Cleveland Institute of Art to Start Work on Phase II of $63.5M Expansion

By Adrian Maties, Associate Editor

An eight-year expansion and renovation project in Cleveland is heading into the final stretch. Next month, the Cleveland Institute of Art will break ground on the second phase of its $63.5 million project in University Circle, according to The Plain Dealer. Construction is scheduled for completion by September 2015.

The Cleveland newspaper reported that college trustees voted to go ahead with the $33.5 million second phase of the project last Tuesday. A few days later, on Thursday, the Euclid Corridor Design Review Committee  approved the Phase II design. The project went before the city planning commission on Friday.

Work on Phase II is scheduled to start on June 26. The college signed a a construction loan agreement with KeyBank and will solicit bids from general contractors in the near future.

Project construction started in 2009. At a cost of $30 million, Phase I included the renovation of the Joseph McCullough Center for the Visual Arts, a former Ford assembly plant designed by the legendary industrial architect Albert Kahn in 1916 and located at 11610 Euclid Ave.

Phase II calls for a 79,000-square-foot addition to the McCullough Center. The addition will be named the George Gund Building. George Gund II (1888-1966) was a famous Cleveland banker and philanthropist and one of the art institute’s longtime supporters, serving for 24 years as chairman of its board. The project will also deliver a new, yet-to-be-named art gallery and a 300-seat auditorium, the new home of the Cinematheque. Nationally noted firm Stantec is the project’s architect.

The art institute has operated a two-part campus split between its Gund Building at 11141 East Blvd. and the McCullough Center since 1981. The expansion project will help consolidate all classes in a single location.

Phot credits: Cleveland Institute of Art

NRP Group Starts Construction on 624-Bed Student Housing Community in Akron

By Adrian Maties, Associate Editor

The NRP Group, a Cleveland-based full-service developer, general contractor and property manager, announced on May 8 that it will construct a 624-bed, four-story luxury student housing community in Akron.

To be called The Depot, it will be located at 80 E. Exchange St. The NRP Group will invest $30 million at the site of the old Akron Beacon Journal newspaper sorting and storage facility, tearing down the existing building, which has been deteriorating for years,  to make room for the new complex.

“Some of the beautiful exterior eaves and other functional elements will actually be incorporated in the interior clubhouse and concierge area as decorative elements to preserve a piece of the history of the building,” said Aaron Pechota, the company’s vice president of development. “We are also salvaging the four monument ‘E’s, denoting the Erie Railroad, and incorporating them into the design of our new courtyard. NRP has been developing multifamily projects across the nation for 18 years, and we’re thrilled to build a student housing community right here in our own backyard.”

The Depot will be located less than a quarter mile from the University of Akron’s campus. It will offer students one-, two-, three- or four-bedroom floor plans, ranging from 592 to 1,386 square feet. Each apartment will feature granite countertops, in-unit washer and dryer, walk-in closets, ceiling fans and contemporary furnishings including a 42” flat-screen television. Students will also have their own individually keyed bedroom and bathroom.

Building amenities include on-site parking, a heated pool, an outdoor lounge and outdoor bar and kitchen, an indoor gas fireplace, indoor-outdoor living space, a game room, a large group fitness classroom and fitness facility, private study rooms, a media lab room and conference room, and much more. The developers think The Depot’s ”location, unparalleled design and countless amenities will make it the first-class living experience for Akron students.”

The project is expected to be completed in August 2014. However, leasing will start this August. Asset Campus Housing will handle the leasing and on-site property management.

NRP is the eighth-largest multifamily developer in the nation. Last year, The National Association of Home Builders named it the “Multifamily Development Firm of the Year.”

Rendering courtesy of The NRP Group.

Phillips Edison-ARC Shopping Center REIT Buys 40th Grocery-Anchored Shopping Center

By Adrian Maties, Associate Editor

Phillips Edison–ARC Shopping Center REIT Inc. acquired another shopping center on April 23. The Cincinnati-based public non-traded REIT paid $7.3 million for the Hartville Center in the Greater Akron Metropolitan Area. It funded the purchase price with proceeds from its initial public offering and announced the new addition to its portfolio of retail properties on April 25.

The Hartville Center is located along West Maple Street, west of Kent Avenue, in the village of Hartville, Ohio. It is a 108,412-square-foot shopping center and  sits on a 23.1-acre plot. The Hartville Center was constructed in 1988 and renovated in 1998. It also includes almost 800 parking spaces.

Eighty-eight percent of the rents within the shopping center come from national tenants. Leased to 13 tenants occupying 76.7 percent of the space, the Hartville Center is anchored by Giant Eagle, which occupies 64,475 square feet and has signed a long-term lease through April 2020. Giant Eagle is the No. 1 grocer by market share in the Akron market.

The property is easily accessible from State Route 619. It is ideally situated in the heart of the retail corridor serving northeastern Stark County, almost 12 miles southeast of downtown Akron and 12 miles north of downtown Canton.

The Cincinnati-based public non-traded REIT focuses on the acquisition and management of well-occupied grocery-anchored neighborhood shopping centers throughout the United States. At the end of March, Phillips Edison–ARC paid $48.8 million for a three-state, three-property portfolio of shopping centers totaling 276,000 square feet. The Hartville Center is now the REIT’s 40th grocery-anchored shopping center. The aggregate purchase price for the portfolio is approximately $493.6 million. It totals 3.9 million square feet.

Photo credits: Phillips Edison–ARC Shopping Center REIT Inc.

Weston Offers 93,000 SF of Industrial Space for Lease in Twinsburg

By Adrian Maties, Associate Editor

With the Cleveland industrial market off to a good start in 2013, Weston Inc., one of Northeast Ohio’s largest privately held industrial property owners and managers, is offering 93,000 square feet at its new facility in the Southeast submarket.

The distribution warehouse is located at 9300 Dutton Drive, at the top of a cul-de-sac in a premier industrial area of Twinsburg. It is equipped with 12 docks and a drive-in for efficient loading, and the 25-foot ceilings in the warehouse provide plenty of space. The freestanding facility also includes 6,400 square feet of office space and a 6,200-square-foot walk-in freezer.

The walk-in freezer and its accompanying 900-square-foot cooler are the building’s most unique attributes. The freezer can maintain temperatures as low as 0 degrees, making it perfect for food manufacturers and distributors, but it can also be removed.

“If you are in need of space and are considering a move, now is the time to see this facility,” declared Tim Breckner, business development agent for Weston, in a statement to the press. “With the dynamics of the current industrial real estate market, this facility will not stay vacant for long.”

“As space tightens in Cleveland, facilities like this are going to (be at) a premium,” said Rob Namy, senior vice president for Weston, “especially buildings as well maintained as this one.”

According to CBRE Group Inc., the Cleveland industrial market finished the first quarter of 2013 with just over 843,513 square feet of sales and leasing activity. The overall vacancy rate decreased slightly, from 7 percent to 6.94 percent, while asking lease rates increased slightly, to $4.56 per square foot from $4.52 per square foot.

Photo credits: Weston Inc.

Charts courtesy of CBRE.

$500M Flats East Bank Development Adds Seven New Retail Tenants

By Adrian Maties, Associate Editor

Flats East Bank developers announced on April 10 that they have secured commitments from seven new retail tenants. Space is now limited in the $500 million waterfront development, as three office tenants also recently signed with the project.

The seven new tenants include four restaurants/bars, a high-end night club, a gift shop and an office tower café and deli. They are:

• BBR (Beers Burgers & Rock), a high-end sports bar by day and rock club by night;
• The Beer Market, an old-world specialty beer pub;
• The Big Bang dueling piano bar;
• Constantino’s Café;
• East Bank News & Gift;
• FWD (pronounced “Forward”),  a 15,000-square-foot high-end waterfront dance club featuring world famous deejays;
• Panini’s Bar & Grill, also on the waterfront.

They join other retail tenants, such as Toby Keith’s Bar & Grill, Ken Stewart’s, Lago, Flipside and Willeyville. Joe Mannino and Fabi Miller of Fairmount Properties represented the landlord on the transactions.

Recently, Wells Fargo, Northwestern Mutual and the Gilbane Building Co. signed office leases at the Flats East Bank development, joining Ernst & Young, Tucker Ellis and CBRE and bringing the 23-story Ernst & Young Office Tower to 70 percent capacity. Ernst & Young, Tucker Ellis and CBRE will move into the building in May and June. An Aloft boutique hotel will also open in June.

Iris Wolstein, her son Scott Wolstein and Fairmount Properties are the project’s developers. Success in landing retail and office tenants has accelerated phase II of the Flats East Bank development. The developers are now working to finalize financing and plan to announce a phase II groundbreaking within the next few months. They are  also preparing to open the $275 million phase I.

The $146 million second phase of the Flats East Bank project is expected to break ground as soon as this summer. Developers say it will create 800 jobs and bring approximately $2.4 million in income tax from construction. When finished, it will create 400 retail and restaurant jobs and will yield more than $3.7 million in annual sales and income tax. The second phase of development calls for the construction of a 200-unit waterfront residential complex, as well as more local, chef-driven restaurant and retail offerings and a park.

Rendering courtesy of www.flatseast.com

Thistledown Racino to Open on April 9

By Adrian Maties, Associate Editor

More gambling is coming to the Greater Cleveland area, as Ohio is getting ready to welcome its second ”racino,” or racetrack casino. Rock Ohio Caesars’ ThistleDown Racino will celebrate its grand opening on April 9 in North Randall. “American Idol” winner and Las Vegas headliner Taylor Hicks will kick off the festivities with exclusive concerts.

The Thistledown horse racetrack has been a fixture in the Cleveland suburb of North Randall since 1931. Rock Ohio Caesars, a joint venture between Dan Gilbert’s Rock Gaming and Caesars Entertainment Corp., invested $88 million to renovate the property and turn it into a new racino. It also developed the $350 million Horseshoe Casino Cleveland and the $400 million Horseshoe Casino Cincinnati.

Construction started last August. The facility is located on 128 acres, 10 miles southeast of downtown Cleveland. It now features 57,000 square feet of gaming space with 1,150 video lottery terminals, as well as new dining and nightlife options.

“We’re excited about so many things as the grand re-opening for ThistleDown approaches,” said racino general manager Rick Skinner in a statement to the press. “We’ve created 700 new jobs in this community to support these additions to our business. It is thrilling to see our new gaming floor and amenities take shape while we also prepare for our live racing schedule to start on April 19. Whether you’re a gamer, a horseracing enthusiast or both, we look forward to providing all our customers the fun, entertainment and great customer service that has become synonymous with Caesar’s Entertainment and the Total Rewards network.”

ThistleDown isn’t Ohio’s first racino. The Scioto Downs Casino & Racetrack outside Columbus opened its doors to the public last June. And just six miles south of North Randall, in Northfield, a joint venture between Hard Rock International and Northfield Park is developing a $275 million gaming and entertainment complex. Hard Rock Rocksino Northfield Park is expected to open in December 2013. By next year, there will be seven racinos in the state of Ohio.

Photo credits: www.caesars.com/thistledown

Cleveland’s Medical Mart & Convention Center Opening Early, Under Budget

By Adrian Maties, Associate Editor

Great news for the city of Cleveland. Its long-awaited $465 million Medical Mart & Convention Center will open early and under budget. City officials made the announcement on Wednesday, March 27, according to The Plain Dealer newspaper.

The 1 million-square-foot complex is located at St. Clair Avenue and Ontario Street, in the city’s downtown. It will feature a four-story, 235,000-square-foot Medical Mart facility attached below grade to a convention center with 230,000 square feet of Class A exhibit space. Also included are approximately 90,000 square feet of high-tech, flexible meeting rooms; a 32,000-square-foot Grand Ballroom that will be the largest venue in the city; and an 11,000-square-foot Junior Ballroom.

With the convention center built underground, the project allows for more than seven acres of green space. The complex is designed to achieve LEED Silver certification. It is anchored by the Healthcare Information and Management Systems Society, Philips Healthcare, GE Healthcare, Johnson Controls, the Cleveland Clinic and University Hospitals.

Merchandise Mart Properties Inc. teamed up with Cuyahoga County to create the combined medical mart and convention center. Seattle-based LMN Architects designed the project, while the Cleveland office of Turner Construction Co. is the design-build contractor.

The Cleveland Medical Mart & Convention Center is the largest project in downtown Cleveland history and the only facility in the world targeted specifically to the medical and healthcare industries. The project was started in January 2011 and is now more than 90 percent complete. It was initially scheduled to open July 19 but is now expected to be completed June 1.

Last week, Forbes Magazine recognized Cleveland as one of 15 U.S. cities with emerging downtowns. The Medical Mart & Convention Center was among the important developments that helped the city make the list. Another Ohio city, Cincinnati, was also among Forbes’ top 15.

Photo credit: www.clevelandmedicalmart.com

Cleveland Clinic Plans to Expand Brunswick Facility

By Adrian Maties, Associate Editor

The Cleveland Clinic plans to expand its medical building at 3574 Center Road in Brunswick. The city’s planning commission approved preliminary site plans on March 7. Another review will take place on April 4. The clinic will then present more detailed site plans, including renderings of the building.

The non-profit academic medical center will move forward with the $20 million expansion project at its Brunswick Family Health Center later this year, according to The Brunswick Post. It will add 40,500 square feet to the 34,000-square-foot facility, more than doubling its size.

Plans call for a 24,000-square-foot, 24-hour emergency department, 16,500 square feet of medical office space on the building’s second floor, a rooftop helicopter pad and additional parking. The helicopter pad will not be used as a heliport, a place where helicopters are stored and refueled; it will only be a stop. The clinic’s helicopters will continue to be based at the Burke Lakefront Airport. Officials expect to use them once or twice a week at most.

The Cleveland Clinic has purchased land just south of the Brunswick Family Health Center, across Parschen Boulevard, to use as parking for its employees. It will add 73 new spaces in 2014, when the emergency room is expected to open, and another 90 spaces once the new third-floor offices are completed, sometime in the next three years. When construction is finished, the Brunswick Family Health Center will have a total of 354 parking spaces.

Cleveland Clinic officials will return before the planning commission on April 4. Once the commission has approved the more detailed plans, they will need to be reviewed by the Brunswick City Council. The expansion is expected to provide 60 new high-paying jobs to the city.

Photo credits: Cleveland Clinic

Port Authority to Issue $90M in Bonds to Pay for New Cuyahoga County HQ

By Adrian Maties, Associate Editor

The Cleveland-Cuyahoga County Port Authority’s board of directors voted during its meeting on March 14 to sell as much as $90 million in bonds to finance Cuyahoga County’s new headquarters. The project is expected to revitalize one of downtown Cleveland’s older business districts and provide an anchor for surrounding mixed-use redevelopment.

Earlier this year, Geis Cos., a real estate developer and construction company based in Streetsboro, acquired the Ameritrust complex from the Cuyahoga County Council for $27 million. The company will construct an eight-story, 222,000-square-foot government headquarters building on a 0.72-acre portion of the property at East Ninth Street and Prospect Avenue and then lease it to the county.

Geis Cos. will not only construct but also manage the headquarters, which will belong to the Port Authority, as part of the bond deal. Cuyahoga County will lease the property until 2040. At the end of the lease term, it has the option to buy the building from the Port Authority for $1.

The Port Authority will issue the bonds in the weeks to come. The financing only applies to the headquarters building. The complex includes the Cleveland Trust Rotunda, Ameritrust Tower, 1010 Euclid Ave., the so-called “P and H” buildings and a parking garage with 1,050 spaces. Geis Cos. plans to turn them into apartments, retail space, offices and a hotel.

The Streetsboro-based developer will raze the “P and H” buildings to construct the new headquarters. Geis Cos. expects to deliver it by July 2014.

At the same meeting, the Port Authority board also approved the sale of 1906 E. 40th St. to Charter Stone Capital L.L.C. for $2 million. Currently leased to I Can Schools, the building was once home to Myers University and later to Chancellor University. Proceeds will help support the port’s 2013 capital program.

Photo credits: Google Maps.

Beachwood Hotel Rebranded as DoubleTree by Hilton

By Adrian Maties, Associate Editor

DoubleTree by Hilton and Twin Tier Hospitality L.L.C. announced last week they will reopen the Hilton Cleveland East Beachwood hotel as a DoubleTree by Hilton on March 11. The rebranding marks the pinnacle of a four-year hotel renovation.

The property transformation started with the renovation of the 404 guest rooms. It will continue, after the March re-opening, with upgrades to the front desk and lobby areas, and a new restaurant and lounge concept that will be unveiled later this year. Also, a new general manager, Robert Trammell, and new director of sales and marketing, Brenda Goodnight, joined the hotel’s experienced management team.

The Hilton Cleveland East Beachwood will become the DoubleTree by Hilton Cleveland East – Beachwood. It is located in Cleveland’s Beachwood suburb, just 25 minutes from Cleveland Hopkins International Airport and close to many attractions such as the Great Lakes Science Center, Rock and Roll Hall of Fame and Ohio’s top tourist attraction, Amish Country.

DoubleTree by Hilton Cleveland East – Beachwood offers its guests 16,000 square feet of flexible meeting space and can accommodate groups of as many as 800. Amenities include indoor and outdoor pools, a 24-hour fitness center, a 24-hour business center and complimentary WiFi.

“This hotel’s convenient Beachwood location and long-standing reputation with business and leisure travelers in the area make it a perfect addition to the DoubleTree by Hilton family,” said John Greenleaf, global head of DoubleTree by Hilton, in a statement. “We are happy to play a key role in this tremendous transformation, and bring guests in this market a truly rewarding travel experience.”

Charts courtesy of Marcus&Millichap.

Photo credits: DoubleTree by Hilton.