Over-the-Rhine's biggest landlord has agreed to sell most of his properties for more than $13 million, signaling a possible break in a generation-long roadblock to developing Cincinnati's most downtrodden neighborhood.

        Even Thomas Denhart, who controls thousands of low-income apartments, agreed that the contract signed with a company run by local businessman Tom Williams could bring new market-rate housing and retail into Over-the-Rhine.

        “I think in some respects the many people who wanted to invest in Over-the-Rhine looked at me as a blockage,” said Mr. Denhart.

        “Over-the-Rhine should become a socially and economically integrated neighborhood, and this should help.”

        The deal, announced Monday, includes 201 apartment buildings and 99 vacant properties.

        Downtown business and government leaders have called the sale of at least part of Mr. Denhart's properties to market-rate developers crucial. But advocates for the homeless are concerned that it will reduce low-income housing stock.

        While he has gotten close to selling the properties before, the contract commits Mr. Denhart if Mr. Williams' North American Properties continues with the deal.

        Mr. Williams could not be reached for comment. But he has been heavily involved in building a comprehensive development plan for Over-the-Rhine, and is expected to use the properties according to that plan.

        “It would be a shame to see all those low-income properties off the board,” said Alicia Beck, executive director of the Greater Cincinnati Coalition for the Homeless. “But it's a positive if he decides to go through with the Over-the-Rhine plan.”

        The contract, which must go through an auction and be approved by a federal bankruptcy court, comes after Mr. Denhart's collection of companies filed bankruptcy in August.

        That started three months of negotiations with Mr. Williams.

        Mr. Denhart's lawyer acknowledged the purchase price was more than $13 million.

        The contract includes properties owned by about 25 limited partnerships controlled by Mr. Denhart.

        It does not include buildings owned by another 17 limited partnerships that were not in the bankruptcy.

        Mr. Denhart will continue to operate those properties. He has signed contracts to sell 16 of the 201 apartment buildings. Those sales will continue.

        If North American Properties agrees to complete the sale after a due diligence period, it will buy whatever has not been sold.

        “I think Tom (Williams) wouldn't have spent this much time working in Over-the-Rhine if he didn't want to see it improve,” Mr. Denhart said.

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