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Late-Summer Flurry in Office Market

3 Sep 2015, 4:20 pm

By Adrian Maties, Associate Editor

Summit Woods II

Summit Woods II

As summer winds down, the Greater Cincinnati office market is generating no shortage of activity. After Duke Realty sold six of its Warren County office buildings for $103 million to a fund sponsored by Apollo Global Management, another out-of-state investor purchased a multi-tenant office building, this time located in Sharonville.

Jim Bates, owner of Versailles, Ky.-based First Technology Capital, is the new owner of Summit Woods II, a 150,000-square-foot office building located at 300 E-Business Way. He purchased the property from Sabal Financial Group L.P. for more than $14.6 million, or $97 per square foot, according to the Cincinnati Business Courier. David Rogers, principal broker with Rogers Realty Group of Lexington, Ky., represented Bates and told the Business Courier that the deal is his client’s first acquisition in the market.

Summit Woods II was constructed in 2000. When Sabal purchased it, in February 2014 from CW Capital Asset Management for about $10.5 million, the property was only 60 percent leased. Now, however, the Business Courier reports that it is 90 percent leased to tenants such as BSI Engineering, Devicor Medical Products Holdings Inc. and Safran USA. As a result, Bates plans no significant changes to the property and will focus instead on backfilling the remaining space.

Photo credit: DTZ

Growing Companies Hunt for Elbow Room

3 Sep 2015, 3:03 pm

By Adrian Maties, Associate Editor

Lately Greater Cincinnati has been proving its power to attract growing companies, which are moving into the region, expanding and thriving.

Take Everything but the House, a fast-growing online auction firm, which the Cincinnati Business Courier reported is hunting for 18,000 square feet of space downtown. The planned move is part of the company’s growth strategy and represents an important win for the city, which will hold on to a company that also considered moving its headquarters to Chicago. Last year the company generated $14 million in revenue last year.

Although a lease has yet to be signed, the online auction firm hopes to move into the new space by the end of the year. On Monday, the Ohio Tax Credit Authority approved a 45 percent, five-year job creation tax credit valued at $103,000 for the project, which is expected to create 40 full-time jobs and generate $2 million in annual payroll by the end of 2018. To qualify for the credit, the company must keep its operations in downtown Cincinnati for at least eight years.

Everything but the House is not alone in its search for elbow room. The Business Courier also reported that a second company, California-based Printograph, is growing in the area. The online printing firm plans to invest $6.1 million in a 32,000-square-foot expansion at its 2000 Arbor Tech Drive facility in Hebron.

Like Everything but the House, Printograph is receiving a boost from the local government. On Aug. 27, the Kentucky Economic Development Finance Authority approved $230,000 in tax incentives for the project. Over the next three years, Printograph’s expansion will add 35 new employees to the company’s current workforce of 110.


Duke Eyes Continued Selling Spree

3 Sep 2015, 2:36 pm

By Adrian Maties, Associate Editor

4680 Parkway Drive

4680 Parkway Drive

Duke Realty Corp. is continuing its plan to shed office assets in Greater Cincinnati. After selling six of its assets in the area for $103 million in August, the Indianapolis-based REIT has placed four more Class A properties on the auction block.

Duke is now looking to sell the Governor’s Pointe portfolio in Deerfield Township, the Cincinnati Business Courier reported. According to the REIT’s website, the portfolio consists of:

  • 4605 Duke Drive: 180,000 square feet, eight stories, about 73,000 square feet vacant;
  • 4705 Duke Drive: 150,000 square feet, six stories, 9,350 square feet vacant;
  • 4660 Duke Drive: 75,000 square feet, three stories, fully occupied;
  • 4680 Parkway Drive: 126,000 square feet, four stories, 24,500 square feet available.

The Cincinnati Business Courier reported that Duke has retained DTZ’s Capital Markets team to market the properties. It includes Jim O’Connel, Mike Sullivan and Tom Powers. Although the listing price was not announced, real estate website PropertyShark reports that the combined market value of the properties is more than $25.5 million.

In its second-quarter report on the Greater Cincinnati office market, Marcus & Millichap noted that the area’s transaction velocity nearly doubled during the previous 12 months. What’s more, the average price per square foot jumped 13.2 percent to $136 per square foot.

Photo credit: Duke Realty Corp.

Electronics Recycler Doubles Up

28 Aug 2015, 8:00 pm

By Adrian Maties, Associate Editor

One of Greater Cincinnati’s largest private companies is expanding. Cohen Recycling started work this month on a $7 million expansion of its e-waste recycling facility in Middletown. The company held a formal groundbreaking for the project on Aug. 26.

The investment will almost double the size of the facility at 3120 S. Verity Parkway to 110,000 square feet. According to Cohen, the new facility will house a new processing system that increases production capacity eightfold to more than 20,000 lbs. of e-waste per hour.

Michelle Balz, assistant program manager for the Hamilton County Recycling and Solid Waste District, said in a statement that electronic waste is the fastest-growing waste stream. “Cohen’s expansion strengthens the electronics recycling infrastructure in Southwest Ohio to help us keep these valuable materials out of landfills,” she added.

The Cincinnati Business Courier reported that Cincinnati Commercial Contracting is building the project. It will take about six months to complete and it will result in the creation of 10 to 15 new jobs.

Adam Dumes, vice president of Cohen Electronics, a subsidiary of Cohen Holdings, described the project as a “great victory for the tri-state, but it is also a victory for everyone that supports sustainability and human health interests worldwide.” He added that the investment “reflects our commitment to provide the communities we serve a cleaner more sustainable environment.”

Apollo, Duke Wrap Office Deal

28 Aug 2015, 7:49 pm

By Adrian Maties, Associate Editor

Deerfield Crossing

Deerfield Crossing

Duke Realty Corp. continues to sell off its properties in Ohio. Most recently, Apollo Commercial Real Estate Finance Inc., an affiliate of Apollo Global Management LLC, paid $103 million for six assets, the Cincinnati Business Courier reported.

Warren County’s Deerfield Crossing is the star of the 700,000-square-foot portfolio. Duke placed the 320,000-square-foot property, which consists of two buildings at 5181 Natorp Blvd. and 5191 Natorp Blvd., on the market in March, and sold it for $42 million, or more than $131 per square foot. PropertyShark lists the total market value of the 92 percent-occupied Deerfield Crossing at $27.7 million.

The three Blue Ash Class A office buildings—Pfeiffer Woods, Westlake Center and Lake Forest Place—sold for $54.2 million, while the remaining Class B properties—Northmark I and Remington Park A & B—changed hands for $7.25 million. But Apollo did not hold on to the Class B buildings for long. According to the Business Courier, Meyer Properties Inc. has already sold these two properties bought the buildings for $7.5 million in a transaction that closed on August 24.

The transactions are part of Duke’s long-term strategy to dispose of its office portfolio and focus on industrial assets. The Indianapolis-based owner and developer is the largest industrial landlord in Greater Cincinnati, with 28 buildings and about 9 million square feet of space.

Photo credit: Duke Realty Corp.

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