Category: Business

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Business Development News

Garfield Suites Hotel To Be Converted Into 153-Unit Apartment Tower

Garfield Suites HotelLate on Friday afternoon the owner of Garfield Suites Hotel announced that the 34-year-old building would be converted back into apartments over the next year.

The news is tremendously positive for the center city’s residential and hospitality markets, both of which are experiencing their own transformations.

The 153-room hotel is one of the more dated in the marketplace, and it is facing increasing competition from new hotel operators at all price points. Such movements are forcing the hands of existing hotel owners to either make big investments to upgrade their facilities, close down or change uses. Removing these rooms from the inventory will make the market stronger for those other operators.

At the same time, there is virtually no apartment availability in the 45202 zip code, which covers Downtown, Over-the-Rhine and Pendleton. The location of this 16-floor tower is ideally situated for new residents looking to be in the heart of both thriving districts, and will almost certainly lease up in a matter of months.

Aside from the purely business aspects, this is also good for the vibrancy of the central business district. While there have been many new residential developments in Over-the-Rhine and at The Banks, it has been more difficult to inject large numbers of new apartments or condos into areas like this due to its existing buildout.

This particular location is one that is rich with jobs, but still struggling to reach a critical mass of residents that will support full-time service retail functions. Adding a couple hundred residents to the mix will go a long way to supporting that goal.

The interesting item about this project is that it is the building’s location that motivated its owners to convert it from apartments into a hotel 25 years ago.

At that time, the proximity to Over-the-Rhine was seen as a detriment and Downtown was not the place we know today. Those dramatic changes that have taken place in both neighborhoods over the past decade are now what is motivating the current owner to switch operations again.

This is a great example of urban resiliency.

The total cost of the renovation has not yet been determined, but owners intend to begin work in early 2016. They say that the plan will be to gradually make renovations so that the hotel can continue to operate as the units are gradually converted.

The owners also told Tom Demeropolis, who broke the story for the Business Courier, that they are also hoping to lease the 10,000 square feet of existing street-level retail space that sit vacant along Vine Street.

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Business Development News

New Corryville Store Design Reveals That Kroger Continues to Struggle With Urban Format

Corryville Kroger Elevations from CR Architects in 2008 [Niehoff Studio]

Located next to the University of Cincinnati and surrounded by some of the region’s largest employers, University Plaza has long sat as one of the most underutilized pieces of commercial real estate in the city.

With demolition work well underway, a new University Plaza will soon be realized, but will it be any better than what was has occupied the site since the early 1980s?

The public got the first idea of what that answer will be when the Business Courier published designs of what the new 92,000-square-foot Corryville Kroger will look like.

While no site plan has been released, the drawings show a two-level store that will face west toward Jefferson Avenue. The front façade will include numerous windows, while the other three sides would not. A drive-thru pharmacy will be located along Corry Street, and a surface parking lot will sit in front of the building, separating it from the street.

The front façade treatments and two-level store design are departures from Kroger’s previous urban store designs elsewhere in Cincinnati. The large surface parking lot, however, stays true to their typical development model and represents a departure from the earlier visions for the site that included a rooftop or structured parking facility.

In fact, the final arrangement for the redeveloped University Plaza site will most likely appear nothing like the original concepts first produced a decade ago. Over that time, dozens of concept plans have been developed for the site from the Niehoff Studio and three different professional design firms.

The Niehoff Studio has actually be researching the topic of urban grocery stores since 2002, and has published its findings on everything from the economic performance to the social impact and design of such stores.

“I applaud the initiative and risk taking involved to make this a two story format,” said Frank Russell, Director of the Niehoff Studio and Community Design Center. “This is a sensible solution to putting a sprawling large scale program on a valuable site in a dense urban setting. It relates better to the surrounding context which is multi-story, but it is very difficult to do from a functionality point of view.”

While the two-story structure is in line with the original recommendations, Russell says that the large surface parking lot is not ideal.

“That undoes some of the progressive intent of the two-story building design, especially at the important gateway corner of Jefferson and Taft,” Russell told UrbanCincy. “The best thing that I could say about that is that it is a land-bank for future structured parking and mixed-use development, notwithstanding a landscaped corner.”

While notably different than the original design concepts developed in the early aughts, the designs released yesterday appear to have not changed much from what was developed by CR Architects in 2008.

Kroger representatives say that the store will also feature an outdoor seating area, similar to what the company recently developed in Lexington. They also say that while the store will have two levels, customers will not actually use the second floor since it will be used for food preparation functions only.

Project officials say that the current store will close on September 12 so that it can be demolished. It is estimated that construction of the new store will take 12 to 14 months and open at the end of 2016.

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Business Development News

Project Officials To Move Forward With Phase III of The Banks Ahead of Schedule

The Banks [Brian Spitzig]

Business leaders and public officials from the City of Cincinnati and Hamilton County will gather tomorrow morning to celebrate the groundbreaking of the next phase of work at The Banks.

As has been done in the past at the massive central riverfront development, the first work to be done will be the construction of a public parking garage that will lift the project out of the Ohio River’s flood plain. From there, the existing public streets surrounding the project site will be extended to frame the block.

While the event is being touted as a groundbreaking ceremony, workers from Prus Construction and Beaty Construction began mobilizing on the site to perform preparation work. The news is a bit of a departure from previous announcements that said construction work would hold off until the close of the Bengals season in order to preserve parking for tailgaters at Paul Brown Stadium.

In this particular phase of work, project officials say that 690 parking spaces will be built on two levels that will be connected with the rest of the underground parking deck at The Banks, which has been casually described as one of the largest underground parking structures in North America.

This $29.3 million effort is being jointly funded by the City of Cincinnati, Hamilton County, and the State of Ohio’s Jobs Ohio program. Representatives from the various public agencies funding the project say that it will create an estimated 200 jobs, with at least 30% of the contract totals spent with Small Business Enterprises.

Such a claim for small business inclusion is on-target for what the project has been delivering thus far. As of June 2015, the latest reporting date, The Banks has had an average of 36% small business participation and approximately 17.5% minority and female workforce participation.

Nearby work continues on the private sector vertical construction of Radius, a 291-unit apartment midrise with 19,000 square feet of street-level retail, and the 340,000-square-foot General Electric Global Operations Center.

Once these two phases of work are complete, it will allow for the next phase of Smale Riverfront Park to move forward, and will set the stage for private real estate development south of Freedom Way and in between Race and Vine Streets.

So far, Carter USA and the Dawson Company have yet to reveal what will ultimately be built on top of this latest garage extension, but most suspect it will be some combination of apartments and condominiums.

While The Banks has received much positive praise as of late, it has not come without its struggles. The retail in the first phase of the project continues to find its footing, and the area continues to struggle with a brand identity and architectural designs that people feel are worthy for the prominent piece real estate that this development occupies.

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Business News Transportation

Beyond Downtown, Cleveland’s RTA Rebuild Spurring New Development

Cleveland RTA [Derek Bauman]

Amidst further positive national news for upgraded Midwestern rail service, All Aboard Ohio met in Cleveland for their summer meet-up. At the weekend-long gathering, the group toured the Greater Cleveland Regional Transit Authority’s numerous heavy rail, light rail, and bus rapid transit lines.

Often unknown to outsiders, the Cleveland area boasts some 39 miles of rail transit, with daily ridership of over 53,000. As a result, Cleveland’s transit ridership dwarfs that of both Cincinnati and Columbus. Even though Cleveland is approximately the same size as Cincinnati and Columbus, its transit ridership is bigger than both of them combined.

In addition, All Aboard Ohio executive director Ken Prendergast led the tour and showcased the substantial amount of transit-oriented development that is taking place throughout Cleveland.

With the opening of Cincinnati’s first few miles of rail transit just over a year away, it made the tour particularly relevant. As a result, I was joined by a small Cincinnati contingent including City Councilman Chris Seelbach (D), SW Ohio Director of All Aboard Ohio Derek Bauman, and Price Hill community leader Pete Witte.

The group’s tour began at Terminal City Tower in downtown Cleveland, where inter-city trains once stopped and all rapid transit lines currently meet. From there we took the Green Line to the lakefront, passing large-scale transit-oriented development along the Cuyahoga River, the Port of Cleveland, Cleveland Brown Stadium, Rock & Roll Hall of Fame, and the city’s Amtrak station.

Negotiations are currently underway for the construction of a large intermodal hub where Amtrak is currently located, combining Amtrak, Greyhound, Megabus, and many local buses from Akron and other cities into one complex.

The Green Line’s E. 55th Street Station was showcased after having been rehabbed in 2011. It is part of GCRTA’s program to rebuild every station in its system. Nearby this still young station, an old hospital is undergoing a $75 million redevelopment that will refit it with apartments.

Changing to the Blue Line, the train ran through semi-suburban areas that reminded the Cincinnati contingent of the Wasson Corridor. Among these areas is the Van Aken District at the Warrensville Station at the end of the line. There, Joyce Braverman, the planning director for Shaker Heights, gave us a walking tour of the area and detailed the numerous transit-oriented developments currently under construction, including a $91 million residential development and a rebuild of a pedestrian-unfriendly intersection.

A newly renovated station – just four days old – greeted us at Little Italy along with the Feast of the Assumption Festival. In addition to the throngs of neighborhood residents filing in and out of the trains, redevelopment can be found nearby in University Circle. During an opportunity to speak with the president of University Circle Inc., he boasted about the area’s transformation from a run-down district with multiple surface parking lots into one of the city’s most desirable neighborhoods.

The numbers back up the claims. In just a decade, more than $6 billion in private investment has flowed to the neighborhood, generating some 10,000 new jobs and 11,000 new residents.

While serviced by RTA’s Red Line, this particular area is also anchored by Cleveland’s now famous Health Line BRT, which runs along Euclid Avenue to the center city and is the highest-rated BRT line in North America.

Through this station rebuilding program, Cleveland has used it as an opportunity to leverage an impressive amount of private investment in the surrounding areas. While success of downtown Cleveland has been well-publicized amidst the continued struggles elsewhere in the region, there are bright spots popping up along the city’s transit corridors. With more than 100 rail and BRT stations in the region, many more opportunities seem to be on the horizon.

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Business News

Dirt’s Opening at Findlay Market Bolsters South Side of Market, Evening Activity

Dirt: A Modern Market [Provided]

After a soft opening in July, Dirt: A Modern Market finally opened its doors on August 4.

“We are a full-time retail store at Findlay Market selling locally produced goods,” said Karen Kahle, who served as project manager until April. She also wrote the grants that ultimately funded the effort from the Interact for Health Foundation.

Based on the Local Roots store concept in Wooster, OH, Kahle says that she, along with Rebecca Heine and Mike Hass, were inspired to move forward with the idea after visiting the shop during a trip to Cleveland for the International Public Market Conference in September 2012.

“We loved the idea of the ‘consignment shop’ for local food,” Kahle explained.

The market is hoping to make locally grown and produced foods available to Findlay Market shoppers every day the market is open. The trio says that they want to create another way for local growers and producers to sell their product and increase revenue in order to help them become more sustainable and profitable.

A broader goal in the long run, Kahle says, is to help educate the public on the health and environmental benefits of eating fresh local foods, while also promoting community involvement and sustainable living.

The market is currently selling fruits, vegetables, meats, cheeses, dairy products and cottage goods. Customers will notice that the shop functions a bit like a consignment store where growers and producers rent space by the week or the month, set up their own individual displays, and set their own prices. They are then reimbursed 70 to 80% of their gross sales.

Located in between Maverick Chocolate and Eli’s BBQ, the opening of Dirt is yet another shot in the arm for the once struggling south side of the Findlay Market.

Dirt’s operating hours also show a commitment to the efforts to increase evening business activity in the area. They are currently open from 10am to 7pm Tuesday through Friday, 8am to 6pm on Saturdays, and 10am to 4pm on Sundays. The shop is not open on Mondays.

“Dirt: A Modern Market will market food products that celebrate what is unique and best about a community – its local crops, ethnic traditions, and creative populace – while keeping a greater percentage of food dollars circulating in the local economy,” said Kahle.