Developers announced Thursday PNC Bank will be the anchor tenant of a new four-story building being built downtown as part of a $33.5 million development along the Great Miami River.
PNC will occupy the upper two floors of the 50,000-square-foot building in the proposed Water Street development. Groundbreaking is expected to start in 30 days and be complete by the end of 2014, with occupancy in early 2015.
“Dayton is a growth market for PNC and we are moving our downtown headquarters to enable us to continue to serve clients in a premier office environment,” David Melin, regional president for PNC Bank Dayton said in a statement. “We believe it is essential to keep PNC in our urban core, and the Water Street development is a reflection of our long-term commitment to the Miami Valley.”
The project, on the east side of Patterson Boulevard at the confluence of the Great Miami and Mad rivers, is slated to begin with the office building. Construction on a three-level parking garage and 150 luxury apartments to the east of the office building are expected to begin in late spring or early summer 2014.
The developers, Columbus-based Crawford Hoying and Dayton-based Woodard Real Estate Resources, had originally targeted groundbreaking by Dec. 31, with the first residents in their apartments by April 2015, as the Dayton Dragons begin their baseball season across the street. Developer Jason Woodard said Thursday that April 2015 might be a challenge, but added they will make units available as soon as possible.
PNC will move its Dayton headquarters from the recognizable 6 N. Main St. building designed by famed architect I.M. Pei. PNC spokesman Fred Solomon said Thursday PNC does not disclose the number of employees at any of its sites, but he did say that all of those corporate headquarters employees will move to Water Street.
Solomon added that PNC plans to sell the building at Third and Main, and will include a covenant in the sale contract requiring the buyer to maintain the architectural integrity of the building.
“We do not expect to maintain any presence (in that building),” he said.
The 6 N. Main St. building currently has a PNC branch on the ground floor. Solomon said after the sale of the building, PNC will still have a branch in downtown Dayton, but said he couldn’t speculate on details of that branch a year from now.
City officials have been pushing for development on the Water Street site for years, dating back well past the Ballpark Village concept that was announced in 2006 but never moved forward. Mayor Nan Whaley said the project “leverages our community’s previous investments at RiverScape and Fifth Third Field.”
The Water Street project includes new Class A office space at a time when some businesses have left downtown for new spaces at Austin Landing. It also features upscale apartments at a time when downtown residential occupancy is over 97 percent and demand is high. And the location is in downtown’s northeast quadrant, where the Dragons stadium, the Canal Walk and several new housing developments have helped make the area more vibrant.
Developer Bob Hoying, a former Ohio State quarterback who has built several projects in Columbus, said last year that the access to downtown, the river and the ballpark made Water Street “a killer site.”
The developers will use $26 million in private financing for Phase 1 (the office building, garage and 150 apartments), with another $5 million coming from a State Infrastructure Bank loan, and $2.5 million coming from city, county and state grants to cover road and infrastructure work in and around the site.
If Phase 1 of the development is successful, Phase 2 could extend south to the Mendelson building, which the group has said it has an option to purchase. Phase 3 would stretch further east toward Webster Street, and north across the river at Deeds Point.
“We are very excited to have PNC as an anchor of our Water Street District development and contribute to the revitalization of downtown Dayton,” said Brent Crawford of Crawford Hoying. “Their commitment is just the first piece to the mixed use development that will break ground in the next several weeks.”