properties in various U.S. markets, totaling roughly 7.1 million square feet. Last month, Dalfen expanded its Atlanta-area footprint with the purchase of a 320,500-square-foot, fully occupied asset in Dacula, Ga.

The post Dalfen Industrial Sells Cincinnati Asset for $51M appeared first on Commercial Property Executive.

11311 Reed Hartman Highway. Image courtesy of 90 North Real Estate Partners

London-based 90 North Real Estate Partners has acquired the approximately 400,300-square-foot Ensemble Health Partners headquarters property in Blue Ash, Ohio. In its role as investment advisor to Kuwait-based Rasameel Investment Co., 90 North purchased the Cincinnati-area office complex from a local developer.

READ ALSO: Financial Services Plans Gradual Return to the Office: Deloitte

While 90 North has not publicly disclosed the purchase price of Ensemble’s home base at 11311 Reed Hartman Highway, Hamilton County records indicate that the 51.3-acre site traded for $19.5 million. Ensemble, which inked a new long-term, net lease agreement with the new ownership, makes its home on what had been the west campus of the former 132-acre Procter & Gamble Sharon Woods Innovation Center. The medical billing management company’s headquarters benefited from a custom redevelopment over the last 12 months and now features an approximately 390,100-square-foot main building that includes 75,000 square feet of newly added space, as well as an additional 10,200-square-foot structure that will be transformed into a conference center. “The quality of construction and atmosphere adds significantly to the real and perceived value of the property now and in the future,” Martin Ahern, senior vice president, Acquisitions, with 90 North Real Estate Partners, told Commercial Property Executive.

11311 Reed Hartman Highway. Image courtesy of 90 North Real Estate Partners

Cushman & Wakefield’s Michael Sullivan and Thomas Powers marketed the Ensemble campus and represented both buyer and seller in the transaction. 90 North was attracted to the asset for a number of reasons. “Ensemble’s strong growth plan coupled with the long-term commitment to the property had us excited about the deal. And to help matters, the asset has direct access to Sharon Woods Park, which offers an abundance of green space to go along with the property being expanded and completely redeveloped in a first-class manner,” Ahern said. “Finally, the Blue Ash submarket is one of the most sought after, with neighboring tenants that include Microsoft, IBM, and Toyota. The redevelopment of the property and the presence of Ensemble only enhance that positioning.”

Pandemic-proof allure

90 North and Rasameel were only in the due diligence stage of the Ensemble headquarters deal when COVID-19 took hold in the U.S., but the partners were undeterred by the ensuing uncertainty. “[Rasameel] never wavered and were committed to closing the transaction while operating under unique circumstances,” noted Ahern. “The view was we were confident in the deal and the U.S. when we secured the asset and remain confident in both Ensemble and infrastructure in the U.S. long term.”

Although the level of cross-border investment in the long-coveted U.S. commercial real estate market declined in 2019, the region’s status as a solid go-to for foreign investment dollars has not waned amid the global spread of the coronavirus. “We hear the same sentiments from other investors and investment partners who see past the pandemic and still view the U.S. as a premier place to invest in commercial real estate,” Ahern added. “We are living in very interesting times, whether you consider the pandemic, the upcoming election, social issues, as well as the financial turbulence that we’ve seen. In spite of all that, the U.S. continues to be viewed as an attractive destination for foreign investment capital.” 

The post Cross-Border Buyers Acquire 400 KSF Cincinnati Office Campus appeared first on Commercial Property Executive.

Columbia Plaza. Image courtesy of JLL

HighBrook Investors has finalized the leasehold sale of Columbia Plaza, a 538,437-square-foot office tower in Cincinnati, Ohio. Zamir Equities acquired an 80 percent stake in the property, and Centurion Realty bought the remaining 20 percent, public records show. JLL Capital Markets assisted the seller and procured the buyer.

Basis Investment Group provided the buyer with a $50 million loan. The asset last traded in a $32.8 million trustee sale in 2015, after U.S. Bank foreclosed on a loan taken by previous owner Daymark Realty Advisors, according to Yardi Matrix. The building is subject to a ground lease from Columbia Development Corp. The 62-year agreement expires in 2044.

Located downtown at 250 E. Fifth St., the 29-story high rise opened in 1984. HighBrook had recently renovated the asset, expanding its lobby by 5,000 square feet and updating amenities and common areas. The building includes a 3,000-square-foot tenant lounge, conference rooms and underground parking. The property, anchored by Western & Southern Financial Group, was 76.2 percent leased at the time of the sale.

The JLL team included Senior Managing Directors Bruce Miller, Jaime Fink and Jeffrey Bramson, Senior Director Patrick Shields and Director Sam Difrancesca. Earlier this month, the same brokers closed a $24.1 million sale of two Class A office properties totaling 212,100 square feet in Chicago.

The post Zamir Equities JV Buys 540 KSF Cincinnati Office Tower appeared first on Commercial Property Executive.

Champion Paper Mill site. Image via Google Street View

Plans for Spooky Nook Sports Champion Mill, a $144 million redevelopment project along the Great Miami River in Hamilton, Ohio, got a boost with news of additional funding. Preston Hollow Capital recently completed a $38 million tax-exempt bond financing for the City of Hamilton to support the creation of what will be a 1 million-square-foot, mixed-use sports and entertainment destination in metropolitan Cincinnati. 

READ ALSO: $2T to the Rescue: CRE and the Stimulus Package

Spooky Nook will bring new life to the former home of Champion Paper, which had been one of Hamilton’s largest employers until it closed its doors in 2000, after more than a century in business. In a public-private partnership, the City of Hamilton and Manheim, Pa.-based Spooky Nook Sports LLC will transform 20 acres of the abandoned site with the development of a 650,000-square-foot sports complex and a 360,000-square-foot hotel complex that will include a 235-key hotel, retail offerings, commercial space and convention center accommodations.

“This kind of project is a game-changer for Hamilton, and for a former industrial site that has not received commercial interest for years,” Jody Gunderson, director of economic development for the City of Hamilton, said during testimony in a committee hearing of the Ohio Senate on May 21, 2019. The Hamilton Community Authority issued the bonds placed with Preston Hollow. With work already underway, Spooky Nook is on track to reach completion in 2021.

Purposeful repurposing

Spooky Nook will join the increasingly long list of adaptive reuse projects that are revitalizing communities across the U.S. Former industrial sites are particularly conducive to such conversions. Among the bevy of projects currently underway include developer Flyway’s Silo Studios, an 80,000-square-foot office and retail property that will sprout up in place of a former lumber mill in The Nations neighborhood of Nashville. And later this year, Jamestown and Grubb Ventures will commence redevelopment of the historic Peden Steel facility in Raleigh, N.C., paving the way for the transformation of mill and warehouse buildings into the Raleigh Iron Works mixed-use destination. 

The post Bond Financing Closes for $144M Cincinnati-Area Redevelopment appeared first on Commercial Property Executive.

312 Plum St. Image via Google Street View

Rubenstein Partners and Strategic Capital Partners have signed two new tenants at 312 Plum St., a 231,000-square-foot office building in Cincinnati. The leases total approximately 25,000 square feet.

Halo Communications, a health-care provider has signed a five-year lease for 11,900 square feet, while KnowledgeWorks Foundation, an education nonprofit, has agreed to a 10-year, 12,800 square-foot lease. Both tenants are relocating from 1 W. Fourth St., a mixed-use property in downtown Cincinnati.

Rubenstein and Strategic Capital acquired 312 Plum St. and the adjacent 312 Elm St. in 2015. The partnership implemented a capital improvement plan to renovate the common areas and amenities of both assets.

Located in downtown Cincinnati, the property is at the junction of interstates 75 and 71. The office building is 2 miles from the Union Terminal train station and 10 miles from Cincinnati International Airport.

Nick Greiwe, Travis Likes, Chris Carey, Scott Yards, and Kate Myers of CBRE represented the ownership. Chris Vollmer, Jr., who joined the brokerage in May of last year, assisted Halo Communications. Peter Snow and Rose Ferrugia of Cushman & Wakefield represented KnowledgeWorks.

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8200 Broadwell Road. Image courtesy of NAI Hiffman

NAI Hiffman has represented Leasco Management in the sale of a 479,598-square-foot aerosol can manufacturing facility in Cincinnati. The industrial asset sold for $16.7 million to a private buyer from Southern California.

The team of brokers that marketed the property was composed of Executive Vice President Pat Sullivan and Vice President Ryan Chambers as well as Newmark Knight Frank’s Executive Managing Director Si Pitstick. 

The property is located at 8200 Broadwell Road, close to Interstate 275. BWAY Corp. or its predecessors have been the only tenant at the building since 1965, having more than nine years left on its absolute triple-net lease. The property is BWAY Corp.’s second-largest aerosol can manufacturing facility in the U.S. The nearby area hosts the facilities of several companies such as Carlin Group, Senco, Lawnlines and Steel It.

In December 2019, NAI Hiffman brokered the sale of a 128,000-square-foot industrial asset in Chicago. The brokerage also procured the buyer, Clear Height Properties.

If you’d like to be featured in Brokers’ Corner, simply fill in our short form or send your deal to deals@cpe-mhn.com.

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Bert Hehman, Senior Vice President, Bradley Co. Image courtesy of Bradley Co.

Bradley Co. expanded its Cincinnati team by hiring Bert Hehman as senior vice president. Hehman comes from Neyer Properties Inc., where he served as the director of leasing and business development. In his new role, the senior vice president will focus on the company’s development and recruiting efforts within the Cincinnati and Louisville markets.

Throughout his career, Hehman has been active in the real estate and banking industries, having also been in charge of directing financial activities, coaching sales and service staff as well as providing underwriting for commercial, consumer and mortgage loans. Hehman has been an expert in the Greater Cincinnati area real estate for more than 13 years.

Hehman graduated from Xavier University with a Bachelor of Arts in marketing and sales. He is also a member of the National Association of Industrial and Office Properties, the International Council of Shopping Centers and Blue Ash Business Association.      

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415 Jones Road. Image courtesy of Trez Forman Capital

Trez Forman Capital has provided $38.8 million in financing for the development of two spec industrial buildings totaling 776,820 square feet in Walton, Ky. Stonemont Financial Group received the loan, according to public records. Trez Forman Capital’s team included CEO Brett Forman and Managing Director Russ Holland.

Located at 415 Jones Road, the two warehouse and distribution centers will be within the 55-acre Logistics Park 75, near the intersection of interstates 75 and 71, around 23 miles from downtown Cincinnati, Ohio. The development will enable access to the Cincinnati/Northern Kentucky International Airport, where Amazon is building a 3-million-square-foot Prime cargo hub.

The larger building will feature 544,320 square feet and encompass two tenant bays of equal size. The second property is planned to feature 232,500 square feet of space comprising also two equal bays. The spaces might also be subdivided to accommodate more tenants. Characteristics of the buildings will include 36-foot clear heights and multiple dock-high doors.

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Aerial view of Liberty Center. Image courtesy of Bayer Properties

The owner of Liberty Center, a 1.2 million-square-foot mixed-use property near Cincinnati, has selected Bayer Properties to oversee management operations. Steiner + Associates headed the partnership, which opened the large-scale development in 2015. Previously, JLL had managed the asset.

The 100-acre Liberty Center is home to a diverse mix of asset types including 860,000 square feet of retail and 75,000 square feet of office space. Additionally, the property has a 130-key AC Marriott and the 240-unit Liberty Center Apartments.

Located at 7100 Foundry Row in Liberty Township, the retail component has a wide range of tenants such as a Cinebistro movie theater, H&M, Dick’s Sporting Goods and Dillard’s. In May, an indoor skydiving center opened in a new building at the southeast corner of the property.

Amstan Logistics, the largest tenant in the office component, moved into 13,075 square feet in March, according to Journal-News. Other tenants include Northwestern Mutual, RE/MAX and Sheeler Financial. A 130,000-square-foot office expansion is planned for the northern side of the parcel, though the project has yet to break ground.

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JACK Cincinnati Casino. Image courtesy of JACK Entertainment

VICI Properties Inc. has completed the acquisition of JACK Cincinnati Casino in downtown Cincinnati, Ohio, approximately six months after signing the commitment to purchase the property. The company paid $558 million in cash to JACK Entertainment, which has been owning the asset since its completion in 2013.

VICI also entered a triple-net lease agreement with Hard Rock International, which will become the third tenant at the property. The lease has an initial total annual rent of nearly $42.8 million and a 15-year term, with four five-year tenant renewal options, and was guaranteed by Seminole Hard Rock Entertainment. The other two pending transactions are with Century Casinos Inc. and Eldorado Resorts Inc., which together will add an additional $277.5 million of rent upon closing.

JACK Cincinnati spans 22 acres at 1000 Broadway St. and provides 100,000 square feet of gaming space and an additional 33,000 square feet of meeting space, six restaurants and two bars. The property can be accessed via Interstate 71.  

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University of Cincinnati Expansion. Rendering courtesy of Skanska

University of Cincinnati has signed a $32 million contract with Skanska to renovate and expand its former College of Business, Lindner Hall in Cincinnati. The project is expected to kick off in July 2020 and be completed in December 2021.   

The renovations will comprise the existing roughly 31,000-square-foot facility, will include Americans with Disabilities Act improvements and new collaborative student and faculty spaces. Additionally, constructions will add almost 5,000 square feet. When completed, the six-story building will house of the university’s College of Law. According to Chris Hopper, executive vice president & general manager for Skanska, the project is the third with the University of Cincinnati, Cincinnati Business Courier reports. BHDP Architecture will be the architect of record for the project, together with Perkins + Will. The latter will provide programming and design architect services.   

Recently, St. Edward’s University in Austin, Texas, announced its 12,4000-square-foot expansion. The project will deliver a new recreation and athletic center, with a completion date set for the end of the year.  

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3500 Michigan Ave. Image courtesy of Konover South

A joint venture comprising Konover South, Zucker Investment Group and Truett Realty Group has paid $1.4 million for a ground-floor retail space part of the shopping area around Hyde Park Square in Cincinnati. Almost two thirds of the purchasing price—$920,000—was covered by a loan from KS Lending Corp., a Konover South company. SAB Capital Managing Partners Aaron Baum and Preet Sabharwal represented the seller.

The space encompasses 3,651 square feet and is located on the corner of 3500 Michigan Ave. and Erie Avenue. It houses a landmark Lululemon store as well as a Breadsmith bakery, which anchor the luxury Michigan Terrace residences. 

The shopping area is less than 5 miles from downtown Cincinnati and Jack Cincinnati Casino, which has recently been sold to VICI Properties in a $558 million cash deal. Hyde Park Square is home to more than 175 shops, businesses and events including Hyde Park Square Art Show, the largest juried art show in the Midwest held annually in October. In the center of the area lies a landscaped island park featuring lawns as well as the historic Kilgore Fountain.   

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600 Gateway Blvd. Image courtesy of Lexington Realty Trust

Lexington Realty Trust has acquired a 2.4 million-square-foot e-commerce industrial portfolio in metro Cincinnati from IDI Logistics for about $180 million. The three buildings are all recently constructed, Class A warehouse/distribution facilities in Park North at Monroe, a logistics park developed by IDI along the east side of Interstate 75 in Warren County, in the northwest metro area.

READ ALSO: Broadstone Net Lease Buys $736M Industrial Portfolio

Each property is 100 percent net-leased to notable tenants/guarantors. Amazon occupies the park’s largest facility, the 1.3 million-square-foot Building 6, at 700 Gateway Blvd. Hayneedle/Walmart is a tenant in the 994,000-square-foot Building 8 at 600 Gateway Blvd., and Blue Buffalo—a division of General Mills— leases the 143,700-square-foot Building 5 at 675 Gateway Blvd. The portfolio has a weighted-average lease term of approximately 9.3 years and average annualized rental escalations of about 2 percent.

675 Gateway Blvd. Image courtesy of Lexington Realty Trust

In its announcement on the transaction, Lexington described the acquisition as consistent with its investment strategy of purchasing well-located, high-quality industrial assets as it transitions to a 100 percent industrial-focused net-lease REIT. So far this year, Lexington’s investment activity totals roughly $440 million. In addition, the company notes that it currently has about $170 million of warehouse/distribution properties under an accepted offer or contract.

Lexington’s strategy to transition toward being a pure-play in single-tenant, net-leased industrial properties has been underway for at least a year now. In September 2018, the REIT sold a 3.8-million-square-foot office portfolio for $726 million, though it kept a 20 percent stake in the joint venture that purchased the assets.

A consistently tight market 

The two-state metro Cincinnati industrial market saw a slight uptick in vacancy, but the average direct vacancy increased to only 3.6 percent, still well below the historical average, according to a second-quarter report from Cushman & Wakefield. Industrial construction hit a record 9.7 million square feet, which is expected to help push total vacancy over 4 percent.

Nonetheless, the amount of built-to-suit space and new leases are expected to keep net absorption positive through the end of 2019. The average asking rent for Class A bulk warehouse space in the Northwest submarket is $4.17 per square foot, again per Cushman & Wakefield.

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Ryan Roedersheimer, Associate Director, Stan Johnson Co. Image courtesy of Stan Johnson Co.

Stan Johnson Co. has hired Ryan Roedersheimer as an associate director & head of its recently opened Cincinnati office. Roedersheimer, who specializes in the acquisition and disposition of multi-tenant retail assets, comes from Marcus & Millichap, where he worked as an investment broker. In his new position, he will be responsible for growing the company’s multi-tenant investment sales presence and market share in southern Ohio. 

Roedersheimer has been active in the commercial real estate market since 2013 and became a licensed broker in 2015. Previously, he worked for eight years as a sales executive with Verizon Wireless, where he earned a top accolade for his performance.

Stan Johnson’s new office—its third in the Midwest—is located at 11 Garfield Place. With the opening of the Cincinnati location, the firm has 13 regional offices in addition to its Tulsa, Okla., headquarters. The company recently completed a $14.9 million industrial sale in Grand Blanc, Mich.

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West Chester Trade Center Phase II. Image courtesy of NorthPoint Development

NorthPoint Development has broken ground on Phase II of the West Chester Trade Center industrial park in Ohio. The two upcoming warehouses are expected to encompass a total of 581,000 square feet and will add to the other two existing facilities. Gordian Construction is the developer while CBRE will lead the leasing efforts.

The new warehouses will be located on Trade Center Drive in West Chester, close to interstates 75 and 275. The future tenants will be joining several other companies which include TSC Apparel, Amarr and MD International. The buildings they occupy feature 36-foot clear heights, a 60-foot staging bay as well as a large parking lot.

The industrial park is currently 83 percent leased, with approximately 130,000 square feet available at the site. NorthPoint started building the master-planned industrial park in 2018, one year after it purchased a 545,000-square-foot industrial portfolio in Northeastern Pennsylvania. The company plans to add more than 1.8 million square feet of industrial space by the time it delivers all six buildings.  

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Towers of Kenwood. Image courtesy of Yardi Matrix

Viking Partners Fund IV, in a joint venture with a fund managed by DRA Advisors, has acquired Towers of Kenwood, a Class A office property in Cincinnati for $80.6 million. The new owners secured a $5.8 million loan from Bank of America for the acquisition, per Yardi Matrix data. Hines is the former owner of the 404,425-square-foot building. 

The property is at the intersection of Interstate 71 and Montgomery Road, in the northern suburbs of the city, about 12 miles of downtown Cincinnati. Towers of Kenwood includes 10,000 square feet of retail and 1,580 parking spaces. Built in 1987, the seven-story building underwent a renovation in 2000. The asset last changed hands in 2014, when Hines purchased it for $58.4 million from Duke Realty.

According to Viking Partners, the building was 97 percent occupied at the time of the sale. The joint venture is planning additional capital improvements to Towers of Kenwood, including upgraded restrooms, corridors and lobbies.

DRA Advisors acquired another midwestern office property in March, when International Centre and Oracle Centre in Minneapolis traded for $73.7 million. Investcorp sold the 622,173-square-foot asset after five years. 

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Chris Vollmer Sr., Senior Vice President, and Chris Volmer Jr., First Vice President, CBRE. Image courtesy of CBRE.

CBRE has added two office specialists, Chris Vollmer Sr. and Chris Vollmer Jr., to its Cincinnati office advisory team. Vollmer Sr., who has more than 30 years of professional experience leasing and selling commercial real estate, will occupy the senior vice president position. His son, who specializes in representing the needs of corporate office and medical users, will serve as first vice president.

Prior to joining CBRE, the two professionals worked with Colliers International for seven years and before that, between 2006 and 2011, they ran their own real estate firm, Vollmer Realty Inc. Both are experts in the Greater Cincinnati and Northern Kentucky office markets.

Vollmer Sr. worked with CBRE before, being one of the first brokers to join the company when it opened its first Cincinnati office. He holds an MBA from Purdue University. Over the past six years, Vollmer Jr. has been involved in selling and leasing more than 2.5 million square feet of space worth approximately $400 million. He is a graduate of Fordham University.

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JACK Cincinnati Casino. Image courtesy of JACK Entertainment

VICI Properties will soon add the JACK Cincinnati Casino to its portfolio. The REIT and a subsidiary of Hard Rock International have signed commitments to acquire the downtown Cincinnati gaming property from Jack Entertainment for a total of $745 million in cash.

VICI will take ownership of JACK Cincinnati’s land and real estate assets in their entirety with the $558 million purchase of 100 percent of the membership interests of the subsidiary that owns the property. Hard Rock will purchase the property’s operating assets for $187 million. In tandem with the completion of the transactions, VICI will sign Hard Rock to a triple-net lease agreement, guaranteed by Seminole Hard Rock Entertainment, with an initial 15-year term and the option for four five-year renewals. Hard Rock has been the leading operator in the Buckeye State since making its 2013 debut in Cleveland.

“As we look across the landscape, we believe acquisition opportunities are plentiful and would note that finding the right asset also entails finding the right operating partner,” Danny Valoy, vice president of finance at VICI, told Commercial Property Executive. “(With Hard Rock), we now have partnerships with three best-in-class operators, which we believe further strengthens our ability to compete for additional assets going forward.”

Pending both state and federal regulatory approval, the transaction will likely close in late 2019. Goldman Sachs & Co. served as financial advisor, while Kramer Levin Naftalis & Frankel acted as legal advisor, both on behalf of VICI.

JACK Cincinnati first opened its doors in 2013 as Horseshoe Casino Cincinnati, developed by Rock Gaming, the previous incarnation of JACK Entertainment, for $450 million. The 450,000-square-foot gaming destination was reintroduced to the market as JACK Cincinnati in 2016. In addition to 100,000 square feet of gaming space, the casino features 33,000 square feet of meeting accommodations, six restaurants, two bars and an attached 2,500-space parking facility.

“This transaction expands our geographic footprint into one of the fastest growing regional markets,” John Payne, president & chief operating officer of VICI, said in a prepared statement. JACK Cincinnati is one of only four legally permitted full-scale casinos in the State of Ohio.

The buying game

VICI, which completed its spin-off from Caesars Entertainment Operating Co. in 2017, has been busy bolstering its national portfolio over the last several months. In January, VICI closed the $261 million acquisition of the Margaritaville Resort Casino in Bossier City, La. VICI’s partner on the deal was Penn National Gaming, which acquired Margaritaville’s operating assets in a separate transaction before entering a lease agreement with the REIT.

In December 2018, VICI completed acquisition and leaseback transactions valued at $241.5 million with Caesars Entertainment for Harrah’s Philadelphia. VICI also entered into an agreement in November 2018 to add the Greektown Casino-Hotel in Detroit to its holdings for $700 million, with Penn National agreeing to buy the operating assets separately.

The JACK Cincinnati deal brings VICI’s total planned and completed acquisition transactions to nearly $2 billion over a period of less than six months. The REIT, however, doesn’t plan to allow the latest addition to the tally to slow its purchasing activities.

“The (JACK Cincinnati) acquisition has no bearing on our ability to complete or announce additional acquisitions this year given our strong balance sheet, relatively low leverage and our ability to utilize efficient measures to access capital,” Valoy told CPE. “Since formation, we have raised over $3 billion in equity capital to fortify our balance sheet and fund accretive acquisitions.”

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George Stinson, Senior Vice President, Lee & Associates

Industry veteran George Stinson has joined Lee & Associates’ Cincinnati office as senior vice president of brokerage services. Stinson, who specializes in the sale and leasing of office, industrial and retail properties throughout the Greater Cincinnati area, brings more than 35 years of experience to the new position. His areas of focus are landlord and tenant representation as well as single point of responsibility and multi-market transaction management.

Prior to joining Lee & Associates, Stinson was a senior vice president with Weprin Realty. He started his career as a vice president with CBRE and after 18 years with the company, he launched his own real estate company, GES Corporate Real Estate Advisors, which he managed for more than six years. Stinson’s focus was on the North Cincinnati real estate market with concentration along Interstate 75 West Chester, Interstate 71 Corridor and Blue Ash submarkets. Throughout his career, the industry veteran has been involved in more than 500 sale and lease transactions totaling more than $400 million.

Stinson is a graduate of Eastern Nazarene College and holds a Bachelor of Arts in psychology. He is also a board member of the Cincinnati United Soccer Club.

Image courtesy of Lee & Associates

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“These transactions demonstrate ILPT’s commitment to executing on our business plan to grow our industrial asset base using low-cost debt to enhance future earnings and create value for our shareholders,” said John Murray, president & CEO of Industrial Logistics Properties Trust, in a prepared statement.

The eight-property portfolio carries a price tag of $280 million and encompasses 4.2 million square feet in metropolitan Indianapolis and Cincinnati. The facilities, which have an average age of 13 years, are 100 percent leased to 10 occupants under lease agreements with a weighted average remaining term exceeding four years.

With the purchase of the CCIT II portfolio, ILPT will add 8.7 million square feet of industrial space spanning 12 states to its holdings. The 18 properties have an average age of nine years and are fully leased to 13 tenants, with a weighted average remaining lease term of more than nine years. ILPT will acquire the properties for $625.3 million, including the assumption of $57 million in existing debt.

ILPT will finance the purchase of both portfolios with cash on hand and proceeds drawn from its $750 million revolving credit facility.

Both portfolio transactions are on schedule to reach full completion within 60 days. Once the properties are under ILPT’s ownership, the REIT will count Amazon and FedEx as its two largest tenants.

Post-IPO life

ILPT went public in January 2018 and since then, the REIT has announced in excess of $1 billion in acquisitions of high-quality assets, including the two pending portfolio additions and the 240,666-square-foot Hellmann Worldwide Logistics facility in Doral, Fla., which the company bought for $43.1 million last year.

“We continue to be encouraged by the growth of e-commerce and logistics industries and the strength of the nationwide industrial market,” said Murray.

2018 was another banner year for the industrial sector. Vacancies remained at historic lows, averaging 5 percent in the fourth quarter, according to a report by commercial real estate services firm Newmark Knight Frank, and asking rents continued to rise, increasing 10.3 percent quarter over quarter.

The post ILPT to Acquire Industrial Portfolios for $905M appeared first on Commercial Property Executive.

Jacquemin Logistics Center

A joint venture between USAA Real Estate and The Pizzuti Cos. has leased a total of 238,202 square feet at the Jacquemin Logistics Center located in West Chester, Ohio. The four new tenants include Flint Group, Wayfair, Novolex and YKK.

Located at 8660 and 8748 Jacquemin Drive, the logistics center is 22 miles north of downtown Cincinnati. The asset is in close proximity to interstates 75 and 275. Butler County Regional Airport is within 6 miles of the property. The building features 32-foot clear height, a 60-foot staging bay, a 190-foot shared truck court and 139 parking spaces.

CBRE Senior Vice Presidents Mike Lowe and Doug Whitten represented the owners. In May 2018, the same team facilitated the leasing of 84,099 square feet to Usui International, also in the same recently completed facility.

“Jacquemin Logistics Center has proven to be a successful site for a diverse set of manufacturing and distribution users. The two-building facility has been over 85 percent leased within the first eight months of delivery. The new construction has allowed the tenants to efficiently design and layout their unique processes,” Whitten said in a prepared statement.

Image courtesy of CBRE

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Adam Rath, Founder, Rath Equity

Cincinnati is part of the wave of Midwestern secondary markets that are racking up significant growth in the industrial sector, primarily due to the booming demand for distribution facilities triggered by the online commerce boom. In 2018, roughly 6.3 million square feet of industrial space was delivered in the metro, more than half of it coming in the form of speculative development, according to a recent report by Cushman & Wakefield. Even so, vacancy during the fourth quarter of 2018 remained below 3 percent.

The office sector shows similarly strong fundamentals as it appears to be near a peak, reported Adam Rath, founder & owner of Rath Equity. The company started operating in the Cincinnati area since last year and is now focused on growing its base of industrial and office clients. In a wide-ranging conversation with CPE, the entrepreneur touched on the trends, challenges and opportunities in the metro’s commercial real estate market.

What is your general view of the office sector? What are the main trends?

Rath: The major factor contributing to a strong office and industrial market in Cincinnati is a strong local economy and revitalized downtown that has aided in the ability to retain educated workers and have accelerated a strong economic growth. The unemployment rate has compressed to under 4 percent.

The Cincinnati office sector is currently strong and healthy. In the last few years, we have seen rising rents and vacancies going down. Also, sales are strong but appear to be reaching a peak at both cap rates and price per square foot.

What about the industrial market?

Rath: The Cincinnati industrial sector is very strong. We are experiencing some of the lowest levels of vacancy in 15-20 years. The return of manufacturing and the explosive growth of the e-commerce industry have contributed to a strong lease-up. The more notable tenants in the market have been Amazon, Hayneedle and Wayfair. Thus, the vacancy rate has dipped to 3 percent and is causing a major uptick in new construction to meet the demand. Key indicators—5.7 million square feet of absorption, year-over-year rent growth at 9 percent.

Tell us about the challenges you see in today’s market.

Photo of Cincinnati skyline by Tanner Daniels on Unsplash

Rath: The major challenge we are faced with today is economic uncertainty in the next one to three years. We have seen record growth/investment over the last few years and debt limits starting to reach pre-recession levels. Most people in the industry are starting to feel a pullback. The majority of the investors I speak to feel a pullback is needed to bring pricing within limits to deploy capital. This economic uncertainty should provide an opportunity for investment. 

What are the trickiest aspects of being a medium-sized company?

Rath: Rath Equity was created to be a boutique investor-friendly brokerage and built to be able to adapt and pivot as the market dictates. The trickiest aspects are identifying and using the best processes/technology we can to provide the best services to our clients. Silicon Valley has been trying to disrupt the real estate industry over the last decade, so every day there is a new shiny program that is the savior for brokerages. I’ve spent time chasing these programs. However, the only way to guarantee success is to pull up your sleeves and put in the time/effort over the long term. 

How does technology fit into Rath Equity’s operations and services?

Rath: We must find creative ways to stay a step or two ahead of the national firms. In my opinion, the only way to do this is taking advantage of technology and be fast. We’ve used creative tech to market listings directly to the prospects—Google AdWords, 3D tours etc. We also use top-of-the-line industry management software to provide fast, accurate and clean reports. Using these have been advantages that increased the ROI for both the client and the brokerage.

What was the most unexpected thing about the business in 2018?

Rath: The most unexpected thing about Rath Equity in 2018 was the amount of growth we had in the year. 2018 was the first full year in business after we got through the red tape/start-up phase and started working on our growth. We grew tremendously in both sales, management and leasing. We have a network of clients throughout the country and when they understood our model, they wanted to work with us. 

What are the company’s goals for 2019?

Rath: The main goals for 2019 are to improve on processes and procedures to best support our clients. The recent growth has been great, but our goal is to always strive to see how we can be better and improve to best meet their needs. We would not be in business if we were not the best option for the client. Therefore, being a smaller brokerage, we have to be in front of the technology curve.  

Are you looking to expand to new markets?

Rath: Our current markets in Cincinnati and Columbus, Ohio, keep us very busy. Therefore, I don’t see a benefit to try and break into a new market without having a critical mass. We will see what 2020 brings.

How do you see the market evolving in the year ahead?

Rath: We all wish we had our crystal ball to see what the future holds in commercial real estate. The future holds many variables that we can all speculate on—more construction, tenant improvement, land, steel cost that will factor decisions for growth and relocation. My investors and I are looking at opportunities much harder to make sure the deal makes sense, whereas before we might have taken bigger risks. We passed on a few deals anticipating we are at a peak and we will see a pullback. 

In my opinion, I see older, well-located buildings being redeveloped into new, trendy opportunities. In the last few months, a majority of the tenants have been wanting to be in this trendy environment. The issue people are running into with these redevelopments is parking. In the past, office buildings’ square-feet-per-employee ratio was approximately 250. Now, we are seeing 150-200 square feet to one employee. Past buildings were not built to handle these parking ratios and owners need to get creative.  For the buildings with tighter parking ratios that we manage, we have discussed adding parking decks at a cost of approximately $15,000 per space. This will be a significant investment to add a few spaces, so we are looking at alternative ideas to meet these needs.             

Image courtesy of Rath Equity

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30339 Diamond Parkway

Plymouth Industrial REIT has acquired a 400,000-square foot, Class A industrial building in Cleveland for $27 million in cash. The property was 100 percent leased to four tenants at the time of sale, including Royal Appliance Manufacturing Co. and Ryder Logistics. The buyer, which recently expanded its Chicago-area portfolio with two manufacturing facilities, has signed an agreement to buy another industrial property totaling 1.1 million square feet in Cincinnati. 

Located at 30339 Diamond Parkway, the asset is in Cleveland’s Southeast submarket. Completed in 2007, the cross-docked building features two drive-ins and drive-thru access. Additionally, the property includes 15,801 square feet of office space. Interstates 480 and 271 provide easy access to neighboring cities and Cleveland Hopkins International Airport is within 25 miles.

The Cincinnati acquisition, which is expected to close later this month with a $24.8 million sales price, is set to be funded with the issuance of approximately $10.8 million in operating partnership units and the assumption of roughly $14 million of existing mortgage debt. The property is currently 92 percent leased to 12 tenants and spreads across 103 acres.

“Cleveland and Cincinnati are attractive markets for us. … In addition to the stabilized income from strong current occupancy, the acquisitions offer opportunities to leverage our leasing expertise on future renewals in tight markets, significantly diversify our tenant base and secure future development potential,” Pendleton White, president & chief investment officer of Plymouth Industrial REIT, said in prepared remarks.

Image via Google Maps

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Bill Dandy, chief operating officer, and Bruce Quisno, vice president, CR architecture + design

CR architecture + design has appointed Bruce Quisno vice president of retail market, while Bill Dandy will serve as chief operating officer. Quisno will be part of the company’s corporate team in Cincinnati and will report to Dandy.

Quisno brings to his new role an extensive client-side experience and industry leadership. Prior to joining CR architecture + design, he worked for Macy’s for 20 years. His most recent position there was vice president of construction, managing the company’s corporate portfolio of architecture and construction projects. A graduate of the University of Cincinnati, Quisno is a registered architect and an active member of both International Council of Shopping Centers and American Institute of Architects.

Bill Dandy joined CR as chief growth officer in May. In his new position as chief operating officer, he will have the additional responsibility of running the company’s operations. Dandy has over 25 years of experience in senior management and C-level marketing and operations. Before joining the company, he served as chief client officer for a privately-held technology and marketing consulting firm.

Images courtesy of CR architecture + design

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Liberty Center

After being selected to lease and manage the 236,229-square-foot Center Point Business Park in Tampa, Fla., JLL has been tapped by the owners of Liberty Center to handle retail leasing and property management services for the mixed-use asset in Liberty Township, Ohio. 

Located at 7100 Foundry Row, the property offers more than 1.3 million square feet of space. This includes 77,000 square feet of office, a 130-key AC Hotel by Marriott and 240 residential units. Liberty Center is home to nearly 100 shopping, entertainment and dining options, some that are unique to the Ohio area. Attractions include a 16-screen Cinebistro movie theater, an iFly Indoor Skydiving set to open in 2019, Funny Bone Comedy Club Restaurant and Cincinnati Children’s Discovery Center. The property will also be home to the MidPointe Library System’s full-service branch that will be on the second floor of Liberty Center’s enclosed mall space called The Foundry. Some featured restaurants include Brio Tuscan Grill, Cheesecake Factory, Kona Grill, Cantina Laredo, Cooper’s Hawk and more. 

JLL’s Regional Director Janine Christian will oversee the retail property management for the asset, while Vice Presidents Kevin Thobe, Giorgio Karras and Chad Macy will oversee the retail leasing.

“The Liberty Center is a great addition to the JLL management portfolio—it’s a prime example of the way retail is migrating to a live/work/play hub that offers the local community a center for gathering and entertainment,” Christian told Commercial Property Executive. “We expect entertainment and destination experiences like Cincinnati Children’s Discovery Center and the MidPointe Library at the Foundry, opening in 2019, to continue to bring in shoppers and make the center a valuable part of the local community.”

Image courtesy of JLL 

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Rendering of Design Within Reach’s build-to-suit facility in Clermont County, Ohio

Newmark Knight Frank has once again teamed up with longtime client Design Within Reach to help it find a new home in the Cincinnati area, after the company outgrew two warehouses in Hebron, Ky. This time, NKF secured a long-term lease in a new build-to-suit facility, which is being developed by Duke Realty.

The 617,760-square-foot distribution center—the first to be built in the new 242-acre South Afton Industrial Park in Clermont County, Ohio—will be used by DWR for e-commerce and omni-channel fulfillment across North America, once it is completed early next year. Headquartered in Stamford, Conn., DWR is a furniture and home accessories company that sells to residential and commercial customers.

The property is close to four major interstates—I-75, I-71, I-275 and I-77. It will replace two existing warehouses in Hebron, Ky. As part of the project, NKF also restructured the two Hebron leases to coincide with the delivery of the BTS facility. Last year, NKF had secured the second Hebron warehouse for DWR to alleviate its growing pains on a short-term basis, while arranging the South Afton space as a long-term solution.

“This facility gives us the ability to service our existing demand as well as accommodate our future expansion plans,” DWR President John McPhee said in a prepared statement.

The NKF team consisted of Executive Managing Director Geoffrey Kasselman; Executive Vice President & Managing Director James Ritman; Executive Managing Director Si Pitstick; Senior Managing Director Josh Young; Senior Managing Director Tim Brogan and Senior Managing Director Steve Bonge.

Aerial view of South Afton Industrial Park in Clermont County

NKF also provided labor analytics and incentives guidance and arranged for architecture firm Ware Malcomb to design the exterior ground-up construction and interior improvements of the new state-of-the-art facility slated for completion in early 2019. Planned for 46 acres in the industrial park, the distribution center will have LED lighting through the warehouse, office and exterior; extra roof structural support to house a future solar energy system; pre-installed conduit for several electric vehicle charging stations; as well as provisions for a second primary power service from a different substation.

Negotiations by NKF included an accelerated delivery with a compressed construction schedule and allowance for a 112,320-square-foot expansion. The cross-dock facility will have 36-foot clear height and support as many as 443 auto parking spaces and 138 trailer storage stalls.   

“We’re thrilled to have found and helped craft the optimal distribution and fulfillment solution for Design Within Reach that meets all of its dynamic specifications,” Kassselman said in a prepared statement. “DWR’s need for such e-commerce space is a true testament to the growth of the company, and we’re happy to partner with them yet again to structure a significant state-of-the-art omni-channel distribution center to support its current needs, help drive further growth and ultimately, to propel the brand forward.”

NKF and DWR have worked together for several years. Ritman represented DWT when it moved its headquarters from San Francisco to Stamford in 2010, and actively represents DWR on its retail locations around the U.S.

DWR plans to employ about 75 full-time workers at the distribution center.

Economic boost for region

Clermont County hopes that’s just the beginning. The Clermont County CIC, the county’s economic development entity, bought the land on State Road 32 in Williamsburg Township, Ohio, in 2016 to develop a business-ready site attractive to manufacturing and distribution companies. The CIC invested $2.5 million to get the site ready. Between 2016 and 2017, the CIC added 2,000 linear feet of road, water main and sanitary sewers, storm water infrastructure, a natural gas line and conduit for electric, telecom and fiber, according to a county news release.

“When commissioners made the decision to purchase the South Afton property and invest in the structure, we knew that over time our commitment would pay off,” Commissioner Ed Humphrey, president of the Board of County Commissioners, said in prepared remarks. “We believe that as more businesses locate to South Afton that it will be the home of hundreds of jobs, and be a spur to development in the eastern half of Clermont County.”

 An economic impact study by the Economics Center of the University of Cincinnati estimated South Afton would eventually create more than 1,800 direct jobs and more than 1,600 indirect jobs.

Due to a lack of quality industrial buildings for sale in the Greater Cincinnati region, there is strong demand for industrial sites, according to CBRE, which brokered the sale of a 153,000-square-foot industrial property at 4440 Creek Road in Blue Ash, Ohio, in June.

Images courtesy of Newmark Knight Frank

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Design Within Reach’s Williamsburg Township facility

Duke Realty Corp. has signed Design Within Reach to a long-term lease for a 617,760-square-foot build-to-suit, omni-channel distribution facility in Williamsburg Township, Ohio. The facility is projected to be completed in early 2019.

“[Design Within Reach] liked this because a large portion of their business goes to the East Coast so transportation works well,” Dan Colletto, Duke Realty’s vice president leasing and development, told Commercial Property Executive. “This is a state-of-the-art facility that will serve as its only omni-channel fulfillment center in the country.”

Top-of-the-line attributes

Dan Colletto, vice president of leasing and development, Duke Realty Corp.

According to Colletto, the property is designed to integrate modern features to enhance storage, distribution and fulfillment capabilities and will provide tremendous access to several major highways. Design Within Reach’s new cross-dock facility will boast 36-foot clear height and will be able to support up to 443 auto parking spaces and an additional 138 trailer storage stalls. The upcoming property can also be expanded by as much as 112,320 square feet.

The development will be situated on 46.8 acres in the South Afton Industrial Park, a 242-acre, shovel-ready campus started by the Clermont County Community Improvement Corp. in an effort to bring $1.5 billion in economic activity and create in excess of 1,800 jobs. Located just off Half Acre Road at S.R. 32, the property is just a short drive of four major interstates, including I-75, I-71, I-275 and I-77.

Design Within Reach has two other leases in buildings owned by Duke Realty in Northern Kentucky. “They have been our customer for more than 10 years,” Colletto said. “Our strategy is to grow our existing customer base. First and foremost, we always want them to expand.”

The company’s strategy is also centered around owning modern Class A bulk distribution buildings that work now and for the long term.

Earlier this year, Duke Realty—which owns, manages or builds approximately 10 million square feet of industrial space—started development of a 1.4 million-square-foot distribution center in Bloomingdale, Ga., for Floor & Décor within the 250-acre Morgan Business Center. In December, the company acquired the Bayport Distribution Center II, a two-building industrial warehouse project in Houston’s suburb of Pasadena.

Images courtesy of Duke Realty Corp.

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Daniel Cooper, head of North America for 90 North Real Estate Partners

KAMCO Investment Co., a leading investment firm and one of the largest asset managers in Kuwait, has expanded its holdings in the U.S. with its acquisition of the 302,000-square-foot Cincinnati Children’s Hospital Operations Center for $75.3 million. The investment was made in collaboration with the Chicago office of 90 North, a London-based investment advisory firm that has participated in other U.S. acquisitions with KAMCO, either as a buyer or strategic adviser.

The two-building property in Cincinnati’s Midtown submarket comprises Vernon Manor, a 156,000-square-foot office tower; Vernon Place, a 146,000-square-foot office tower; and two parking lots totaling 1,529 parking spaces. The Class A office complex is fully leased by the children’s hospital through 2032, with extension options for two five-year terms.

“This acquisition further represents measures taken by KAMCO towards expanding its portfolio globally through diversified real estate assets,” Khaled Fouad, chief investment officer of KAMCO, said in a prepared statement. “We are committed towards scaling up our real estate platform.”

Strategic buy

The acquisition is a continuation of 90 North’s strategy to invest in high-end properties in secondary U.S. markets that are considered low-risk, high-return investments.

“Children’s Hospital in Cincinnati is renowned in the state, across the country and throughout the world,” Daniel Cooper, head of North America for 90 North Real Estate Partners, said in a prepared statement. “Their commitment to the areas, and to establishing this property as their operations center, makes this a unique and well-timed investment.”

Cincinnati Children’s Hospital Operations Center

The buildings, which include a full-service café, rooftop lounge and outdoor garden, will be used as the operations center for nearly 1,600 hospital employees in the administration, accounting, IT and legal departments. One floor will be used as a poison control center for local companies like Procter & Gamble.

Vernon Manor, the original seven-story building, was developed in 1924 as a luxury hotel visited by well-known entertainers and politicians, including The Beatles, Bob Dylan and Presidents John F. Kennedy and Lyndon B. Johnson. Vernon Place is a newly constructed four-story building above a new 781-space parking garage.

The disposition was listed as the top sales transaction in the city for the second quarter in Cushman & Wakefield’s Marketbeat Cincinnati Office Q2 2018 report. The $75.3 million sale worked out to be $249 per square foot, well above the second biggest sale—the 262,477-square-foot Governors Hill office portfolio in the Mason submarket, which was sold by New York Life Insurance Co. for $17 million or $65 per square foot.

Cooper said Cincinnati has been one of 90 North’s target U.S. markets because of its business-friendly environment. Home to 10 Fortune 500 headquarters including Procter & Gamble, Fifth Third Bank and Kroger, the city also has a well-educated labor force due to its proximity to universities such as the University of Cincinnati, Xavier University and Miami University. More than 590 bio-health firms are located in southwestern Ohio.

Other Ohio, U.S. Deals

In November 2016, 90 North and KAMCO paid $107 million to acquire General Electric @ The Banks, the 338,000-square-foot office tower that serves as GE’s Global Operations Center, from Carter, the developer of the master-planned The Banks. KAMCO is the majority stakeholder, with 90 North as the minority owner.

One year ago, KAMCO and 90 North acquired a newly developed 215,000-square-foot Class A corporate office headquarters at 2900 Easton Square Place in Easton, Ohio, a Columbus suburb. The property is leased to a Fortune 500 tenant on a triple net lease basis for 15 years, with three additional seven-year terms.

“These Ohio acquisitions fully embrace a shared investment philosophy of acquiring newly developed and/or newly repositioned Class A office properties that are 100 percent leased on a long-term basis to trophy-credit tenants,” Cooper said.

90 North has been active in other parts of the U.S., including in Raleigh, N.C., where the firm sold the three-building Lenovo Enterprise Campus, for $135.3 million in February. A partnership led by 90 North and including Dubai-based Arzan Wealth had paid $127 million for the property three years earlier in February 2015.

Images courtesy of 90 North

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Wilson Investment Cincinnati asset

Wilson Investment Properties has acquired a five-property industrial portfolio in the Cincinnati metro area using financing obtained from a number of individual investors. The assets span a total of 100,656 square feet. According to the buyer, the properties were bought at a 9 percent cap rate, 150 basis points over the market’s median cap rate of 7.5 percent.

The properties are located 8 miles from downtown Cincinnati and 3 miles from Cincinnati/Northern Kentucky International Airport, where Amazon bought 210 acres to build its $1.5 billion CVG cargo hub. They boast full occupancy, the tenants being part of the local market.

“These offerings allow our investors, many of whom are in the technology field, to diversify their investments outside of stocks and Wall Street,” said Tom Wilson, principal of Wilson Investment Properties, in a prepared statement. “Many of our clients love that they can invest in an institutional-grade product for as little as $50,000 by utilizing the expertise of an experienced syndicator.”

Image courtesy of Wilson Investment Properties

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4440 Creek Road

CBRE has brokered the sale of a 153,000-square-foot industrial asset in Blue Ash, Ohio. Parker Hannifin sold the manufacturing facility to Graphic Village, a print marketing solutions provider. The new owner plans to transform the vacant building into the company’s new headquarters. Previously, Parker Hannifin’s United Air Specialists used the property.

Located at 4440 Creek Road, in the northeastern part of Cincinnati, the asset is in close proximity to interstates 275, 71 and 75, and U.S. Route 42. The campus-like property provides clear heights, heavy power and features an open warehouse design and excess acreage.

CBRE Senior Vice Presidents Tim Schenke and Doug Whitten, along with Associate Brad Root, represented the owner in the transaction. According to Schenke, due to the lack of quality industrial buildings for sale, there is strong demand from growing, entrepreneurial companies that want to own real estate in the Cincinnati market.

“It’s a great time to be an owner of a well-located and functional industrial asset. There is an insatiable demand for this type of product,” explained Schenke, in a prepared statement.

Image via Google Maps

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Following an underperforming 2017, Ohio’s office market is set to recover this year, with 20 projects totaling roughly 1.8 million square feet of space scheduled for completion by year’s end, Yardi Matrix data shows. That is a whopping 106% increase from last year. The bulk of development activity is concentrated in Columbus, where completions are expected to reach 1.2 million square feet this year.

With only one building completed in the past two years, Cleveland is expected to bounce back. The market is set to add seven new office properties to its inventory in 2018. In Cincinnati, however, office deliveries have decreased in recent years. While 1.2 million square feet of office space was delivered in 2016, just a little more than 135,000 square feet is projected for to come online this year.

10. Hyland Software Headquarters – Expansion

Office development activity in Westlake, Ohio, is picking up. As we reported in March, Infinity Construction teamed up with architecture firm Vocon to develop a 100,000-square-foot office campus. In addition, Hyland Software is expanding its headquarters. The 70,000-square-foot expansion will almost double the building’s current footprint of 73,000 square feet. Located at 28500 Clemens Road, the development is scheduled for completion this month. The property will be situated roughly one mile from Interstate 90 and within walking distance of multiple public transportation options. The new office building will offer convenient access to various restaurants and hotels, including White Oaks Restaurant, TGI Fridays and Doubletree by Hilton.

9. Rumpke Headquarters

In Cincinnati, Rumpke, a waste hauling, recycling and landfill operations company, is working on a new, 74,000-square-foot headquarters at the intersection of Colerain Avenue and Struble Road. The property is subject to a 40-year unsubordinated net ground lease held by the Port of Greater Cincinnati Development Authority. The three-story building is slated for completion by the end of September. The company plans to relocate about 200 employees from its current location. The new office will be situated roughly one mile from Interstate 275 and next to Center Plaza Shopping Center.

8. Signature Square III

The third phase of the Signature Square office campus in Beachwood is set to add 78,000 square feet to the 245,000-square-foot property. Developed by Goldberg Cos., the upcoming building is expected to be completed this month and to feature 340 parking spaces. Situated on about six acres at the northwest corner of Chagrin Boulevard and Richmond Road, the four-story property will offer easy access to bus stations, Interstate 271, as well as multiple shopping options, including Pavilion Shopping Center and Village Square. The other two buildings in the Signature Square campus are owned by Forest City Realty Trust, while Goldberg Cos. will handle all property management and leasing duties.

7. 711 North High Street

The Wood Cos. and Schiff Capital Group are currently developing the 99,187-square-foot office building located at 711 N. High St., near Goodale Park and Interstate 670, with the help of a $30 million construction loan from Peoples Bank. The development, slated for completion this October, will include 8,500 square feet of retail space, 40 percent of which will be on the rooftop. The upcoming property will be situated in the vicinity of Hub Garage and Pizzuti Garage, which feature roughly 250 parking spaces, while the attached garage will have about 80 spaces. Additionally, the joint venture also plans two adjacent garage facilities that are expected to offer up to 250 parking spaces.

6. 555 West Nationwide Boulevard

Connect Realty and Schiff Capital Group’s 108,500-square-foot property in Columbus is expected to come online in October. The developers will transform the existing plant at 555 W. Nationwide Blvd. into a five-story office building. The project is part of the city’s plan to redevelop three facilities located at the western end of the boulevard. 555 West Nationwide Blvd. is located about one mile from Interstate 670, less than three miles from Interstate 71 and roughly four miles from Interstate 70. Additionally, the building will offer convenient access to the John Glenn Columbus International Airport.

5. The Offices at Pinecrest (Buildings 1 and 2)

The Offices at Pinecrest (Image courtesy of Fairmount Properties)

Fairmount Properties is currently working on the two buildings at The Offices at Pinecrest in Orange, located at the northeast corner of Harvard Road and Interstate 271. The property is part of the Pinecrest project that will include a 160-key hotel, 90 residential units and more than 400,000 square feet of dining and retail space. The developer secured a $49 million construction loan last April and selected JLL to be responsible for leasing the upcoming buildings. The Offices at Pinecrest are designed to include roughly 1,000 parking spaces, according to JLL.

4. 80 on the Commons

The upcoming 390,000-square-foot building is developed by The Daimler Group to feature roughly 174,000 square feet of office space, 21,000 square feet of retail space and 195,000 square feet of residential space. Located at 80 E. Rich St. in Columbus, the 12-story property will offer easy access to various public transportation and dining options, such as Little Palace Restaurant and Plaza Restaurant and Lounge. Additionally, 80 on the Commons will be situated near Capitol Square and the Ohio Theatre, as well as less than two miles from interstates 70, 71 and 670.

3. The Pamela Morris Center

The Pamela Morris Center (Image courtesy of CareSourse)

CareSourse plans to open its seven-story, 250,000 building in Dayton next April. The mid-rise is located at the southeast corner of North Jefferson and East First streets, on the site of the former Petterson Co-op High School. The nonprofit already owns two other office buildings in Dayton, the 150,000-square-foot at 220 E. Monument Ave., delivered in 2002, and the 325,000-square-foot at 230 N. Main St., completed in 2008. CareSourse selected Danis to develop the new property, which is expected to house about 800 workers.

2. OhioHealth – Office Campus

OhioHealth – Office Campus (Image courtesy of OhioHealth)

With three office buildings in the state, two of which are located in Dublin and one in Delaware, the healthcare not-for-profit company broke ground on a new, 270,000-square-foot campus in Columbus. The garden-style four- and five-story development, scheduled for completion by the end of the year, will be situated on at the southeast corner of West North Broadway and Olentangy River Road. The building is expected to include a 1,350-space garage, connected to the main building by an elevated and covered walkway.

1. Hamilton Quarter – Big Lots Headquarters

The Daimler Group currently has three projects under construction in the state, two of which are on this list, including the largest office development in Ohio. Located on 25 acres at 4976 E. Dublin Granville Road in Columbus, the 300,000-square-foot property is designed to meet LEED standards. The upcoming Big Lots headquarters is expected to feature more than 1,000 parking spaces and to house roughly 800 employees. Daimler plans to deliver the three-story building this July. The property will be situated roughly five miles from Interstate 270 and approximately 10 miles from John Glenn Columbus International Airport.

Data sourced from Yardi Matrix consists of office completions of over 25,000 square feet in the following markets: Cincinnati, Cleveland-Akron, Columbus, Dayton, Toledo and Youngstown. 

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Hilton Garden Inn Cincinnati Northeast, Loveland, Ohio

MCR has purchased and will manage the Hilton Garden Inn Cincinnati Northeast, located in Loveland, Ohio.

Situated at 6288 Tri Ridge Blvd., at the center of the Northeast Cincinnati Business corridor, the 88-key hotel offers guestrooms with Garden Sleep System beds and ergonomic workstations, a fully equipped fitness center, a 24-hour business center, an indoor pool, a 24-hour convenience store, free Wi-Fi, two meeting rooms that can host up to 80 people, the Garden Grille and Bar and a Pavilion Lounge cocktail bar. The property is 20 miles from downtown and is within close proximity to the Loveland Bike Trail, Oasis Golf and Conference Center, an 18-hole course and wedding venue; as well as Kings Island, the largest amusement and water park in the Midwest.

“We are pleased to make this investment in suburban Cincinnati, where MCR has successfully invested in the past,” said MCR’s CEO & Managing Partner Tyler Morse, in a prepared statement. “This property is poised to benefit from Greater Cincinnati’s growing economy and is another example of our ability to identify and acquire an undervalued asset with significant return potential.”

Image courtesy of MCR

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The Summit, A Dolce Hotel by Wyndham at 5345 Medpace Way, Cincinnati

Wyndham Hotel Group has opened The Summit, A Dolce Hotel by Wyndham, a 239-key property in Cincinnati. Hirsch Bedner Associates designed the hotel.

Located at 5345 Medpace Way, less than 10 miles from downtown Cincinnati, The Summit was constructed on the former site of the NuTone door chime factory. The property anchors the $124 million mixed-use project on the Medpace campus. A mix of dining, shopping and entertainment venues such as Cincinnati Observatory Center, Cincinnati Zoo and Botanical Garden and the Great American Ball Park are in close proximity, and the Cincinnati/Northern Kentucky International Airport is approximately 23 miles away.

Common area amenities include a state-of-the-art fitness center, social library and free Wi-Fi. Other features include 32,600 square feet of indoor/outdoor event space, 19 indoor meeting rooms, a ballroom for up to 320 people and a rooftop garden for 350 people.

“The Summit is a nod to local Cincinnati culture and cuisine with the inspired Dolce twist, amplified by creative spaces and collaborative moments the brand is known for,” Richard Maxfield, vice president operations of Dolce Hotels and Resorts by Wyndham, said in prepared remarks.

Image via Google Maps

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Doug Whitten, Tim Schenke and Jeremy Kraus

CBRE has promoted three of its industrial brokers to the role of Senior Vice President. Jeremy Kraus, Tim Schenke and Doug Whitten have worked together as members of CBRE’s industrial services provider team in the Greater Cincinnati/Northern Kentucky area since 2015, along with Senior VP Mike Lowe.

The team’s 730 transactions include 59 million square feet valued at more than $1.3 billion.

All three brokers are licensed real estate professionals both in Kentucky and in Ohio. Kraus joined CBRE in 2015, having previously worked with IDI Gazeley from 2013, following his departure from a similar role he held for almost ten years with Duke Realty.

Whitten and Schenke started with the company as associates in 2004 and 2005 and were last promoted in November 2015, to first vice presidents.

Images courtesy of CBRE

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Cincinnati skyline

Skanska, in a joint venture with Megen Construction, signed a contract with the Winton Woods City School District and the Ohio Facilities Construction Commission to manage a multi-building construction project in Cincinnati. The contract is worth $93 million and Skanska will include its 70 percent share of the contract, worth $65 million, in the U.S. order bookings for the fourth quarter of 2017.

The development includes two new replacement schools, a 204,000-square-foot elementary school and a 236,000-square-foot middle and high school. Both projects will seek a minimum of LEED Silver certification. Construction is scheduled to begin in January 2019 and is slated for completion in January 2021.

Skanska specialized in building construction, civil infrastructure and developing commercial properties in select U.S. markets. The company had sales of $7 billion in 2016 and had 9,300 employees in its operations. Recently, Skanska entered into a partnership with Meridian Group and Rockefeller Group to develop a new office and theater in Tysons Corner, Va. 

Image courtesy of Wikimedia Commons

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The AC Hotel at the Banks in Cincinnati

Developed by Eagle Realty Group on behalf of its parent company, Western & Southern Financial Group, and its development and operating partner Winegardner & Hammons Hotel Group, the 171-key AC Hotel Cincinnati at the Banks officially opened.

The European-style hotel is part of The Banks development, an office, retail and residential tower that serves as home to the Cincinnati Reds, the Cincinnati Bengals, the National Underground Railroad Freedom Center and GE’s Global Operations Headquarters. Last year, 90 North Real Estate Partners and Kamco Investment Co. acquired the mixed-use property for $107 million.

Located at 135 Joe Nuxhall Way, along the Ohio Riverfront in the heart of The Banks Entertainment District, the hotel is within 10 minutes of the National Underground Railroad Freedom Center and the John Roebling Suspension Bridge. The property features a rooftop bar, complimentary Wi-Fi and a fitness center. Three meeting spaces are also available, including two audiovisual-equipped media salons for up to eight people and an 888-square-foot meeting room.

“The European inspiration of the design and the beverage and food is unlike any other hotel in the downtown market and has already been well received,” said Eagle Realty Group Senior Vice President Tom Stapleton, in prepared remarks.  

Image courtesy of Eagle Realty Group

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A rendering of Becknell’s planned facility in Fairfield, Ohio

Becknell Industrial purchased a 14-acre industrial site in the center of northern Cincinnati’s manufacturing and distribution hub. CBRE assisted with the acquisition of the lot in Fairfield, Ohio, where Becknell intends to develop a 176,800-square-foot speculative industrial building. The project is slated for completion at the beginning of next year. 

Located on Commerce Center Drive, off Seward Road in Butler County, the facility will be accessible from interstates 75 and 275. The Fairfield Commerce Center is zoned M-2 (general industrial), which allows for a variety of building uses. Designed to accommodate multiple tenants, Becknell’s facility will include several sustainability features to reduce operating costs. The proposed building will feature:

• 32-foot clear height
• 18 docks with complete dock packages
• two drive-in doors
• ESFR sprinkler system
• 136 parking spaces
• LED motion sensor lighting

“Becknell is excited to further expand our presence in the Cincinnati market and to continue to build upon the success that we’ve experienced at our Port Union development project,” said Katrina Cupp, assistant vice president of investments at Becknell Industrial, in prepared remarks. Cincinnati’s industrial campus Port Union Commerce Park is currently fully leased. 

Convenient location

The spec building will be within 600 miles of more than 60 percent of all U.S. manufacturing. The Cincinnati/ Northern Kentucky International Airport is approximately 42 miles away. According to CBRE, Cincinnati is the fifth largest inland port in the country, handling 220 million tons of cargo each year. The metro’s industrial market includes more than 282 million square feet. Net absorption for the first quarter of this year was three million square feet of industrial space.

“This building will offer existing and new-to-market tenants the opportunity to operate in a modern, efficient facility. The features in the building will help tenants lower operational costs while also helping to retain and recruit talent in this competitive labor landscape,” said CBRE First Vice President Jeremy Kraus.

Image courtesy of CBRE

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Home2 Suites by Hilton Florence Cincinnati Airport South

Home2 Suites by Hilton opened its newest property, Home2 Suites by Hilton Florence Cincinnati Airport South. The 109-key hotel will be managed by Vista Host Inc. Eliot Cohen and Stuart Cohen own the asset. 

Located at 7570 Woodspoint Drive, Home2 Suites by Hilton Florence Cincinnati Airport South provides convenient access to Cincinnati’s downtown area, Kentucky Speedway, Creation Museum and Newport Aquarium. In addition, Cincinnati/Northern Kentucky International Airport, Regal Movie Theatre and Florence Mall are just minutes away. The new hotel features all-suite accommodations with fully equipped kitchens and modular furniture. Amenities include complimentary Wi-Fi, fitness area, indoor saline pool, fire pit and grill area.

Home2 Suites by Hilton Florence Cincinnati Airport South is pet-friendly.

Image courtesy of Home2 Suites by Hilton Florence Cincinnati Airport South

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Amazon unveiled plans to open its fourth Ohio fulfillment center in Monroe. Most recently, the company announced the construction of a new facility in North Randall, and is currently operating in Etna and Obetz.

Developed by IDI Gazeley, the upcoming development in Monroe will create more than 1,000 full-time jobs. Employees at the 1 million-square-foot facility will pick, pack and ship larger customer items such as sports equipment, gardening tools and pet food.

“We are excited to continue growing in Ohio, adding 1,000 new jobs to the more than 6,000 Amazonians already working in the state,” said Sanjay Shah, vice president of North America customer fulfillment for Amazon, in prepared remarks. “The support of local leaders and incredible workforce has been instrumental in our decision to locate the new fulfillment center in the state, and we are grateful for the support we’ve received to bring new jobs and investment to Ohio.”

Last week, Amazon unveiled plans for its first fulfillment center in Staten Island, N.Y. The facility will bring 2,250 full-time job opportunities for employees to work with advanced robotics. 

Image courtesy of Amazon.com Inc. 

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Rendering of Building 1 in Erlanger, Ky.

A joint venture between Hillwood—a Perot company—and Al. Neyer is developing Erlanger Commerce Center, a state-of-the-art distribution center in Erlanger, Ky. The two speculative buildings will total more than 1.7 million square feet, and will be located at the intersection of interstates 75 and 275.

“Erlanger Commerce Center’s location offers convenient interstate access and is in close proximity to the core of Cincinnati, providing access to a larger and more diverse labor pool,” Kurt Nelson, senior vice president and market leader at Hillwood, told Commercial Property Executive. “We view the market as having strong industrial development potential, as demand continues to grow and the employers we serve continue to seek locations near strong labor population centers such as Cincinnati.”

 The joint venture acquired the property late last month and Al. Neyer, as the project’s architect and construction manager, has already started making improvements to the site in preparation for development.

The construction of Building 1, which is planned to total 779,922 square feet, will start in 2018. Features will include 36-foot clear height, an ESFR sprinkler system and cross-dock configuration. It will offer 159 trailer storage spaces and 350 spaces for auto parking.

Prime Location

“We strive to provide our clients with premier locations that can accommodate different building sizes and options in each of the markets we serve,” Nelson said. “Erlanger Commerce Center is a prime example of that strategy. The substantial square footage matched with its location and quality features and finishes will make this a competitive property.”

The property is located just a few miles from the Cincinnati/Northern Kentucky International Airport and is among one of the most robust interstate highway systems with convenient access to I-71, I-75 and I-275.

“This site has direct visibility and access to a major transportation corridor, at the intersection of I-75 and I-275,” Nelson said. “Its proximity to the Cincinnati metro area is ideal for any manufacturing or logistics tenant that is looking for an available and diverse labor pool.” 

Last year, Hillwood started construction on a 992,640-square-foot Chicago-area distribution center and has developed four other properties totaling nearly 1.3 million square feet over the last two years in the Southeast market.

“Right now, vacancies are low. According to CBRE, the vacancy rate for Class A bulk buildings in the Cincinnati market is 2.9 percent,” Nelson said. “More importantly, large sites are incredibly scarce in this market, especially if you want to be close to the Cincinnati/Northern Kentucky International Airport.”

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Travis Likes, first vice president at CBRE Cincinnati

Leaning on the power of businessmen, Cincinnati local officials managed to fuel the rebirth of a once unsafe area in the heart of the city. Over-the-Rhine is now a model for urban revitalization. CBRE’s Cincinnati research found that the neighborhood has become the crown jewel for the urban core, gaining national attention.        

Historically, Over-the-Rhine was a shelter for German-speaking immigrants in search of economic opportunity. During the second half of the 20th century, the neighborhood became a deserted area, with criminality at record levels and abandoned buildings almost everywhere. This state of decay even lured filmmakers to the area. Traffic, the 2000 box office hit which highlighted America’s illegal drug trade, was mainly filmed in Over-the-Rhine.

OTR’s evolution

In July 2003, a system that increased the effectiveness and efficiency of development activities in the city of Cincinnati was created. The Cincinnati Center City Development Corp. (3CDC), a tax-exempt, private, non-profit corporation, began to support the rebirth of the downtown area by revitalizing and connecting the Fountain Square District, the Central Business District and Over-the-Rhine.

Overseen by 3CDC, much of the revitalization has been funded by Cincinnati’s most financially influential businessmen. “3CDC is the reason OTR looks the way it does today. It would have been very difficult for a for-profit developer to take on this situation. The work 3CDC has done and continues to do has paved the way for private developers to come in and contribute to the area,” Travis Likes, first vice president at CBRE Cincinnati, told Commercial Property Executive.

The $48 million renovation and expansion of the Washington Park back in 2012 was a major turning point for the area, because it provided eight acres of green space and a gathering venue. 3CDC added a 450-space underground parking garage, which increased accessibility to the area. “While we’ve completed dozens of projects in OTR, it’s hard to pinpoint one that has had a more catalytic effect on revitalization efforts than Washington Park. The park’s renovation and expansion to eight acres of green space in the urban core led to millions of dollars of investment in the surrounding area,” said 3CDC Senior Communications Manager Joe Rudemiller.

Currently, one of Cincinnati’s landmark buildings—the 1878-built Music Hall—is undergoing a $143 million renovation, its first major revamp in more than four decades.

Office space demand

All the activity taking place in the district has helped spur development. According to CBRE, roughly 220,000 square feet of office space is under construction to fulfill demand. Here are some of the most important projects underway:

• • The Strietmann Center—The 88,000-square-foot Class A Office space, originally built by The Strietmann Biscuit Co. at the beginning of 1899, is currently undergoing restoration. The Grandin Properties is in charge with the multimillion dollar upgrade.
  • 15th and Vine—The 55,000-square foot project features 45,000 square feet of office space and 10,000 square feet of ground floor retail space. The new $19.5 million building is being developed by 3CDC.

• • Empower headquarters—Empower Media Marketing, one of the largest independent media agencies in the country, will be moving its Cincinnati headquarters to Over-the-Rhine this year. A 64,000-square-foot office building is being built by 3CDC. Roughly $17.5 million is being invested in the four-story project. Empower will occupy the building’s first three floors, bringing 150 employees to the neighborhood. The fourth floor is available for lease.

• Eleven40 Main and the Tower Building—Urban Sites is redeveloping two properties to add more than 23,000 square feet of office space along Main Street.

“Neither building has signed any office tenants yet, but there is clearly substantial interest. The branding, marketing and advertising groups are looking in the area, along with law firms opening smaller satellite offices. That trend will most likely continue as the office market defines itself in OTR. The spaces available are typically smaller in nature. You get the benefit of the historical vibe, but it’s not your traditional floorplate. The current stock of space helps compliment users gradually getting into the market,” Likes added. 

Class A office towers in Cincinnati CBD currently lease for $13 NNN, as compared to OTR, where Class A office space regularly leases for $22 to $24 NNN. Prices are likely to remain high, as the neighborhood’s renaissance is a work in progress. OTR is the epicenter for trendy restaurants and attractive urban residential options. The urban nature of the area has been able to attract and retain top talent for companies here. “It’s a very walkable community. Now there’s new storefronts, new life. Just the sheer number of people on the streets is amazing. It was a very quiet part of downtown, but now that has all changed,” Likes concluded.  

Images courtesy of 3CDC & CBRE

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The North Heights Plaza in Huber Heights, Ohio

Institutional Property Advisors, a division of Marcus & Millichap, sold North Heights Plaza, an 182,453-square-foot power center in Huber Heights, a suburb of Dayton, Ohio. IPA represented the seller in this transaction, a national real estate investment trust, but also procured the buyer, a private real estate investment fund. 

Located at 8280 Old Troy Pike, the asset is less than eight miles north of downtown Dayton and in between Dayton International Airport and Wright-Patterson Air Force Base. The Wright State University and the National Museum of the United States Air Force are also nearby. Built in 1990, North Heights Plaza has two anchor tenants that make up 44 percent of the center’s gross leasable space. Other national retail tenants include Five Below, Great Clips, Sally Beauty Supply, Verizon Wireless or Firehouse Subs.

Difficult sale   

Senior Directors Craig Fuller, Scott Wiles and Erin Patton worked on behalf of both the seller and the buyer in this deal. Anchored by Big Lots and Dick’s Sporting Goods, the retail center experienced problems following the loss of a major tenant—HHGregg. 

“The center was challenged by the loss of one of the anchor tenants, HHGregg, and another anchor, Dick’s Sporting Goods, was on a short-term lease. Nevertheless, we demonstrated the inherent strengths of the asset to the market and sourced a strong buyer,” said Fuller, in prepared remarks.

Image via Google Street View   

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SpringHill Suites in Cincinnati is now open for business. The 100-suite hotel will operate as a Marriott franchise and Keystone Hotel Group will manage the asset.

Located at 4650 Creek Road, the SpringHill Suites Cincinnati Blue Ash is 34 miles from Cincinnati/Northern Kentucky International Airport and 20 minutes from downtown Cincinnati. The hotel provides access to the Cincinnati Zoo, King’s Island Amusement Park, Great American Ballpark and Paul Brown Stadium.

“As a brand opening a new hotel every 10 days on average, we are delighted that the SpringHill Suites Cincinnati Blue Ash is the latest addition to our growing number of properties across the U.S. and Canada,” said SpringHill Suites Vice President & Global Brand Manager Callette Nielsen, in a prepared statement.

Extra space in suites

The new hotel features larger suites than a typical hotel room. To enhance flexibility, separate living, working and sleeping spaces have been arranged in each key. SpringHill Suites Cincinnati Blue Ash also features an outdoor patio with a fire pit, an indoor swimming pool and a fitness center.

Images courtesy of Marriott

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4680 Parkway Drive, Mason, Ohio

CBRE represented Keller Williams Pinnacle Group in the leasing transaction of 11,500 square feet of office space in Mason, Ohio. Chris Carey, associate with CBRE, represented the tenant. The 115 licensed real estate agents part of the KWPG team will move into the new space by the end of September.

A Dynamic Office Location

The decision to move out of its previous location at 6355 E. Kemper Road in Cincinnati came as a result of KWPG’s need for a larger space for its growing employee base. The new office space at 4680 Parkway Drive is double in size compared to what the company previously enjoyed. It is also part of a dynamic business area, home to several major companies such as Siemens and Pratt Industries.

“After touring many different options, Keller Williams Pinnacle Group decided Mason was the right fit for their employees and clients,” said Carey in prepared remarks. “In addition to being near a variety of amenities, this new office location will be minutes from major beltways such as interstates 71 and 275 and Mason Montgomery Road.”  

The Fields Ertel/Mason submarket has one of the lowest office vacancies among all Greater Cincinnati office markets.  

Image via Google Street View

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Tori Sunderman

Tori Sunderman has joined Cushman & Wakefield’s Cincinnati retail team as senior director. She will work with Senior Directors Andrew Sellet and Hank Davis and Senior Associate Terry Ohnmeis. Sunderman specializes in landlord representation, with a focus on urban retail in downtown Cincinnati.  

“From acquisitions to filling the build to selling the property, we now offer a complete line of retail services to our clients,” said Doug Bolton, Cushman & Wakefield managing principal for the Greater Cincinnati and Dayton offices, in a prepared statement.

Most recently, Sunderman was a senior associate in Cushman & Wakefield’s Cincinnati office. Prior to joining the firm, she served as a CBRE transaction manager and retail broker, as well as a leasing associate at Jeffrey R Anderson Real Estate Inc. She graduated from the University of Cincinnati.

Image courtesy of Cushman & Wakefield

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Port Union Commerce Park, Fairfield, Ohio

The most recent facilities part of Port Union Commerce Park in Fairfield, Ohio—Buildings 1 and 3—have found two new tenants: O’Gara-Hess & Eisenhardt Armoring Co., a manufacturer of armored vehicles, and ProFill Fulfillment, a supplier of licensed apparel. The two companies will occupy the remaining 235,000 square feet of industrial space and will close the tenant roster, which includes four other firms. CBRE’s First Vice President Doug Whitten and Senior Vice President Mike Lowe led the leasing efforts on behalf of the owner, Founders Properties LLC.

“The industrial market in the area is thriving and we are pleased that the space allows tenants to pursue growth opportunities, while bringing jobs and investment to the community,” said Kevan O’Connor, senior manager with developer Opus, in prepared remarks.

Part of Port Union Commerce Park since 2015, the two Opus developments expand the existent space with an additional 807,000 square feet. The buildings feature 60-foot deep trailer storage in the truck courts, ESFR sprinklers and T-5 fluorescent lighting.  

• Building 1 has 260,000 square feet and includes 28-foot clear heights, 40-foot by 44-foot structural bays, 25 dock doors and two drive-in doors;
• Building 3 offers 547,000 square feet of industrial space and includes 32-foot clear heights, 50-foot by 50-foot structural bays, 60 dock doors and four drive-in doors.

The facilities are situated on 46 acres near the intersection of State Route 747 and Port Union Road, an area which is also home to several retailers. The buildings also offer access to interstates 275 and 75.

Image courtesy of Opus

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6501 Centerville Business Parkway, Ohio

Premier Independent Quality Services (PIQS), a local Ohio health care agency, signed a new lease in Centerville, which is about 15 miles from its current office location in Dayton, Ohio.

The firm will move into 15,000 square feet of space at 6501 Centerville Business Parkway, which now boasts 100 percent occupancy. Chris Carey and Beau Nimer, associates with CBRE, represented the landlord in the transaction.

The facility at 6501 Centerville Business Parkway encompasses more than 50,000 square feet of office space. It is part of a larger business park, home to other tenants from the health-care and financial industries such as the Evergreen Veterinary Hospital, Parkway Dental and Ameriprise Financial. The business park is located close to Interstate 675, in a dense suburban area of Dayton.

Image via Google Street View

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10565 E. Kemper Road in Loveland, Ohio

The new retail strip center at the corner of Loveland Madeira and East Kemper roads in Loveland, Ohio, will welcome a new tenant, restaurant chain Chipotle Mexican Bar and Grill. Cincinnati Commercial Real Estate, an affiliate of NGKF, completed the lease of 2,250 square feet on behalf of the owner, L & K 9 LLC. Retail Specialist TC Bartoszek and Managing Director John Thompson led the leasing efforts.

L & K 9 LLC bought 10565 E. Kemper Road in 2016 for $750,000, according to property records available on PropertyShark. The retail center, encompassing a total of 9,827 rentable square feet, came online at the end of last year. The anchor tenant is Starbucks, with Sport Clips Haircuts joining the roster as well. With Chipotle on board, the retail center has an additional 1,200 square feet available. Other retailers in the area include CVS, Wallgreens, Burger King and Arby’s.

“Chipotle brings a highly desired food user to a neighborhood community that is part of the fast-developing northeastern corridor along I-275,” said Bartoszek in prepared remarks. At $91,000, the household income in the Loveland area is well above the national average, which speaks for the community’s buying power.

Image courtesy of JLL

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1208 Central Parkway in Cincinnati

CBRE Group Inc. announced that it represented Pro Football Focus in the leasing of 6,000 square feet in a 15,000-square-foot building in Cincinnati, purchased last year by Stuffed Realty LLC for redevelopment. CBRE’s First Vice President Travis Likes and Senior Vice Presidents Scott Yards and John Eckert represented the tenant in the transaction.

PFF has outgrown its current Over-the-Rhine location and will be moving to 1208 Central Parkway this summer after renovations to the space are complete. Stuffed Realty will be spending more than $800,000 to upgrade the building that includes on-site indoor and outdoor parking. An additional 7,000 square feet is still available to lease.

Located at 1208 Central Parkway, the property is one block away from Washington Park, less than 2 miles from the Cincinnati CBD and the Paul Brown Stadium is within a 6-minute drive. The building is also in close proximity to the Music Hall, Shakespeare in the Park, Memorial Hall, School for Creative and Performing Arts, Queen City Radio and The Transept.

Image via Google Street View 

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The Corners at the Mall Plaza in Dayton, Ohio

Dayton, Ohio—Eidi Properties recently acquired Corners at the Mall Plaza, a 152,000-square-foot retail shopping center in Dayton. Several units, ranging from 2,369 to 45,041 square feet, are currently available.

Located at 117 – 249 N. Springboro Pike, just off Interstate 75 and across from Dayton Mall, the retail center boasts a mix of regional and national tenants such as Aldi, Ollie’s Bargain Outlet, One Main Financial, Avenue, Aaron’s Rental and Sally Beauty Supply. Corners at the Mall is also near Taco Bell, Applebee’s, Fricker’s, Roosters, Dunkin’ Donuts, Baskin’ Robbins, Burger King, Waffle House and a Shell Gas Station.

The new owner has already slated renovations for May. The process will include new elevations, a fresh exterior, upgrading the parking lot and adding outside LED lighting. The project is expected to be completed by August 2017, with new tenants moving in while improvements are being made.

“In real estate, location is key and this property is in a very favorable spot located across from the area’s largest mall, just yards from I-75 and within a region with strong demographics,” said Eidi Properties’ CEO Ramy Eidi in a prepared statement.

The 1985-built property is located in Dayton’s premier retail district, with roughly 51,000 residents within a 3-mile radius. More than 60,000 vehicles per day pass along the Miamisburg Centerville Road and the North Springboro Pike.

Image courtesy of Eidi Properties

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John Thompson, managing director, NGKF

Forest Park, Ohio—Newmark Grubb Knight Frank’s (NGKF) Cincinnati Commercial Real Estate has been appointed as the exclusive broker in the sale of Forest Fair Village, a 1.9-million-square-foot shopping mall located in Forest Park.

“Our intention is to market this much further out than retail because we do not believe it’s a retail site anymore, but it’s extremely well located,” John Thompson, NGKF’s managing director, told Commercial Property Executive. “It has very good access, 90 acres and all the infrastructure is there. It’s right on the 275 Circle and very accessible to the entire Midwest.”

The property, also known as Forest Fair Mall, consists of approximately 90 acres in the northwest region of Cincinnati. The site offers redevelopment possibilities, including office, governmental, high-tech, light industrial, residential, medical, sports and recreation or educational concepts.

“We think there are large users who will find a site like this attractive,” Thompson said. “The redevelopment opportunities are countless and we expect we will have interest from a multitude of types of users. Furthermore, investors will benefit from the highly-competitive sales price and visible highway location, offering easy access to the entire Midwest.”

Located at 1047 Forest Fair Drive., in the northeast quadrant of the Interstate-275/Winton Road interchange, Forest Fair Village offers nearly 2,000 feet of highway frontage which carries daily traffic of more than 97,000 vehicles.

Interest in the property has already started to pick up and Thompson believes something could happen quickly.

“It was once the largest mall in the market, but because of its location, sandwiched between Tri-County Mall to the East and Northgate Mall to the West, it really never took off,” Thompson said. “In that area there are hotels, a Wal-Mart and some other retail. There’s some very large employers up that way and we think there’s a good employment base around there.”

Originally developed in 1989 as a high-end mall, Forest Fair Village features approximately 4,000 surface lot parking spaces and an additional 2,702 spaces in a three-level parking garage.

The property also includes two, 50-foot pylon signs facing I-275 with multiple tenant panels.

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Scott Yards, senior vice president of CBRE’s Cincinnati office

Cincinnati—CBRE Group recently promoted three of its office advisory and transaction services professionals. Representing Cincinnati office tenants, lessors and developers, Scott Yards, John Eckert and Travis Likes have been advanced to senior vice president, senior vice president and first vice president, respectively.

The three real estate specialists have earned membership into the Greater Cincinnati Board of Realtors Top Producers Club and have been acknowledged as the top three office leaders in 2015 and 2016.

John Eckert, senior vice president of CBRE’s Cincinnati office

Yards, Eckert and Likes have more than half a century of combined office sales and lease experience. Last year alone, they were part of $129 million worth of local transactions, totaling 1.5 million square feet. The team was recently involved in several deals, including DMI’s 21,500-square-foot lease at 8790 Governors Hill Drive, Health Carousel’s 25,000-square-foot lease, CDK’s 172,000-square-foot lease at Central Parke III and RoundTower Technologies’ 32,000-square-foot lease at Kenwood Collection. Moreover, Neyer Properties named the team as the exclusive leasing agent for the company’s half a million square foot office portfolio in Blue Ash.

Travis Likes, first vice president of CBRE’s Cincinnati office

The team contributed to the highest annual positive net absorption the market has seen in 16 years, which was registered in 2016. According to CBRE research, the Cincinnati office market saw 1.3 million square feet of positive net absorption. Major factors that contributed to this amount of absorption were Mercy Health’s new headquarters, GE’s Global Operations Center, Landings III and Wright Summit III.

Images courtesy of CBRE

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Monroe, Ohio—IDI Gazeley and CBRE announced that construction of the 756,000-square-foot bulk warehouse facility Park North at Monroe Building 10 will begin during the first quarter of this year.

A rendering of Park North at Monroe Building 10, Ohio

Located midway between Cincinnati and Dayton, Park North at Monroe Building 10 will provide easy access to the I-75. The park is situated within 600 miles of more than 50 percent of the U.S. population. The future facility will offer occupiers numerous sustainability features and an in-place 15-year 100 percent tax abatement on improvements. The building will also be the largest 36-foot clear height availability in greater Cincinnati.

Home Depot (657,600 square feet), Cornerstone Brands (651,515 square feet), SSB Manufacturing (430,668 square feet), Vallen (218,704 square feet), UGN Inc. (232,200 square feet) and Hayneedle (994,013 square feet) are some of the logistics and manufacturing campus’ current tenants. According to CBRE’s latest research, the greater Cincinnati industrial market ended 2016 with more than 5.3 million square feet of positive net absorption, the most since 2005.

“The park’s success is due to its high-quality logistics facilities and robust infrastructure as well as proactive economic development efforts by the City of Monroe, Warren County and the State of Ohio. The quality of life and strong workforce nearby makes this a tier first location,” said Doug Armbruster, senior vice president & regional director of IDI Gazeley, in prepared remarks.

The distribution facility is expected to be completed and ready for occupancy in early Q4 2017. CBRE’s Jeremy Kraus is in charge of marketing the warehouse for lease.

Image courtesy of CBRE

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The Fit Food Stop in Cincinnati

Cincinnati—Fit Food Stop, a locally owned and operated diner, recently announced that it will open another location in Columbia-Tusculum, a neighborhood east of downtown Cincinnati. The second store will be 2,400 square feet and is expected to open by early spring 2017. CBRE’s Tori Sunderman, senior associate, represented the landlord in the transaction.

Located at 3528 Columbia Parkway, the new Fit Food Stop will serve pre-cooked, individually weighed and portioned food, in microwave-safe containers with labels containing nutritional information. The Fit Food Stop concept originated when Cincinnati resident and Fit Food Stop owner Anthony Maley started to offer residents a quick, fresh and healthy meal for those who were on the go. The store uses organic chicken, wild salmon, organic quinoa and pasta, as well as many local organic vegetables. Additionally, all of the items on the menu are gluten free.

“Fit Food Stop eliminates the decision as to whether you’re going to eat something quick or something healthy. It give you the best of both worlds,” said Maley in a prepared statement.

Fit Food Stop’s first store opened late last year on 3180 Madison Road in Cincinnati’s Oakley neighborhood.

Image courtesy of CBRE

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Cincinnati—Amazon has announced its intention to build a new air cargo hub at Cincinnati/Northern Kentucky Airport. According to cincinnati.com, Amazon will build several facilities on roughly 920 acres of CVG land, leased for at least 50 years. The distribution center will include a 3 million-square-foot sorting facility, a 350,000-square-foot loading dock, as well as ramp space to house 100 cargo jets.

Amazon’s Apollo building in Seattle

Last year, Amazon reached agreements with two carriers to lease 40 Boeing 767s cargo airplanes. Amazon’s air hub at CVG will provide for the company’s dedicated fleet of cargo planes by loading, unloading and sorting packages.

“As we considered places for the long-term home for our air hub operations, Hebron quickly rose to the top of the list with a large, skilled workforce, centralized location with great connectivity to our nearby fulfillment locations and an excellent quality of living for employees,” said Dave Clark, Amazon’s senior vice president of worldwide operations, in prepared remarks.

Today, more than 10,000 people work for Amazon across the firm’s operations in Kentucky. Approximately 2,000 new jobs will be added at the new facility. Employees will be paid with an average hourly wage of $26, with benefits. According to the Cincinnati Business Courier, jobs are expected to include sorting personnel, pilots, ground support employees, management and maintenance. Roughly 600 full-time jobs will be generated initially.

The new project will pay dividends to both the company and the state. Amazon will receive a $40 million state and local tax incentive and another $5 million from CVG. This represents the largest investment ever made by a firm at the Cincinnati/Northern Kentucky International Airport.

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Eric Richter, senior vice president of property management, PECO

Cincinatti—Phillips Edison & Co. announced three internal promotions, including Eric Richter to senior vice president of property management, Tony Haslinger to senior vice president of construction and Cherilyn Megill to chief marketing officer.

“A focal point of Phillips Edison’s culture and a key reason for the company’s ongoing success is our commitment to recognizing and attracting stellar talent and cultivating and promoting individuals from within,” said Bob Myers, COO at Phillips Edison, in prepared remarks. “We invest heavily in our team through programs such as PECO University and PECO NOW, and the result is evident in our highly skilled professionals who are able to take on new challenges.”

Richter joined PECO in 2001 and was vice president of property management since 2007, overseeing the creation of shopping experiences at each of the properties and preserved tenant satisfaction ratings.

Haslinger joined the company in July 2013 as project manager and was promoted in 2014 to vice president of construction, forming relationships with local and national retailers, vendors and subcontractors to contribute to the economic efficiencies at the company’s properties nationwide.

Tony Haslinger, senior vice president of construction, PECO

Richter and Haslinger have been instrumental in creating the company’s first sustainability report, which showcased over $1.3 million in tenant savings.

Megill joined in 2013 as vice president of marketing & communications  and has grown the company’s brand visibility through advertising, public relations, digital and social media. She played an important role in establishing PECO NOW, known as Phillip Edison’s Networking Opportunity for Women initiative.

All three executives are active leaders with the International Council of Shopping Centers.

“We are thrilled to see Cherilyn, Eric and Tony progress in their careers and look forward to their continued outstanding contributions in 2017 and beyond,” added Myers in prepared remarks.

Images courtesy of Phillips Edison & Co. 

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Port Union E aerial view, Cincinnati

Cincinnati—Becknell Industrial recently announced that it has leased its facility in West Chester, Ohio, 18 miles north of downtown Cincinnati, in less than six months after construction broke ground. North American distributor of aluminum wheels Kosei will occupy the remaining 48,000 square feet in Building E at Port Union. Honda Corp. and Toyota Motor Corp. are currently amongst Kosei’s customers.

Plante Moran CRESA represented Kosei in this transaction, while CBRE represented Becknell. The building is scheduled for completion early this spring and Polymet Corp. will occupy 90,750 square feet.

Located in the southeastern corner of Ohio, the 138,750 square-foot Port Union is situated 35 miles from the Cincinnati/Northern Kentucky International Airport. Port Union E has 28-foot clear height, an ESFR sprinkler system, a 130-foot truck court with 60-foot concrete apron and high efficiency building systems. The warehouse will also feature 14 docks and two drive-in doors.

“This location provides Kosei with excellent visibility in space designed to accommodate their growth. Becknell now owns three buildings in Cincinnati and we continue to actively pursue additional build-to-suit and speculative development opportunities and acquisitions,” said Katrina Cupp, Becknell’s assistant vice president of investments, in a prepared statement.

Demand for industrial space in Greater Cincinnati continues to be very strong. According to CBRE Research, the market closed the year with record net absorption and ended with over 5.3 million square feet of positive net absorption, the highest figure since 2005. Moreover, the market saw 4.6 million square feet of construction completions, 78 percent of which are speculative projects.

Image courtesy of CBRE

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The Rookwood in Cincinnati

Cincinnati—Hines Global REIT II Inc. has purchased two retail centers in Cincinnati, Rookwood Pavilion and Rookwood Commons. The two buildings operate as a single property, referred to as Rookwood, and have a combined 600,071 square feet of gross leasable space. The acquisition represents Hines Global REIT II’s sixth purchase and is the first retail property in its portfolio. Eastdil Secured represented the seller in the transaction.

Located next to each other on 2699 Edmondson Road and 3805 Edwards Road, the two assets are a few minutes from the I-71. Known as a lifestyle center, Rookwood serves a populated urban trade area from its location approximately 5 miles northeast of the metro’s central business district. The shopping center is in close proximity to the Cincinnati neighborhoods of Hyde Park, Oakley, Columbia-Tusculum and Mount Lookout.

The luxurious mall features more than 70 stores and restaurants. Rookwood is 97 percent leased to leading retailers, including Whole Foods, REI, Nordstrom Rack, T.J. Maxx, Joseph-Beth Booksellers, P.F. Chang’s and J. Alexander’s.

“We were attracted to Rookwood because it contains an outstanding collection of retailers in an affluent, urban trade area with high barriers to entry. The center serves shoppers from all over Cincinnati and Northern Kentucky, including over 50,000 students at neighboring University of Cincinnati and Xavier University,” said Sherri Schugart, president & CEO of Hines Global REIT II, in a prepared statement.

Images courtesy of Rookwood

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The Gantry Apartments in Cincinnati

Cincinnati—Milhaus, a developer that specializes in Class A urban infill, mixed-use and multifamily residential buildings, recently announced that Cincinnati startup Higher Gravity has filled commercial space in Gantry Apartments for a craft beer and wine retail bar. The new location will occupy a small part of the nearly 8,000-square-foot commercial space available in the apartment community. The location is slated to open in spring 2017.

Located at 1580 Blue Rock St. and completed in 2016, Gantry is a revitalization of the former lumberyard site in the heart of the Northside neighborhood, Cincinnati’s historic area. Dating back to the turn of the 19^th century, the old Myron G. Johnson & Son Lumber Co. and railroad depot are now a 131-unit community that incorporates roughly 8,000 square feet of commercial space. According to Yardi Matrix data, the three-building property encompasses 25 studios, 68 one- and 38 two-bedroom units. Milhaus cooperated with local community groups to ensure strict adherence to historic guidelines.

“The culture and vibrancy of Northside, combined with the addition of the Gantry immediately attracted us to the neighborhood. We’re excited to have the opportunity to serve a growing neighborhood and play a small part in the larger efforts to revitalize our hometown of Cincinnati,” said Jason Parnes, Higher Gravity co-founder, in prepared remarks.

Higher Gravity plans to offer Cincinnati residents and visitors a selection of beer and wine that can be enjoyed onsite or taken home.

Image courtesy of Gantry Apartments

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Vivial’s office in Dayton, Ohio

Dayton, Ohio—Vivial recently announced that it is expanding its operations center and headquarters in Dayton, Ohio. The expansion will include a new outbound call center. Vivial will acquire additional space and plans to hire more than 60 full and part-time positions over the next months.

Located at 3100 Research Blvd., Vivial’s Dayton operation center is the company’s largest office in the country, with nearly 100 sales employees covering Northern Ohio, Kentucky, Georgia, North Carolina, Texas, Arkansas and Nebraska. Following the expansion, the company plans to sell its SaaS Platform at the new outbound call center in order to address the growing demand for Vivial’s services. With an entry-level package developed specifically for the new call center, the SaaS Platform will help businesses optimize their marketing strategies through local search engine optimization, directory listings and targeted content and social media.

“This new outbound call center will give us additional opportunities to offer the products that our SMB customers need most including packages that provide mobile responsive websites, listings on Google and the ability to manage online reviews,” said Jim Continenza, chairman & CEO of Vivial, in a prepared statement.

Image via Google Earth

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The Turfway Road Distribution Center in Rogers, Minn.

Cincinnati & Minneapolis—Dalfen America Corp. announced the acquisition of two industrial properties located in Cincinnati and Rogers, Minn., totaling approximately 450,000 square feet.

Located adjacent to the Cincinnati/Northern Kentucky International Airport, the Turfway Road Distribution Center is a 165,515-square-foot warehouse and distribution facility built in 1990. The 24-foot clear facility is currently 45 percent occupied and was purchased via an off market transaction directly with the seller.

Built in 1999, the I-94 Distribution Center is a 297,756-square-foot multi-tenant industrial property located in Minneapolis’ Northwest submarket of Rogers. The property fronts I-94 and is located near the new FedEx Ground facility. Currently, the building is 94 percent leased and includes tenants such as Guardian Building Products. Pete Rand, executive director of Cushman & Wakefield/NorthMarq arranged the transaction on behalf of the seller.

The I-94 Distribution Center in Cincinnati

“We continue to execute our strategy of buying buildings catering to ecommerce and fulfillment located in target markets across the country. We continue to be one of the largest buyers of industrial real estate in the country and in 2017 we anticipate to increase our acquisition volume substantially,” said Sean Dalfen, president of Dalfen America Corp., in prepared remarks.

With the acquisition of these two properties, Dalfen will finish the year having closed transactions totaling approximately $400 million in 15 metro markets across the country in the last 12 months.

Images courtesy of Dalfen America Corp.

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Embassy Suites Cleveland Rockside

Cleveland and Cincinnati—American Hotel Income Properties REIT LP of Vancouver, B.C., has agreed to acquire for approximately $124 million three Embassy Suites by Hilton hotels totaling 782 guestrooms in the Columbus, Cleveland and Cincinnati metro areas. The portfolio is being acquired at a weighted-average cap rate of about 8 percent on trailing 12 months NOI.

The 284-key Embassy Suites Columbus Dublin is in Dublin, Ohio, at the convergence of I-270 and State Route 161, about 15 miles north of downtown Columbus and near the Ohio State University campus.

The 271-key Embassy Suites Cleveland Rockside is in Independence, Ohio, about 10 miles south of downtown Cleveland and 12 miles east of Cleveland Hopkins Airport, at the convergence of interstates 77 and 480. The hotel is near a number of demand generators, including the homes of the Cleveland Indians, Cleveland Cavaliers and Cleveland Browns.

The 227-key Embassy Suites Cincinnati Rivercenter is on the Ohio River overlooking downtown Cincinnati in Covington, Ky. The hotel is near the Northern Kentucky Convention Center and the Duke Energy Convention Center.

The seller was not identified, and AHIP declined to provide additional information requested by Commercial Property Executive.

The three hotels are being acquired for about $159,000 per guestroom, which is below AHIP’s estimate of replacement cost. The REIT expects to fund the purchase price using a portion of the net proceeds from a recently announced bought deal offering of units, plus a new $65 million CMBS loan.

The mortgage is expected to have a 10-year term, with interest-only payments for the first three years and then amortized over a 30-year period for the remaining seven years. It’s expected to have a fixed interest rate of approximately 4.7 percent for the entire term.

This transaction is expected to close in late January.

The hotels will be managed by AHIP’s exclusive hotel manager, Tower Rock Hotels & Resorts Inc., a wholly owned subsidiary of O’Neill Hotels and Resorts Ltd.

“AHIP’s ability to use conservatively financed, long-term, low-cost, fixed-rate debt with a significant interest-only period highlights a key aspect of our strategy of providing consistent and stable returns to our unitholders,” Rob O’Neill, AHIP’s CEO, said in a prepared statement.

The hospitality market in Columbus contradicts the general national trend, with demand outpacing supply, in part because of ongoing renovations at the Greater Columbus Convention Center, according to an Integra Realty Resources mid-year 2016 report.

In Cleveland, a 3.0 percent room count increase in advance of the Republican National Convention followed a 3.5 percent jump in the first half of 2015, according to a second-half 2016 Midwest hospitality report from Marcus & Millichap. Average occupancy fell 60 basis points to 60.8 percent, and RevPAR has dipped slightly year to date.

And in Cincinnati, robust demand drivers have allowed the hotel sector to post respectable gains in occupancy and ADR, in turn generating RevPAR growth of 6.1 percent, again according to Marcus & Millichap.

Image courtesy of Embassy Suites Cleveland Rockside

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The Residence Inn Cincinnati Airport , Erlanger, Ky.

Cincinnati—The Residence Inn Cincinnati Airport is currently going through a major restoration process of its guestrooms, with projected completion in spring 2017. The property is managed by 1986-founded Commonwealth Hotels LLC.

Located at 2811 Circleport Drive in Erlanger, Ky., the property is situated 1 mile from the Cincinnati/Northern Kentucky International Airport and 10 minutes from downtown Cincinnati. The hotel features 150 guestrooms with spacious studio, one- and two-bedroom suites. All guests benefit from free wireless internet, on-site fitness center, an outdoor pool and complimentary airport shuttle. The property also has a 900-square-foot meeting space that can accommodate up to 50 people.

“Since 1996, our focus has always been to exceed the guest’s experience at each encounter. Our renovation is testimony to this effort. We’re excited to bring our guests an all new experience with new appliances and a modern feel for their extended stay and overnight needs,” said Michael Blanton, general manager of Residence Inn Cincinnati Airport, in prepared remarks.

The renovation includes new stainless steel appliances, kitchen tiles, headboard and night stand furniture, kitchen and bathroom cabinetry, bathroom tiling and walk-in showers in studio rooms.

Commonwealth Hotels currently manages 35 properties with over 4,000 rooms.

Image courtesy of The Marriott

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Port Union E aerial, Cincinnati

Cincinnati—Becknell Industrial, a company specialized in the development, investment and management of industrial properties across the U.S., recently announced that it has leased a portion of its warehouse building currently under construction in West Chester Township, a northern Cincinnati community. Polymet Corp., a manufacturer of high-performance wire for hard facing, welding and thermal spraying, will occupy 90,750 square feet of the 138,750-square-foot building, known as Port Union E. CBRE represented both the lender and the owner.

Located on Union Centre Boulevard, Port Union E has 28-foot clear height, ESFR sprinkler system, 130-foot truck court with 60-foot concrete apron and high efficiency building systems. The warehouse will also include 14 docks and two drive-in doors.

West Chester Township is in the southeastern corner of Ohio, about 18 miles north of downtown Cincinnati. The region provides easy access through three interstate highway systems (I-75, I-74, and I-71) and two interstate connectors (I-275 and I-471). Part of a master-planned industrial center, Port Union E is only 35 miles from Cincinnati and the Northern Kentucky International Airport.

“Our new facility will not only make our operations more efficient but will also facilitate future growth. Polymet has been in operation in the West Chester area for 50 years and we could not be more excited to celebrate with a new, bigger facility,” said Bill Mosier, president of Polymet Corp., in a prepared statement.

The remaining 48,000 square feet at Port Union E is currently available for lease. The park is being built on a 9-acre site and is scheduled for completion early next year.

According to CBRE research, 2016 is on pace to be a record-breaking year for the Cincinnati industrial market. The third quarter of this year closed with over 1.5 million square feet of positive net absorption and 3.3 million square feet of construction completions, 82 percent of which was speculative bulk warehouse.

Image courtesy of CBRE

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The new BestDrive store in Cincinnati

Cincinnati—BestDrive LLC, a commercial tire dealer, recently opened its newest location in Cincinnati. The new shop and service center continues the expansion of the Continental tire and ContiLifeCycle retread service network throughout the Midwest and the U.S. CBRE Vice President Robert Bunton represented BestDrive in this transaction.

The new BestDrive store is situated at 10801 Millington Court in Blue Ash, Ohio. The shop and service center is located in the former Cincinnati Enquirer building, off of I-71 and near the I-275 interchange. The BestDrive store offers the full range of Continental commercial truck, off-the-road and industrial tires in addition to ContiTread retread tires.

“Our new store in Cincinnati is a perfect location to complement our stores in Columbus, Detroit and Indianapolis. Many regional and long haul fleets run through this Midwest corridor and we are now able to offer them great products and services throughout the region. All of our locations offer CLC retreads, a variety of new tires and a plethora of services to obtain the customers’ lowest overall driving cost,” said Glen Carson, BestDrive director of retail for the Americas, in prepared remarks.

Continental Commercial Vehicle Tires is one of the largest manufacturers of truck, bus and commercial specialty tires in the world. Recently, the company broke ground on a manufacturing plant in Clinton, Miss. In 2015, the corporation generated sales of $39.2 billion with its five divisions: Chassis & Safety, Interior, Powertrain, Tires and ContiTech. Continental currently employs approximately 215,000 people in 55 countries. The Tire Division has more than 24 production and development locations worldwide.

Image courtesy of CBRE

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Brian Wint, Divisions’ new CFO

Newport, Ky.—Divisions Maintenance Group, a provider of facility management services, recently announced the appointment of Brian Wint as CFO. Wint previously served as vice president of finance within the company, and will continue to oversee all aspects of finance, accounting and pricing methodology.

Wint joined Divisions in 2014, and his recent appointment as CFO follows two consecutive years of 20 percent growth for the firm. Prior to his role as Divisions’ vice president of finance, Wint served as a restructuring and accounting forecast manager for Procter & Gamble. The new CFO brought over 15 years of financial experience to the company, including his extensive know-how from numerous roles within Procter & Gamble. As CFO, Wint will ensure the integrity of all financial data to include the development of forecasts, overseeing the budgeting and re-forecasting processes. He will also conduct analysis of areas to improve profitability while guaranteeing the execution of daily activities within billing operations, accounting and the RFP team.

“I am honored and grateful to be counted among such a high performing Leadership Team. Divisions’ growth has been fueled by a laser focus on the customer experience and I’m passionate about helping to drive the continued growth and financial performance of a company that puts its customers first,” said Wint in prepared remarks.

Additionally, Wint and his team will actively develop value-add analytics for strategic management decision making.

“Brian is a huge key to our success. We thank him for his significant contributions toward making Divisions a stronger company. We’re extremely grateful to have him on our team,” said Gary Mitchell, CEO of Divisions Maintenance Group.

Wint holds a Bachelor of Business Administration degree in accounting from Ohio University and is a certified public accountant. He began his career in finance and accounting directly out of college, working for PriceWaterhouseCoopers.

Image courtesy of Divisions Maintenance Group

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GE at The Banks, Cincinnati

Cincinnati—London-based 90 North Real Estate Partners has snapped up a minority stake in General Electric @ The Banks, the 338,000-square-foot office tower that serves as home to General Electric’s Global Operations Center, at The Banks master-planned community in downtown Cincinnati. 90 North and Kuwait-based majority partner Kamco Investment Co. acquired the trophy property from Carter, developer of The Banks, for $107 million.

It’s a brand-new, fully leased premier property with a premier tenant in a premier suburban market—and it fits like a glove with 90 North’s strategy. Opportunities such as the GE asset, however, don’t come along every day. “Ultimately it is about relationships and track record. It is always challenging to find deals that meet our investment criteria and offer a strong potential for return,” Daniel Cooper, head of 90 North’s North American operations, told Commercial Property Executive. “The secondary markets sometimes offer more options, but there are inherent challenges in also finding strong credit tenants, modern construction and the other requirements that help create a strong long-term value.”

Carter delivered GE’s Rule Joy Trammell Rubio-designed build-to-suit office, carrying the address of 191 Rosa Parks St., in September at a cost of approximately $90 million. GE signed on to occupy the 12-story tower for 15 years under a lease agreement featuring five five-year renewal options.

90 North played a dual role in the transaction, having also served as Kamco’s advisor in the purchase of General Electric @ The Banks, which was marketed by Eastdil Secured on Carter’s behalf. And JLL’s Capital Markets Debt & Equity group orchestrated acquisition financing, securing a $64.4 million permanent financing loan through Principal Real Estate Investors. The partners will rely on commercial real estate services firm CBRE to provide property management services at the GE building.

Both Kamco and 90 North are following game plans centered on investment in the U.S. real estate market. As noted in a second quarter report by CBRE, “In addition to safety, the U.S. remains attractive for international capital due to its ongoing economic expansion, healthy property fundamentals, higher asset yields, lower long-term return volatility and the opportunity for scale.”

Kamco initiated a U.S. investment plan at the beginning of 2016, and 90 North counts General Electric @ The Banks as one of a handful of purchases it has made this year. The company acquired Lash Group’s 250,000-square-foot headquarters in suburban Charlotte, N.C., for $67.1 million, and scooped up the Saint Gobain North American Headquarters outside Philadelphia for $123 million. It’s all about secondary markets for 90 North.

“Many large investors tend to focus on core markets, which creates a highly competitive environment that drives prices upward. What many outsiders do not realize is that 30 to 60 percent of large, long term offices leases signed by Fortune 500 companies are in the suburbs,” Cooper said. “By focusing on secondary markets, we can secure high quality assets at competitive pricing and provide a higher yield for our investors.”

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Tysons Galleria, McLean, Va.

Cincinnati—Macy’s Inc. is pushing on with its plan to operate fewer brick-and-mortar locations and focus on better-performing assets and a stronger digital presence with the disposition of five retail stores to General Growth Properties for $46 million.

Four of the stores were sold in the third quarter of 2016, while the Greenwood Mall property was sold earlier in the year. The portfolio comprised:

• The 151,000-square-foot Carolina Place in Pineville, N.C., opened in 1993;
• The 104,000-square-foot Oakwood Mall in Eau Claire, Wis., opened in 1991;
• The 146,000-square-foot Quail Springs Mall in Oklahoma City, opened in 1986 (the store was closed in spring 2016);
• The 265,000-square-foot Tysons Galleria in McLean, Va., opened in 1988; and
• The 124,000-square-foot Greenwood Mall in Bowling Green, Ky., opened in 1980.

Macy’s will continue to operate Tysons Galleria on a lease from General Growth Properties, and also operates another retail store in McLean, Va., at the nearby Tysons Corner Center. Carolina Place, Greenwood Mall and Oakwood Mall will continue operations through the holiday season and will be closed in the spring of 2017. Macy’s expects to realize a profit of $32 million from the portfolio sale in the third quarter of fiscal year 2016.

The disposition of the five assets falls in line with Macy’s strategy to close down weak-performing assets and concentrate its financial resources on growing a strong online presence and better-performing stores. The company plans to close 100 stores—roughly 15 percent of its properties—in early 2017, following a steep drop in sales over the past year. The reinvestment plan was first announced in January, as previously reported by Commercial Property Executive.

Image via Google Maps

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2000 Eastman Drive in Milford, Ohio

Cincinnati—NGKF Capital Markets, an affiliate of Lexington Realty Trust, represented ownership in the sale of 2000 Eastman Drive in Milford, Ohio, for $32.7 million. The Boston-based NGKF Capital Markets team of U.S. Head of Capital Markets Robert Griffin, Vice Chairman Edward Maher and Executive Managing Director Matthew Pullen, oversaw the transaction in conjunction with Director James Tribble and Executive Managing Director Doug Altemuehle, SIOR of NGKF’s Cincinnati office.

2000 Eastman is now property of Cole Office & Industrial REIT Inc., a publicly non-listed company sponsored by Cole Capital that focuses on investing in single-tenant, income-producing, necessity office and industrial properties. Cole Capital is the investment management business of VEREIT Inc.

The asset is a Class A, four-story, 221,215-square-foot single tenant suburban office building. The property is currently 100 percent leased to Siemens Corp., a U.S. subsidiary of Siemens AG and one of the world’s largest producers of energy-efficient, resource-saving technologies and a leading supplier of systems for power generation and transmission, as well as medical diagnosis.

“We are thrilled to have represented an affiliate of Lexington Realty Trust in both the lease to Siemens as well as the sale of 2000 Eastman Drive. 2000 Eastman boasts best-in-park quality with a first-class physical plant in an attractive campus setting,” said Doug Altemuehle in a prepared statement.

With roots dating back to 1929, Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. NGKF is part of BGC Partners Inc., a global brokerage company servicing the financial and real estate markets.

Aerial image via Google Earth

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Cincinnati—Dermody Properties has recently commenced the construction of its second industrial facility, known as LogistiCenterSM at 275 #2. Hillwood, a Perot company, is Dermody Properties’ strategic financial partner on the project. United Construction Co. is the general contractor and Jeffrey Bender and David Kelly of Cushman & Wakefield are representing the development on behalf of Dermody Properties.

LogistiCenterSM at 275 #2

The e-commerce compliant facility is located at 3521 Point Pleasant Rd. in the Greater Cincinnati market, an area with more than 227 million square feet of industrial space. Upon completion, the 264,000-square-foot building will feature 32-foot clear height, 27 dock doors, 228 car-parking stalls and 70 trailer stalls. It is ideally suited for e-commerce, manufacturing and distribution operations.

LogistiCenterSM at 275 #2 is the second phase of a two-phase project in the Northern Kentucky market for Dermody Properties and Hillwood. The facility is surrounded by national companies including Amazon, DHL, General Electric, Levi Strauss, Toyota and Wayfair. Last year, the companies completed Phase 1, an 898,560-square-foot fulfillment center, known as LogistiCenterSM at 275 for Wayfair Inc., one of the world’s largest online destinations for home furnishing and décor. Dermody Properties and Hillwood leased both sites from CVG, one of the three global super-hubs for DHL, a top 10 cargo airport in North America.

“These kind of projects create win/win/win opportunities for the airport, the community and developers. The airport receives new revenue streams, which lowers the cost of operations for airlines and tenants, the community sees job growth and economic development and Dermody Properties and Hillwood have access to over 75 percent of the U.S. population within 600 miles of the airport,” said Candace McGraw, chief executive officer at CVG, in a prepared statement.

Image courtsey of Dermody Properties

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The building acquired by DCT Industrial Trust in Cincinnati

Cincinnati—DCT Industrial Trust, a top industrial real estate company, has announced the acquisition of a 301,000-square-foot building located in the Northwest submarket of Cincinnati. The property offers functional space with ESFR sprinklers and 24 to 28-foot clear height. The excess acreage adjacent to the building could be used for expansion, additional trailer parking or outside storage.

“We are very excited about the addition of this building to our Cincinnati portfolio. It was our team’s ability to act quickly and decisively that allowed us to acquire this exceptional asset in an off-market value creating transaction,” Mike Meyers, DCT Industrial vice president, said in a prepared statement.

At the time of sale, the property was 60 percent occupied. The vacant portion of the building is currently being marketed for lease by Mike Lowe and Doug Whitten of CBRE.

“We are looking forward to working with DCT to lease the remaining 121,000 square feet of the building,” said Doug Whitten, first vice president at CBRE.

DCT Industrial is an industrial real estate company specializing in the ownership, acquisition, development, leasing and management of bulk-distribution and light-industrial properties in high-volume distribution markets in the U.S. According to CBRE Research, Cincinnati continues to be one of the tightest industrial markets in the country, with a current vacancy rate of 4.7 percent.

Image courtesy of CBRE

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Corrine Cecil, Regional VP, Phillips Edison & Co.

Cincinnati—Phillips Edison & Co. has recently announced that Corrine Cecil has been appointed regional vice president of leasing for the company’s Northern Division. In her new role, Cecil will focus on driving new leasing opportunities and cultivating retailer relationships.

Cecil joined Phillips Edison back in 2005, where she started out as a senior leasing attorney, then moved on to become a senior leasing representative, and later senior renewal representative. As senior renewal representative, Cecil was responsible for negotiating and managing lease renewals, rent modifications, expansions and downsizes, relocations and lease assignments for Phillips Edison’s portfolio. Cecil’s background also includes the role of associate attorney at Thompson Coburn LLP.

“Throughout her 11 years at Phillips Edison, Corrine has demonstrated a remarkable ability to advance our growth objectives and strengthen our relationships with national, regional and local retailers,” Mike Conway, vice president of leasing with Phillips Edison, said in prepared remarks.

Cecil holds a Bachelor’s Degree in Psychology from the University of Kentucky and a J.D. from the Southern Illinois University School of Law.

Image courtesy of Phillips Edison & Co.

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Jim Clark, former EVP, Continental Real Estate Cos.

Columbus, Ohio—NGKF recently completed the acquisition of Columbus-based Continental Realty Ltd., which includes the leasing and property management divisions of Continental Real Estate Cos. The financial terms of the transaction have not been disclosed. The move will bolster NGKF’s presence in the Midwest, helping drive growth opportunities for the firm’s existing Cleveland, Cincinnati and Columbus operations.

“The acquisition of Continental Realty Ltd. is a strategic and opportunistic investment in our growth strategy to acquire businesses that are entrepreneurial at the core in key markets, both gateway and secondary,” Michael Sheinkop, president of brokerage services at NGKF, said in prepared remarks. Continental Real Estate Cos.’ development arm is not part of the transaction.

Jim Clark, former executive vice president of Continental Real Estate Cos., will head the office as managing director. Bringing in more than two decades of experience in the field, Clark joined Continental in 2014. Prior to this, he served with Duke Realty for almost 20 years, first as vice president and then as senior vice president.

Clark holds a Master of Science degree in banking and financial services from Boston University and a Bachelor of Arts degree in public relations from Ohio State University.

Image via LinkedIn

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GE Banks – NE Elevation

Cincinnati—GE Global Operations Center has started moving into downtown Cincinnati’s new mixed-use development dubbed The Banks. The 338,000-square-foot contemporary glass building will be home to more than 2,000 professionals across 12 stories.

“The GE Global Operations Center is an incredible milestone for The Banks and for Cincinnati,” said Dan McCarthy, project executive for Carter, master developer of The Banks, in a prepared statement.

“We’ve always envisioned The Banks with a vibrant mix of retail, restaurants, residential, hotel and office. Bringing GE to the riverfront makes that vision a reality and helps extend Cincinnati’s downtown business district directly to our greatest physical asset, the Ohio River. Add GE’s workforce to the thriving residential communities of Radius and Current, and The Banks becomes a true live-work-play destination,” McCarthy explained.

The new building is located within Phase II of The Banks, and includes 19,000 square feet of street-level retail space. GE has signed a 15-year lease at the site with Carter and Nicol Investment Co., co-owners of the building. PNC Financial Services led the construction financing for the project, while Brasfield & Gorrie oversaw the construction project, working with local developer Jostin Construction. RJTR acted as the architect and CBRE will manage the property.

The University of Cincinnati Economic Center estimates that the potential annual impact of the GE Global Operations Center could reach $1 billion, taking into account the direct and indirect employment and spending GE’s new-to-market jobs are expected to create. The payrolls are anticipated to average an annual salary of $79,000 and include a variety of functions such as accounting, finance, communications, customs, HR, IT, legal, logistics, supply chain and enterprise data management.

Image courtesy of GE

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LogistiCenter@275

Cincinnati—Hillwood, a Perot company, is teaming with local developer and design-builder Al. Neyer to develop two speculative industrial buildings in Greater Cincinnati. The companies have acquired a 49-acre site at the Hebron Logistics Center on Litton Lane in Hebron, Ky. The site is expected to house two buildings totaling 589,244 and 209,468 square feet, respectively.

“It is really difficult to find developable industrial sites in Greater Cincinnati, especially with such convenient proximity to the airport,” Dan Ruh, senior vice president of real estate development at Al. Neyer, said in a statement.

The new properties will offer easy access to interstates 275, 71, 74 and 471, as well as State Road 237 and the Cincinnati/Northern Kentucky International Airport. The buildings will feature 32- and 36-foot clear heights, cross-dock loading, T-5 lighting and ESFR fire protection systems. Additionally, the assets will provide ample auto and trailer parking space and additional spaces available for future parking.

Construction is set to commence Sept. 26, with completion slated for mid-2017. Mike Lowe, Jeremy Kraus, Doug Whitten and Tim Schenke of CBRE are handling leasing for the project.

“Few metropolitan areas offer our convenient access, affordability, Fortune 500 presence, and capable workforce, and we know this development will present a tremendous opportunity to a number of booming industries,” added Ruh.

This is not Hillwood’s first foray into the Greater Cincinnati real estate market. The company also partnered with Dermody Properties on LogistiCenter@275, a 900,000-square-foot distribution center completed in June and fully leased to Wayfair. The center is located nearby Interstate 275 and the Cincinnati/Northern Kentucky International Airport.

Image courtesy of Dermody Properties

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Homewood Suites by Hilton Cincinnati-Milford

Cincinnati—MCR Development, one of the major hotel owners and operators in the U.S., has recently completed the renovation of the Homewood Suites by Hilton Cincinnati-Milford. The remodeling is part of MCR’s commitment to enhance the guest experience in the Cincinnati region for business and leisure travelers.

The 76-key property is located off Interstate-275, a main travel artery in the Greater Cincinnati area. As part of Homewood Suites by Hilton’s “Take Flight” design initiative, the hotel’s improved dining area now features new furniture, flooring and lighting. The business center has also been remodeled as an enticing work space for guests. Additional upgrades include an outdoor kitchen and lounge with a grilling area and seating space.

The Great American Ball Park and Paul Brown Stadium, home of Major League Baseball’s Cincinnati Reds and the National Football League’s Cincinnati Bengals are just a short drive from the hotel. Also, the Cincinnati Zoo and the Botanical Gardens are in close proximity.

Homewood Suites by Hilton Cincinnati-Milford won a TripAdvisor Certificate of Excellence Award in 2016.

Image courtesy of MCR Development

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URS Office Tower in Cincinnati

Cincinnati—Neyer Properties is the new owner of URS Tower, a 200,000-square-foot office high-rise located in Cincinnati’s central business district. The commercial real estate company bought the property for $8 million through auction site Ten-X. Keith Yearout and Jim Vondran represented the seller, LNR Partners.

The 12-story building is located at the corner of East 7^th Street and Walnut Street and sits on top of a 14-level, separately-owned parking garage. Neyer Properties has announced an extensive, multi-million dollar interior and exterior upgrade of the office tower to a Class A structure. The building will get a modern façade and a new entrance to correspond with the luxurious properties located nearby. As for the interior renovation, Neyer announced plans to revamp the common areas, first floor lobby, elevator lobbies and restrooms, but also the unique sky lobby at the 15^th floor, complete with an outdoor terrace.

“Our plans include the addition of a one-of-a-kind conference center off the sky lobby that will provide tenants with the option to open the doors up to the outdoor terrace, creating an indoor/outdoor collaborative space where meetings or social events can be held,” Jared Wendling, director of Acquisitions and Dispositions at Neyer Properties, said in a prepared statement.

The purpose is to modernize the property and create an interactive space, with open floor plates, collaborative areas and open ceilings. The property is part of Neyer’s strategy to invest in its properties and increase Cincinnati’s vibrant business environment. “We have put money where our mouth is by acquiring over 1.1 million square feet of space in the City of Cincinnati since 2012 and are also adding significant investments into The Baldwin and Keystone Parke development,” added Dan Neyer, president & CEO of Neyer Properties.

The next step for URS Tower is proceeding with the leasing process. Michelle Klingenberg, Josh Gerth and Rusty Myers from JLL are partnering with Neyer to bring new users to the building. Cincinnati-based commercial real estate company Neyer Properties is looking to extend its portfolio not only in the city, but also in other markets across the Midwest—Cincinnati, Columbus, Indianapolis, Louisville and Lexington. Neyer purchased assets totaling more than 2.7 million square feet in the last four years.

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Fairfield Business Center

Chicago—Rosemont, Ill.-based Brennan Investment Group announced it has acquired Kemper Woods Business Center and Fairfield Business Center, two institutionally owned business centers located in the greater Cincinnati market.

CBRE Capital Markets’ Keith Yearout and Jim Vondran worked with the industrial and logistics team of Doug Whitten, Mike Lowe, Tim Schenke and Jeremy Kraus, on behalf of two separate sellers, to expose the properties to a larger array of buyers.

Fairfield Business Center is a 44,011-square-foot building that includes both office and warehouse space located in the Northwest submarket of Fairfield, Ohio, while Kemper Woods Business Center is a three multi-tenant, office/warehouse building complex totaling 98,248 square feet located in the Northwest submarket of Forest Park, Ohio.

The two properties were marketed together as a strategic move to attract more interest in the properties than if they were marketed separately, according to CBRE’s Keith Yearout, vice president. “Brennan Investment Group saw this as a great opportunity to buy well-maintained and strategically located assets that have the potential for capital investment and an increase in leasing momentum, ultimately growing the value of the property.”

“This acquisition is illustrative of our criteria to acquire industrial assets at a low basis in infill markets, with the ability to increase cash flow through leasing. Industrial vacancy in Cincinnati reached a historic low of 4.2 percent in the second quarter of 2016, making it an ideal time to execute a value-add strategy,” said Scott McKibben, CIO at Brennan Investment Group.

The Whitten/Lowe/Schenke/Kraus team will lease the vacant office and warehouse space of the two properties. “As a result of the tight industrial market and an increasing demand for space, both properties will provide a great opportunity for Brennan Investment Group to lease up current vacant space,” said CBRE’s Doug Whitten, first vice president. “We are excited to work with Brennan Investment Group on the leasing of these assets. They are a great owner to work with and have plans to invest additional capital into the buildings which will help attract tenants.”

Image courtesy of Brennan Investment Group

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Jeff Gennette, Macy’s Inc.

Cincinnati—Macy’s, the largest department store operator in the country by retail sales, made headlines last week with the announcement that it plans to close 100 retail stores—roughly 15 percent of its properties—in early 2017. The company said it plans to operate fewer brick-and-mortar stores and concentrate its financial resources on better-performing assets and a stronger online presence.

According to Macy’s, a number of stores will be closed as their real estate value is larger than their value to the company as a retail store. The locations of the 100 stores are set to be revealed at a later date.

Following the closing, Macy’s plans to invest in improvements at ongoing stores and digital platforms, in an effort to keep up with the changing needs of its customers. According to the company’s quarterly earnings release, profits fell to $11 million last quarter, down from $217 million in the previous year. Macy’s shares in the stock have also fallen more than 40 percent in the past 12 months, The New York Times reports.

Macy’s is one of many companies struggling to keep up with competitors such as Amazon, which boasts a massive online presence, or discount chains like T.J. Maxx. According to The New York Times, Walmart is planning to acquire Jet.com, a year-old startup and small online rival, for a whopping $3 billion—the largest e-commerce acquisition ever in the U.S.—in an effort to keep up with its competitors.

With the rise of e-commerce and omnichannel retailing, there is immense pressure on retailers to provide fast, reliable services to customers. Companies such as Amazon and Sainsbury are introducing same-day delivery services to better serve the needs of shoppers who want to save time and money by shopping online. For other companies, such as Sports Authority, the pressure to keep up the pace with changing consumer behavior is too intense. The Englewood, Colo.-based retailer is closing all of its 463 stores amid bankruptcy, following in the footsteps of West Coast-based chain Sport Chalet.

Traditional retailers are hurt by competition from the online realm, which is also one of the main factors behind Macy’s new strategy. The company’s online business has grown significantly over the past 15 years, and Macy’s plans to capitalize on that. Though the disposition of 100 stores is likely to have a negative impact on sales short-term, the reduction “will result in a more appropriate store portfolio for Macy’s in the longer term,” according to Macy’s President Jeff Gennette, who will succeed Terry Lundgren as CEO in early 2017. “With this strategy, we will be able to reinvest in a more energized shopping experience in our remaining stores and elevate our total customer experience across all methods of shopping,” he said in a statement.

Macy’s began rethinking its strategy at the beginning of the year, when it announced plans to close down as many as 40 stores as part of its plan to invest in other growth strategies, including omnichannel capabilities at Macy’s and Bloomingdale’s.

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Grand Opening of the Proton Theray Center at Cincinnati Children’s Hospital Medical Center

Cincinnati—One of the world’s most advanced cancer treatment and research centers will start treating patients next month at a $120 million facility on Cincinnati Children’s campus in Liberty Township. A joint project of the nonprofit pediatric medical center and UC Health, the new Proton Therapy Center will aim to advance the cancer-fighting potential of proton therapy.

“This important investment will transform cancer care for children and adults and generate a new wave of discovery,” said Cincinnati Children’s president & CEO Michael Fisher.  “Proton is advanced cancer therapy. I am pleased it is now available to our pediatric patients with the most challenging types of cancer, underscoring our deep commitment to always provide the safest and most effective treatment options.”

Proton therapy is a variety of radiation treatment that directs a highly focused beam at tumors through a particle accelerator. Its precision is believed to sharply reduce potential damage to healthy tissue.

The Proton Therapy Center will have the first proton treatment gantry fully dedicated to research along several tracks, including: basic research, assessment of imaging and other technological issues, and strategies that augment proton therapy. Also of note, the facility features dedicated treatment gantries for both pediatric and adult patients, as well as separate entrances for children and adults.

“The opening of this facility is the culmination of almost a decade of conversations and planning, and we are excited to begin providing treatment to an average of 200 adult patients per year nationally and globally,” said Richard Lofgren, president & CEO of UC Health. “This facility, together with the expertise of the faculty of the University of Cincinnati College of Medicine and Cincinnati Children’s, will give patients access to a level of cancer care available in only a handful of locations around the world.”

Partnering with Cincinnati Children’s and UC Medical Center on the research initiatives will be the University of Cincinnati Physicians, the UC College of Medicine and Varian, the proton equipment manufacturer. Some collaborations will also involve research centers in Germany and Israel.

Image courtesy of Cincinnati Children’s Hospital Medical Center

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Centre Pointe II, West Chester, Ohio

Cincinnati—JLL has been chosen to lease Centre Pointe, a five-building office complex in West Chester Township owned by Oaktree Capital Management and Hines.

Located along Interstate 75 in West Chester Township, the 640,000-square-foot portfolio comprises five buildings completed in stages between 2000 and 2007. Historically the property has been more than 90 percent leased, but a shift in occupancy has brought several large blocks of space to market.

For example, 50,310 square feet of sublease space will be available next Jan. 1 at 9050 Centre Pointe Drive, according to information on JLL’s website. The 121,880-square-foot building was completed in 2001.

The JLL team representing the owners consists of David Ottenjohn, executive vice president in JLL’s Cincinnati office, Bill Poffenberger, executive vice president, and Todd Pease, vice president.

“There has never been this amount of vacancy here, so it’s an amazing opportunity for large tenants to select a Class A suburban building with significant exposure,” Ottenjohn commented in a statement.

Much of the vacant space will become available at the beginning of next year, but arrangements can be made to make the space immediately available.

“We are pleased to have this experienced and proven JLL team working on our behalf to identify the next generation of new tenants for Centre Pointe,” said Hines Vice President Dan Eifert.

Image courtesy of JLL/CoStar

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9449 Glades Drive, Hamilton, Ohio

New York—There’s a 3.3 million-square-foot industrial portfolio in the Midwest that has just been financed courtesy of New York Life Real Estate Investors. The real estate debt and equity investment company came through with a $120 million loan on behalf of affiliates of Industrial Property Trust Inc. 

The financing for the 15-building group of industrial facilities came in the form of an eight-year loan with a fixed rate. NYL Real Estate Investors doesn’t hand out loans to just any borrower who comes a-callin’. The company looked favorably upon the industrial portfolio opportunity, due in no small part to a history with the sponsor.

A longstanding association, however, was just one of the factors that went into NYL Real Estate Investors’ decision. “While we highly value our lending relationships, first and foremost each loan must stand on its merits,” John Howard, a senior director with the company, told Commercial Property Executive. The investment firm was taken by the high quality of the assets, in addition to their location in markets with solid fundamentals. The collection spans metropolitan Chicago, Memphis, as well as Cincinnati, where IPT shelled out $35.1 million last year on the acquisition of a four-building, 661,000-square-foot portfolio that includes the building at 9449 Glades Drive in Hamilton.

NYL Real Estate Investors isn’t timid about parting with the big bucks—that’s if a borrower ticks all the right boxes. The company’s substantial list of originations in the last year includes a $137.5 million mortgage loan for Cornerstone Real Estate Advisers’ 517,000-square-foot office tower at 100 Wall St. in Manhattan, and a $264.5 floating rate loan to a Brookfield Asset Management-managed fund for a five-property multifamily portfolio. NYL Real Estate Investors also joined Northwestern Mutual and New York State Teachers’ Retirement System in providing co-owners Prudential Real Estate Investors, SJP Properties and Norges Bank Investment Management with $507 million in financing for the 1.1 million-square-foot Eleven Times Square trophy office property in Manhattan.

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Jeff Gennette, Macy’s Inc.

Cincinnati—A few months after announcing plans to close down more of its stores, Macy’s is making headlines again. The company is getting ready to undergo some big executive changes, as longtime chairman & CEO Terry Lundgren will transition the position of CEO to Jeff Gennette in the first quarter of 2017. Lundgren will continue his work as executive chairman and work side-by-side with Gennette, who was elected president of the company back in 2014.

Gennette has now joined Macy’s board of directors and will take on additional management responsibilities throughout the transition period—including overseeing the organization of Macy’s stores.

Macy’s suffered a weak sales performance in the first quarter of 2016, and has already begun making changes this year with the announced closing of 36 stores in addition to the four closed in 2015. At that time, Lundgren said the closings were part of a “series of cost-efficiency and process improvement measures to be implemented beginning in early 2016.”

“While our company is larger, stronger and more resourceful than we were 13 years ago, now is the time to reset our business model to thrive in a future that is being driven by rapid evolution in consumer preferences and shopping habits,” said Lundgren in a statement. “Our company must and will change in response to the profound secular forces that are driving consumer spending.”

Prior to his appointment as Macy’s president in 2014, Jeff Gennette served as the company’s chief merchandising officer since 2009. Prior to that, Gennette served as chairman & CEO of Macy’s West in San Francisco. Gennette’s track record also includes positions with FAO Schwartz and Broadway Stores Inc. Born in San Diego, Gennette is a graduate of Stanford University.

“We have successfully navigated our way through changing customer trends in the past and there is no doubt that Macy’s Inc. will need to be a significantly different retailer in the future in the way we operate and approach the marketplace,” stated Gennette. “But we must also continue to tackle our immediate priorities with vigor and discipline. Terry and I have an outstanding relationship and we will continue to collaborate closely through this CEO transition process.”

Image courtesy of WCPO Cincinnati

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U-Haul Moving & Storage of Harrison Township

Cincinnati—A former shopping plaza located at 3936 Salem Ave. has been redeveloped as a new self-storage facility. Behind it is Phoenix-based U-Haul International Inc.

“This building has been a myriad of things over the years, and it was beginning to look rundown after sitting abandoned,” General Manager Matt Barnhill said. “It’s exciting to give this old building a new purpose. We’re going to be able to serve more customers. People already love it. My local move average is only six miles, so our residents like a facility that’s nearby and convenient to them.”

The existing site had served the area since 1992, but didn’t offer any self-storage, according to the prepared statement.

“Before we acquired this property, there weren’t any self-storage units available at this location,” said Mark Quinn, U-Haul Company of Dayton president. “Now we have constructed 138 indoor climate-controlled storage units to offer our customers.”

The 10,026-square-foot facility is less than two miles from State Route 49. Self-storage clients have access to 24-hour electronic key-card entry, state-of-the art security features and units at varying sizes and price points.

“Self-storage is a booming business with a lot of our customers,” Barnhill added. “There wasn’t a whole lot of storage in this area until we stepped in and met a need.”

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Cold Spring, Ky.–Compass Self Storage, a member of the Amsdell family of companies, has purchased a new self-storage center in Cold Spring, Ky., a suburb of Cincinnati. With this acquisition, the company now has 70 properties in its portfolio.

6307 Licking Pike in Cold Spring, Ky.

Located at AA highway and State Route 915, the property offers more than 65,000 net rentable square feet and features drive up and climate-controlled units, electronic access, online payments, truck rental and a full line of moving and packing supplies. The new Compass Self Storage location at 6307 Licking Pike will also offer a smart phone app that will allow customers remote gate access via their phone.

“The addition of this self storage property will allow us to further expand in the greater Cincinnati market and offer a convenient, one-stop shop for the moving and storage needs for the residents and businesses in this area,” stated Todd Amsdell, president.

Both the buyer and seller were represented in the transaction by Ryan Clark, senior vice president, and Jay Crotty, managing partner, of SkyView Advisors, the Inside Self Storage reported.

Compass Self Storage currently has seven locations in the greater Cincinnati market. Earlier this year, the company bought its fifth Nashville area facility. Recent expansions also include the purchase of a new self-storage center in Taunton, Mass. and the acquisition of the company’s third property in Philadelphia.

Image courtesy of Compass Self Storage

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Dolce Lifestyle Hotel and Conference Center at Madison Center Cincinnati

Cincinnati—Skanska has signed a contract with RBM Development to oversee construction of the Dolce Lifestyle Hotel and Conference Center at Madison Center Cincinnati, in the eastside Cincinnati neighborhood of Madisonville, the company announced late last week.

The project is an adaptive reuse, with some new construction, of an existing parking garage into a 239-key, 426,000-square-foot, full-service boutique hotel and conference center. The nine-story building will feature an eight-story atrium, 16 event spaces, a rooftop garden, outdoor dining area, restaurant/lounge and a bridge connecting the hotel to the complex’s mixed-use center. It will be the first Dolce hotel in Ohio.

Skanska USA Building reportedly will include $51 million in its second quarter 2016 order bookings for the project; the hotel’s total price tag appears to be close to $60 million. The project was designed by CR architecture+design and SAMACH+SEO. Construction is scheduled to begin this month and be completed by December 2017.

Dolce Hotels and Resorts, which was purchased by Wyndham Hotel Group in February 2015, operates 23 properties worldwide.

The overall Madison Center project lies on a roughly 29-acre site that used to house a NuTone manufacturing and warehouse complex. The majority of the property was redeveloped as the three-building, 332,000-square-foot headquarters of Medpace Inc. The company is a global clinical research organization, aka contract research organization, that is, a company that provides research support to pharmaceutical companies and/or medical device manufacturers.

Just about a year ago, Medpace won approval from the Cincinnati City Council for a $126 million public-private redevelopment of the remaining 8 acres, to include, besides the hotel, two office buildings totaling 160,000 square feet, 75,000 square feet of retail space and a public plaza. A possible luxury residential component is also under consideration, according to marketing material from JLL, which handles leasing at Madison Center.

The developer, RBM Development, is owned by Dr. August Troendle, founder & CEO of Medpace.

JLL was unable to provide additional information, and neither Wyndham, Skanska nor RBM Development responded to Commercial Property Executive’s requests for further information.

Rendering courtesy of JLL

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Colerain High School

Cincinnati—The Northwest Local School District has signed a $77 million contract with Skanska and its joint venture partner, Megen Construction, to manage its master facility plan, a multi-building development and renovation project in Cincinnati.

The contract stipulates that the joint venture will supervise the design and construction of three new replacement elementary schools, as well as the renovation of Colerain High School, Northwest High School, White Oak Middle School and Monfort Heights Elementary School. The three new elementary schools are all targeting LEED Silver certification.

SHP Leading Design is the project architect. Construction is scheduled to begin in October 2016 and is expected to be completed by August 2018.

This is the second $70 million-plus project that Skanska and Megen Construction have been awarded recently; in May, the joint venture signed a $70 million contract to renovate Fifth Third Arena at the University of Cincinnati.

Image courtesy of Google

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Liberty Township, Cincinnati

Cincinnati—At the northeast corner of Liberty Way and Cox Road, 90 acres of land will be developed into a massive mixed-use project having as anchor a new ambulatory care center. TriHealth has contracted with Dayton-based Miller-Valentine Group to buy 33 acres of land at 8000 Liberty Way for the new ambulatory care center. The financial details of the transaction were not disclosed.

Miller-Valentine Group has 90 acres under contract at the location and hopes to close on the project by the first quarter of 2017. The site, formerly agricultural, has been owned by Hen-Jur LLC and controlled by Ford Development Corp. since 2002. The development company acquired the land in early 2015, which later was rezoned for office space.

“This new facility will make it easier for our growing physician community in Liberty Township, West Chester and surrounding areas to provide a broad range of health services in one location convenient for area residents,” Mark Clement, president & CEO of TriHealth, said in a prepared statement.

“We will be able to integrate and expand a number of physician and ambulatory services, now at various locations in the area, into a single, multi-specialty campus offering the best care and service available. This is an important step in meeting the needs of patients in the Butler and Warren communities who are increasingly turning to TriHealth for their care,” he added.

Specific details about the medical building will be released later this summer.

Image courtesy of TriHealth

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Pictoria Tower, Cincinnati

Cincinnati—Privately held real estate investment company Fairbridge Properties recently announced the acquisition of Pictoria Tower, an eight-story office property located within the Pictoria Corporate Center. Fairbridge paid MEPT Pictoria LLC $25.7 million for the building, which is currently 98 percent leased.

Thomas Powers and James O’Connell, executive managing directors, along with Michael Sullivan, senior vice president of Cushman & Wakefield, represented the seller in the transaction. Cushman & Wakefield will also manage the asset for Fairbridge.

Pictoria Tower is a Class-A office property totaling 252,985 square feet of space located at 225 Pictoria Drive. The building features a state-of-the-art conference center and recently-upgraded lobby, which includes a two-story water wall with various natural elements in a park-like setting. Pictoria Tower is situated close to Interstate 275, Interstate 75 and Route 4, as well as various shopping, restaurants and entertainment venues. Tenants benefit from a seven-level parking garage, which is immediately adjacent and linked to Pictoria via a covered walkway.

“We were immediately attracted to this property given the building’s excellent condition, and its impressive list of strong, long-term tenants, which will provide stable cash flow,” Dr. Dmitry Gordeev, Fairbridge Properties’ founder & managing partner, said in prepared remarks. “This property met all of our investment criteria, including a location in the vibrant Cincinnati metro area which is quickly becoming a top destination for companies.”

“With some of the world’s most prestigious and dynamic companies setting up new operations in Cincinnati, we view Pictoria Corporate Center as an ideal investment to add to our growing portfolio of secondary-market properties with high upside potential,” Gordeev added. “The re-emergence of Cincinnati as a thriving business hub is a key value driver for this property, along with numerous operational and infrastructural efficiencies that we plan to implement immediately.”

Currently there are 4,000 square feet available in the building, with Rusty Myers, executive vice president with JLL as the listing agent for the space. Tenants in the building include First Financial Bancorp, Northcorp Grumman Corp., Beckfield College, Health Span, Ameriprise Financial, Yusen Logistics and Ultimus Fund Solutions LLC.

 Image courtesy of Fairbridge Properties

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Fifth Third Arena at the University of Cincinnati

Cincinnati—The University of Cincinnati recently signed a contract to designate the construction firm selected to renovate Fifth Third Arena. The renovation of the multi-purpose arena will begin in June and is slated for completion in November 2018.

UC signed Skanska USA and joint partner Megen Construction to an almost $70 million contract to upgrade the University’s Bearcats men’s and women’s basketball teams and women’s volleyball team. Skanska has a 70 percent share of the contract, worth about $50 million.

Plans call for both the interior and exterior of the 26-year-old facility to get a facelift. A 360-degree seating bowl would be created, reducing capacity to 11,500 from 13,176, but adding more comfortable seats. Renovations also include new concessions and restrooms, an upper-level concourse with fan amenities, expanded food and beverage options and a new Bearcats lounge and super suites. A new main entrance and plaza with ticketing and guest services are also included. Furthermore, the project is pursuing LEED certification.

Image courtesy of Skanska

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John Rubin, Associate Director, NGKF Cincinnati

Cincinnati—Newmark Grubb Knight Frank (NGKF) recently announced that John Rubin has joined its Cincinnati office as associate director. In his new position, he will work with the leasing team of NGKF’s Doug Altemuehle and Darin Armbruster.

Rubin specializes in office brokerage, representing both investors and occupiers. As associate director, he will assist clients with understanding rights and liabilities throughout the whole landlord-tenant relationship cycle. Prior to joining NGKF, Rubin served as advisor with Cresa Cincinnati, working exclusively as office tenant representative. Before Cresa, he worked on preparing real estate contracts, commercial leases, closing documentation, and mortgages for law firm Cohen, Todd, Kite & Stanford.

Rubin holds a JD degree from University of Cincinnati’s College of Law and a BA degree in Political Science from Miami University. He is an active member of several professional and charitable entities, including the University Club of Cincinnati, the Young Professional LEAD Program, 1879 Club, and the Jewish Federation of Cincinnati. He is also an Ohio-licensed real estate broker.

Image via LinkedIn

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