Sixth & Race
Trophy Midwest Investment Property
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Piping Rock is excited to announce an exclusive contract to purchase Sixth & Race, a trophy property located in the heart of downtown Cincinnati, for $8.6 million. Piping Rock will invest between 7 and 10% of the equity, and we are seeking partners to co-invest with us.
After we agreed to purchase the property, three major redevelopment projects were announced in downtown Cincinnati. Officials estimate that between $300 and $500 million will be invested in two of these projects alone, both of which are immediately adjacent to Sixth & Race.
Completion of these projects will transform the area around Sixth & Race, if not downtown Cincinnati itself. It is unlikely that we could purchase Sixth & Race today at a price that is as favorable as that which we obtained prior to these developments.
After we agreed to purchase the property, three major redevelopment projects were announced in downtown Cincinnati. Officials estimate that between $300 and $500 million will be invested in two of these projects alone, both of which are immediately adjacent to Sixth & Race.
Completion of these projects will transform the area around Sixth & Race, if not downtown Cincinnati itself. It is unlikely that we could purchase Sixth & Race today at a price that is as favorable as that which we obtained prior to these developments.
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PRIME LOCATION
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7.47% NET CAP RATE
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10% CASH ON CASH*
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Sixth & Race itself is a rare combination of 30 units of newer construction multi-family housing over ground floor retail in downtown Cincinnati. The ground floor retail space is occupied by Walgreens under an investment-grade double net lease that expires in April 2064, subject to eight termination options. Approximately 70% of the property cash flows are secured by the lease through at least April 2024, which is the date of the first termination option.
PRIME LOCATION ADJACENT TO MAJOR REDEVELOPMENT PROJECTS
Two of the redevelopment projects that were announced after we agreed to purchase Sixth & Race are the the expansion of the downtown Duke Energy Convention Center and the redevelopment of the Millennium Hotel, which is the largest hotel in downtown Cincinnati. Replacing the Millennium with a brand new, state-of-the-art 800-1,000 room convention center hotel and expanding the Duke Energy convention center have been top priorities for Cincinnati's economic development officials for almost a decade. Now, both projects are moving forward in tandem right next to Sixth & Race. In addition, although no formal announcements have been made, the Southeast corner of Sixth & Race and the Northeast corner of Fifth & Race are also poised for significant redevelopment.
Sixth & Race is in a prime location immediately adjacent to the Millennium Hotel redevelopment project and convention center expansion.
PROTECTED INFILL LOCATION
Sixth & Race is located in the heart of downtown Cincinnati in a protected in-fill location.
*Investment returns are indicative
