Hertz Gets $42M Loan in Downtown Cincinnati
- Aug 29, 2011
August 29, 2011
By Nicholas Ziegler, News Editor
The Queen City has seen a shot of economic tonic, as The Center at 600 Vine, a 625,765-square-foot, Class A office building in Cincinnati, has been refinanced for $42 million. The building, just a block from Fountain Square, sits on the edge of the city’s Central Business District.
Originally built in 1984 as the Convergys Center, the property underwent a $9 million renovation in 2006 and was renamed The Center at 600 Vine. The property is currently 68 percent leased to tenants including FirstGroup America.
The loan, arranged by Holliday Fenoglio Fowler, L.P., was taken by the Hertz Investment Group L.L.C., for a 36-month, adjustable-rate term through U.S. Bank. Financing proceeds are replacing a maturing loan and providing for tenant improvements, leasing commissions and building capital costs.
Prime office space remains at a premium in Cincinnati. According to a Jones Lang LaSalle research report, the downtown area saw no new deliveries of office space in the second quarter of 2011 and, with only 20,000 square feet currently under construction, the city’s vacancy rate has likely peaked. Declining unemployment has been a positive sign, and urban submarkets have reported 74,000 feet of net occupancy growth, a positive trend for the first time since mid-2009.