DTZ Secures Financing for 2 Towers in Cincinnati
- Mar 16, 2015
DTZ isn’t talking numbers but the commercial real estate services firm recently secured financing for Rubenstein Partners and SCP Elm Plum L.L.C.’s acquisition of two office towers, 312 Elm and 312 Plum, totaling approximately 610,000 square feet in downtown Cincinnati. The properties last traded in 2011 for an aggregate $70.6 million.
“The transaction priced very efficiently, which allowed the borrower to take advantage of these ultra-low rates,” John Campanella, executive managing director at DTZ, told Commercial Property Executive. DTZ did double duty with the assets. The firm served as the broker on the sales transaction, and secured the financing from a life company, which was one of 10 lenders to participate.
Both 312 Elm and 312 Plum were developed by Duke Realty. Constructed in 1988, the 26-story 312 Elm is the larger of the two buildings, with 380,000 square feet. Four years later, 312 Plum sprouted up a block away with 230,000 square feet spanning 15 floors.
The properties boast one of the most desirable locations in the city, sitting just across from The Banks, an 18-acre entertainment and residential development anchored on either side by Cincinnati’s NFL and Major League Baseball stadiums. And the tenant roster at 312 Elm and 312 Plum is none-too-shabby either. The towers are 88 percent occupied, serving as home to the likes of Gannett/The Cincinnati Enquirer, leading beauty-care brands manufacturer Kao USA Inc., which signed a long-term lease for 55,000 square feet at 312 Plum in 2012, and a host of federal government agencies.
Lenders found a lot to love at 312 Elm and 312 Plum. Simply put, Campanella added, “[The properties offer] great Class A office space and are well located with solid credit tenancy.” Additionally, the prospects for taking the buildings’ occupancy percentage well into the 90s are promising, as Cincinnati’s office market is on the upswing. As DTZ notes in a fourth quarter 2014 report, the market has seen four consecutive years of positive absorption, and looking ahead, “long-term sustainable office-using job growth will translate into increased demand for office space.”