Office vacancies have reached the highest mark in a decade. Few large tenants are looking for space. And banks wary of a development bubble are reluctant to fund much of anything.

        Yet Mount Carmel developer Ackermann Group is pushing ahead with $65 million in three office and retail projects that many experts agree are among the trickiest in Greater Cincinnati.

Optimistic despite a slow rental market, Ackermann Group partners T.J. Ackermann (left), Greg Long and Dobbs Ackermann have a major development planned in Norwood. Cornerstone will be near Interstate 71. (Glenn Hartong photo) | ZOOM |

        Partner Dobbs Ackermann says he wants to be known as a developer willing to complete projects that others don't have the patience or will to pull off.

        “The reputation we are trying to have follow us is we are willing to do a little more to make sure a project works,” Mr. Ackermann said.

        His chosen territory: Interstate 71 from Kenwood to Northern Kentucky.

        This narrow stretch of Greater Cincinnati has been the exception in an otherwise lackluster office market. Several developers already have scouted sites along I-71, looking to duplicate the success of projects such as Rookwood Commons in Norwood and Center of Cincinnati in Oakley. Ackermann has found willing partners in the inner-ring suburbs of Bellevue, Norwood and Silverton. These communities, struggling to boost tax base in sprawling Greater Cincinnati, see development as the answer to improved prosperity.

        “These projects generate tax base, which pays for the services of this community,” said Rick Dettmer, development director of Norwood. “City services are primarily funded through earnings taxes, not property tax.”

        Ackermann's three office developments include:

        • Two 30,000-square-foot, build-to-suit office buildings near the Stewart Road exit in Silverton. The site includes about 1.5 miles of upgraded water and sewer lines funded by Silverton. Miller-Valentine Group owns a 50 percent stake in the project.

        • The $35 million Cornerstone of Norwood will include a 150,000-square-foot office tower and a city-owned, 633-space underground garage. It's near Rookwood at the Smith-Edwards exit off I-71. Plans also call for 50,000 square feet of retail. Al Neyer Inc. will design and build the project.

        • Three office buildings totaling 90,000 square feet, 50 upscale townhomes and a bike path and a marina are planned for a 7.7-acre site on the Bellevue riverfront. Ackermann is still negotiating deals to acquire private property and incentives from the city of Bellevue.

        Mr. Ackermann is aware of the perception that big developers get what they want, when they want, from small cities. He's trying to dispel that belief by talking to as many city officials and citizens as possible.

        So far, that approach has received high praise.

        “Many of the developers came in here saying, "We want this or we're walking,'” said Don Martin, city administrator of Bellevue. “They (Ackermann) are more patient. They are willing to sit down, be creative and discuss things.”

        The Ackermann Group and Bellevue still have several details to discuss before the pricey homes, office space and marina are built. Possible public/private financing schemes for the $25 million project include using industrial revenue bonds, which transfers ownership to the city, or tax increment financing, a method of using property taxes to cover costs.

        Bellevue has negotiated a letter of intent to sell a 6-acre site to Ackermann, but Mr. Martin would not reveal the price until the deal is complete. Ackermann still must purchase six private homes, Mr. Martin said, and the city is willing to help Ackermann acquire them.

        “We want them to negotiate first,” Mr. Martin said. “If they come to the city and ask to assist them, the city would likely do that,” through eminent domain.

        In Norwood, the developer spent more than $2 million to acquire 17 modest homes along I-71. In most cases, the purchase price far exceeded the home's market value. “The way the Ackermann Group dealt with the residents was a very responsible approach,” Mr. Dettmer said.

        That's the type of endorsement Mr. Ackermann craves.

        “We develop in areas where we live,” Mr. Ackermann said. “We want to make sure the community gets something it wants.”

        The Ackermann Group has been primarily a home and apartment builder during its six-decade history in Greater Cincinnati. The latest projects are an aggressive new step for Ackermann.

        Despite spending about $5.5 million on property and other costs so far on the three projects, the developer won't start building anything until if finds some tenants.

        That can be tough in today's market.

        But Ackermann partner Greg Long said the locations of the three projects make a sales pitch to prospective users a bit easier.

        “Activity has definitely picked up,” Mr. Long said. “We've had three meetings this week with prospective tenants,” at Cornerstone.

        Mr. Long said snaring a retail or large office user will be enough to kick-start to Cornerstone project. The city of Norwood already has approved a tax-increment financing deal allowing Ackermann to use property taxes to pay for construction of the parking garage.

        A small office user will be enough to start the Silverton project, too, Mr. Ackermann said.

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