Thursday, September 16, 1999
INDUSTRY NOTES: REAL ESTATE
Residential, commercial do flip-flop
BY JOHN J. BYCZKOWSKI
The Cincinnati Enquirer
Construction activity has see-sawed for a few years in Greater Cincinnati. When commercial construction is up, residential is down. When residential rises, commercial falls. There's little logic to it, and next year, it appears the same will happen.
For 1999, residential construction will beat forecasts and rise, while the commercial market will fall. In 2000 — a forecasting panel says — commercial construction will rise 7.6 percent to 11.3 million square feet, while home building will fall 12 percent to 10,400 units.
The forecast was released Wednesday by an economic advisory committee working jointly for the Greater Cincinnati Chamber of Commerce and the Partnership for Greater Cincinnati.
One market driver on the commercial side is the Internet: E-commerce is lowering demand for retail space, but because of the region's proximity to major markets, it's raising demand in this area for warehouse space. The big factor expected to hurt housing is rising interest rates.
Apartment complexes sold for $4 million
In one of the larger sales of its type this year, three apartment complexes near Amelia totaling 172 units were sold for $4 million.
Hamlet Manor, Hamlet Square and Hamlet Crossing were bought by AR III, owned by investor Jim Robinson of Lima. Rents are in the range of $450 a month for a two-bedroom apartment. The sale was handled by Jeff Dilbone and Steve Turman of REMAX Greater Cincinnati Commercial Group.
Mr. Turman said the market among investors for apartments is busy, as nervousness about the stock market drives some to own bricks and mortar.
Along those lines, CB Richard Ellis recently represented InterGroup Corp. in the sale of two apartment complexes for $6.6 million. Arlington Arms in Middletown has 150 units, and Woodland Village in Cincinnati has 100 units. David Lockard represented InterGroup for CB Richard Ellis.
Kiesland Construction busy, looking to expand
Having made two important hires, Kiesland Construction is looking at expanding beyond its traditional Tri-County base.
The company has grown to ownership of almost 1 million square feet of office, warehousing and manufacturing space. In April, the company added a director of administration — attorney John Henderson — to oversee operation of the properties and negotiation of leases. And Vernon Schmid was hired at vice president of business development.
Kiesland owns land in Lebanon and is looking there and elsewhere for opportunities to build speculative space, Mr. Schmid said. Its Century I office building on Kemper Road is 100 percent occupied, and “with the right anchor tenant, we'll kick off Century II,” expected in a few months, he said.
Kiesland will also soon begin expansions for two existing tenants of its properties.
N.Ky. development has a slow summer
Let's face it: We live in a what-have-you-done-lately world. Northern Kentucky early this year landed a big new GE Capital operation, but since? Silence isn't what we're used to in Northern Kentucky.
Danny Fore, president of Tri-ED in that region, admits “things have been a little slow over the summer months,” but that the economic development agency is kicking off its fall marketing efforts soon.
That includes some joint efforts, in particular with the Partnership for Greater Cincinnati. Tri-ED's Dan Tobertge is joining three other local economic development folks on a trip to Chicago to visit site consultants. Next comes the Southern Automotive Manufacturers show in Birmingham, Ala., with Kentucky development officials. Tri-ED is also launching a print and direct-mail campaign aimed at site consultants in New York City, to be followed by a visit from Mr. Fore.
As for following up GE Capital, “we do have active projects that are quite significant, but it takes a while for projects to develop,” he said.
Duke breaks ground on project for Isuzu
Duke-Weeks Realty Corp. broke ground Wednesday on a massive project for Isuzu Motors America. A 615,000-square-foot parts distribution center at World Park in Butler County's Union Township will be operated jointly by Isuzu and Promax Automotive Inc. The building will also be Promax's headquarters.
Contact John Byczkowski at 768-8377, or e-mail him at johnb@enquirer.com.
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INDUSTRY NOTES: REAL ESTATE
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