Downtown tower sold, signaling demand up

Downtown office space is in demand again, and the sale of the One Columbus building is the latest evidence of that.

A Chicago investor bought the building at 10 E. Broad St., at the intersection with High Street, and has begun improving the building’s common areas.

The purchase price has not been disclosed. The 25- story building had most recently changed hands in 2011 for $ 27 million.

Occupancy has increased from a little over 70 percent to the mid-80 percent range in the past five years, said Greg Thomas, first vice president of CBRE, who handled leasing for previous owner True North.

One Columbus has a number of tenants in the legal and financial-services industries, including U.S. Bank, Red Capital Group and Frost Brown Todd.

The One Columbus sale is only the latest in the heart of Downtown.

Late last year, apartment developer Edwards Cos. bought the PNC Plaza building for $24 million from a different Chicago investor. Edwards plans to add housing and possibly a boutique hotel to that building, which is on East Broad Street between 3rd and 4th streets.

Other nearby buildings, including the former Columbia Gas building on Civic Center Drive and the historic LeVeque Tower next door to One Columbus, have been bought and successfully renovated in the past several years.

Hearn Co., the buyer of One Columbus, also owns Chicago’s John Hancock Center, the BMO Plaza in Indianapolis and other office buildings in the Midwest and West. On its website, Hearn touts the Columbus building’s proximity to the Statehouse and the Palace Theatre and its connectivity to the recently renovated LeVeque Tower and LeVeque parking garage.

“The velocity and demand for goodquality office space Downtown is very strong,” Thomas said. He said attached parking and upgraded common areas are big selling points. Older Downtown buildings without attached or adjacent parking still struggle with higher vacancy rates.

To stay competitive, some owners of Downtown properties have been announcing improvements. Last year, Huntington Center owner Hines said it was adding a rooftop patio and tenant lounge, among other amenities.

The Fifth Third Center, which CBRE is managing in receivership, is getting an extensive face-lift to its common areas and is about 70 percent leased after languishing for several years.