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.

Lakewood Center North Sells for $3.4M

By Adrian Maties, Associate Editor

Lakewood Center North, the tallest office building in Cleveland’s second-largest suburb, was purchased by a local investor group led by commercial real estate broker and investor Brad Kowit. According to Cuyahoga County records, the transaction priced at $3.4 million.

The 15-story structure is located at 14600 Detroit Ave. It was constructed in 1974 and comprises more than 258,000 square feet of offices and retail space. Its amenities include a full-service restaurant, a fitness center, a conference facility and a sundry shop.

In recent years, the building saw its value drop dramatically. Lakewood Center North was acquired in late 2006 by a German real estate fund for $14.4 million. Now, the 258,000-square-foot building sits almost half empty, having lost several tenants in recent years. Among those tenants that left Lakewood Center North is the United Transportation Union, a labor union that represents railroad, bus and public-transit workers. When it moved to its new North Olmsted location, the labor union took 175 jobs with it.

Lakewood Center North’s future is uncertain at the moment. The new owners haven’t released any information about what they have planned for the building. It could be redeveloped as a hotel or a residential building. Or it could remain an office building, as recent reports say office vacancy in Greater Cleveland is dropping.

A report released by CBRE for the fourth quarter of 2012 shows a decreasing office vacancy rate in the area, from 20.2 percent in the third quarter of 2012 to 19.9 percent at the end of the year. Vacancy in the Central Business District was at 18.4 percent, the same as in the previous quarter, while the suburban market experienced a drop to 21.3 percent.

Charts courtesy of CBRE.

University Hospitals to Start Two New Construction Projects in Cleveland Area

By Adrian Maties, Associate Editor

University Hospitals is busy at work in the Greater Cleveland area. It plans to bring a medical office building and a full-service outpatient center to Euclid and Solon, respectively.

Earlier this month, UH announced its plans to transform an existing 20,000-square-foot office building located on the northeast corner of Solon and SOM Center roads, in Solon, into a full-service outpatient center. It will be named the UH Solon Health Center.

Work on the project is scheduled to start in April. The facility will offer its patients at UH Rainbow Babies & Children’s Hospital comprehensive pediatrics, internal medicine, allergy/immunology, dermatology, sports medicine, pulmonary and behavioral health, as well as advanced laboratory and radiology services.

“The new UH Solon Health Center enables us to bring the most frequently needed healthcare services closer to Solon residents,” said Michael Nochomovitz, M.D., president of UH Physician Services, in a statement for the press. “Additionally, a patient’s care at UH Solon Health Center will be fully integrated and coordinated with the expert care provided throughout the University Hospitals health system, including nearby UH Ahuja Medical Center in Beachwood.”

According to a report by the Cleveland Plain Dealer, UH is also investing in a new medical office building in Euclid, at Lake Shore Boulevard. The new structure will go up adjacent to UH’s current building at E. 185th Street and Lake Shore Boulevard. It should be finished within 14 months.

At 24,000 square feet, the new facility will be about a third the size of the current building. It will, however, have a more efficient and modern design and will offer patients primary care services, pediatrics, podiatry, cardiology, urology and ophthalmology, among other services.

Moody Nolan is the project’s architect. Once it is complete, UH will tear down the  current three-story medical office building and turn it into parking. Various local officials have expressed their hopes that UH will sell the land to the Cleveland Clinic for potential future expansion, as Cleveland Clinic’s 371-bed Euclid Hospital is located just next door. UH and the Cleveland Clinic are the two largest healthcare systems in the region — and are major competitors.

Photo credits: Google Maps

Eaton Corp., Fairmount Minerals On the Move in Greater Cleveland

By Adrian Maties, Associate Editor

Two companies in the Cleveland area are changing their current headquarters. Diversified industrial manufacturer Eaton Corp. and Fairmount Minerals, a privately held mining company, are both moving to bigger locations.

Eaton Corp. expects to finish moving into its new Beachwood building by Feb. 18. Called the Eaton Center, the 580,000-square-foot building is located on a 53-acre site on Richmond Road, in Beachwood’s Chagrin Highlands development. It consists of two five-story wings connected with a 10-story tower. Ground was broken on the new building in June 2010. Eaton said it invested more than $170 million in the project.

The new headquarters replaces Eaton’s previous offices at 1111 Superior Ave., in downtown Cleveland, the company’s home since 1984. Eaton Corp. leased 250,498 square feet in the 28-story office building. It started vacating it on Feb. 2.

The new LEED-certified complex will house 700 employees from Eaton’s downtown Cleveland, Willoughby and Eastlake offices. The company employs about 1,800 in 10 locations in the Cleveland area. It has 103,000 employees worldwide.

“Our new Eaton Center campus reflects our commitment to the continued growth of our global power management business, to our people and to Northeast Ohio,” stated Alexander Cutler, Eaton chairman & CEO. “This reaffirms our century-old commitment to the Cleveland area at a location with the potential for future growth.”

Fairmount Minerals is moving its headquarters from Chardon to Chester Towhship, according to The Plain Dealer. The mining company has signed a three-year lease for 11,000 square feet at a small office building off Mayfield Road. It decided to make the move after outgrowing its current location.

The new headquarters is part of a complex owned by the HF Group. It is located roughly eight miles west of the company’s current home on Ravenna Road. Fairmount will share the space with another tenant. It will move only part of its employees to the new headquarters and will keep the facility in Chardon as back-up offices. The company employs 800 people worldwide and almost 100 in Chardon.

Photo credits: Eaton Corp.

Fairlawn Town Centre Sells to Phillips Edison–ARC

By Adrian Maties, Associate Editor

Phillips Edison–ARC Shopping Center REIT Inc., a Cincinnati-based public non-traded REIT, on Feb. 4 announced the purchase of Fairlawn Town Centre, a 447,037-square-foot community shopping center located in Fairlawn, Ohio. The acquisition brings Phillips Edison’s total portfolio to 33 properties with 13 leading grocers in 15 states.

Phillips Edison acquired the shopping center from WP Realty, a real estate investment, development, management and leasing company headquartered in Bryn Mawr, Pa. According to a Securities and Exchange Commission filing, the purchase price for Fairlawn Town Centre was approximately $42.2 million. WP Realty acquired Fairlawn in May 2010.

Fairlawn Town Centre is located at 2855 W. Market St., just five miles northwest of the Greater Akron Metro Area and 35 minutes from downtown Cleveland. The shopping center contains approximately 348,255 of rentable square feet in five buildings, including one restaurant pad.

The shopping center is 95 percent occupied. A Giant Eagle grocery store is the anchor tenant, occupying 95,144 square feet and  on a long-term lease through June 2025. The tenant roster also includes Home Goods, Pet Supplies Plus, Ashley Furniture, Marc’s, the U.S. Post Office, Chuck E. Cheese, Panera Bread, GNC, Subway and Radio Shack.

The 30-acre property isn’t Phillips Edison’s first acquisition in Northeast Ohio. The REIT also owns two other grocery-anchored shopping centers in the region, the Brook Park Center in Brook Park and Snow View Plaza in Parma. It also purchased Parma’s Parmatown Mall and Shopping Center and now plans to redevelop the 1.2 million-square-foot mixed-use complex, which includes Parmatown Plaza, an enclosed regional mall; Parmatown Strip Center, a neighborhood shopping center anchored by Marc’s Grocery Store; and Parmatown Medical Center, a four-story medical office building.

Charts courtesy of Marcus & Millichap.

Akron’s Key Building to Hit the Auction Block; Canton’s Huntington Plaza Sold to Ameritrust

By Adrian Maties, Associate Editor

One of downtown Akron’s landmark office towers will soon be on the auction block. The Key Building will be offered at a public auction in late February through Auction.com.

The 11-story building was constructed in 1911. It sits on 0.42 acres at 159 S. Main St. According to Auction.com, the former KeyBank Building was 29.95 percent occupied as of Oct. 31, 2012. It has 158,259 square feet of rentable space, which underwent renovations in 1988. The property is located near many city attractions, including Lock 3 Park,  John S. Knight Center and Canal Park.

The bank that foreclosed on the building bought it back last June at a Sheriff’s Auction. At that time, the Key Building was appraised at roughly $9.5 million.

According to Auction.com, the auction is set to begin on Feb. 25 and end on Feb. 26, with the starting bid set at $600,000. It will be offered through a reserve auction, through which the seller reserves the right to accept or decline the final bid.

In other real estate-related news, Canton’s Huntington Plaza was sold to Amerimar Enterprises, a national real estate development, investment and management company based in Philadelphia. The cost of the transaction was $12 million, according to the Canton Repository.

The 11-story office building is located at 220 Market Ave. South, in the heart of Canton’s downtown. It was constructed in 1986 and totals 130,999 square feet of space. Huntington Plaza was sold together with the New Market Parking Deck located across the street. The two properties are directly connected by an enclosed skywalk, with the parking deck offering 500 parking spaces on five stories.

The property was sold by Tina Zenedes, a Realtor with Howard Hanna.

Photo credits: Auction.com

MRN Pre-Leases The Lofts at Rosetta Center

By Adrian Maties, Associate Editor

Apartment vacancies in downtown Cleveland are becoming harder and harder to find as office workers move in from the suburbs. According to the Downtown Cleveland Alliance, the occupancy rate is at 97 percent and has been rising steadily. Luckily, developers have stepped up to answer this need. One is MRN Ltd., a  Cleveland-based developer that started pre-leasing the Lofts at Rosetta Center on Jan. 15.

The 85 apartments are located in the 17-story Rosetta Center building at 629 Euclid Ave., just east of East Fourth Street in the Gateway District. The property underwent a massive renovation project that cost $17 million and turned 72,000 square feet of little-used office space on five floors (floors four through nine) into much-needed housing. The state awarded the project a tax credit of $1.6 million last June.

The Lofts at Rosetta Center will offer its tenants brand new, modern studio, one-bedroom and two-bedroom apartments. The units feature designer wood plank flooring, fully equipped high-efficiency kitchens, views of the city, on-site laundry, on-site fitness, lounge areas and much more. They range in size from 544 to 1,290 square feet and in price from $715 to $1,635 per month. The first units will officially open in March.

MRN has also been working on Uptown in University Circle, a one-of-a-kind residential, arts and entertainment district. In December, the company announced plans to start work on a $21 million second phase apartment building, according to the Plain Dealer. It will offer high-end rental units and dorms for students from the Cleveland Institute of Art. The new building is scheduled for completion in August 2014.

Photo credits: MRN Ltd.

Charts courtesy of Marcus&Millichap.

Westin Cleveland Downtown to Open in Spring 2014

By Adrian Maties, Associate Editor

Optima Ventures partnered with Sage Hospitality to buy and renovate downtown Cleveland’s second-largest hotel, The Crowne Plaza Cleveland City Center. They paid $9 million in cash for the hotel and parking garage and invested $64 million to turn it into a luxurious Westin. Now the joint venture has announced an opening date for The Westin Cleveland Downtown: Spring 2014.

Willoughby, Ohio-based Marous Brothers Construction, the project’s general contractor, started remodeling the property at  777 E. St. Clair Ave. in December. Upgrades include a complete renovation of all guest rooms, meeting space and all public spaces. The new exterior façade will feature metal panels and LED lighting that rotates through a range of colors.

The new Westin will have 484 guest rooms, all with Westin’s signature Heavenly in-room amenities. It will offer its guests 20,000 square feet of flexible event space that can be divided into 20 separate rooms, including a 9,000-square-foot Grand Ballroom connected to the floor above by a glass staircase, as well as a state-of-the-art fitness center, a business center and a Starbucks. Based in Cleveland’s downtown financial district, the hotel is near the new Cleveland convention center and Medical Mart, Brown’s Stadium and the Rock & Roll Hall of Fame.

The hotel will also get a new restaurant, the Urban Farmer-Cleveland’s Steakhouse, co-owned by Sage and Optima. Sage is also working with Cleveland’s LAND Studio to commission more than 1,000 pieces by local artists that reflect the city’s highly industrious and creative nature. The art will hang throughout the hotel, including a major sculpture above the main entrance.

The award-winning New York-based McCarted design firm designed the project. Once completed, it is expected to earn a LEED certification.

“The Westin Cleveland will offer an unparalleled lodging experience for downtown Cleveland,” said Ken Geist, executive vice president & partner at Denver-based Sage, in a news release. “We are striving to create a property that showcases Cleveland’s entrepreneurial spirit while also offering travelers the latest in luxury and high-tech amenities.” Noted Optima’s Chaim Schochet: “This hotel project is the perfect complement to the $200 million that Optima has already invested in Cleveland’s downtown.”

Photo credits: www.westincleveland.com

Charts courtesy of Marcus&Millichap.

Construction Loan Secured for $10+M Eco-friendly Townhome Community

By Adrian Maties, Associate Editor

Abode, Modern Lifestyle Developers, a real estate development company based in Cleveland, and First Federal Lakewood have closed on a construction loan to finance the Clifton Pointe Luxury Ecohomes, a new multimillion-dollar townhome community located in Lakewood, Ohio. It will be one of the first modern ecohome development communities in the Midwest.

“First Federal Lakewood was very excited to participate in the Clifton Pointe project,” said FFL commercial loan officer Barry Ezell in a news release. “This is a quality project adding luxury housing to Lakewood’s diverse housing stock, allowing us to give back to the communities we serve.”

Clifton Pointe Luxury Ecohomes will overlook the Rocky River and Lake Erie. It is the first townhome development on the Lakewood waterfront in 100 years and will feature eco-friendly construction and green-community living.

Phase I of construction calls for the development of 17 residences. Due to increased demand, another five residences will be added in the second phase. The award-winning luxury eco-community is designed by Dimit Architects. Its residents will enjoy private rooftop decks, outdoor kitchens, community kayaks and an outdoor pavilion, as well as a 10-year, 100 percent tax abatement. Shopping, restaurants and wine bars are within walking distance. Prices start at $379,000.

“This is incredible news for Cleveland real estate, where the trend has been nothing but falling market values. … Surprisingly, many lenders were willing to provide funding for a speculative townhome project. It was only four years ago that the banks shut down all ‘for sale’ and A&D lending. Maybe this is a sign that the Cleveland real estate housing market has bottomed out and is on the rebound,” said Andrew Brickman of Abode.

Photo credits: www.welcometoabode.com

Kent State Board of Trustees Approves $150M in Campus Construction Projects

By Adrian Maties, Associate Editor

Kent State University’s board of trustees hired the Ruhlin Co. to manage the $150 million, four-year construction and renovation project known as the “Foundations of Excellence, Building the Future.” The Sharon Center, Ohio-based company was selected after a competitive bidding and interview process.

During the next four years, Ruhlin will manage these four primary projects:

• The renovation of the Cunningham, Smith and Williams halls, the most heavily used science buildings. The project also calls for the construction of a science, technology, engineering and mathematics (STEM) addition to increase academic and research spaces.
• The construction of a new College of Architecture and Environmental Design building. The 120,000-square-foot building will be located near the Kent State University Hotel and Conference Center, which will open next June.
• The rehabilitation, reconstruction or replacement of the arts complex.
• The construction of a new three-story building for the College of Applied Engineering, Sustainability and Technology. It will stand three stories tall and will be between 40,000 and 50,000 square feet.

The projects total nearly $150 million. They are financed in part through the university’s issuance of $170 million in general receipts bonds.

Kent State’s board of trustees approved a number of other actions, as well, including $5.9 million in bond revenue funds to be used for a project to renovate the Olson Center for Undergraduate Studies, built in 1961. The 10,000-square-foot Memorial Athletic and Convocation Center (MACC) Annex will be renovated using $2.5 million of the $170 million bonds acquired for campus-wide construction and is expected to be completed by next summer.

Almost $7 million will be used to upgrade the four buildings that make up the Eastway Residential Complex, a $2.6 million project that will bring the showers and restrooms in the 53-year-old Prentice hall in compliance with the Americans with Disabilities Act, while another $4.5 million will go to the renovation and expansion of the Field House locker rooms.

The board also voted to purchase a 0.27-acre property located at 213 S. Willow St. in Kent for $200,000, authorizing the university to enter into a 15-year lease with the Portage County Port Authority. The lease includes an option to buy the property and will allow the the university to use the 3.75 acres at the corner of Summit and Lincoln streets in Kent.

Photo credits: www.facebook.com/kentstate

Cleveland Metropolitan School District to Auction Off Headquarters in March

By Adrian Maties, Associate Editor

The Cleveland Metropolitan School District’s headquarters building will go up for sale at auction next year. David Browning, managing director of CBRE Cleveland, made the announcement on Dec. 10, setting the date for the open-outcry auction as March 7, 2013, at the Sheraton Cleveland Airport Hotel.

The historic building was constructed in 1930. It stands six stories high and is located at 1380 E. Sixth St. The property sits on 1.75 acres in the heart of Cleveland, with 209,359 gross square feet of space. It is surrounded by development projects totaling more than $2 billion, among them the Medical Mart, the Flats East Bank Development, the Horseshoe Casino and numerous residential projects.

“This offering is a truly rare opportunity to acquire a property that is considered the centerpiece of Cleveland’s downtown lakefront redevelopment,” said Douglas Johnson, managing director of CBRE Auction Services. “The potential demand for truly unique hotel, residential, office and mixed-use space, as well as a growing parking need in the CBD, makes the CMSD site one of the most exciting redevelopment opportunities in Cleveland.”

The decision is part of the Cleveland Metropolitan School District’s plan to cut costs by unloading real estate and moving to rented offices. The Ohio Revised Code requires school properties to be sold at auction if no local charter schools express interest in them.

The auction will start at noon and be conducted by Gordon Greene, managing member of Chartwell Auctions L.L.C., a Cleveland-based real estate auctioneer and broker. Potential buyers must bring a certified or cashier’s check for $200,000.

”We are pleased to have the opportunity to be part of downtown Cleveland’s renaissance. Downtown Cleveland’s future is now. The recent and planned improvements to Public Square, the Malls and the Lakefront will ensure that Cleveland will be an exciting place to live, work and play,” said Browning in a release.

Photo credits: Google Maps