HEBRON, Ky. – More than 40 acres owned by the Cincinnati/Northern Kentucky International Airport have been tagged for new development after officials agreed to lease the property to an out-of-state firm that's been building a big portfolio of local projects.
The Kenton County Airport Board, which oversees operations at CVG, OK'd leasing 41 acres of its property to VanTrust Real Estate LLC for the development of speculative commercial warehouse/distribution facilities. The land – 30 acres of which are usable – is located on Ted Bushelman Boulevard behind the Florence Wal-Mart Supercenter.
VanTrust Real Estate, which completed this 273,600-square-foot warehouse building north of CVG in 2014, is looking to develop more property in Northern Kentucky.
No tenants have been announced for the site, but VanTrust would be required to make a minimum $10 million capital investment and build no less than 400,000 square feet of warehouse/office space. CVG stands to make $187,500 in total annual rent for the first five years of the deal, according to the agreement, an amount that would increase by 10 percent every five years thereafter.
The airport has opened up more land for commercial development in recent years as it looks to diversify revenue streams.
CVG's term with VanTrust is 49 years, 11 months, which is the exact timeframe on a lease it signed last year with Dermody Properties, which secured a 130-acre site on Donaldson Pike for Wayfair. Construction on that nearly 900,000-square-foot facility is nearly complete; Dermody has said it'll deliver the building in full by the end of May.
READ MORE: Wayfair construction is chugging along
VanTrust estimates it would have its project completed by August 2017. The Kansas City, Missouri-based national developer also has local projects underway in Boone County off Mount Zion Road, called Park 536, a nearly 675,000-square-foot spec industrial building, and in Blue Ash, a 143,000-square-foot, class A office building at 9999 Carver Road in the Landings development. It also completed a 273,600-square-foot warehouse building on Aviation Boulevard just north of CVG in 2014; that facility is listed as available for lease.
CVG's agreement with VanTrust, approved Monday during the board's monthly meeting, is subject to Federal Aviation Administration approval – and the FAA's environmental assessment – as well as satisfactory completion of VanTrust's remaining due diligence.
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