nuCLEus may lose its largest pledged tenant to Key Tower

This is the most recent proposed version of One nuCLEus
Place, a 24-story office tower atop a podium of parking
and retail planned in downtown Cleveland. This proposal
spurred the creation of a new state program to support the
development of large, complicated projects that could posi-
tively transform their communities. But the largest announ-
ced tenant for nuCLEus appears to be courting a new land-
lord and could further frustrate long-standing efforts to
develop this project (Stark).

One the eve of submitting applications for a new state tax-credit program to aid transformational real estate projects, the project that instigated the program is facing a major stumbling block. However, NuCLEus, announced seven years ago, is still alive but in what form isn’t publicly known.

One of Cleveland’s largest law firms, Benesch, Friedlander, Coplan & Aronoff LLP, is reportedly considering moving its offices and hundreds of employees to Cleveland’s tallest and most prestigious skyscraper — Key Tower, 127 Public Square.

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Data shows downtown residential is hot

Downtown Cleveland’s residential market has proven resilient in
the face of recent crises. Now it is on course to break through the
30,000 population ceiling by the end of the 2020s which should
attract more employers and neighborhood-style retailers, perhaps
even some regional retailers as well (LoopNet).

 If you spend too much time on social media, you might encounter a few folks who are under the false impression that parts of downtown Cleveland burned to the ground during the nationwide racial unrest last year. But while downtown’s commercial market is still recovering from the ongoing pandemic, the residential market is hot. You might even say it’s on fire.

Three data sets confirm this. One is downtown’s population, which is now above 20,000 people using the only resource that matters — the U.S. Census. Another is a recent CoStar report that says downtown apartment demand is on pace for a record-breaking year. The third data set comes from a unique source.

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Flats East Bank plans reveal $84 million project

Plans were shared with NEOtrans today for Kenect Cleveland, the
proposed next phase of development of downtown Cleveland's Flats
East Bank. This conceptual rendering by Goettsch Partners for de-
veloper Akara Partners, both of Chicago, shows a wide-angled view
looking generally east from the intersection of Front Street on the
left and West 11th Street on the right. Currently occupying the site
is a 173-space, 2.45-acre surface parking lot (GP).
CLICK IMAGES TO ENLARGE THEM

The next phase of development at Flats East Bank has undergone some refining in the last couple of years as the pandemic and technological advances have affected the real estate market. Although the plan was always to build a mixed-use but residential-focused structure, this next phase (dubbed by some as Phase 3B), has been pruned somewhat.

With an early construction cost estimate of $84.4 million and a project size of 213,376 square feet, Kenect Cleveland is still a significant project. The seven-story building is proposed to have 229 market-rate apartments above three levels of parking with 229 spaces, plus 10,000 square feet of ground-floor retail and a leasing office of 5,000 square feet.

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Cleveland Indians may buy garage for ‘ballpark village’ development

With an office-like façade along Huron Road, the massive Gateway East Garage extends
south along the East 7th Street alley and then west along Bolivar Road, behind Progres-
sive Field’s scoreboard. The Cleveland Indians/Guardians may acquire the 1994-built
city-owned parking garage in 2024-25 and sell or partner with a real estate
investor to redevelop it (GoogleEarth).

As part of its ballpark renovation plan, the Cleveland Indians may acquire one of the largest parking garages in downtown Cleveland. The city-owned, 1,650-space Gateway East Garage, 650 Huron Rd., might then be sold to a real estate investor who would demolish some or all of the structure for redevelopment, according to two sources.

Both sources spoke off the record to NEOtrans and outlined the Major League Baseball (MLB) team’s vision for financing $435 million worth of proposed renovations to the 1994-built Progressive Field. The Indians (to be called Guardians after this season) in August signed a public-private partnership deal with the city of Cleveland, Cuyahoga County and the state of Ohio to remain at Progressive Field for at least another 15 years after the club’s current lease expires following the 2023 season. Two optional five-year lease extensions are included.

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Bedrock riverfront joins downtown lakefront in mega-planning

A multi-decade vision was announced today by Detroit-based
Bedrock for riverfront development in downtown Cleveland. It
depends on securing federal dollars for infrastructure improve-
ments which will take many years to carry out (Bedrock).

The more things change, the more they stay the same.

A century ago, the city of Cleveland was eager to work with the private railroads to replace its undersized, outdated lakefront train station with a glamorous new downtown terminal. The new lakefront station would be a key component of its ambitious Group Plan designed by Daniel Burnham to remake the central business district into a setting of beautiful public buildings built along a park-like mall.

But two brothers from the eastern suburbs began developing Shaker Heights, rapid transit lines and a $1.8 billion (in today's dollars) downtown station complex for railroads, public transportation, office towers, luxury hotel, department store and post office. Both plans were achieved, although the Group Plan was built without the railroad station. The Van Sweringen brothers' Cleveland Union Terminal was constructed instead, crowned by Terminal Tower.

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Court orders Little Italy housing construction halted

Thirteen four-story townhomes would line the east side of
Coltman Road in Cleveland’s Little Italy and block views
of a four-story apartment building from the west. Another
four townhomes would rise on East 123rd Street located
south of the apartment building that is a source of dis-
content for two nearby residents who are trying to
block construction work now under way (SixMo).

Cuyahoga County Common Pleas Court Judge Michael J. Russo issued a preliminary injunction yesterday against parties involved in the development of the long-vacant and neglected Woodhill Supply site, 1862 E. 123rd St. in Cleveland’s Little Italy. The development is a $15 million mix of townhomes and an apartment building. However construction continues as terms of the injunction have apparently not been met.

For Russo’s order to take effect, two complainants initiating the case would have to first file a $200,000 bond with the court. The bond had not been filed as of midday today, court records show. NEOtrans also visited the development site today and noticed that construction appears to be continuing.

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Gateway live-work apartments planned, more possible

This basic massing shows the concept of what developer Somera
Road would like to build in the 1000-1100 block of Bolivar Road
just east of East 9th Street and Progressive Field. Proposed is
a four- to five-story apartment building built atop a two-level
parking garage with retail fronting Bolivar (Desmone).
CLICK IMAGES TO ENLARGE THEM

New York City-based real estate firm SomeraRoad is proposing a big addition to several downtown properties it acquired two years ago along Bolivar Road east of East 9th Street and Progressive Field.

According to documents submitted to the city prior to seeking conceptual approval from Cleveland City Planning Commission, SomeraRoad wants to construct a seven-story apartment building with 203 units. The project would consist of a two-level parking garage with ground-floor retail and topped by the new apartments.

"We are in the conceptual stages of discussing a potential mixed-use development at our property on Bolivar Road with the City of Cleveland," wrote Andrew Donchez, vice president of development at SomeraRoad, in an e-mail to NEOtrans.

"Given the great location, proximity to the great sports, entertainment and dining options in downtown Cleveland, we believe a high-quality, mixed-use and residential development would be complementary to our renovation of the historic office building at 1020 Bolivar that we recently completed," he added. 

Although these massings make it appear as if the apartment building
would be built atop both existing parking garages on Bolivar. In-
stead, the single-level deck that's closest in this view would be
demolished for a new, two-level garage that's a bit shorter
than the 1971-built garage that will be kept (Desmone).

That office building, the westernmost structure on the site, is a former Ohio Bell Telephone Co. operations building. Later, it was the offices for the Ohio Means Jobs employment agency that moved to 1910 Carnegie Ave. The four-story building, with ground-floor parking, was recently renovated with a modernized lobby, tenant lounge and rooftop deck.

The next two structures east on the property will meet different fates, pending city approvals that include a zoning variance or a change of use as the site is zoned as semi-industry.

Through its Cleveland-based affiliate Core Construction Services, SomeraRoad plans to demolish the easternmost parking garage, a one-level facility built in 1926. It is located in a designated historic district.

By contrast, the owner intends to retain and refurbish a two-level parking garage built in 1971 located in the middle of the site. It is between the renovated office building and the 1926 garage. On the site of the demolished garage, five stories of apartments will be built above the new parking deck; four stories would rise above the existing garage.

Cross-section views from the north (Bolivar Road) side and south
 (Erie Court) that helps better explain how the new apartment
building, new parking garage and 1971 garage will fit to-
gether in this proposed development (Desmone).

The new, two-level parking structure would have two retail spaces -- one 1,267 square feet and the other 1,491 square -- a residential lobby and a 1,081-square-foot fitness center. All of those ground-floor uses would face Bolivar.

Vehicular access will be off Bolivar and Erie Court, the street south of the site that's along the Erie Street Cemetery. The 1971 and new parking structures will also be connected internally so vehicles can travel between them without going outside.

"The goal of the project is to contribute to the 'live-work-play' environment of the Gateway District and to activate the street, creating a more vibrant pedestrian experience and support Bolivar Road and Erie Court as a connection between Playhouse Square and the Gateway Stadiums," according to a project brief supplied by SomeraRoad.

"The design is to respect the existing historic context of the area while introducing materials to support a modern industrial aesthetic," the developer's brief continued. More detailed renderings and designs will be provided if the city grants conceptual approval.

Existing conditions as seen looking generally west along Bolivar
Road, with the 1926-built garage in the foreground, the 1971-
built garage just beyond, and the recently renovated, four-
story office building barely visible at right (COSTAR).

Above the 1971 garage, a plenum space for air circulation topped by four stories of apartments are proposed to be built. But it won't be two apartment buildings. It will be a single, continuous building over both parking structures and measure 272,705 square feet. In total, the 1971 garage and the new deck will add 254 vehicle parking spaces and 10 bicycle parking spaces.

To achieve the city's sustainability goals, the developer notes that the project will reuse an existing parking garage and provide a minimum amount of bicycle parking. It will also offer electric vehicle charging stations, green roof areas with native landscaping, reflective white upper roof, daylighting, operable windows and LED lighting.

"I would be happy to chat and provide more details in the future as we progress with the project," Donchez said.

The new building will top out at 80 feet tall -- high enough so that the upper floors will have views of baseball games at Progressive Field and of downtown's central business district nearby. But views could increasingly be obstructed in coming years.

This view from atop SomeraRoad's recently renovated office building,
the former Ohio Bell operations center, is a low-level example of
the kind of views that could be had from the proposed, taller
apartment building behind the photographer (COSTAR).

The reason is due to potential development surrounding the planned $435 million renovation of Progressive Field. That renovation may depend on revenue from the creation of a Tax Increment Financing (TIF) district around the ballpark to capture the increase values from significant developments within that district, according to a source familiar with the vision.

Three potential groups, one local and two out-of-town, are pursuing a minority ownership stake in the Cleveland Guardians to position themselves at the front of the line to acquire the team whenever the current owner Paul Dolan decides to sell. The source declined to identify the three groups.

Major League Baseball and all three potential ownership groups are heavily pushing the proposed TIF district for development, replicating the ballpark villages in Atlanta, Boston, San Diego, Washington DC and St. Louis.

Potential development sites include nuCLEus, the Caxton Building parking lot, the parking lot south of the garage City Club Apartments will use for residents' parking, Carnegie-East 9th and East 9th-Bolivar. The last site was put on the market last month by Geis Companies which is apparently hoping to catch this rising tide.

END