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