The Port of Greater Cincinnati Development Authority will issue $55 million in bonds to help finance the $67 million second phase of the Aspire Kenwood development.
The mixed-use project, planned for 7997 Kenwood Road near Kenwood Towne Centre, includes 127 apartments, 36,000 square feet of office space and 5,000 square feet of retail.
Financing structure relies on Port’s lease-back model
The Port approved the financing June 10 and will own the project, leasing it back to developer CIG Communities, which will repay bondholders through lease revenue.
CIG Communities is a prominent Cincinnati developer involved in numerous mixed-use and multifamily projects around the region.
Construction is expected to create about 140 permanent jobs, with financing anticipated to close in July.
Project aims to boost housing supply and support future development
“The Port utilized a standard capital lease to support the next phase of Aspire Kenwood, a typical request among housing developers to reduce construction costs and reinvest capital in the project and community,” read a statement from The Port.
The Port uses public financing tools to help developers control costs and encourage economic growth with projects throughout Hamilton County, including affordable housing and market-rate developments, such as Aspire Kenwood.
The Port invests in market-rate developments to increase the overall housing supply and generate the tax revenue and private funds necessary to subsidize affordable housing projects.
This article originally appeared on Cincinnati Enquirer: Port authority approves $55 million for Kenwood site
Reporting by Randy Tucker, Cincinnati Enquirer / Cincinnati Enquirer
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By Randy Tucker, Cincinnati Enquirer | USA TODAY Network
