There are lots of different opinions as to what constitutes successful development in Cincinnati. but Bowdeya Tweh’s story on the new 580 apartments from November 12 highlights several of the most crucial considerations.
First off, a little history.
The 580 Building at 580 Walnut St. went into foreclosure in 2011 after Great American Insurance Group moved to their new quarters in the 41 story office tower that now bears their name.
It was a disaster. With so much vacant office space flooding the market all at once, there wasn’t much hope until Anderson Birkla Investment Partners, a developer out of Indianapolis, stepped-in at fire sale prices to convert the 17-story property into 176 residential units, office space, lots of restaurant options at the sidewalk level like the hot Pi Pizzeria, plus the 419 space parking garage.
Talk about creative reuse. Even though the first phase won’t be finished until next spring, people are so eager to live downtown that 20% of the units already have signed leases and the agent thinks the rest will go fast. Building amenities include an outdoor yoga garden, private movie viewing room, WiFi area, coffee bar and outdoor terrace with trees.
Sure, the city had to throw in financial incentives to make the numbers work: 12 years of abatement on 75% of the $43,000,000 of improvements or about $5.3 million total in lost property tax revenues.
But that’s a great investment for the city on a building that just sold for $13,700,000. If downtown Cincinnati continues to be the place where everybody wants to live (and why shouldn’t it be?), the value should be at least $50,000,000 when the 580 Building rejoins the rest of the property tax paying public twelve years from now.