“This is one of the most incredible places in America, and I’m not exaggerating,” said Lasserre Bradley III, president of development with the Model Group, who was the general contractor for the Arcade project.
Dave Williams, vice president of development with Cross Street Partners, said the redevelopment of the Arcade was a huge undertaking, involving countless hours of planning and work, plus 48 funding sources. But he said the end result speaks for itself.
“This is a great finish to an amazing project,” Williams said. “It was all worth it.”
The Dayton Arcade closed in 1991 and sat empty for nearly three decades, as one redevelopment proposal after another failed to make any substantial progress.
Some people thought the Arcade was destined to be demolished. But a decade ago, the city of Dayton decided to invest in “dry and stable” measures at the Arcade to prevent further deterioration of the property. A few years later, a development team emerged that ultimately was able to pull off what many leaders described as the “most complicated project” in the city’s history.
Many people also have called the rehab of the Dayton Arcade one of the most transformational projects in the city’s history.
The development partners are Cross Street Partners, Model Group, McCormack Baron Salazar and Structural Technologies. The Arcade has more than 450,000 square feet of space.
On Thursday, a ribbon-cutting was held for the Hilton Garden Inn Dayton Downtown, which is a 93-room hotel in the Arcade’s northern buildings.
The event also celebrated the completion of the north Arcade, which consists of two buildings (the Gibbons Annex and the Third Street Arcade). The hotel occupies most of the north Arcade, but there’s also retail spaces on the ground floor. Future retail tenants are expected to include Smales Pretzel Bakery, Luke’s Custom Cakes, Nook & Needle and Tiffany’s on Third.
With the Third Street Arcade’s renovation, the ground floor will become a retail marketplace.
Less than 19% of tenant and office spaces in the Arcade are unoccupied, and some of them still need to be fully built out. But the overall revitalization project has crossed the finish line.
The Arcade was built in 1902 and opened in 1904. It originally served as a marketplace. In the 1980s, the Arcade was renovated to create an urban shopping mall. The property closed in 1991, after essentially losing its battle with suburban shopping competition.
The grand opening of the Hilton Garden Inn hotel on Thursday is very important for the Arcade because the hospitality component will support other tenants, like the restaurants and shops in the marketplace, said Bradley, with the Model Group, which is a minority partner on the hotel.
Bradley said the revitalization of the Arcade sets the stage for the creation of a new Arcade district in downtown that will include the rehab and reuse of the Centre City office tower, across the street from the complex, and an adjacent parking garage. He said Model Group is working on a $120 million project to turn the Centre City into more than 200 new housing units and restore the Air City Garage.
James Bailey, general manager of the Hilton Garden Inn Dayton Downtown, previously told this news outlet that the hotel offers a one-of-a-kind, elevated guest experience. He said the hotel is stunningly beautiful and has a rich history.
“Each room seamlessly blends modern comfort with the character and elegance of this iconic building, offering a truly distinctive stay,” he told this news outlet.
The hotel also is home to the Garden Grille & Bar.
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