The Vision

 

Cross Street Partners (CSP), Model Group, and McCormack Baron Salazar will redevelop the historic Dayton Arcade, a collection of nine buildings totaling over 330,000 SF in the heart of downtown Dayton’s central business district. The full development plan will recast the Arcade in much the same way it was initially developed in the first decade of the 20th
century—with a mix of retail, offices, public space and housing. The first phase of the project, the South Arcade, will consist of an innovation center with a higher education partner in addition to a 126-unit residential LIHTC and market rate development for artists and creative entrepreneurs. The second phase, the Third Street Arcade, will include a culinary and kitchen incubator program, complimentary retail and restaurant space available for incubator participants, creative co-working space and affordable market rate micro-loft apartment living. 

The Arcade is part of a larger plan by the City of Dayton to bring residents, jobs, and visitors back to the downtown. Across the street from the Arcade is the future site of a new Levitt Pavilion - an outdoor live music venue that will offer 50 free concerts each year. The Levitt is at the center of a nine-block redevelopment strategy led by the City that builds on existing underutilized assets to build a premier downtown urban neighborhood centered around a central park. The restoration of the Arcade is now the highest priority for the City of Dayton, and it has its greatest potential, more so now than ever before, to be a center for innovation and force for economic development in downtown Dayton.


 
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Milestones...

• As the anchor tenant, The University of Dayton will be partnering with The Entrepreneurs Center (TEC) to provide technical assistance and other services for entrepreneurs, creatives, makers, and the food economy.

• On May 23, 2018, The Dayton City Commission approved the development agreement for Dayton Arcade and awarded $10MM toward funding

• May 14, 2018, Montgomery County’s Economic Development and Government Equity (EDGE) Advisory Committee approved a $500,000 investment for Arcade project

• On June 29th, 2017, the Ohio Development Services Agency awarded the Arcade $5MM in
State Historic Tax Credits

• On December 19, 2017, the Ohio Development Services Agency awarded the Arcade $4MM in State Historic Preservation Tax Credits.

OHFA awarded  $20MM toward LIHTC funding

• The Dayton Regional new Markets Fund has committed at least $15MM in NMTC allocation and RBC Capital has provided a term sheet for $5MM.

100% of the South Arcade space has been leased.

Future Uses Program

 

The historic rehabilitation project will transform the stately Rotunda into a unique event space flanked by arts and innovation uses such as galleries, studios, and makerspaces, as well as a business incubator/coworking space on the upper floors opening out onto the Rotunda atrium. An entire city block will be enlivened by a variety of first floor retail and restaurants with outdoor seating. Along with artist-focused LIHTC housing occupying the upper floors of several buildings, the Arcade will be a hub of an emerging arts and innovation district in downtown Dayton.The redevelopment will be completed in 2 primary phases. The structuring of the Arcade project allows the development team to maintain an orderly absorption of new uses and the ability to activate spaces as the project progresses.

Phase I:
• Art Center, galleries, classrooms, studios, and artist makerspaces
(17,500 SF): Cultivating a cluster of arts-related uses, the Arcade will provide the community with an unique space for the creative community.

• Innovation Space (HUB)  (100,000 SF): The project will revitalize the stately Rotunda and additional spaces into a co-working, shared office, and incubation space, bringing together unique academic and entrepreneurial partners to create a dynamic, vibrant destination. The HUB is visible proof that Dayton’s long heritage of innovation is alive, healthy, and growing. Operated under joint venture between UD and TEC, the HUB is intended to act as a powerful catalyst for the future of our region’s innovation economy. 

 Affordable & Market Rate Creative Housing – 126 units (24 units market rate): Focusing on the growing local artist community and 1,400 SF of arts-related support space.

• Restaurants and Retail (15,000-20,000): Modeled on the 3CDC Over-the-Rhine retail
strategy, the Arcade will house a diverse cluster of restaurants and retail which may include a custom craft brewery, a fresh market and deli, and a local coffee shop.

• Public Event Space: The Rotunda will be resurrected as an active public event space and tourist destination, available for festivals, pop-up retail, performances, talks, product launches, etc. A new theater in the round will be created on the lower level under the Rotunda.

Phase II
• Kitchen Incubator and Fresh Food Market (10,000 SF): The creation of a kitchen incubator will feature commercial grade equipment, storage, and preparation areas. It will be designed for maximum flexibility for local food startups to economically scale their businesses.

• Retail and Restaurant Space (5,000 – 8,000 SF): The existing historic retail space in the 3rd Street Arcade will be reactivated to support the kitchen incubator businesses as well as other local serving restaurants and retail.

• Additional Public Event Space (4,000 – 6,000 SF): The North Arcade will be restored to its former glory and connected to the revitalized Rotunda, creating a one of a kind destination spanning an entire city block.

• Residential (28,590 SF): As part of the Third Street Arcade project, 32 apartment units will occupy the entire third, fourth, and fifth floors of Third Street Arcade, including the Gibbons Annex.

 

The Building

 

The Dayton Arcade was a widely-celebrated achievement after its completion in the first decade of the 20th century; the structure is highlighted by a 90-foot diameter glass rotunda that many consider the most spectacular piece of architectural history in the Dayton region. But, as downtown Dayton declined in the 1970’s and 1980’s, so did the Arcade. The main building went into bankruptcy in the mid-1980’s, and was last occupied in 1990. The intervening 25 years that it has sat vacant, unmaintained, and unheated have resulted in significant damage to the structure. Today, the stunning Rotunda is a diamond in the rough, hidden behind vacant store facades, and unknown to an entire generation of passersby.  The downtown itself is also in a state of disrepair, with numerous vacant buildings, and an overabundance of half-empty parking garages and surface lots. In the past five years; however, the City’s population decline has halted, and there are signs of a renewed interest in living, working and visiting downtown.

 

History

 

The Dayton Arcade is a collection of five buildings located in Dayton, Ohio. The Historic Arcade is a historical, architecturally elegant complex located in the heart of Dayton's central business district. Built between 1902 and 1904, it consists of five
interconnecting buildings topped by a glass-domed rotunda, 70 feet high and 90 feet in
diameter, below which two balconied upper floors circle the central enclave. The Arcade had the latest innovations, including elevators, a power plant and a cold storage plant.

The most notable building, which fronts on Third Street, is of Flemish design and is said to be patterned after a guild hall in Amsterdam, the Netherlands. It looks like typical old Dutch architecture. The Fourth Street and Ludlow Street facades are done in Italian Renaissance Revival with the Commercial Building anchoring the corner of the lot. The most interesting architectural feature is the great dome. The classic detailing usually found in such rotundas was replaced by detailing representative of Ohio. The cornucopias are filled with fruits and vegetables from Ohio. There are festoons of oak leaves with acorns, ram heads and garlands of grain. At each framing member of the dome are colorful turkeys.

Originally the main spaces were utilized for a major food market with retail, offices, and housing located on the upper floors. Through the first four decades of Twentieth Century, this super supermarket and retail center was one of Downtown Dayton's prime attractions and destinations. Here, one shopped for the unusual in fruit and vegetables, seafood, baked goods, food specialties, meats and meat specialties, fresh-cut flowers and
assorted luxury items available in or out of season.

In 1974, the Arcade was placed on the National Register of Historical Places.

In the late 1970's, investors began planning and implementing a major restoration of the Arcade. In May 1980, the newly refurbished Arcade was reopened as a retail shopping and food center. In its new guise as Arcade Square, the center offered a lively collection of boutique stores, restaurants, stores offering staples, kitchen apparel, books, and luggage . The Dayton Philharmonic, among other offerings, performed to holiday crowds from the vast floor below the Arcade rotunda. Given the general decline of retail activity and volume within the central business district, financial success gradually eluded Arcade Square and it was closed to the public in 1990. Its final tenants still included its famous Arcade Seafood store and the last traditional dime store to operate in Downtown Dayton - McCrory's -- both of which remained open for a time after the closure of the Arcade Square public spaces themselves.
 

 

 

Development Team

 
 
 
 
 

 


Cross Street Partners
Cross Street Partners is a vertically integrated real estate company exclusively focused on re-building communities by creating vibrant urban mixed-use neighborhoods built on a foundation of innovation and entrepreneurial activity.

Model Group
The Model Group is an integrated property development, construction and management company with a passion for revitalizing urban neighborhoods. The Cincinnati-based company is a recognized leader in historic preservation, mixed-used urban development, senior living communities, and affordable housing that is indistinguishable from market-rate housing.   The Model Group is headquartered in Cincinnati’s Over The Rhine neighborhood, having played a lead role in the nationally acclaimed resurrection of this riot torn community.

McCormack Baron Salazar
McCormack Baron Salazar is the nation’s leading for-profit developer, manager, and asset manager of economically integrated urban neighborhoods. Since 1973, the St. Louis-based firm has been an innovator in community development and urban revitalization in 45 cities, having built more than 21,000 high-quality homes for families, children, seniors and veterans.