EXCLUSIVE: $55 million redevelopment of Anthem site adds new partner Tom Demeropolis Senior Staff Reporter | Cincinnati Business Courier
May 11, 2017, 12:02pm EDT The planned redevelopment of the Anthem campus in East Walnut Hills has a new development partner. The Fortus Group, a Fort Wayne, Ind.-based real estate development and investment firm, has joined Al Neyer and Vandercar Holdings to partner in redeveloping the nearly 8-acre site at 1351 William Howard Taft Road. Stephen Dronen, director of development for Fortus, said the team is planning a multiphase mixed-use development. The first phase, which will focus on residential, is estimated to be a $55 million project. “There are very few infill development sites of this size in great neighborhoods like East Walnut Hills,” Dronen told me. “We want to make the most efficient use of the land.” While it’s early and plans are still subject to change, the first phase at the Anthem site is expected to be two residential buildings with more than 300 apartments and structured parking. The existing office buildings would be demolished. Anthem moved from this site to a new, 80,000-square-foot building at Oakley Station. The first phase would be located on the northern part of the site at the Woodburn and Taft intersection. The team plans to build a new road through the site just south of the first phase. A pedestrian-only pathway is planned between the two apartment buildings, which Dronen said would be an amenity not just for apartment residents but the broader community as well. “It will be like a linear park with lighting, hardscapes and landscapes. People will be able to walk their dogs,” Dronen said. Each of the apartment buildings is planned with a courtyard and one would have a swimming pool. Restaurant users are envisioned for the streetlevel spaces at the corner of the new road and Woodburn Avenue as well as the corner space of William Howard Taft Road and Woodburn Avenue. Dronen said the team is cognizant of the amount of retail space in the first phase as they want this development to also bolster the nearby business districts at DeSales Corner and along East McMillan Street in Walnut Hills. “This is an incredible opportunity to do something really, really unique in the area,” Dronen said. At this time, plans have not been finalized for the remainder of the site. Dronen said that will depend on future demand. “It’s hard to project what the neighborhood looks like five years from now,” he said. Dan Ruh, executive vice president/Cincinnati market leader for Al Neyer, said the team is excited for Fortus to join the mixed-use opportunity in one of Cincinnati’s up-and-coming neighborhoods. “East Walnut Hills is already becoming a destination hot spot, and we intend to complement the character of the community,” Ruh said. Towne Properties had originally planned to partner with Al Neyer and Vandercar to redevelop the site. PDT Architects is the architect for the project. Bayer Becker is working as the civil engineer. Dronen said there are banks interested in financing the project. The developers have the property under contract and expect to close on it later this spring. If all goes as planned, demolition of the former Anthem office buildings would start in the fall with construction of the first phase kicking off in spring 2018. Dronen expects this would be a 20- to 24-month construction project, so leasing for the apartments could begin by fall 2019. Fortus Group’s historical portfolio comprises more than 2,500 acres, 4,500 residential units, 5 million square feet and is approaching $1 billion in total volume. It is currently developing the Flats at Austin Landing, a 275-unit apartment project at the mixed-use development along Interstate 75. Dronen said the development team has already had a number of meetings with community groups about the project. One change they’ve made to the design as a result of community feedback is locating the garage toward the center of the site. Originally the team had looked to put the garage under the apartment building, but because of the topography of the site, some of the garage would have been visible along William Howard Taft Road. “We’re truly engaging and listening,” Dronen said. “We want to make sure we do a development that is high quality and worthy of the neighborhood here and economically possible.”