Covington Office Building Sold in One of NKY's Largest Real Estate Transactions
In one of the largest real estate transactions in Northern Kentucky history, a Covington office building has been sold.
The Gateway Center, a behemoth office building situated on a full block in Downtown Covington between Scott Blvd., Madison Ave., and Third & Fourth Streets, was sold for $82.6 million.
ARCP Acquisitions, LLC bought the property from Scott Street Land Company, part of the Wessels Construction & Development Company, according to a report in the Business Courier.
The building houses many government offices for entities such as the IRS and Kenton & Campbell County court-related offices. On its first floor, several restaurants are housed, including Roka Cafe, Skyline Chili, Tommy's Asian Wok, and Nick & Tony's Double Deckers.
The size of the building and the amount of money its owners would have to pay prompted Scott Street Land Company to file a lawsuit in February 2013 to stop the planned Business Improvement District. That lawsuit was dismissed the following July. In January, the Covington City Commission voted to end its lease with the property owners. According to a report in The River City News, the development was partially financed through the issuance of bonds and the company was granted a "payment in lieu of taxes" or PILOT program for twenty years. The terms of that deal were set to expire and the site now pays full property taxes.
Photo: Gateway Center/RCN file