As the 15th anniversary of Neyer Properties, Inc. approaches this month, president Dan Neyer has made the largest transaction ever in his company – the purchase of a 1.1 million square foot office, distribution, and bulk warehouse building in Sharonville.
The former Macy’s-owned parcel also brings an opportunity to create the Midwest’s largest solar photovoltaic project.
The Sharonville acquisition contains the second-largest contiguous, available space in greater Cincinnati. Only the former Ford Motor Company plant in Batavia is larger.
This is Neyer Properties’ largest property acquired in the history of the commercial real estate and development company.
“Gateway 75 continues the acquisition approach that we have taken,” said Neyer. “We pursue properties that are very visible and accessible at values substantially below replacement costs, then transform them to achieve increased value. Gateway falls perfectly into this category.”
Located off either I-75 or I-275 on Kemper Road, Gateway 75 is an office / warehouse / distribution facility constructed in the late 1970’s for single-user Montgomery Ward. Macy’s currently occupies 100,000 square feet, leaving 90 percent of the building to be leased.
With truck docks, trailer parking, low utility costs, and its prime location near I-75, Gateway 75 is supremely situated for distribution, manufacturing and assembly tenants, said Neyer. The city of Sharonville will also provide some amenities to the site and incentives to potential tenants.
Some of the improvements planned for the property include the addition of dock doors to the west side of the building, which allows cross-docking to the facility. Adding an earth berm with a potential bike trail incorporated on top on the southern portion of the property will make the building and truck access more user-friendly.
Other initial improvements include: re-painting the exterior to give the building an updated architectural character; adding landscaping and signage to give tenants prime visibility along busy Kemper Road, and expanding and improving the stormwater retention areas.
“We plan to invest over $3 million dollars on these improvements to the site and building, which will update the building and grounds and provide additional amenities to attract the quality tenants that this building deserves,” he said.
In addition to taking on the challenge of leasing nearly 1 million square feet in a difficult market and making much-needed site and building improvements, Neyer Properties is exploring different options for solar power generation.
Neyer is in talks with several groups about the possible installation of up to a 6- megawatt system, which would be the largest solar photovoltaic project in the Midwest and generate an annual carbon offset of nearly 10 million pounds per year.
Neyer also wants to make Gateway 75 one of the first industrial buildings in the region to be LEED (Leadership for Energy and Environmental Design) certified for Existing Building Operations Management. This certification will lower operating costs for tenants when the building’s heating, cooling and lighting are run more efficiently.
With the Gateway acquisition, Neyer Properties has purchased more than 1.5 million square feet of buildings within the last nine months.
The company plans to acquire $40 million in assets this year, said Neyer, and is looking at opportunities to build on and expand its portfolio not only in greater Cincinnati, but also Columbus, Indianapolis, Louisville, and Lexington.
“When I founded this company in 1995, my goal was to transform greater Cincinnati as a great community to live, work and play in,” said Neyer. “I’m happy and proud of the company our employees, tenants and stakeholders have helped us build over the past 15 years. I feel we are making a positive difference for future generations to follow.”
Neyer Properties is a full-service commercial real estate developer specializing in sustainable development, construction management, investment, and redevelopment. The firm invites friends and stakeholders to join its green building community at facebook.com/neyerproperties.
This release was featured on page 5 of the Business Courier on Friday June 11, 2010