CINCINNATI – The Atlanta-based team that developed The Banks has sold the apartments and street-level retail space in the first phase of the riverfront development.
The $79.5 million sale will allow the developer to focus on building a hotel or office tower along Cincinnati’s riverfront and continue the next phase of development near the National Underground Railroad Freedom Center, City Manager Milton Dohoney wrote in a memo to Mayor Mark Mallory and members of city council.
“We see this as a good indicator of the strong market we are building here in Cincinnati,” he wrote.
Dohoney said the sale also would help the city financially in several ways:
• It will result in full repayment of the city and Hamilton County’s $4.69 million loan to the project three years in advance of the due date.
• After the sale is completed, the city and county should get $1.18 million in proceeds, which Dohoney expects will be used to spur more development at The Banks.
• And since the sale price is higher than the Hamilton County auditor’s assessed value of $52 million, the sale should boost the property’s value giving the city and county additional revenue to spend on development.
“All of the above will result in the availability of additional funding for the City/County to invest in future phases of development of The Banks as was originally planned as part of the visionary nature of the Master Development Agreement for The Banks,” Dohoney wrote.
The Carter/Dawson development team plans to start construction of the next phase of the Banks, next to the Freedom Center, by the end of the year, according to a news release issued about the sale.
That next phase will consist of 305 apartments, about 19,000 square feet of retail and a pad for a future development that could include office, apartments or a hotel, according to the release.
The new owner of the Banks first phase is NIC Riverbanks One, LLC, an affiliate of the Nicol Investment Company, which is based in Nashville.
The new owner will have to follow the same Master Development guidelines as Carter/Dawson. The retail space and apartments will continue to be leased and managed by Jeffery R. Anderson Real Estate and Village Green, respectively, according to a news release issued by Carter/Dawson.
Carter/Dawson and USAA Real Estate will continue to own the remaining portions of the first phase of The Banks, which includes the two sites south of the Freedom Center and the proposed office and hotel sites.
Scott Stringer, executive vice president of Carter, said in the news release that “given the tremendous success of Phase IA, Carter /Dawson, as the Banks Master Developer, is pleased to continue its public/private partnership with the City of Cincinnati and Hamilton County to further redevelop the riverfront into a premier retail, residential and entertainment gateway to Southwest Ohio.”