Apr 15 2010
It takes nine partnering organizations, $37 million and a lot of perseverance to re-adapt an iconic 1920s hotel as an office anchor for an urban neighborhood. But, in Cincinnati, Ohio, the project and investor teams have aligned for the 2010 construction start that transforms the former Vernon Manor hotel, where President John F. Kennedy and the Beatles once stayed, into office space for world-renowned Cincinnati Children’s Hospital.
Vernon Manor Hotel
The hotel sits in the heart of a central Cincinnati neighborhood called Avondale, which has struggled with revitalization efforts.
City of Cincinnati Mayor Mark Mallory and City Manager Milton Dohoney, Jr. joined State of Ohio Regional Director Brewster Rhoads and Cincinnati Children’s Hospital Medical Center President and CEO Michael Fisher April 13 in a public announcement of project milestones. Laura Brunner, Executive Vice President, Al. Neyer, Inc., Ed Rigaud, Real Estate Enterprises for African-American Leaders (REEAAL), LLC, and leaders from the city’s Avondale and Corryville neighborhoods also provided remarks.
The new Vernon Manor offices will accommodate more than 600 employees from Cincinnati Children’s, creating new capacity for the medical center to expand at other locations. Cincinnati Children’s has signed a 17-year lease.
Al. Neyer will start renovation work on the 171,000 square-foot, seven-story building this month. Work on a 440-car parking garage begins July 2010.
The City of Cincinnati and State of Ohio partnered on a financial assistance package worth $7.1 million to the redevelopment, including a $10.5 million public parking garage. Al. Neyer said it will finalize closings on project financing April 16, including Federal New Markets Tax Credits and Federal Historic Tax Credits.
Mr. Dohoney said the retained jobs from Cincinnati Children’s contribute $600,000 in annual earnings tax revenue, while the new jobs created from this expansion are likely to contribute over $800,000.
Ms. Brunner said garnering support early on for the complex redevelopment, working with Cincinnati Children’s and successfully proposing project ownership to local African-American investment leadership group REEAAL, LLC, “are accomplishments that will transcend the initial success of this project for decades to come.”
REEAAL President Ed Rigaud said his investment enterprise will own 51% of Vernon Manor Offices, LLC, and called ownership an “important step to achieving economic freedom for all of our citizens.”
Source: http://www.neyer.com/