Dayton CBD Asset Heads For Auction Block
- Jul 28, 2015
A Dayton office building with upside potential getting ready to to hit the auction block.
CBRE announced this month that it has been hired to sell the Class B office building at 111 W. 1st St. in an online auction scheduled for August 27. The opening bid will be $295,000. An initial earnest money deposit of $30,000 is required in order to participate at the auction.
CBRE Auction Services, the owner of 111 W. 1st St., an unnamed private equity firm, considers the building a non-strategic asset, said Douglas Johnson, managing director of CBRE Auction Services. The 161,164-square-foot property is located at the intersection of 1st and Ludlow Streets, in the northwest quadrant of the Dayton CBD, with access to I-75 and SR 35. At the moment it is only 23 percent occupied; tenants include Fifth Third Bank, Agnes Grill and the law firm of Doll, Jensen & Ford.
The property’s low occupancy offers a potential investor the opportunity to optimize space requirements for new tenants, as well as the flexibility to negotiate rents, according to CBRE. In a recent report, DTZ said that the Dayton office market absorbed 37,658 square feet in the second quarter, mostly in Class B buildings. Vacancy has decreased in the past two years and currently sits at 24.5 percent. The overall average asking gross rental rate was $14.56 per square foot in the second quarter, compared to average Class B rents of $13.45 per square foot. DTZ expects rents to remain flat in the near future but also said that continued activity could trigger long-term rent growth.
Photo credit: CBRE