Rubenstein Partners JV Grabs Two Properties in Cincinnati
- Feb 19, 2015
Rubenstein Partners L.P. recently joined forces with SCP Elm Plum L.L.C. and Parkway Corp. on the acquisition of 312 Elm St. and 312 Plum St., two neighboring office buildings featuring an aggregate 610,000 square feet in downtown Cincinnati, Ohio. The joint venture purchased the assets from Smith/Hallemann Partners and Harbert Management Corp., which had acquired 312 Elm and 312 Plum in a larger portfolio purchase from Duke Realty Corp. in 2011 for approximately $49.4 million and $21.2 million, respectively, according to Hamilton County records.
Developed by Duke, the properties carry addresses just one block away from each other and sit adjacent to the city’s NFL and Major League Baseball stadiums. 312 Elm first opened its doors in 1988, offering 380,000 square feet of office space spanning 26 floors, while the 15-story 312 Plum made its debut in 1992 with 230,000 square feet.
The properties dovetail perfectly with Rubenstein Partners’ core strategy of investing in value-add office assets. There’s ample upside potential here.
“Downtown Cincinnati is in the midst of a significant revitalization spurred by several large corporate relocations and an accelerating residential boom, particularly in the immediate vicinity of 312 Elm Street and 312 Plum Street,” Brandon Huffman, regional director for the Midwest with Rubenstein, noted in a press release. Additionally, the portfolio’s current occupancy level of 84 percent provides an opportunity to capitalize on increasing rents, which are forecast to go on the upswing as positive market activity continues, according to a report by DTZ, the commercial real estate services firm that brokered the transaction.
There’s much more to come from Rubenstein Partners in 2015. Huffman told Commercial Property Executive, “We expect to be actively involved in all markets in the Eastern U.S., including several Midwest markets. There is no set budget for this year, but we are operating out of a discretionary fund with enough capacity to allow us to be very active this year.”