For those who’ve tracked the evolution of Cincinnati’s Over-the-Rhine (OTR) district, the transformation of the 1400 block of Race Street has become a case study in urban redevelopment. This isn’t just another story of gentrification or an injection of capital into a distressed neighborhood. What happened on this block is a masterclass in leveraging historic assets, activating the public realm, and creating a catalytic effect on adjacent properties. At the center of this narrative is the Model Group—a developer with a reputation for tackling complex urban projects—and their strategic approach to a block that many had written off. Let’s break down the key moves, the challenges, and the lessons that can be drawn from this nuanced urban turnaround.
Navigating the Challenges of Over-the-Rhine’s Urban Fabric
Over-the-Rhine has long been one of Cincinnati’s most architecturally significant neighborhoods, boasting one of the largest collections of Italianate architecture in the United States. However, the historic charm that could be an asset was largely underutilized and overshadowed by decades of disinvestment, crime, and social challenges. The 1400 block of Race Street, in particular, was emblematic of this struggle—an area marked by high vacancy rates, dilapidated structures, and a fragmented sense of place. This posed a unique challenge: How do you generate enough momentum in an area with deep-rooted issues to create not just a successful development, but a sustainable revitalization?
Model Group saw an opportunity to use strategic infill and historic preservation as a means to both elevate the block and set the stage for a broader neighborhood renaissance. Recognizing the complexity of the local market, they employed a multi-layered strategy that went beyond the typical approach to urban redevelopment.
Layering Financing to Mitigate Risk and Maximize Impact
A key component of Model Group’s strategy involved a sophisticated capital stack that blended public and private funding sources, historic tax credits, New Markets Tax Credits (NMTC), and opportunity zone equity. This approach allowed the project to achieve the dual objectives of economic feasibility and community sensitivity. The rehabilitation of the Davis Furniture Building—an 1875 Italianate structure that was at risk of being lost to neglect—illustrates this approach.
By leveraging Federal Historic Tax Credits (HTC) alongside Ohio Historic Preservation Tax Credits, Model Group was able to offset a significant portion of the restoration costs. However, what set their strategy apart was the layering of NMTC, which targeted areas of economic distress. This combination allowed them to take on a riskier project that other developers might have bypassed. The NMTC allocation also required a demonstrated community benefit, which informed the mixed-use programming of the building—a thoughtful combination of street-level retail, affordable office space for nonprofits, and market-rate residential units above.
Curating Tenants to Build a Destination Block
While the financing provided a foundation, the success of the 1400 Race Street block hinged on curating the right tenant mix. Model Group didn’t just fill spaces; they programmed the block with a clear understanding of urban placemaking principles. They knew that a simple “plug-and-play” approach of national chains or generic retail wouldn’t suffice. Instead, they curated a blend of experiential tenants—such as Goodfellas Pizzeria and 3 Points Urban Brewery—that could anchor the block and provide a magnetic pull to the broader OTR neighborhood.
The strategy here was to create what could be termed as “sticky” places—businesses that encourage dwell time and repeat visits. By focusing on local operators with strong brand identities and a commitment to community engagement, Model Group effectively created a neighborhood “third space” dynamic. The inclusion of these high-touch, high-engagement tenants not only activated the street but also contributed to a self-sustaining ecosystem where each business benefits from the success of its neighbors.
Activating Public Space as an Anchor for Community Engagement
Model Group’s strategy also extended beyond the brick-and-mortar. Recognizing that successful urban revitalization depends on creating spaces that foster social cohesion and community life, they pushed forward with the creation of Ziegler Park. Here, the developers acted as conveners, not just builders, working in close collaboration with the Cincinnati Center City Development Corporation (3CDC) and the City of Cincinnati to design a park that serves both as a recreational space and a community anchor.
The addition of the Porch at Ziegler Park, an outdoor space featuring public seating, event programming, and flexible use areas, was a tactical move to create a “town square” effect. This not only provided a platform for regular community events—from fitness classes to pop-up markets—but also directly addressed the perceived safety issues that had plagued the block. By animating the public realm, they effectively changed the narrative around this part of OTR, making it a place where people felt comfortable gathering day and night.
Spurring Adjacent Development and Enhancing Property Values
What makes the 1400 Race Street redevelopment particularly interesting is the catalytic effect it has had on surrounding properties. The strategic placement of mixed-use buildings along Race Street, combined with a strong ground-floor retail presence, generated significant spillover benefits. Adjacent property owners, once hesitant to invest, began undertaking their own renovations as the perception of safety and desirability shifted.
The development also created a tangible uptick in property values. According to local real estate data, properties within a three-block radius saw a 30% increase in value within two years of the project’s completion. This rise isn’t just speculative; it’s tied to a measurable increase in foot traffic, lower vacancy rates, and a diversified tenant base that supports long-term neighborhood resilience.
Holistic Strategies for Urban Redevelopment
The success of Model Group’s efforts on the 1400 Race Street block is a nuanced lesson in how to approach urban redevelopment. For practitioners and experts in the field, a few key takeaways emerge:
Layered Financing is Critical:
Creative capital stacks that leverage a mix of tax credits, public-private partnerships, and opportunity zone incentives can de-risk projects and make challenging redevelopment efforts feasible.
Programming is More Than Leasing:
Curating tenants with a focus on creating unique experiences, supporting local operators, and building an ecosystem is more effective than simply filling spaces.
Activate the Public Realm:
Integrating public space development with commercial and residential components can catalyze broader neighborhood transformation by fostering social interaction and improving perceived safety.
Anticipate the Ripple Effect:
Strategic redevelopment of a single block can serve as a catalyst for further investment, driving up property values and encouraging other stakeholders to engage.
A Blueprint for Future Urban Projects
Model Group’s redevelopment of the 1400 block of Race Street in Cincinnati’s Over-the-Rhine offers a blueprint for how thoughtful, strategic development can create transformative impacts in urban neighborhoods. This isn’t just about real estate; it’s about stitching back the urban fabric, leveraging historical assets, and building for the future in a way that respects the past. For cities across the country looking to breathe new life into their struggling urban cores, this project offers invaluable insights into what’s possible when risk-taking is balanced with a nuanced understanding of community needs and urban dynamics.
