With downtown Cincinnati’s apartment vacancy rate far below office vacancies, some investors are purchasing office buildings and converting them into apartments. One such investor is Indianapolis-based Anderson Birkla Investment Partners. It acquired the 580 Building on Feb. 5 for $13.7 million. The company now intends to redevelop the property into a mix of residential, office and entertainment space.
The 580 Building is located at 580 Walnut St. It occupies half a city block in one of the most desirable areas in Cincinnati’s central business district. The 17-story building has more than 500,000 square feet of office space, 30,000 square feet of retail space and a 400-car underground parking garage.
The two-tower complex was completed in 1973. Hamilton County records show the building sold for $30.1 million in 2003, but it fell onto hard times after the Great American Insurance Co., its largest tenant, moved out in 2011. It now joins three other buildings that recently sold for less than $30 per square foot: the Ingalls building, the Holiday Office Park and Centennial Plaza.
Cassidy Turley was involved in the transaction and will retain property management and leasing assignments. Cassidy Turley’s Don Murphy represented Anderson Birkla in the deal, while James O’Connell, also of Cassidy Turley, represented the seller, an institutional advisory firm, which acquired the property in a Sheriff’s Sale after the previous owner defaulted on a $24.7 million mortgage.
Anderson Birkla said it will invest $40 million in the project. The purchase price is included in the sum. The Indianapolis-based company will release more details about the project in 60 to 90 days.
“The $40 million investment to redevelop the 580 Building will revitalize and bring a resurgence to a prime downtown asset, creating a quality place of work, a unique opportunity for residents to live, and an exceptional place to be entertained,” said Anthony Birkla, a principal in the company, in a press release.
Photo Credits: Cassidy Turley
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