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Cleveland Development Thread

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More apartments coming to downtown. I love the design of the building.

http://www.cleveland.com/business/i...#incart_most-commented_forcing-change_article

Garfield Building sells for $6 million, will be remade as Corning Place apartments, retail
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By Michelle Jarboe McFee, The Plain Dealer
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on January 26, 2015 at 7:45 AM, updated January 26, 2015 at 9:50 AM

CLEVELAND, Ohio -- A $6 million real estate deal that closed Friday bulks up the downtown Cleveland presence of the Millennia Companies, an apartment developer and landlord that - until late last year - had holdings in eight states but no presence in its hometown core.

Real estate records show that a Millennia affiliate purchased the historic Garfield Building, at East Sixth Street and Euclid Avenue, at the end of last week. The Plain Dealer reported in April that Millennia planned to buy the empty office building and transform it into apartments over retail space, contributing to a wave of conversion projects sweeping the central business district.

After months of tweaking its plans, Millennia has settled on 125 apartments - down from the 170 or so smaller dwellings the landlord initially envisioned.

On average, the one- and two-bedroom units will run from 607 to 1,165 square feet and will rent for $1,095 to $2,220 a month, putting them near the higher end - but not at the top - of the downtown market.

Millennia plans to rechristen the building as Corning Place.

Construction on the $40 million project, which also will include 35,000 square feet of lower-level retail and, possibly, offices, is scheduled to start in June. The first apartments will open a year later, with the remainder completed by December 2016.

"We think demand is there for quite a bit of retail," said Nico Bolzan, president of Millennia Housing Capital Ltd., the financing arm of the Valley View-based family of companies. "We could have an office tenant coming in. We could have retail and a restaurant. We have a lot of demand but nothing lined up."

A handful of restaurateurs have inquired about the building, said Rico Pietro of Cushman & Wakefield/Cresco Real Estate, the Independence-based brokerage marketing the retail space. More notably, he added, Cresco is fielding calls from national clothing retailers - chains that wouldn't have looked twice at downtown a few years ago.

Now a larger residential population, of roughly 13,000 people, and a nationwide surge of interest in urban development has made Cleveland a contender, if not a slam dunk, for stores. Pietro wouldn't identify specific tenants who have asked about the 11-story Garfield Building, which features an ornate lobby long occupied by National City Bank.

Cleveland-based National City collapsed during the recent recession and was snapped up by PNC Financial Services Group Inc. in 2008. PNC gradually shifted workers out of the Garfield Building and other leased spaces and into the bank's office tower at East Ninth Street and Euclid.

PNC's lease at the Garfield Building ended in December. That expiration, and the challenges of filling older office space downtown, prompted Westcore Properties of California to sell to Millennia. Westcore unloaded the building for $2 million less than the company paid in 2008, records show.

Millennia plans to use federal and state historic preservation tax credits to assist with the renovations. The project, like other residential developments in Cleveland, also qualifies for property-tax abatement. Bolzan said Millennia has secured 135 nearby parking spaces for tenants through a long-term lease.

Nationally known as a buyer and redeveloper of affordable apartments, Millennia is focusing on full-priced - commonly called market-rate - housing downtown. In September, the company bought 75 Public Square, a historic but outdated office building, for a potential mixed-use redevelopment.

And, with an eye on moving its headquarters and 200 or so jobs from the suburbs to downtown, Millennia continues to evaluate other potential acquisitions. "We are actively looking," Bolzan said in an email Saturday, "but we do not have anything in play at this time."
 
Seems like it will be a nice addition to the Flats. Haven't been down there in a long time.

Zack Bruell will open an eighth restaurant, in the Flats East Bank, this June
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By Joe Crea, Northeast Ohio Media Group
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on January 17, 2015 at 11:15 AM, updated January 18, 2015 at 2:36 AM

UPDATED 2 P.M. SATURDAY


CLEVELAND, Ohio -- Zack Bruell has thrown his restaurant group's hat into the ring. A Bruell seafood restaurant will join the growing group of dining and nightlife destinations opening in Cleveland's Flats East Bank entertainment venue this year.

"We'll be calling it 'Alley Cat,' if all the copyrights check out," Bruell says.

Bruell's eighth restaurant, all in the city of Cleveland, will be in a new structure positioned directly on the east bank of the Cuyahoga River. According to preliminary artist's renderings - supplied to NEOMG on Friday afternoon and subject to further revisions, according to Bruell and his business partners - the building's footprint will combine a one-story dining area with a rooftop patio, coupled with a two-story atrium-style area that includes bar seating and private dining areas.

For the project, Bruell is teaming with the Wolstein Group, a partnership of Iris Wolstein and her son, Scott Wolstein, in conjunction with Fairmount Properties. Construction is about to begin and is expected to be completed for a June or July, 2015 opening.

"Every place I've ever gone into has been an existing structure," Bruell says. "I've never actually been involved in building a building -- I've done interiors."

In addition to five ZB fine dining restaurants -- Parallax, Table 45, L'Albatros, Chinatoand Cowell & Hubbard -- Bruell also operates Dynomite (a casual burger spot on Playhouse Square) and Kafeteria (in the 200 Public Square building, the former BP Building in downtown Cleveland.

"It's pretty exciting. Very few restaurateurs get the chance to actually be involved in the planning of the space they'll occupy. Fairmount Properties and the Wolsteins wants this building to be the jewel of the development."

In addition to an unobstructed view of the waterfront -- the new restaurant will be positioned directly across the river from Shooters Waterfront Cafe, on the west bank of the Cuyahoga -- Bruell's latest spot will enjoy a prime location and amenities. Its main entrance will spill out onto an expansive ground-level patio, adjacent to the massive and recently installed boardwalk that spans thousands of feet along the river. Boaters will be able to dock along the bank to join the activity.

"The property line goes right up to the boardwalk," Bruell says. The side of the building fronting the river, he adds, will be able to open up.

"So it will literally be an open-air restaurant: Open kitchen. Open dining room. Opens onto the water. We're looking at, basically, a glass box on the river -- with amazing views."

Although square footage has not yet been determined, the restaurateur says he and his business partners are aiming for seating between 150 and 170 guests, not including upstairs and private dining.

Menu plans are not finalized, either.

"Obviously it's going to be a ZB restaurant, but it's going to be casual," Bruell says. What I want is a shore restaurant, something you'd see on one of the coasts -- Maryland, or North Carolina or Massachusetts."

Which implies seafood. Fish and shellfish are anything but inexpensive ingredients on any menu, Bruell admits.

"An emphasis on seafood is a hard thing to do when you're talking about low check averages," he says. "It could end up being the kind of place [where] you order different oysters by the piece, plus peel-and-eat shrimp, steamed mussels, oysters, half-shell clams. Plus pasta dishes and salads. And you've got to have meat; you've got to have vegan.

"My goal is to do a place that that sort of hits everybody. You've got to provide and satisfy a mainstream experience -- both in terms of the menu and the prices on the menu. I'm aiming for a place you could go and actually hang out. This is not going to be an expense account restaurant."

Bruell joins other restaurateurs and bar operators in the next phase of construction. Cleveland chef Steve Schimoler (Crop Bistro and Bar in Ohio City and Crop Kitchen in University Circle's Uptown development) is opening a trio of food venues -- including Crop Sticks and Crop Rocks -- on the street level of a 240-plus unit residential structure just east of Bruell's intended site.

Other venues in the works include Toby Keith's I Love This Bar & Grill, a chain of eateries from the country music star; Big Bang, a dueling grand-piano bar featuring comedians and other entertainers; The Beer Market, a 500-brew pub based in Chicago; and several other destinations, some of them from Northeast Ohio hospitality operators.

"We've made great progress," says Adam Fishman, a principal in Fairmount Properties. His partnership's goal, Fishman says, "is to create a one-of-a-kind waterfront live-work-shop-play experience."

The partnership's first phase of development in Flats East Bank, which launched summer 2013, includes the Aloft Cleveland Downtown Hotel and a trio of restaurants: Lago, The Willeyville, and Ken Stewart's East Bank.

"We're just so excited to be working with a chef like Zack Bruell on a world-class and fun destination," Fishman says. "To do that from the perspective of a dining experience with the best local experts we have -- frankly, we consider Zack a culinary icon in Northeast Ohio -- that's even more cool."
 
Ah so that is what is going into that building. I haven't seen them progress at all on that thing in almost 2 months, was wondering what was going on. Apparently they didn't have a set tenant yet, although not sure why that would stop them from working on it.
 
So this was mentioned in the thread earlier in the year, but it looks like the store will open Feb 25th. I think its a creative way to use an old building. While some may brush this off, this is actually a good sign for Downtown development. As of right now, most downtown tenants have to go into the suburbs, or to Ohio City to shop. No its not far, but being able to walk to the grocery store is much more convenient. It will give the downtown area the appearance of having more foot traffic. This added amenity will only drive more people downtown. It doesnt seem like much, but if you can get everything you need, to work, to the bars, and to the restaurants by foot...its a huge selling feature. Many downtowns have capitalized on this, and I expect more grocery stores to go downtown. The more the better. It will only help drive downtown development & living.

Heinen's downtown Cleveland store aims to open Feb. 25, a month ahead of schedule



CLEVELAND, Ohio -- After months of telling shoppers the Downtown Heinen'slikely wouldn't be ready until the end of March, Jeff Heinen now says the store could open as early as Feb. 25, a month ahead of schedule.

"It's not carved in stone, but it is the date we're shooting for," he said, cautioning that "we still have hurdles to clear."

View full sizeTom Heinen, left, and his brother Jeff Heinen, co-presidents of Heinen's Fine Foods, confirmed today that their Downtown Cleveland grocery store could open as early as Feb. 25.Peggy Turbett, Plain Dealer file
"If we open on that date," it would be at 10 a.m., with he and his brother, Tom, doing a traditional butcher-block ribbon-cutting. That is a nod to their grandfather and company founder, Joe Heinen, the meat-cutter who began the family business in 1929.

"Nothing really happened" to accelerate the timetable, Heinen said. They had used the late-March date because they were being conservative about how long it would take to convert the former Ameritrust Tower and its striking rotunda into a high-end grocery store with full-service meat, bakery and prepared foods departments.

That's after having initially said the store would open in late 2014 only to postpone the date into 2015. "We were just trying not to over-promise and under-deliver," he said.

This will be Heinen's 18th store in Northeast Ohio and 22nd store overall, after thefour in suburban Chicago suburbs opened in 2012 and 2014. The brothers have also signed a letter of intent to open a store in Chagrin Falls at some point later this year.

The downtown store, at the southeast corner of East Ninth Street and Euclid Avenue, will anchor The 9 mixed-use development. It will eventually employ about 80 people in full- and part-time roles.

"We're still hiring," Jeff Heinen said. "While we've hired the majority of people, we are still looking. Roughly half of the people will be existing Heinen's associates; the other half will be new."

Candidates can apply online at heinens.com for open positions throughout the store.

By early February, "if all goes as planned, we'll be 98 percent done except for the stocking" of shelves, he said.
 
Getting a grocery store in a CBD other than NYC/Chicago/San Fran is definitely a difficult proposition. You need to have enough residents to support a store, but a grocery store is also a major drawing point for prospective buyers/renters. It's a chicken/egg scenario!

I wonder if City Target or one of the baby WalMart stores will move in if Heinen's is successful?
 
Getting a grocery store in a CBD other than NYC/Chicago/San Fran is definitely a difficult proposition. You need to have enough residents to support a store, but a grocery store is also a major drawing point for prospective buyers/renters. It's a chicken/egg scenario!

I wonder if City Target or one of the baby WalMart stores will move in if Heinen's is successful?

Target fine. Walmart no. I have seen both in a downtown setting and they draw in their target customer to a greater extent. I want walmart nowhere near my downtown.
 
Target fine. Walmart no. I have seen both in a downtown setting and they draw in their target customer to a greater extent. I want walmart nowhere near my downtown.

WalMart is in the Steelyard in Cleveland proper. I don't see them wanting to get that close. I especially do not see Councilman Cimperman, a flaming liberal, open to promoting a WalMart movement in the downtown area.
 
WalMart is in the Steelyard in Cleveland proper. I don't see them wanting to get that close. I especially do not see Councilman Cimperman, a flaming liberal, open to promoting a WalMart movement in the downtown area.
Thats fine. Just keep one away from the actual downtown area.
 
Has anyone head any sort of apartment information for the east bank flats building? They called me once to see if I was still on the waitlist and that is it. Called them back as well haven't heard a thing.
 
Been slacking here... Have 2 things:

1) The Kemper Hotel intends to (finally) open it's doors late in 2015 (corner of E. 9th & Euclid). This is relieving.. Any Clevelander knows this building as the one on E. 9th that has been blocking a southbound lane for the better part of a decade (no joke, they started restoring it in 2009).

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http://www.cleveland.com/travel/index.ssf/2015/02/clevelands_kimpton_hotel_set_t.html#incart_river

2) Heinin's (a local grocer) has opened it's doors in the old Cleveland Trust Building (corner of E. 9th and Euclid) officially yesterday. I toured it and was pretty blown away; they changed the downtown grocery scene by a long shot.

(Exterior)
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(Image below looks over the building in item 1)

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Checking out the new East bank apartments next week. Very excited to see what they look like in person.


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Cleveland needs some iconic green parks in the city.

I'm not sure if you're being serious or being sarcastic, but I'll take the opportunity to present to you a "vision". Is it great? No. Do I love it? Not at all. Just giving the info.

Mayor Jackson is in his final term. He proposed an idea to reinvigorate public square and it seems like this is how it will take shape. Ontario and Superior will no longer intersect with traffic... This breaks ground on Monday, March 9, 2015.

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Source: http://www.land-studio.org/project/public-square-redesign

Also, back in 1903, the concept of the malls (Mall A, Mall B, Mall C) were born with the idea of connecting the urban City to the lake. Clearly, while the malls are nice, they fall short of iconic, in my opinion.

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As you can see, it's void of life and activity. They're certainly nice, but there really isn't a "park" feel to it whatsoever. We'll see what happens when the new Hilton is opened (left side of the picture, across from the County courthouse). Perhaps, the Malls will come to life a bit. As it stands, they sit smack-dab between a ton of 8-5 buildings or buildings that are largely vacant outside of a few weeks a year.
 

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