COVINGTON – Today, The Catalytic Fund hosted the groundbreaking ceremony for the Mutual Building located on the corner of Madison Avenue and Pike Street in the center of the Covington Central Business District. The developer is Ashley Commercial Group who plans to redevelop the space to accommodate both residential and commercial space, including a 15 unit (1 bedroom) apartment building. Financial support for the project comes from The City of Covington, The Catalytic Development Funding Corp. of Northern Kentucky, Federal and State Historic Tax Credits, the Duke Energy Revitalization Initiative and private financing sources. The primary lender is Citizens Bank of Northern Kentucky.
Covington Mayor Sherry Carran spoke at the event. She said, “We wanted to find a developer who was sensitive to the aesthetic of the urban core and has a knack for urban design. This building is very special and I believe Ashley [Commercial Group] will help to bring it back to life in the right way. This project will set a good example on how we do development in the urban core for future projects.”
The 30,000 square foot building has sat vacant and in disrepair for over 20 years, yet it sits on one of the most prominent corners and is one of the most stately buildings in Covington. By enhancing the distinct features of this 100 year old gem, the project will transform this historic building into a contemporary mixed use development with both apartments and first floor commercial space. According to Ashley Lead Developer Bill Kreutzjans, “Through the use of authentic materials and sophisticated finishes, the Mutual Building defines Urban Renewal.”
The project is located right across the street from the future site of the 116-room Hotel Covington, another development project underway in the Coppins Building at 638 Madison Avenue.
The City purchased the building in 2012 with hopes of finding a developer for the property. Plans for the sale were announced in June 2013 when Ashley Builders approached the City with interest to purchase the building.
About the Project (reference: http://thecatalyticfund.org/projects/)
Mutual Building, 619-629 Madison Avenue, Covington, KY 41011
Developer: Mutual Building, LLC. (Bill Kreutzjans, Jr., Guy van Rooyen, Ashley Commercial)
15 Market-Rate Apartment Units & 11,000 Square Feet of Commercial Space
Total Project Costs: $2,659,500
The Catalytic Fund provided subordinate mortgage gap financing for this project and coordinated all aspects of project financing including primary debt, city loans and grants, and Duke Energy Urban Revitalization Grant for this project.
The Mutual Building is a historic renovation of one of Covington’s most prominent buildings into a mix of uses that will include 15 market-rate apartment units on the upper two floors and ground floor commercial space. The 26,865 square foot building is located at the intersection of the City’s most historically significant streets right in the center of Covington’s re-emerging business district. Built in 1921, the building originally housed the Covington Industrial Club (a precursor to the Chamber of Commerce), offices for the Mutual Insurance Company and numerous restaurants. The redevelopment plan will return this architectural jewel to its former prominence and catalyze the return of this location as Covington’s hub of New Economy business activity.
Please contact Bill Kreutzjans, Jr. at Ashley Commercial if you are interested in leasing commercial space in this property.