Offenbach acquires Kaufhof building
22.01.2024 – By 2026, the new "Station Mitte" will be built as a meeting place with a city library and event hall in the city center.
The city of Offenbach is making great strides in the development of its city center this year. With the "Testraum-Allee" project, the economic development agency wants to successively create new offers in vacant retail spaces, more greenery is to gradually enhance the city center and a new task force is to take greater care of the appearance of public spaces. In addition, the plan for the former Kaufhof store on Frankfurter Strasse has now been finalized: "Today is a good day for Offenbach. We are proposing to the city council that the vacant Kaufhof building be purchased for the city for around 13 million euros, including ancillary acquisition costs," announced Lord Mayor Dr. Felix Schwenke. "For this reasonable price, the city will acquire one of the most important properties in the city center. This puts the future use of the building in our own hands and prevents speculation by international funds, for example, and a prolonged vacancy rate. But we now not only have a building for a reasonable price, for which we will have to find a new use at some point: We also have a concrete plan for this building. With the 'Station Mitte', we will implement the largest component of our future concept for the city center in the former Kaufhof and we can get started right away! This is important news and perspective for Offenbach right at the start of the new year."
A learning, cultural and meeting center will be built by 2026
In the expectation that the city councillors will approve the purchase and thus also the location decision for the "Station Mitte" - the new city library - on February 1, the city is already planning the next steps. Paul-Gerhard Weiß, Head of Planning and Construction, announced: "We want to commission the conversion work before the end of this year. If everything goes well, the former Kaufhof building should come back to life in the course of 2026, creating a new center for the city center. We are stepping on the gas and are moving so quickly because we not only have a lot of ideas with the future concept for the city center, but are already putting concrete plans into action, including for the 'Station Mitte'," emphasized Weiß. City Treasurer Martin Wilhelm added: "We are concerned about the state of the city center. That's why we have budgeted significantly more money than before for the development of Offenbach's city center in 2024. This will enable us to acquire and convert the Kaufhof building. 13 million euros in total is undoubtedly a very good and affordable purchase price in this ideal location." The four floors of the former Kaufhof building are to be comprehensively transformed into a new learning, cultural and meeting center in the heart of the city. As things stand, the basement could be used for commercial purposes. The property has a plot size of around 2,000 m² and a gross floor area of around 11,000 m².
Central location for further education, meetings and networking
"The heart of the new 'Station Mitte' will be a modern city library with a wide range of different workstations, a makerspace and gaming areas as well as an expanded program of events on reading and research skills," explained Department Head Weiß, who is also responsible for the city library in addition to planning and construction. For Lord Mayor Schwenke, the project is therefore both an investment in the future of the city center and for greater educational equality: "We are relocating and expanding the city library into a modern facility for all Offenbach residents. In doing so, we are also improving access to education for children and young people who often live in cramped conditions and have poor opportunities to learn at home. Offenbach is thus creating equal opportunities for all children, regardless of how much money their parents earn. In addition to the adult education center, the 'Station Mitte' also serves adults and students as a central location in the city center for further education, encounters and networking - without necessarily having to consume anything."
Public café, retail and modern event hall
In addition, a public café is to be located on the first floor of the "Station Mitte". Retail uses are also conceivable. In addition, Offenbach has long been lacking a larger and modern event hall for a mix of public, cultural events such as concerts, theater performances, readings, etc. as well as non-public, commercial events (e.g. smaller conferences, workshops, company events, etc.). It is currently being examined how this can be realized on the roof of the building. The construction of the event hall is desired in order to provide cultural associations and initiatives with opportunities for use. "Such a versatile location in the 'Station Mitte' will hopefully offer this space for cultural workers, volunteers and various event formats in the future. Either way, the decision for the location is the right one," emphasized Mayor Schwenke.
More revitalization and attractiveness - profit for restaurants and stores
At the same time, stores and restaurants in the city center can benefit, Schwenke and Weiß made clear: "The 'Station Mitte' will contribute to a lasting additional revitalization and attractiveness of our city center, also in the evenings and at weekends. This will create a new meeting point and attraction in the city center - a concept that also responds to the declining brick-and-mortar retail trade." The fact that this concept represents a promising approach has also been recognized outside of Offenbach: in 2021, the city won the municipal prize of the state of Hesse, endowed with one million euros, because the "Station Mitte" was judged to be the best idea currently in existence throughout Hesse for upgrading city centres.
Kaufhof building best suited
Based on a feasibility study, two other properties had previously been shortlisted for the establishment of the "Station Mitte". The city had conducted lengthy negotiations about buying or renting the KOMM shopping center and the former Karstadt building. "The two owners were very interested in being awarded the contract by the city and worked very professionally," reported Schwenke.
Meanwhile, the economic development agency had kept in touch with the owners and marketers of the former Kaufhof building in order to be ready when new options opened up. "When a change of ownership became a real possibility at the right time, we commissioned the Economic Development Agency, the City Library and the Office for Cultural Management to also examine the building via the GBO on the basis of the known parameters of the feasibility study. However, in the overall consideration of price and performance, the Kaufhof building was ultimately more attractive for the city," reports Schwenke. Mayor Sabine Groß also appreciates the positive outcome of the process: "It proved to be the right decision to include the Kaufhof property in the review. As a meeting place, the new 'Station Mitte' will also fill an important gap in services for children and young people in the city center. In addition to the city library, new learning spaces for schoolchildren and students are to be created there. Offering these places is particularly important for a complete neighborhood development." When talks were held with the new and current owner, the negotiating partners, the city and the owner, quickly agreed on an appropriate purchase price.
Acquisition and development of the property
The Kaufhof building is currently still owned by a property company used for this purpose (46R-Vermögensverwaltungs-Unternehmergesellschaft), which belongs to the Fokus Development Group. The Duisburg-based group of companies took over the former Galeria Kaufhof property in fall 2023. The Fokus Group generally develops its locations itself. Fokus is prepared to sell the Offenbach location on to the City of Offenbach or one of the companies belonging to Stadtwerke Offenbach. In order to gain possession of the building and land, it is planned that the municipal GBO - Gemeinnützige Baugesellschaft Offenbach will acquire 100 percent of the shares of the current owner company with effect from March 31. The purchase price and ancillary costs amount to 13 million euros and are therefore significantly lower than the amount that the original owner had demanded from the city. This will save the city a mid-single-digit million euro sum.
GBO subsidiary "Station Mitte GmbH Offenbach"
The company acquired by GBO is to be renamed "Station Mitte GmbH Offenbach". Its articles of association will be adapted so that they comply with the relevant municipal regulations of the Hessian municipal code for municipal holding companies and the applicable provisions of the Public Corporate Governance Code. "The new company will be managed as an independent subsidiary of GBO," explains GBO Supervisory Board Chairman and responsible department head Martin Wilhelm. "This will ensure a transparent distinction between the 'Station Mitte' project and GBO's core residential construction business." The city will then lease the building on a long-term basis.
Concrete plans for use at the end of March
The current plan is for a general contractor to take over the development of the property for the city of Offenbach. The conversion costs are currently estimated at around 22 million euros - subject to the plans still to be drawn up and possible cost increases. The city council will pass a separate resolution on the amount of the conversion costs and their financing in the coming months. Until then, the extent to which funding obtained from the state funding program "Zukunft Innenstadt - Leuchttürme für den nachhaltigen Umgang mit Leerständen" and the federal funding program "Zukunftsfähige Innenstädte und Zentren" can be used will also be examined. Completion of the conversion measures is planned for 2026. If the swiftly planned conversions allow, interim uses are planned by the city library and the business development department on the first floor in order to make the property partially accessible to the public again. The first concrete plans for the future use are expected to be presented to the public at the end of March.