'Sky's the limit:' Divisions Maintenance Group moving to the Foundry, may add extra floors

More than three years after Macy's closed its department store on Fountain Square, local officials have landed a new anchor tenant that will not only replace it, but expand and possibly build upwards.

Divisions Maintenance Group, a fast-growing facilities maintenance company, is moving from its Northern Kentucky headquarters to the Foundry redevelopment Downtown. It's leased 83,000 square feet on the third and fourth floors of the building – but also may expand upwards, adding as many as 16 floors.  

"The sky's the limit – that's one of the reasons we liked the space," said Alex Strohm, the chief legal counsel for DMG, adding the company could add a tower if continued growth demands further space.

Strohm said the new facilities will be home to about 450 DMG workers to start, but the company has plans to add more than 250 more. The company employs 600 nationwide. 

“The Foundry gives us the opportunity to innovate, grow and continue to recruit top talent to accommodate our growth," said DMG founder & CEO Gary Mitchell, in a statement.

DMG is a tech company that acts as a services broker for big-box retailers, connecting local stores with repair and maintenance workers for everything from snow removal to electrical and plumbing repairs. The company's sales are on track to hit $500 million this year.

Local officials said landing DMG was a big win for the Foundry redevelopment project. The site is the former Fountain Square home of Macy's.

“The addition of Divisions Maintenance Group to the Foundry development is a significant step for the project, Cincinnati’s urban core and the city as a whole,” said Steve Leeper, president & CEO of the Foundry's developer, Cincinnati Center City Development Corp., or 3CDC.

“The Foundry was renovated to attract rapidly-growing businesses like Divisions Maintenance Group, which will bring more than 250 good-paying jobs and further add to the vibrancy of downtown Cincinnati,” said Gov. Mike DeWine, in a statement.

DMG will move from its current headquarters on Riverfront Place in Newport into The Foundry — a $51 million mixed-use development.

The Ohio Tax Credit Authority (TCA) approved a 2.102 percent, 10-year Job Creation Tax Credit for the move, according to Ohio Gov. Mike DeWine’s office.

DMG would be the biggest of several new office and retail tenants. The Foundry has singed in recent months, including global financial services firm, Deloitte; Turner Construction; French restaurant, Royce; and Jeff Ruby's Steakhouse. 

Deloitte and Turner’s spaces are both currently under construction.

Street-level tenant Royce should be starting construction by the end of the year and Jeff Ruby’s new space will begin construction in early 2022, according to 3CDC, which said 20,000 square feet of office space remains on the second floor of the Foundry.