Over the Rhine, Cincinnati

[Jimmy H.]

My research of the Cincinnati real estate market has led my to in interesting little neighborhood called "Over the Rhine"; So named after the Rhine river as the area was first settled be German immigrants in the 19th century. I did not realize that Cincinnati was generally regarded as one of the first great American boomtowns, and the Over the Rhine area was once the pride of the city, and boasts some of the most astounding Itallianette architecture that is rivaled by nowhere else in the U.S.

You may recognize the area as the location of the 2001 race riots in Cincinnati that turned pretty ugly. Within the last decade the area has been named in some of the "Top ghetto's of the U.S." lists. But because of those riots, much attnetion was brought to the area, and even many of the locals of the area (primarily low-income or no income AA's) have vacated leaving the area 50%+ vacant with many absentee owners and abandoned buildings. The local police force has cracked down severely on the area since then, crime rites have dropped substantially and due to the unique location of this area (Located directly between the CBD of Cincinnati and the UC campus and hospitals) there has been a rennaissance in the area.

This rennaissance movement in the OTR area is really interesting (Google it). Private devleopment funds investing $100's of millions, local government incentives and tax abatements, new streetcar program just received a $25 million Fed grant and is close to fully funded (and will run directly through OTR connecting UC and downtown), new urban casino development nearby, and with CBD and UC close - it is wedged between the largest employers in the city.

I know Cincinnati has a "rust belt" feel to it, and indeed the population has decreased over the past 30 years but has stabilized (will be interested to see 2010 census on the area). But Cincinnati has been around for a long time, morphed and changed with the times better than most rust belt cities - has HQ's of huge companies like PG, 5/3, and Kroger - and perhaps most importantly, isn't tied so closely to the auto industry as are other rust belters. Has some good education systems, large internaitonal airport, great highway access, etc, etc.

To sum up, OTR is the definition of a gentrifying neighborhood to the most extreme degree. It currently has tons of development, with $500,000 condo sales neighboring vacant, derelict, and abandoned buildings. There is a huge movement to revive the place and it really seems to have legs, young urban professionals moving in, HOPE centers moving out, and impeccable architecture being restored.

Anyways, I thought I would start a little discussion as i'm sure with a little google research many of you will be as intrigued as I. Interesting scenario.

I am considering some sort of rehab investment there myself. You can buy a 3-4 story 3000+ sq ft building shell (great architecture) for under $10,000, rehab it and if the neighborhood gentrification reaches full potential this area is going to be revalued and appreciate considerably. If not, you have still a completely rennovated multi-family unit that will cash flow.

Thoughts?