Friday, September 28, 2018

Cleveland: Nearly 40 towers planned


Among all phases of the Circle Square (was University Circle
City Centre/UC3), the One/Two University Circle and Park
Lane Condos developments, 13 buildings of 10+ stories were
built/are planned in the area of Euclid/Chester and East 105th/
Stokes, recreating a second downtown that existed here prior
to the 1970s (Midwest)(CLICK IMAGES TO ENLARGE).

A remarkable building boom is under way in Greater Cleveland. Because of a strong economic recovery that's been picking up momentum here over the past five years, there are more large building projects in the metro area now than at any time in perhaps the past 50 years.

By my count, there are approximately 39 buildings of 10 stories or taller that were completed since last year, are under construction, are about to begin construction or are planned. Of course, not all are going to get built because some are "plans" put out there for a real estate developer to generate publicity and/or test the market to see what can be economically justified.

Unlike the last boom, which featured many 10+ story apartment buildings in the suburbs of Lakewood, Euclid, Parma, Mayfield Heights, and elsewhere, nearly all of the structures in this current boom are in the city of Cleveland. And, unlike the last construction boom, there are also now many residential conversions of obsolete office buildings, many of which are 10+ stories tall. They are not included in this count.

This article ranks new construction projects based on their likelihood of a groundbreaking within the next five years. Their likelihood is based primarily on the project's current development status. Some developments are multi-structure projects; one or two buildings from each of those larger plans might see a groundbreaking by 2023.

Completed projects are, of course, listed first. Those with most or all of their financing in place and a nearer-term ground-breaking date are ranked as next-most likely. Other factors are the locations where these buildings are built and who the developers are. Some developers have a knack for quickly delivering projects. Others don't.

One thing that is not taken into account is the future of the national and global economy. If the economy tanks, most of these developments will probably get put on the shelf or killed outright. But no one knows when the economy will ebb again so that variable is omitted.

But we do know the Cleveland economy is humming right now, hence the justification for this building boom.

Cleveland was the fastest growing big-city economy in Ohio in 2017 and that pace is continuing well into 2018 so far. Not only was it the fastest growing economy in Ohio so far this year, but Cleveland was one of the fastest growing in the entire Midwest in June. Global real estate giant CBRE ranked Cleveland 8th out of the 50 fastest growing tech economies in the U.S. and Canada in the past two years. Lastly, San Jose, CA and Cleveland tied as the metro areas achieving the fastest wage growth in the second quarter of 2018, according to PayScale.com. There's a reason why there's optimism in Cleveland's air.

So here's the building projects starting with those completed in the past year:

The Edge on Euclid (CRG) (CLICK PHOTOS TO ENLARGE)
The Edge on Euclid (one tower of 10+ stories), 1750 Euclid Ave. --
Opened: Fall 2017
Height: 11 stories
Square footage: 262,000
Residential units: 240 apartments
Investment: $60 million
Developer(s): St. Louis-based CRG and San Diego-based Koman Group
Description: provides downtown off-campus housing and amenities for Cleveland State University students and affordable urban apartments for young professionals. Built on the site of the former Jewish Federation of Cleveland offices.

One University Circle (Joshua Jones)
One University Circle (one tower), 10730 Euclid Ave. --
Opened: Summer 2018
Height: 20 stories, 234 feet
Square footage: 533,000
Residential units: 276 apartments
Investment: $116 million
Developer(s): Cleveland area-based Petros Homes, First Interstate Properties Ltd.
Description: University Circle luxury residential tower built on mostly vacant lot.

The Beacon (UrbanOhio)
The Beacon (one tower), 515 Euclid Ave. --
Opening: Spring 2019
Height: 28 stories, 355 feet
Square footage: 440,000
Residential units: 187 apartments
Investment: $94 million
Developer(s): Cleveland-based investor Reuven Dessler and Stark Enterprises
Description: downtown 19-story luxury residential tower atop 9-story parking garage built in 2005.

The Lumen (PHS)
The Lumen (one tower), 1650 Euclid Ave. --
Opening: Summer 2020
Height: 34 stories, 396 feet
Square footage: 602,000
Residential units: 318 apartments
Investment: $135 million
Developer(s): Playhouse Square Foundation and Houston-based Hines Interests Ltd.
Description: downtown luxury residential tower under construction on former surface parking lot.

Circle Square (SO-IL+Kurtz)
Circle Square (three to eight towers), Euclid/East 105th/Chester/Stokes --
Groundbreaking: First phase Summer 2018
Height: First new building is proposed to be as tall as 10 stories, with later buildings in the 5-20 stories range
Residential units:700 units (all phases)
Retail/office/community space: 150,000 square feet (all phases)
Investment: $300 million (all phases)
Developer(s): Cleveland-based Midwest Development Partners and Orlean Co.
Description: More than $16 million in renovations to the 13-story Fenway Manor began in the summer of 2018. New construction, featuring up to a 10-story apartment building above a new MLK Branch Library, is scheduled to begin in 2019. In total, this is a four-block development that will demolish the old MLK Branch Library, the vacated Third District Police station, eliminate higher-speed turning lanes from Chester-east to Stearns-south, replaced by at least three new buildings of up to 10 or more stories and four more buildings that could be nearly 10 stories tall or more, depending on demand and financing. A dozen for-sale townhouses are planned on the site of a former roller rink/used car lot, now park land along Stearns Road.

Church & State (Hemingway)
Church & State (one tower), 2850 Detroit Ave. --
Groundbreaking: Fall 2018
Height: 11 stories (second building of six stories)
Residential units: 161 apartments
Investment: $57 million
Developer(s): Cleveland-based Hemingway Development
Description: Two buildings with apartments over ground-floor retail, adjacent to new public space, to be built on a vacant lot. This project is so imminent that it will likely be in the "proposed"category for only one more week after this blog is published.

Kenect Cleveland (Wolstein/Akara)
Kenect Cleveland (one tower), Main at West 11th --
Groundbreaking: Winter 2019
Height: 12 stories
Residential units: 309 apartments
Investment: $150 million
Developer(s): Cleveland-based Scott Wolstein and Chicago-based Akara Partners
Description: Luxury apartment building with ground-floor retail, adjoining movie theater and riverside restaurants. This is the third phase of the Flats East Bank development and will be built primarily on a surface parking lot. It is an imminent project with a developer Akara that has a knack for delivering projects.

Top Of The Hill (Eppstein Uhen)
Top Of The Hill (one tower), Cedar at Euclid Heights --
Groundbreaking: Summer 2019
Height: new plans now show one building up to 10 stories tall
Residential units: up to 285 apartments and 20 townhomes
Office space: unknown
Hotel space: unknown boutique hotel
Retail space: up to 14,000 square feet
Investment: up to $80 million
Developer(s): Indianapolis-based Flaherty & Collins
Description: This Cleveland Heights development is only one of two projects in this article outside of the City of Cleveland. It is a multiple-structure, phased development proposed on vacant land and surface parking lots at the top of Cedar Hill, above University Circle.

One Lakewood Place (RDL)
One Lakewood Place (one tower), 14519 Detroit --
Groundbreaking: Fall 2019
Height: one of the many structures could be up to 10 stories
Residential units: 200 apartments, 60 townhomes
Office space: 100,000 square feet
Retail space: 84,000 square feet
Investment: up to $100 million
Developer(s): Cleveland area-based Carnegie Management and Development Corp.
Description: This mixed-use development is only one of two projects in this article outside of the City of Cleveland. It will be constructed on the site of the now-closed Lakewood Hospital. Pre-demolition hazardous material abatement has begun on the former hospital after some of its medical facilities were moved next door to the new Lakewood Family Health Center.

Market Square (HPA)
Market Square (two towers), West 25th at Lorain --
Groundbreaking: Fall 2019
Height: 12-story office building, 10-story residential building
Residential units: 260 apartments
Office space: 137,000 square feet
Retail space: 36,000 square feet
Investment: approximately $130 million
Developer(s): Chicago area-based Harbor Bay Real Estate Advisors
Description: Transit-oriented mixed-use development including indoor and outdoor public spaces built on the site of an existing strip shopping center, next the RTA's Ohio City Red Line rail station. Harbor Bay has a proven record of developing projects in many Midwest cities.

nuCLEus (Stark)
nuCLEus (two towers), Prospect/East 4th/Huron --
Groundbreaking: Unknown
Height: prior plan was for a 54-story main tower
Residential units: up to 500 units, mostly apartments
Office space: 200,000+ square feet
Retail space: 150,000 square feet
Investment: up to $540 million
Developer(s): Cleveland-based Stark Enterprises
Description: Transformational mixed-use development on one of downtown's largest parking craters. Due to difficulties in securing gap financing, Stark may scale down the project including eliminating the hotel bridge building between Plot A and Plot B and significantly reducing the height of the residential tower. However, the office tower may actually increase in size and be the first phase of this project due to tightening of the Class A downtown Cleveland office market.


Flats South Innovation District (Dimit)
Flats South Innovation District (two towers), West 3rd at Stones Levee --
Groundbreaking: Unknown
Height: 12 stories each tower
Residential units: 240 apartments, 45 townhomes
Office/retail space: 81,300 square feet
Investment: approximately $100 million among all three phases
Developer(s): Cleveland area-based Joel R. Scheer Real Estate and Welty Building Co.
Description: Two identical 12-story apartment buildings are proposed, along with a wide variety of mixed uses. Demolitions of 1900-1960 W. 3rd were approved by the city in September to prepare for construction for the first phase of the Flats South development, which is proposed for a riverside industrial area that's long been underutilized.

Phase II site--One University Circle (Dimit)
Two University Circle (one tower), Euclid at Stokes --
Groundbreaking: Unknown
Height: Potentially 20+ stories
Residential units: Approximately 200 units
Investment: $100+ million
Developer(s): Cleveland area-based Petros Homes, First Interstate Properties Ltd.
Description: University Circle luxury residential tower built on a surface parking lot. Developers were pleasantly surprised at the very robust leasing of their first phase but tenants are reportedly disappointed that there is no lease-to-buy option. So condominiums may be available in a second phase.

Park Lane Condominiums (Finch)
Park Lane Condominiums (one tower), 10570 Park Lane -- 
Groundbreaking: Unknown
Height: 11 stories
Residential units: 18 condominiums
Investment: $20 million
Developer(s): Boca Raton, FL-based Finch Group
Description: This development is a follow-up to Finch's Park Lane Villa and would provide for-sale units on top of a parking garage entrance, between the villa and the 11-story Judson Manor, just north of the massive Circle Square development that's getting under way.

One West Twenty (Vocon)
One West Twenty/Duck Island (two towers), 2000 Lorain --
Groundbreaking: Unknown
Height: At least one building and possibly two may be 10+ stories
Residential units: was 500 apartments but may be more
Investment: was $100 million but may be more
Developer(s): NA
Description: The project and its properties were sold by an Andrew Brickman-led company to a nationally prominent real estate developer which seeks to increase the scale of the project. Existing zoning allows for structures of up to 13 stories. The site was mostly cleared by Brickman except for a small, remaining structure, the offices of Hauck Painting.

2210 Superior Viaduct (City Architecture)
2210 Superior Viaduct/Flats West Bank (one tower), 2210 Superior Viaduct --
Groundbreaking: Unknown
Height: 11-20 stories
Residential units: 64 apartments
Investment: unknown
Developer(s): Cleveland area-based Downtown Ventures LLC
Description: The developer, led by Daryl Kertesz, has a contract to buy the property but hasn't yet sought to demolish the small industrial building on the site. The developer would like to build a 20-story tower but is proposing only 11 stories at this time.

Nautica Waterfront District (GDP Group)
Nautica Waterfront District (seven towers), Main and Center --
Groundbreaking: Unknown
Height: 10-27 stories
Residential units: 664 apartments
Hotel space: unknown 150-room hotel brand
Office space: 187,000 square feet in 15-story building
Retail space: unavailable
Investment: $405 million
Developer(s): Cleveland area-based Jacobs Investments, Inc.
Description: Jacobs purchased 22 acres of mostly parking lots as well as several nearby buildings on the West Bank of the Flats for a massive, mixed-used development including seven buildings of at least 10 stories, starting with a 15-story office building and 12-story hotel, followed by two 27-story residential buildings connected mid-tower, three 10- to 12-story apartment buildings plus structured parking, public plazas and private marinas

Weston Superblock (Gensler)
Weston Superblock (four towers), Superior/St. Clair/West 3rd/West 6th --
Groundbreaking: Unknown
Height: 24-37 stories
Residential units: 1,500 apartments
Hotel space: unknown brand 250-room hotel
Office space: 1 million square feet primarily in a 37-story building
Retail space: 123,200 square feet
Investment: up to $1 billion
Developer(s): Cleveland area-based Weston and Citymark Capital
Description: 3 million square feet of development was proposed on mostly Weston-owned parking lots to which Weston has purchased more pieces of land to completely own the entire Superblock except for the Stark HQ. However there has been no news about this project in a year and it isn't even mentioned on Weston's website.

Settlers Point Tower (Dimit)
Settlers Point Tower (one tower), 1400 West 10th --
Groundbreaking: Unknown
Height: 19 stories
Residential units: up to 30 apartments or condominiums
Investment: up to $40 million
Developer(s): Cleveland area-based Joel R. Scheer Real Estate and Welty Building Co.
Description: Residential tower is proposed by the owner and developer of the adjacent and historic Settlers Point Building. It would be built between that building and the neighboring Riverbend Condominiums on a parking lot owned by Scheer. There has been no publicity or announcement about this building; just a casual reference to it on a map on Scheer's website as well as a "Happy July 4th" rendering that didn't mention the proposed building's name that was shared on the website of Scheer's architect, Dimit.

Two additional projects could someday appear on this ranking. One is a possible mixed-use redevelopment of the Lutheran Hospital's parking lot bounded by West 25th, Franklin, West 28th and Aust. Cuyahoga County property records show that an affiliate of commercial real estate developer Weston Inc. purchased property at 1550 W. 25th. This is a partnership with the Kertesz family to develop this site.

However, in recent years, community development officials have discussed developing the 5-acre Lutheran Hospital parking lot with one or more multiple-story buildings and consolidating the hospital parking into a new garage farther south. This development is being motivated further by the progress in establishing Irishtown Bend Park across West 25th that will provide an attractive view of downtown from the redeveloped hospital parking lot.

The other possible tower is a new, consolidated headquarters for the Sherwin Williams Co. The coatings company's offices and research facilities are spread among four buildings in Cleveland, including their historic headquarters in the Landmark Office Towers, 101 Prospect, plus their expanded offices in the Skylight Office Tower across West 2nd Street, 4780 Hinckley Industrial Parkway and the Breen Technology Center, 601 Canal.

Sherwin Williams was considering a new consolidated headquarters before 2016 when it began efforts to acquire Valspar Paint, then-headquartered in Minneapolis. Sherwin Williams has recently wrapped up all legal work from that acquisition, settled its reorganizing of employees, and begun adding new employees again. Once the company also pays down its debt to a satisfactory level, it may reconsider building a new headquarters.

That's my ranking of the likelihood of potential 10+ story building projects around Greater Cleveland.

END

3 comments:

  1. Great article - but also surprising to see Thunderbird didn't make the list.

    ReplyDelete
    Replies
    1. I made it to the end expecting to see it. I was about to just type the name and search for it when I saw your comment.

      Delete
  2. Why is Thunderbird not on this list

    ReplyDelete