Northeast Ohio Properties, November 2024

Driving Forward in Beachwood

$30 million Porsche dealership pairs high visibility with sleek, sophisticated design

www.aircontrolproducts.com

Spiral Ductwork

Self-sealing gasketed single wall & double wall spiral pipe, fittings and registers, creating a clean consistent look.

CO/NO2 Monitoring

Gas and Diesel engine exhaust detection.

Exhaust Extraction Systems

High temperature, high quality vehicle exhaust and fume extraction systems including spring hose reels, motorized hose reels, underfloor and rail systems, source capture arms, and more.

Exhaust Fans & Make-Up

Air Units and HVLS Fans

Air movement products (fans and blowers) can draw fresh, outdoor air and circulate air throughout a space and can exhaust contaminated air and fumes from a building.

HVLS (High Volume Low Speed) Fans address air circulation in vast industrial spaces and displace stagnant air, ensuring a consistent temperature throughout the area. Great for technicians comfort.

Pictured: Performance Toyota Dealership - Columbus, Ohio

Mike Hicks President

mwatt@propertiesmag.com

FEATURES

llarissey@propertiesmag.com

Doug Bardwell, Scott Esterly, mlehnert@propertiesmag.com

loverbey@propertiesmag.com

Real Estate Publishing Corporation jeff.johnson@rejournals.com

Cover photo: Porsche Beachwood,

(ISSN 033-1287) is published monthly for architects, engineers, building owners and managers, general contractors, home builders, mortgage bankers, savings and loans, real estate agents, appraisers, servicers and suppliers in , Inc., 8305 Chesterfield Ave., Parma, OH 44129-1813. Copyright © 2024 by , Inc. All rights reserved. Reproduction or use, without written permission, of editorial or pictorial content is strictly prohibited. Periodicals postage paid in Cleveland, Ohio and additional offices. Subscription rates: one year $30, single copy $9, back issues $12 when available. Postmaster: , 8305

8 Saluting Success

Cleveland professionals help ACE Mentor Program celebrate 15th Anniversary

13 Driving Forward in Beachwood

$30 million Porsche dealership pairs high visibility with sleek, sophisticated design

25 Community Comes First Long-vacant Blanket Mills building welcomes residents into the heart of Clark-Fulton

44 Proactive Protection Fall inspections are key to preparing building exteriors for harsh winter conditions

46 Supporting Cast: Spotlighting the professional service providers behind successful construction projects

46 Optimism & Resilience Despite Persisting Challenges: 17th annual construction survey reveals industry leaders’ views on year ahead

50 Vantage Point: Navigating RE Tax Opportunities Amid Challenges

54 NAIOP News: Family Office Investment in RE Poised to Increase

58 Legal Perspectives: Leave It to the Professionals

62 ACAR Corner: One Property, Two Different Appraisal Results?

DEPARTMENTS

Photo by Scott Esterly

1 Tommy Farmer (CarTeCor), Leon Robinson (Resitech) and William Parker (Parker Revenue Growth)

2 Gina Deramus (Ozanne Construction), Donald Butchko (Bowen) and Alaina Battle (AB Photography)

3 Julia Dean (SUIG CPAs & Advisors) and Todd Greene (TSG Interiors)

CAA Growth Program

A diverse cohort of MBE contractors gathered recently at the offices of Construction Employers Association (CEA) in Brooklyn Heights for the Contractors Assistance Association (CAA) Growth Program. The session included discussions with marketing, legal and accounting advisors, including representatives from Hahn Loeser & Parks LLP; Frantz Ward LLP; Marcum LLP; Truax Law Group; Meaden & Moore; SUIG CPAs & Advisors; and Bowen, plus several construction/business coaches. The Growth Program is supported by CEA and the City of Cleveland to support the development of diverse contractors.

Cleveland Restoration Society (CRS) recently held its 2024 Annual Benefit event at Majestic Hall in Cleveland. Supporting CRS’s Sacred Landmarks initiative, the celebratory evening included food and drink from A Taste of Excellence, musical entertainment and tours of Majestic Hall, a historic church that has been converted into an event venue.

1 Lori Jennings and Steve Jennings (LDA Architects, Inc.)

2 Bert Moyar, Marjorie Moyar, Kathleen Crowther (Cleveland Restoration Society) and Frederick Lautzenheiser

3 Rev. Lisa Goods (Shiloh Baptist Church) and Cassandra Jones

4 Joel Pianecki, Virginia Dix , Kitty Frost and Greg Frost (Frost Architectural Preservation)

5 Rev. Calvin Wade (Greater Friendship Baptist Church) and Rev. Leonard Killings (Advent Evangelical Lutheran Church)

6 Lutheran West High School Concert Choir

ACP Clay Shoot Event

Air Control Products (ACP) recently held its second annual Customer Appreciation Event at the Hill ‘n Dale Club in Medina for a day filled with friendship, sport and gratitude. This year’s event featured 11 teams of four participants each, testing their skills in clay target shooting across multiple stations.

1 Nick David (Air Control Products), Jeff Thacker (Lake Refrigeration), Alex Hallman (Air Control Products) and Mike Skala (Franck and Fric, Inc.) 2 Kevin Watts (Geis Companies), Doug Turner (Geis Companies), Todd Stock (The K Company) and Kyle Cobb (Air Control Products)

Rob Laneve and Jake Barnes (Air Control Products)

Brandon Burgett

Photos provided by CAA

for

Saluting Success

Cleveland professionals help ACE Mentor Program celebrate 15th Anniversary

By Rhonda Crowder | Photos by Alaina Battle

Oto

n Wednesday, October 16, a couple of hundred professionals representing Cleveland’s architecture, construction and engineering community gathered at the City Club of Cleveland to celebrate the 15th anniversary of the ACE Mentor Program of Cleveland.

The ACE Mentor Program of Cleveland, an affiliate of the ACE Mentor (national) Program, engages, excites and enlightens high school students to pursue ACE careers through mentoring and continued support for individual advancement.

Since its inception, the program has provided over $1.6 million in scholarships and guided over 2,300 students through various initiatives, ensuring they receive the mentorship and resources needed to thrive in their chosen careers. Additionally ACE Cleveland’s career pathway and alumni programs provide support and direct connection for alumni and employers.

Following a networking and cocktail hour, ACE Cleveland Executive Director and Board Chair Glen Shumate kicked off the short program by welcoming and thanking guests for their continued support. He also mentioned ACE Cleveland’s

success and impacts over the years as well as the program’s current focus.

“Now it’s time to look at how we become the best in class,” he said, before

“Exposing young people to the building trade gives them a lifeline.... I want to make the crane the new official bird of Cleveland.”

Mayor Justin Bibb City of Cleveland

going on to thank sponsors, particularly presenting sponsor Turner Construction.

Taureen Spratt, vice president and general manager for Turner’s Cleveland Business Unit, along with Turner’s robotic dog Spot, presented a check in the amount of $15,000.

“I encourage all of the students who have gone through the program to pursue your goals,” Spratt said.

Shumate went on to explain that ACE is not a DEI program. “It is a career pathway program, and we hope to continue to have a great impact on the youth in Greater Cleveland,” he said.

Matt Danis, of Shook Construction, who serves as fund development chair alongside Strategic Plan Chair Mark Panzica, of Panzica Construction, took the stage to also thank supporters and provide updates on current and future plans. Panzica posed the questions: “How do we strategize to look at moving this forward? How do we create a sustainable infrastructure?”

During his address, Mayor Justin Bibb said, “Exposing young people to the building trade gives them a lifeline.” Bibb also said there is currently $2 billion in construction projects underway across the

RETRIEVING SUPPORT At ACE Mentor of Cleveland’s 15th Anniversary celebration, Turner Construction presented a check

$15,000

the program, assisted by the company’s robotic dog Spot.

1 Courtney Behm (Gilbane) and Mark Radar (Oswald Companies)

2 Cynthia Leitson (Cuyahoga Community College)

3 Holly Coughlin (Shaker Schools Foundation), Ramona Ferrell (City of Shaker Heights), Nevin Jenkins (Shaker Heights High School), Glen Shumate (ACE Mentor Program), RJ Bruno (Gilbane), Christine Medvedev (Shaker Schools Foundation) and Steve Mason (Gilbane)

4 Ramona Ferrell (City of Shaker Heights) and Meredith Turner (Cuyahoga County Council)

city, with more to come, including significant lake and riverfront developments. “I want to make the crane the new official bird of Cleveland,” he added.

Gilbane Building Company Executive Chairman and ACE Cleveland Founder Tom Laird closed out the program. He recalled the initial ACE Mentor Program of Cleveland meeting in a room at the Cleveland Museum of Art.

“[ACE] has grown beyond my imagination,” he said, noting how the program started with just one school. “We did have a mission and that was to take a more holistic approach than other affiliates.”

Noting the amount of ACE Cleveland alumni in general, as well as those in the room, he said, “the next generation of leadership is here.”

5 Mark Panzica (Panzica Companies) and Andy Hudak (AMHigley)

6 Glen Shumate and Renee Timberlake (Cleveland-Cuyahoga County Workforce Development Board)

7 Bakari Ballard (Gilbane) and Pernel Jones (Cuyahoga County Council)

8 John Lang (Cleveland Public Library), Brian Brainard (Shook Construction) and Tim Krzywicki (Shook Construction)

9 Imad El Hajjar and Richard Iafelice (CT Consultants)

10 Mayor Justin Bibb (City of Cleveland)

Additionally, Laird admitted that he underestimated the commitment and willingness of the community to rally around the initiative.

“There are over 100 firms associated with ACE Cleveland. I didn’t see that coming,” he said. “It takes a village, and

the village showed up. I don’t know if we realize how lucky we are to be here in Cleveland.”

For more information, visit www.acecleveland. org or email ACE Executive Director Glen Shumate at glen@ceacisp.org.

ACE CLEVELAND UPCOMING EVENTS

12/5 Holiday Reception 2024 (Tri-C Metro – Jerry Sue Thornton); 4:30-6:30 pm 12/12 ACE DAY 2024 (Cleveland State University’s Wolstein Center); 1:30-5:00 pm 12/17 Erin Ryan Tribute - Celebration of Life (Stone Mad Pub); 4:00-7:00 pm

3/7 Trades Day 2025 (Tri-C Metro - ATTC); 9:30 am-2:00 pm

4/22 Presentation Night 1 (Tri-C Metro); 4:00-6:30 pm

4/23 Presentation Night 2 (Tri-C Metro); 4:00-6:30 pm

5/14 Spring Celebration (Windows on the River); 4:30-7:30 pm

Photos by Alaina Battle / provided by ACE Cleveland

Greg Castell/Penske

Driving Forward in Beachwood

$30

million Porsche dealership pairs high visibility

with sleek, sophisticated design

By Doug Bardwell | Photos by Doug Bardwell & Greg Castell

Like computers and phones are continually being upgraded and improved, so are car dealerships. Who knew? Meet the newest Gen 5 Porsche dealership – Porsche Beachwood, owned by the Penske Automotive Group.

Significantly increasing the dealership’s footprint, parking and public exposure, the dealership has relocated to 3750 Orange Place, with two buildings totaling 65,000 square feet and with 344 parking spaces. The $30 million project covers 6.64 acres with fabulous exposure to northbound drivers on Interstate 271 between Harvard Road and Chagrin Boulevard.

Born in Ohio

Roger Penske, chairman of Penske Automotive Group, graduated from Shaker Heights High School. During those years, he formed the basis of his entrepreneurial career by buying, fixing up and reselling used cars. Penske Automotive now has hundreds of dealerships worldwide in North America, Europe, Australia and Japan.

Six are located in Northeast Ohio, in Beachwood, Mentor and Bedford.

To design its newest dealership, Penske turned to Penney Design Group,

“This project has a very European, very German, very clean aesthetic. There’s nothing designed in this building that doesn’t have a purpose. It’s designed for the customer and the customer flow.”

Jon Penney Penney Design Group

a national architectural firm headquartered in Bethesda, Maryland.

“Our firm had worked with Penske on several other sites,” says Jon Penney,

principal of Penney Design Group. “[Jeff Anderson, vice president of corporate construction with Penske, called us] about an opportunity to move their current location, so we flew out to discuss the project and then went to look at the site [in Beachwood].

It was an abandoned hotel with lots of excess parking and great visibility to the highway. Visibility from the street and easy access for customers into the Service DriveLane was paramount, so we landed on the location, bifurcating the service from the sales area. Jeff’s idea was to really elongate the building, getting some great presence from the highway.”

That also led to elevating a display platform with flags on the western edge of the property for car display along

Photo by Doug Bardwell

Interstate 271. A half-dozen cars can be arranged front and center for passing motorists to admire.

“You also have to realize the manufacturer’s and owner’s requirements on the size of a dealership don’t always match, especially for a relocation,” explains Penney. “The dealer has to look out for 10, 15 and 20 years of expansion. Therefore, we worked closely with Penske to determine the right program. Porsche requires a small second floor, but we have a much expanded second floor because Penske was looking at potential future growth. So, it’s really just working together and figuring out the right program, and ensuring we meet the OEM’s minimum requirements.”

The perfect site – it seemed

Unlike many sites with elevation changes, this one was rather ideal. According to Penney, it was well suited for automotive adaptive reuse. Their biggest challenge was getting the correct flow for the customers. What they didn’t know, and their contractor would come to find out, was that the soil was unstable.

Before landing a contractor for the project, Penske demolished the existing hotel so the site would be ready to start.

After vetting numerous contractors, Marous Brothers Construction

was awarded the contract and worked with the architects to provide cost estimates as the design progressed. Penney Design Group managed the design of all architectural, structural, electrical and mechanical drawings.

“This is our first project with Penske,” says Nick Marcuse, general manager with Marous Brothers Construction, “so we were really excited to get started. I

“Executing it down to a quarter of an inch accuracy across curves and angles and multiple different trades and systems… it was a challenge, but it all came together pretty darn well in the end.”

Patrick Swift Penney Design Group

believe we first began to see documents sometime in October 2022.”

Four separate packages of documents were planned to fast-track the project. Marous Brothers Construction would price each package multiple times over three months as they were developed, with distinct packages for site development, foundations, structural and architectural.

“This project has a very European, very German, very clean aesthetic,” says

Penney. “There’s nothing designed in this building that doesn’t have a purpose. It’s designed for the customer and the customer flow.”

While other German marques, like Mercedes Benz and BMW, also have very clean lines, they are somewhat simple, explains Penney. However, Porsche is slightly more complicated because it’s not very orthogonal. You have many areas that jut out at certain angles. However, it’s still a very clean design.

“Knowing how important quality is for Penske Automotive Group, Marous Brothers Construction and Penny Design Group, and not withstanding this being a first-of-its-kind facility, we were very excited to be part of this project,” says Marcuse.

The imperfect site it was

With the previous hotel removed, Marous Brothers Construction mobilized in November 2022. One of the first activities was to stabilize the existing poor soil conditions.

“We needed to use rammed aggregate piers to stabilize the soil before we were able to start any foundation work,” relates Marcuse. To support the slab, 632 Geopier Rammed Aggregate Piers, some as deep as 20 feet, were placed in a 10-by10 grid before pouring the slab.

CENTER STAGE Taking advantage of its high-visibility location along Interstate 271 in Beachwood, the new Porsche dealership incorporates a raised display platform on which a half-dozen cars can be arranged front and center for passing motorists to admire.

Photo by Greg Castell

Foundation work began in late February 2023, and steel began erection in early May.

Steven Brejcha, project manager for Marous Brothers Construction, explains that a lot of the architectural steel was left exposed inside the building, requiring more of a machining process to eliminate any markings. “We actually took great care to protect those throughout the duration of the job to ensure a nice finish,” Brejcha says.

“Traditional structural steel is just going to be concealed behind drywall or other finishes,” says Patrick Swift, senior project manager for Penney Design Group, “so when we start to express steel structure like we’ve used here, it requires a high level of attention and a high level of detail cleaning done in the shop environment. Add to that the very specific types of connections that are made in the field. It’s almost like museum-quality steelwork that you’ll see at the front of the showroom.”

Surprisingly, even though a dozen or so cars were placed around the second floor, no special steel reinforcement was necessary.

“Believe it or not, the car loads are about half of what an office use would be,” explains Penney, “so it was a pretty standard second-floor design.”

The bigger challenge came in leveling the floors for use with the large 40-inch square porcelain floor tiles. Hours and hours were spent getting them to where they are today.

“Not only did we have to use Ardex self-leveling material,” states Marcuse, “we also had grinding to do at control joints, where you had some curling of the concrete.”

Outside was no less challenging with the curved panels at the corner of the building. Only two manufacturers produce panels that meet Porsche’s standards.

“All the silver panels are your typical ACM panels,” says Brejcha, “but it started to get challenging when you came around to that curve. Implementing that curve into the metal involved a lot of coordination, ensuring that every aspect from steel to glass was correct because that whole front section is essentially hanging off the glass. It’s attached to the curtain-wall system. So, there needed to

ENGAGING FROM THE GO With all the gleaming Porsche automobiles artfully arranged in the showroom, customers will be drawn into the experience immediately as they enter from the southeastern entry vestibule. Comfortable, plush furniture groupings occur everywhere, so conversations can be had no matter where you roam through the spacious first- or second-floor showrooms.

Photo by Greg Castell

ACCOMMODATING FOR ALL Just inside the entrance is one of multiple café areas (top) with bar seating and an abundant selection of drinks, snacks and fruits for the taking (middle). A similarly inviting lounge area awaits guests on the second floor (bottom).

be a lot of coordination involved getting all of that up there.”

“There are two primary glazing systems that you see at the front of the building,” adds Swift. “The lower portion, below those silver metal panels, is structural glass fin wall. There are glass fins on the inside at every vertical joint in place of aluminum mullions. That’s what is doing the structural work against wind load. So, it’s a very high-performing insulated structural glass wall. Then, above that, behind the silver metal panels, is a standard curtain wall with similar high-performance glazing. All the

“It’s

all basic materials, but with the aesthetic and the reveals and the curves, not to mention the integration with the lighting, it’s all a custom-engineered system.”

Patrick Swift Penney Design Group

glazing has a high-performance solar coating. Then, of course, the curtain wall system behind the silver metal panels was custom-designed to support the metal panels.”

“The curtain wall structure itself has outriggers that come off it, which support a girder system of sorts designed by Sobotec, the company that supplied these panels,” says Brejcha. “Honestly, Patrick and I probably had no less than a dozen coordination meetings just on this one part of the project.”

Swift concurs, “It’s all basic materials, but with the aesthetic and the reveals and the curves, not to mention the integration with the lighting, it’s all a custom-engineered system. Coordination was required all the way down to the steel structure. Executing it down to a quarter of an inch accuracy across curves and angles and multiple different trades and systems…

Photo by Doug Bardwell

Photo by Doug Bardwell

Photo by Greg Castell

SLEEK + MODERN Building materials and finishes utilized for the project reflect the clean, modern design aesthetic, from walls of glass (top) and exposed architectural steel components (middle), to sleek silver ACM panels that clad the exterior (bottom).

it was a challenge, but it all came together pretty darn well in the end.”

The balance of the exterior is Trapezium corrugated metal panels over a vapor barrier and plywood on metal studs. Roofing is a high grade of white TPO roofing, compliant with FM global requirements. HVAC is powered by typical package units on the roof with ducted air distribution throughout the buildings.

Electrical gear has been a perennial headache to procure since COVID-19.

“Most materials were pretty much back on track, but we were still dealing with a long lead time for switchgear and electrical,” says Rick Adante, director of construction for Marous Brothers

“The

previous facility on Chagrin Boulevard was much smaller. The shop was tight, so the staff now has breathing room to do their job. And customers enjoy the much larger space.”

Charlie Harris Penske Automotive

Construction. “So, we did separate out the switchgear package and essentially went out to bid on that early to procure it early and have it delivered on time. That was the biggest issue we had with materials because the switchgear was still one that lingered, and it was projected as a one-year lead time. We then had a couple of electrical contractors bid, and we found a custom-fabricated system that met the specifications of the design, was compliant in all aspects, and could be fabricated and delivered to the project on time. This resolved the issue successfully.”

“Controls for lighting and HVAC were probably the second most critical components,” adds Swift. One of the requirements for exterior lighting

Photo by Doug Bardwell

Photo by Greg Castell

Photo by Greg Castell

by

was to keep their hotel neighbor contented. “Site lighting is turned down 50% after the business closes every night, but the site lighting does remain on for security purposes.”

Construction wrapped up in spring 2024, enabling the dealership to have a “Cars and Coffee” event for the public to come and see the new facility in July.

“The event was on a Sunday morning, I believe, and every spot in the lot was taken. They had to move all the inventory to the highway side just to fit all the cars,” exclaims Charlie Harris, project manager with Penske Automotive. “It rained that day, so people flooded into the building. It was a great turnout.”

“Customers and staff both absolutely love the new building,” posits Harris.

“The previous facility on Chagrin Boulevard was much smaller. The shop was tight, so the staff now has breathing room to do their job. And customers enjoy the much larger space. You can almost get lost in this dealership if you don’t know which direction you parked your car.”

Shall we take a tour?

“This was great to work on a first-ofits-kind dealership,” says Adante, “and being exposed to the unique materials used here. But my favorite memory was coming into the front entry, with its high ceilings, the lighting, the skylight and the openness of it all. It’s very striking.”

With all the gleaming Porsche automobiles artfully arranged in the showroom,

customers will be drawn into the experience immediately as they enter from the southeastern entry vestibule.

Comfortable, plush furniture groupings occur everywhere, so conversations can be had no matter where you roam through the spacious first- or secondfloor showrooms.

To the right, next to a gleaming red Porsche 911, is one of multiple café areas with bar seating and an abundant selection of drinks, snacks and fruits for the taking. A linear wood baffle ceiling and subtle downlighting lend to the relaxed ambiance.

Directly ahead, as you walk in, are two giant video walls at second-story height, playing lifestyle videos and slideshows. Porsche provides the videos and graph-

READY TO ROLL The service bays received as much design attention as the rest of the dealership. The floor is covered with light gray clinker tile, a German tile that is a Penske preference and is easy to maintain.

Photo

Greg Castell

ics, but Penske goes above and beyond with their chosen graphics. Porsche Penske Motorsport graphics can be found throughout this project, from the shop space to the second floor, but they reserve the showroom for Porsche-specific images.

On the floor are 40-inch-square, smooth gray stone slabs from Italy – a Porsche mandate requiring an impeccably level surface which challenged the construction team. A few carpeted areas also were procured from Europe.

The southwest corner of the showroom is home to a dozen sales offices, with the general manager’s office directly facing the showroom entrance.

Behind the first-floor café, on the way to the service area, are two glassenclosed private rooms showcasing the owner’s collection of Porsche autos. Adjacent, there are racks of boutique Porsche collectible items for sale.

Customers will find the service manager and his staff of service advisors’

offices just inside a long glass wall to the left as they drive into the service dropoff area. It’s large enough for eight cars to drive inside simultaneously and leave their vehicles for service.

The service bays received as much design attention as the rest of the dealership. The floor is covered with light gray clinker tile, a German tile that is a Penske preference and is easy to maintain.

According to Swift, both the service lane and the detail bays have fiberglassreinforced grating systems from the UK for drainage.

“The service bays are not something you usually think about,” says Marcuse, “but they look so good. It’s the first time I’ve seen a drop ceiling, tiled floors and drywall finished to such a high level of quality in a service shop. I know that our whole team enjoyed being part of something that’s of such high quality.”

The northwest corner of the building houses a huge two-story tire and parts receiving and storage area, a tools area, and a separate locker room and break room for the service technicians.

Outside the northern end of the repair bays is another building, dedicated primarily to detailing cars before delivery to the customer. Extra outside storage bays on the north side keep trash and other items from the customer’s view.

After dropping off their car, most customers will either go to the café or

by

Photo

Greg Castell

the second floor to relax and wait. Some may peruse a further collection of Porsche models on display upstairs.

A unique “glimpse” window on the freeway-facing west side of the building shows off three of the sexier Porsche models to drivers passing by on the freeway.

“So it really becomes, as Patrick said, a museum of what there is to offer,” says Harris. “There’s also a large window opening that overlooks the service bays, so customers can watch their cars being worked on.”

The second floor is also where customers touch and feel material selections for their new purchase in the Fitting Lounge or relax in one of multiple seating lounge areas awaiting vehicle service.

For employees, a conference room and a large specialty training room are on the southern wall. Along the entire eastern wall of the second floor is the large accounting office where the Cleveland Accounting Team has been relocated.

A dream realized

It’s not every day that a building official writes a complimentary note to the contractor, but Marous Brothers Construction received the following from Beachwood’s building commissioner, Brian Roenigk: “The quality of the workmanship demonstrated by your group and the subcontractors was outstanding. Thank you for bringing a top-quality organization into our city. We hope to collaborate with you on more projects in the future.”

“We’ve designed hundreds and hundreds of dealerships across the country, partnering up with great clients and great contractors, but seeing it successfully completed is the juice for us,” states Penney. “There were many challenges since Penske has very high expectations, and Porsche’s expectations are very specific. With this building being one of the first Gen 5 project in this country, there were lots of details to work out. But, working together in partnership with Marous and Penske

and seeing it completed like this has been great.”

“Working hand in hand with Charlie Harris and Jeff Anderson during all the site visits we made during construction,” adds Swift, “and making minor adjustments while we still had time, made sure everything came out to everyone’s satisfaction. It’s a process, but one that pays off in the end.”

“As an architect by training, building enclosures is truly enjoyable, but this project is unique,” concludes Harris. “When I think of an automotive dealership, I often think about retail and service type uses, but this Porsche dealership takes on a hospitality and entertainment appearance to me. From the furniture to the plantings to the artwork and the large display screens that constantly have

videos playing, it’s really built around the experience for the customer. We’ve worked with Jon and Patrick before, but this was the first project with Marous. It turned out to be one of the biggest and best projects I’ve done, and we’d be happy to work with them again.”

On the collaboration with Penske Automotive Group, Marous Brothers Construction CEO/President Adelbert “Chip” Marous says, “We are incredibly proud to have partnered with Penske Automotive Group to bring this revolutionary vision to life. Their trust in Marous Brothers Construction has allowed us to create a space that reflects the excellence and prestige of the Porsche brand, and it’s an honor to contribute to such a significant project in the Beachwood community.”

Photo by Doug Bardwell

Photo by Greg Castell

Community Comes First Long-vacant Blanket Mills building welcomes residents into the heart of Clark-Fulton

By Scott Esterly | Photos by Christian Phillips

What was once the largest vacant site in Cleveland’s Clark-Fulton neighborhood is now a fully renovated building on more than two acres of land. Sixty families live in the former Northern Ohio Blanket Mills building, with more development onsite slated to come soon.

The building’s rich history dates to the late 1880s. In 1889, the first of three buildings was constructed on the site at 3160 West 33rd Street. Two subsequent buildings were constructed and later connected, creating one large L-shaped building complex totaling 112,000 square feet.

Northern Ohio Blanket Mills was a large manufacturer of wool horse blankets and carriage robes. Once the automobile became the predominant mode of transport, they also began producing tents for camping, materials for yachts and steamer blankets, until 1932. Afterward, the building had vari-

ous tenants before permanently closing in 2008.

After a $25.9 million renovation completed earlier this year, Blanket Mill Apartments is now open and providing affordable housing for lowincome families. To qualify to live in the building, residents must earn 60% or less of the median income of the area and apply for housing through the Cuyahoga Metropolitan Housing Authority (CMHA).

Of the 60 apartments, there are 12 one-bedroom units, 42 two-bedroom units and six three-bedroom units. The residential units range in size from 715

square feet to 1,760 square feet, and are situated on floors two and three.

Build-out of the first floor for nonresidential use is now underway as a separate component of the overall redevelopment project.

A persistent plan

The historic preservation of the Blanket Mills building has been in the works for more than a decade. Mort Levin, president and founder of the Levin Group, Inc., first walked the vacant building in 2013.

“This all started with Derek Ng and his father. They had bought the building

in

in the early 2000s,” says Levin. “I came in with them to look at the building in 2013. We had numerous meetings with city council about building housing here.”

Levin ultimately took full ownership of the building after Ng dealt with health issues. In 2019, the Blanket Mills project was selected to receive $3.4 million in historic preservation tax credits. The City of Cleveland and Cuyahoga County provided a combined $4.7 million in loans for the residential construction.

The plan that eventually came together happened simply by following the lead of Councilwoman Jasmin Santana, who represents Ward 14 on Cleveland’s City Council. Her vision was to create a mixed-use development that would provide affordable housing to Clark-Fulton residents while helping spur further development interest in the neighborhood.

Vision comes into focus

West side neighborhoods like Tremont and Ohio City have seen a lot of development over the last decade. Clark-Fulton, which borders Ohio City to the south, Tremont to the west and Stockyards to the east, was due for a catalytic development project.

Metro West Community Development Organization, which represents ClarkFulton, Stockyards and Brooklyn Centre,

jumped at the chance to become a partner in the project. One of Metro West’s biggest neighborhood goals is to strengthen the La Villa Hispana. La Villa Hispana (“The Spanish Village”) describes itself as a place-making neighborhood initiative within Clark-Fulton. Their aim is to promote and foster the skills, entrepreneurship and ownership required for equitable development. La Villa Hispana’s work is done in conjunction with Metro West.

“This is major for the Latino community,” says Levin. “This is a building where the community feels like something is actually happening.”

Furthermore, the Connecting Cleveland 2020 Citywide Plan, released in 2007, highlighted the Blanket Mills site as an opportunity for mixed-used and multi-family residential development. For nearly 20 years, this neglected and vacant building was viewed by many as a potentially invaluable asset to the community.

“At Metro West Community Development Organization, we’re thrilled to be a partner with Levin on the Northern Ohio Blanket Mills project, breathing new life into this historic site,” says Emily Lee, Metro West’s executive director. “Together, we’re weaving community, innovation and

Congratulations to the Blanket Mills Team!

opportunity into the fabric of ClarkFulton. It’s an exciting step forward for the neighborhood, and we’re proud to be part of its transformation.”

Historic preservation

A big first step in bringing the Blanket Mills renovation to fruition happened in 2014, when it was placed on the National Register of Historic Places in recognition of its commercial and industrial significance and because of its role as an employer of German and English immigrants coming to Cleveland.

The condition of the building at that time is best explained in this

NEW HOME After a $25.9 million renovation completed earlier this year, Blanket Mill Apartments is now open and providing affordable housing for low-income families. Of the 60 apartments, there are 12 one-bedroom units, 42 two-bedroom units and six three-bedroom units.

brief excerpt from the historic preservation tax credit application, which was completed by Diana Wellman, principal at Northeast Ohio-based historic preservation consultancy, Naylor Wellman, LLC: “The 1889-1900 buildings are post and beam and load bearing masonry construction employing pairs of inverted queen trusses, with turn buckles and cast-iron star shaped anchor plates at each bay. The simply symmetrically designed rectangular L-shaped complex employs classic detailing displayed through masonry corbelling and dentils. The overall condition is poor to fair. The masonry exhibits carbon buildup and compromised mortar. The steel industrial rolled windows are intact and demonstrate neglect, loss of integrity and deterioration beyond reasonable repair. The interior of the building demonstrates water infiltration with

water seeping through from roof to first floor.”

The application also noted roof failure and interior masonry walls showing structural distress at window lintels.

Highlighting renovations needed and pointing out unsafe conditions is only a small part of applying for historic preservation tax credits. Explaining the architectural significance and character of the building is vital, as is identifying future plans for the building.

Here is another excerpt from the application: “Smokestack, elevator/ stair towers, fire-escapes, fenestration and paneled doors define the industrial loft architectural character… The distinguishing features on the exterior include the masonry walls, with turn buckle stars and corbelling parapets, industrial style windows and paneled doors… The intent for the rehabilitation is to secure and weather tight the

exterior of the building, while converting the interior to house ground level commercial tenant and residential amenities with the second and third floor to house residential low-income multi-family units.”

Team + timeline

The primary representatives from the Levin Group were Mort Levin and Kevin Hudson, director of development. Levin Group has long had relationships with both Dimit Architects and Ozanne Construction. Both companies have been associated with Blanket Mill Apartments since Mort Levin took that first look at the building over a decade ago.

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The architecture team from Dimit Architects included principals Scott Dimit and Analia Nanni Dimit, architect Howard Hayden and interior designer Katie Hopper. From Ozanne Construction, President/CEO Dominic Ozanne and project managers Chuck Worsdall and Anthony Sanna helped oversee the day-to-day work as construction manager at risk on the project.

The initial shoring work on rotted and failing trusses began in 2020, but the true groundbreaking happened in September 2022.

Construction

“One of the greatest challenges the project faced was the collapse of the façade of a secondary building, known

WORK IN PROGRESS In March 2020, prior to the project’s start, the façade of a secondary building on the property collapsed during a wind storm, creating an unexpected challenge for the construction team. Clean-up work involved craning out a water tower (left). True groundbreaking on the rehabilitation project (right) took place in September 2022 with work continuing though early 2024.

Photos courtesy of Dimit Architects

as the Piano Building, in March 2020, just at the onset of the pandemic shutdown,” says Wellman. “Fortunately, no one was hurt. Construction was waiting for financing closing. The amazing team assembled by the Levin Group scrambled to secure the site and worked alongside city departments, utility companies, the State Historic Preservation Offices and the National Park Service. We were able to get authorization to demolish the secondary structure without impacting the value of the historic tax credits.”

The devastating moment of the façade collapse was captured on a nearby surveillance camera. A powerful gust of wind comes in and moments later, the brick façade comes crumbling down.

Construction crews cleaned and used many of the bricks that were part of the Piano Building collapse on the historic renovation of Blanket Mill Apartments.

“When the Piano Building façade blew down, we got a first look at the base of the stairwell and saw how deteriorated it was. Because of how the water tank was hanging, you couldn’t get in there. Ozanne, rightfully so, had

significant concern because you couldn’t repair it in-place. You had to take it down, build it in cinder block and clad it in brick,” explains Hudson.

“We had to do a flyover with a drone to get pictures of the water tower to see what we were dealing with. Then we came up with a plan to crane up to it

“This is major for the Latino community. This is a building where the community feels like something is actually happening.”

Mort Levin The Levin Group, Inc.

and cut it out. There were only a couple rows of brick holding the water tower in. After it was secured, it was cut out and lifted away,” he adds.

“Between Dimit Architects and Ozanne Construction working handin-hand, and there were many issues, they worked it all out,” says Levin. “I’ve known Dominic Ozanne for many years. I’m not sure many contractors would’ve

taken this on like he did. He really stuck to his guns and worked through all the construction issues,” he says.

“I think it speaks to a project like this, where you need a high-level of expertise,” adds Hudson.

The building was already essentially gutted because of many years of abandonment, which amounted to a bevy of different pros and cons. On a traditional renovation, gutting the interior and undertaking demolition work can be laborious and expensive and retrofitting older buildings with modern needs and bringing them up to code can also be costly and time-consuming. In this case, the relatively blank slate made it easier for crews to run things like fire sprinkler lines in a building that is more than 100 years old. Conversely, the neglect the building had experienced lead to massive historic preservation needs, like addressing corners of the building that were no longer stable and dealing with the water tank and stairwell issues.

Besides the Piano Building façade collapse and the water tower, shoring up trusses became perhaps the most extensive work that took place at Blanket Mills.

EXTERIOR IMPROVEMENTS Extensive brick matching work on the exterior was required. Every window is brand new, the entire roof was replaced and the existing 77-space parking lot had to be repaved.

“Replacing the trusses was a major undertaking. A lot of them had rotted wood and we had to jack them up. There are parts of the building we jacked up six to eight inches. Rebuilding the trusses and finding people that know how to do that kind of work in this day and age was definitely a challenge,” explains Worsdall.

Extensive brick matching work on the exterior was required. Every window is brand new, the entire roof was replaced and the existing 77-space

parking lot had to be redone. Lighting, HVAC and plumbing are all new. Even the building’s electricity had to be rerouted as it required a new feed. The construction team also spent a lot of time and effort ensuring that neighboring residents weren’t bothered by the active job site.

COVID caused lengthy delays on vital equipment, like switchgear and a new elevator. The switchgear was supposed to be delivered six months after placing the order. In reality, it took 14 months

to show up. Electricians were also scarce throughout the construction process. Another example of COVID causing strain on the entire process was the constantly fluctuating costs.

“In 2019, we were awarded the allotment of housing tax credits and the state historic tax credits, so we thought we were ripping and running and on our way. Then COVID hit and costs went up. The scope never changed, but materials scarcity and interest rate and economic factors kept pushing the costs up,” says Hudson. “The trick of it is that you go in for tax credits on a proposed program and estimates. Then you’re still two years away from closing. In even the best environment there are going to be cost increases and changes in interest rates. How do we deliver this without sacrificing quality and providing the proper scope? That’s why you need experts.”

Design

While the Blanket Mills building sat vacant for a long time, its exterior aesthetic remained relatively intact. Still, construction crews and tradespeople had to spend countless hours preserving what they could of the exterior or enhancing it as best they could while following strict guidelines set forth by the tax credits received. On the interior, the architectural team needed to design 60 apartments that families of today

BUILDING SUPPORT Besides the Piano Building façade collapse and the water tower, shoring up trusses became perhaps the most extensive work that took place at Blanket Mills.

Photos courtesy of Naylor Wellman LLC

could move into while remaining true to the building’s historic nature.

Judy Levin worked intensively with the Dimit Interiors group to define the vision for the apartments. “Katie Hopper and I worked very closely with Judy. She is amazing and is very dedicated to all the projects we work on together,” says Analia Nanni Dimit.

Ultimately, they combined a modern, minimalist approach with historic industrial elements for a unique living environment.

“Overall, with the interiors, the idea was not to compete with the historic details,” says Hopper. “We wanted to complement it.”

the loft a clean, airy look while maintaining its industrial character.

Each residential unit also has its own AC unit on the roof, its own hot water tank, washer and dryer and smart thermostat. There are IT/telecom rooms on each floor of each wing and

openness, while the exposed beams add structural depth and historical charm.

Walls are two-toned, with the lower half painted a muted sage green and the upper half left in off-white, creating a clean and modern aesthetic. The wood flooring is a dark brown that contrasts nicely with the walls and ceiling. Columns are uplit with monopoint lighting.

“Housing has been a critical need [in this neighborhood], with many families being priced out due to rising rents. [This project] has helped fill that gap by offering beautiful, healthy and truly affordable housing units.”

The industrial-style loft apartments have a spacious, open-concept design. Every unit features exposed, white-painted brick walls and large steel-framed windows that allow ample natural light to flood the space. Nearly 15-foot-tall ceilings with visible structural elements such as wood trusses and exposed ductwork enhance the space. The ceiling and trusses are also painted white, giving

Jasmin Santana Ward 14 Councilwoman, Cleveland City Council

north-facing apartments have views of Cleveland’s skyline.

The corridors also feature exposed, white-painted wood beams and trusses along the ceiling, continuing the industrial character seen in the loft apartments. The ceilings are tall enough that they give the space a sense of

Dimit Architects found pictures of blankets and even actual blankets on eBay that were made at the factory and will use them as décor and displayed as art throughout the building. Another fun design detail is that unit entry numbers are displayed with a design taken from the original factory label. Some original and exceedingly heavy fire suppression factory doors are on display throughout the building as well. There are about six of them, with some displayed in residential units themselves.

Impact on community

Wellman first started working on this project in 2014, when she wrote the

HONORING HISTORY Walls throughout Blanket Mill Apartments are two-toned, with the lower half painted a muted sage green and the upper half left in off-white, creating a clean and modern aesthetic. The wood flooring is a dark brown that contrasts nicely with the walls and ceiling, while columns are uplit with monopoint lighting.

LIGHT + OPEN The industrial-style loft apartments have a spacious, openconcept design. Every unit features exposed, white-painted brick walls and large steel-framed windows that allow ample natural light to flood the space.

nomination for Blanket Mills to be placed on the National Register of Historic Places.

“Historic building rehabilitations, like Blanket Mills, have an incredible impact on the communities they enrich,” she says. “Cleveland makes a great case study on how preserving historic assets strengthens neighborhoods and maintains cultural character and pride of place.”

Scott Dimit agrees with that sentiment. “It’s been an honor to assist the Levin family with their stalwart vision for preserving this wonderful factory and its rich historical narrative. This renovation launches Blanket Mills into its second century, serving the Clark-Fulton neighborhood with updated and vibrant new purpose,” he says.

A rather unique aspect of the massive historic preservation of Blanket Mills is that the residences are only for low-income families. Councilwoman Santana urged Levin and his team to seek rent subsidies through Cuyahoga Metropolitan Housing Authority to provide even greater affordability. Levin took her lead.

“Historically, our neighborhood hasn’t seen any significant investment for the past two decades,” says Councilwoman Santana. “Housing has been a critical need, with many families being priced out due to rising rents. [This project] has helped fill that gap by offering beautiful, healthy and truly affordable housing units.”

Blanket Mill Apartments is already serving as a catalyst for more new development in Clark-Fulton.

“So far, we’re on track to provide over 120 new housing units, giving families the chance to raise their children in the city they love,” she adds. “That’s a huge win for our community. This wouldn’t have been possible without the support of state tax credits, over $1.5 million in city funding, MetroWest CDC and the residents who made their voices heard.”

FINANCIAL STRATEGIES

Smart use of fiscal planning & action

Strike Up the Band

Iwas recently watching a documentary on the rock band Fleetwood Mac that included actual footage from the recording session for one of their early hits, “Rhiannon.” It was fascinating to see the band all playing together in the studio but with each musician being separately recorded. The engineers then pulled out the individual instruments and vocals and molded the sounds of each by adjusting the volume, brightening or dulling the sound, smoothing out any rough edges, etc.

Once completed, the individual recordings of the percussion, bass, guitars, keyboards and vocals, called tracks, were re-compiled to form the final version of the song that helped to catapult the band to stardom. The venerable and muchused real estate concept of a cap rate can follow a similar path. To find out just how I’m going to tie a rock band to a real estate investment concept, read on!

Although most know what a cap rate is, a quick review is in order. A cap rate represents the income that is produced annually by a real estate investment expressed as a percentage of underlying asset value. The income component reflects the net operating income (NOI) for one year and it can

be historical (actual) or forecasted (proforma). And while we can sometimes get jammed up on conjecture associated with the interaction of these components, the basic premise of a cap rate is simple – profit or dividend produced by the investment as a percentage of the value of that investment. But one of the knocks on a cap rate is that it is an unleveraged metric and does not consider the impact that a loan has on the investor’s position. Enter in a concept known as band of investment.

Similar to the recording engineers that pulled out the individual instrumental and vocal tracks, band of investments separates a cap rate into two individual portions that represent

ALEC J. PACELLA

What I C @ PVC

BRINGING HOME THE BACON A recently completed Aldi’s grocery store sold last month. Located in Middleburg Heights, the 19,500-square-foot property sold for $2.5 million with a reported cap rate of 5%. –AP

the debt position and the equity position. The debt position is reflected by a metric known as the loan constant. Back in the prehistoric days (i.e., before financial calculators were invented), a loan constant was used for a variety of purposes. It reflects the total cost of the loan, including interest and principal. For example, a $100,000 loan amortized over 25 years with a 6% interest rate would have a monthly payment of $644.30. If I multiply this monthly payment by 12, the annual debt service would

While we can sometimes get jammed up on conjecture associated with the interaction of [its] components, the basic premise of a cap rate is simple –profit or dividend produced by the investment as a percentage of the value of that investment.

be $7,731.60. Finally, if I divide this annual debt service by the initial loan amount, I come up with a loan constant of .07732 or 7.732%. It illustrates the annual return for the lender, including interest and principal. Or if I’m on the other side of the table, it represents the total cost of that loan for the borrower.

The other portion is the equity position. This represents the return associated with the investor’s position and assumes the investor has a loan in place. It is commonly called the cashon-cash or equity return, as it focuses on the investor’s equity position. The numerator is NOI less the annual debt service while the denominator is, at its simplest, purchase price less the initial loan amount. For example, if an investor receives $2,000 in annual cash flow after paying the annual debt service and has

Thermal can help you optimize your heating and cooling equipment, identify opportunities to conserve energy, and manage costs. For long-term benefits, we provide life cycle analysis of your system and design preventative and predictive maintenance plans.

$20,000 of equity invested upfront, the equity return would be 10%.

Now that the debt position, as reflected by the loan constant, and the equity position, as reflected by the equity return, have both been isolated, we can put them together to establish a cap rate. Let’s assume that an investor is considering a property with a value of $1,000,000. The lender would be willing to provide a loan equal to 70% of the property’s value, amortized over 20 years at a 6.5% interest rate. Using a financial calculator, the monthly payment for this loan is determined to be $5,219.01, resulting in an annual debt service of $62,628.12. Dividing the annual debt service into the initial loan amount results in a loan constant of 8.95%. The investor is requiring an equity yield of 12%. In the scenario outlined about, the investor would have $300,000 of equity invested in this

perfect mix. For example, if another lender is willing to offer a 25-year amortization, the investor can quickly determine that the loan constant will decrease to 8.10%. If the investor’s equity yield remains unchanged at 12%, this means the overall implied cap rate would decrease to 9.27%. The investor can also choose to adjust the equity yield. If the overall cap rate remains at 9.86% but the loan constant decreases to 8.10%, the impact on the equity return will be an increase to 14%. And while the concept of

band of investment won’t result in a Platinum hit, it can certainly provide an investor with a deeper understanding of not just the overall investment performance but also how the debt and equity components can come together to make beautiful music.

Alec Pacella, CCIM, president at NAI Pleasant Valley, can be reached by phone at 216-4550925 or by email at apacella@naipvc.com. You can connect with him at www.linkedin.com/in/ alecpacellaccim or subscribe to his youtube channel; What I C at PVC.

property ($1,000,000 property value less the $700,000 loan). In order to achieve a 12% equity yield, the investment would need to generate $36,000 in cash flow after debt service. I can then work backwards, adding back the annual debt service of $62,628.12 to the $36,000 of cash flow to determine an NOI of $98,628. The last step is to calculate the implied cap rate; NOI of $98,628 divided by $1,000,000 value results in a cap rate of 9.86%.

The real power of this analysis is the ability to adjust both the debt position and the equity position to see the resultant impact on the cap rate. The recording engineers for “Rhiannon” showcased Christine McVie’s keyboard track to introduce the song, then gradually blended in John McVie’s bass track and finally gave Stevie Nicks’ vocal track that bright yet haunting edge to produce a finished product that helped to propel Fleetwood Mac’s self-titled first album to the top of the charts. Similarly, an investor can focus on both the debt and equity positions by adjusting each to help develop the

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Cleveland Clinic Global Peak Performance Center Breaks Ground

The Cleveland Cavaliers, Cleveland Clinic and Bedrock Real Estate recently broke ground on the Cleveland Clinic Global Peak Performance Center in downtown Cleveland. Designed by Populous, the 210,000-square-foot, state-of-theart facility will be one of the world’s largest and most advanced training and performance centers upon completion. It also marks the first vertical development in Bedrock’s $3.5 billion Cuyahoga Riverfront Master Plan.

Set to open in 2027, the center will offer Cavaliers players cutting-edge technology, including advanced biomechanical testing, high-tech training equipment, virtual reality systems and wearable sensors for real-time performance monitoring. The center will also provide comprehensive, personalized care for the public, supporting athletes of all levels with expertise from various medical fields like sports medicine, cardiology and neurology.

Also at the groundbreaking event, the Cavaliers and Cleveland Clinic announced a 25-year extension of their partnership, continuing a collaboration that began in 1993 and remains one of the longest-running relationships between a sports team and a medical provider.

J.C. Whitlam Manufacturing Begins Facility Expansion

Campbell Construction recently broke ground on an expansion project for J.C. Whitlam Manufacturing, a chemical engineering solutions provider, at the company’s manufacturing facility in Wadsworth. The expansion includes a new 10,000-squarefoot manufacturing facility

designed to enhance production capabilities and support growing customer demand.

For over 120 years, Whitlam has been manufacturing paint coatings, turf marking paint, sealing compounds, lubricants, solvent weld cements, hand tools and various other products.

The project will provide additional space for advanced manufacturing pro-

cesses, enabling Whitlam to expand its product line and improve production timelines. Construction began on October 07, 2024.

Remington Inducted into CSU Law Hall of Fame

Hahn Loeser LLP has announced that Rob Remington, partner, was recently inducted into the

Cleveland State University (CSU) College of Law Hall of Fame at the CSU Student Center’s Glasscock Ballroom.

A longtime supporter of CSU Law, Remington, national chair of the firm’s Litigation Practice and chair of the Construction Practice Group, has served on numerous committees and boards to help ensure its place in training top quality lawyers.

While at CSU Law, Remington was an American Jurisprudence Award and Outstanding Achievement Award recipient, and the managing editor of the Cleveland State Law Review. He earned his J.D. in 1988, with honors, and soon after joined Hahn Loeser, where

Cleveland Clinic Global Peak Performance Center

Rob Remington

he had previously served as a summer associate. Remington founded the firm’s Construction Practice Group, recognized by Best Lawyers as a Tier 1 National Practice Group and by the Construction Executive Magazine as a Top 50 Construction Practice Group in the United States.

The annual CSU Law Hall of Fame was established in 2017, honoring individuals who have contributed to the past, present and/or future success, reputation and prestige of CSU Law.

Cohen & Company Announces Strategic Growth Investment

Assurance, tax and business advisory firm Cohen & Company recently announced

a strategic growth investment by Lovell Minnick Partners (LMP). LMP is a private equity firm focused on investments in financial services, business services and financial technology companies. This investment will help meet the growing needs of Cohen & Company

clients across the firm’s many key industries and geographic markets, and provide capital for important investments in technology and expansion of service offerings.

Through this investment, Cohen & Company is positioned to accelerate its multi-year strategic plan focused on growth, people, technology, quality initiatives and service area interests of its clients. The investment is expected to close on December 31, 2024, at which point the firm will also substantially increase the number of employee equity holders.

Following the transaction close, the firm will operate in an alternative practice structure. Cohen & Company, Ltd., a licensed CPA firm, will

provide attest services and will be led by Vince Curttright. Cohen & Co Advisory, LLC, not a licensed CPA firm, will provide business tax, advisory and other non-attest services, and will be led by Chris Bellamy. Although separately owned and governed, the two entities will both use Cohen & Co as their brand name.

Playhouse Square Announces Executive Staff Changes

Playhouse Square Board Chair Brent Ballard and President/CEO Craig Hassall recently announced changes to the non-profit organization’s executive team, with two new leaders joining and three long-serving executives retiring. Laura Smith

Chris Bellamy

has been appointed chief operating officer, succeeding Patricia Gaul, who will retire on December 31, 2024, after 40 years of service. Nathan Kelly will join as president of real estate services in early 2025, following the retirement of Senior Advisor Art Falco, who will retire at the end of the year after 39 years of service. Falco, who initially retired as president/CEO in 2019, continued in an advisory role during the pandemic.

Vice President of Facilities & Capital Tom Einhouse will also retire on December 31, 2024, after 44 years. Einhouse oversaw many construction

projects and theater restorations, becoming a nationally recognized expert in historic preservation. His decision to retire, along with the retirements of Gaul and Falco, marks a significant transition for the organization.

“These leaders have been instrumental in our success, and their contributions will not be forgotten,” Ballard says. “We are excited for Laura and Nate to help lead Playhouse Square into its next chapter.”

Sankofa Village Phase IV Breaks Ground

Pennrose, the City of Cleveland, the Cuyahoga Metropolitan Housing Authority (CMHA) and project partners recently celebrated the groundbreaking of Sankofa Village IV, the final phase of the over $115 million Cedar Extension Transformation Plan in Cleveland’s Central neighborhood. Sankofa Village is located on the former Cedar Extension site, bordered by East 30th Street, Central

Avenue and Community College Avenue.

The completion of the final phase marks a significant milestone in the realization of a community initiative that was developed as result of a 2011 Choice Neighborhoods Planning Grant that was received from the Department of Housing and Urban Development. Phase IV, expected to be completed in early 2026, will deliver an additional 50 affordable rental homes to the 186-unit community.

Phase IV will include one-, two- and three-bedroom units in a mix of townhouse

and stacked flat-style apartments along the east and west sides of the newly constructed East 26th Street. Units will be available at 30% to 60% of the Area Median Income (AMI).

The four-phase redevelopment replaces the former Cedar Extension public housing community, a “superblock” that included outdated barracks-style housing built in the 1950s.

NAIOP Announces Awards of Excellence Call for Entries

NAIOP Northern Ohio recently announced a call for

Sankofa Village Phase IV Groundbreaking

Photo courtesy of Pennrose

Tom Einhouse

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entries for its Annual Awards of Excellence. To submit a nomination, complete the Intent to Enter form online at www.naiopnorthernohio. com by December 13, 2024. Official entry forms will be sent to applicants in midJanuary 2025.

For additional information, contact the NAIOP office at naiop@wherryassoc.com.

CEC Cleveland Names

Principal, Operations Lead

Civil & Environmental Consultants, Inc. (CEC) recently announced that Matt Hammer, P.G., has joined its Cleveland office as a principal and new operations lead. With Hammer’s addition, CEC Cleveland now provides local environmental services.

Hammer has more than 25 years of consulting experience for a range of markets,

The annual awards recognize outstanding achievements in commercial real estate in 15 categories. Categories include Broker; Construction, Exterior or Interior Renovation; Construction, New Ground-Up; Design, Architectural; Design, Interior; Design of Renovation, Exterior; Design of Renovation, Interior; Developer; Development; Innovation in CRE; Landscape Architecture/ Infrastructure, Land Development; Placemaking; Public Art; Rising Star; and Transaction of the Year.

such as public sector, energy, legal, commercial/industrial, solid waste and developer clients. He is experienced in groundwater resource evaluation and characterization. At his previous firm, Hammer led the brownfield services

market in the Midwest. He is a licensed professional geoscientist in Texas and a licensed professional geologist in Pennsylvania, as well as a Certified Professional in the Ohio Voluntary Action Program.

CEC Cleveland opened in 2019 to further extend CEC’s footprint into the region. It specializes in civil and transportation engineering services, solid waste services, construction services management, brownfield redevelopment consulting and air quality permitting, plus other corporate-wide services.

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We were honored to serve as CMAR to recently complete Riverside Capital’s Headquarters

Matt Hammer

Proactive Protection

Fall inspections are key to preparing building exteriors for harsh winter conditions

Story & photos provided by Western Specialty Contractors

With the changing season comes freeze-thaw cycles, falling pine needles and leaves, organic growth, and harsh weather conditions that can wreak havoc on a building or structure’s exterior if not maintained properly.

Facility managers and building owners must be proactive in protecting their investments, and one of the most effective ways to do this is by conducting an annual fall building inspection. This preventive measure can help identify potential maintenance issues before they become problematic, leading to costly repairs that are often more difficult to address once winter weather arrives.

Importance of early detection

Winter weather, particularly in regions like Northeast Ohio that are prone to freezing temperatures and heavy snow, can place immense stress on a building’s structure. Freeze-thaw cycles, in which water enters small cracks in masonry or concrete and freezes, expanding the cracks, can cause significant long-term damage. Without proper maintenance, small problems can quickly escalate. For instance, unchecked cracks in masonry may lead to moisture infiltration, which can weaken the structure over time.

Roofing issues that seem minor in the fall can turn into major leaks during winter storms, compromising not only the structure but also interior spaces. By identifying and addressing these issues in the fall, facility managers can mitigate risks and prevent the need for emergency repairs during the colder months.

Proactively maintaining the exterior of a building ensures that it can withstand the winter’s harsh conditions, reducing the likelihood of unexpected and expensive repairs.

Facility owners/managers should focus on several key areas during a fall building inspection:

Roofing systems

A thorough inspection of the roof is critical, as this is one of the most vulnerable parts of a building. Look for signs of damage such as missing or loose shingles, deteriorating flashing, and areas where water may be pool-

ing. Any debris, such as leaves or pine needles, should be removed to ensure proper drainage. Clogged gutters and downspouts can lead to water buildup, which may cause leaks or damage to the roof’s structural integrity.

Masonry + concrete

Inspecting masonry and concrete surfaces for cracks and other signs of wear is crucial. Freeze-thaw cycles can exacerbate these problems, leading to larger cracks and more extensive damage over time. Cracks that are caught early can be sealed or repaired before they become a serious issue. In addition, checking for organic growth, such as moss or algae, is important as these can retain moisture and cause further deterioration.

Waterproofing + sealing

Proper waterproofing is essential to protect buildings from moisture infiltration.

Over time, waterproofing membranes can degrade, and sealants can crack or wear away. Facility managers should check the condition of all waterproofing systems, including around windows, doors and foundation walls, and ensure that all areas are properly sealed.

HVAC + mechanical systems

While exterior maintenance is critical, it’s also important to ensure that HVAC and other mechanical systems are prepared for winter. Facility managers should inspect these systems to make sure they are functioning properly and are adequately protected from the elements. Systems that are not operating efficiently can lead to higher energy costs and may fail when they are needed most.

Exterior cladding + finishes

Inspecting the building’s exterior cladding, whether it’s brick, stone, stucco or

WEATHER READY Facility managers and building owners must be proactive in protecting their investments, and one of the most effective ways to do this is by conducting an annual fall building inspection.

metal panels, is important to catch any signs of deterioration or failure. Loose or damaged cladding can allow water to penetrate the building, leading to more significant issues over time. Replacing or repairing small areas of damage in the fall can help maintain the building’s integrity throughout the winter months.

Benefits of preventive maintenance

Conducting a fall building inspection and addressing any issues before winter arrives is a smart financial decision for property owners and facility managers. Preventive maintenance not only helps avoid costly repairs but also extends the lifespan of the building’s components, from the roof to the foundation.

Additionally, well-maintained build ings are more energy-efficient. Small leaks or cracks in the building’s envelope can allow cold air to infiltrate the interior, forcing HVAC systems to work harder to maintain comfortable temperatures. By addressing these issues early, facility managers can help reduce energy costs and create a more sustainable building.

Proactively maintaining a building also protects its occupants. Structural damage, such as falling masonry or leak ing roofs, can pose significant safety hazards, especially in winter when icy conditions can exacerbate the dangers. Ensuring the building is in good condi tion reduces the risk of accidents and liability for property owners.

CAREY DEMOLITION

Optimism & Resilience Despite Persisting Challenges

17th annual construction survey reveals industry leaders’ views on year ahead

Provided by Marcum LLP / CBIZ, Inc.

Marcum LLP (now part of CBIZ, Inc.) recently released findings from its 17th Annual Northeast Ohio Construction Survey, which collects feedback from key industry figures on a range of issues. By comparing these insights at the regional level with data from its recent fourth national construction survey (accessible at www.marcumllp.com), the company can gauge how Northeast Ohio compares with national trends.

“Every year, we’re proud to provide our readers with practical insights that can have a meaningful impact on their businesses over the following 12 months,” says Roger Gingerich, managing director and regional construction leader with CBIZ.

“This year’s survey is no exception, highlighting top concerns within the industry that can help businesses of all sizes strategize for the future. Getting a sense of the industry’s leading issues can be the encouragement construction firms need to adopt more efficient financial practices, take advantage of overlooked incentives, and generally improve their competitive stance in a rapidly evolving market.”

and public projects and flat-to-declining segments like office and retail, the level of optimism among respondents this year

The [construction survey] reveals that, as the construction market in Northeast Ohio bifurcates between areas of growth like healthcare and public projects and flat-to-declining segments like office and retail, the level of optimism among respondents this year largely depended on the industry sectors they serve.

largely depended on the industry sectors they serve.

roeconomic worries certainly played on the minds of Northeast Ohio-based poll respondents, just as they did nationally, a good dose of optimism came through in the responses.

The study reveals that, as the construction market in Northeast Ohio bifurcates between areas of growth like healthcare

Despite plenty of persisting challenges and concerns about the future, the overall mood of regional construction industry leaders is positive. And while those mac-

Perhaps the most obvious sign of strength in the industry for Northeast Ohio is apparent anytime one views the Cleveland skyline, which saw its first major addition in decades as the Sherwin-Williams headquarters topped out. That project is still in progress but is bucking national and regional trends, as office vacancies have hit record highs nationwide. Northeast Ohio follows suit and even outpaces the national vacancy average. Notably, the effect of these office vacancies is more muted in Greater Cleveland than in many other markets because so many older office spaces are great candidates for conver-

Supporting Cast

sion to residential units – something that’s happening at a remarkable rate in the city. CBRE Group says only Manhattan and Boston have seen more conversions than Cleveland.

Still, the weakness in the local office sector and pessimism surrounding its future was driven home earlier this year when the landmark Class-A 200 Public Square building sold for $65 million, having last changed hands for $187 million in 2018. In short, lenders, developers and lessors are all concluding that the changes in how white-collar companies do business wrought by the pandemic are here to stay. Hybrid and fully remote jobs are increasingly the standard, leaving office spaces in limbo, with potentially significant consequences for lenders and borrowers alike.

Some respondents were already feeling the pinch, with one noting, “Lending and high interest rates for new groundup projects are very difficult, along with labor and material increases!” The effects in banking may be hitting Northeast Ohio construction companies sooner and harder because more respondents to this survey than the national average anticipated projects being delayed by financing issues (64% versus 55%).

higher cost of living. Housing demand is still increasing nationally, though much less so in Ohio, given its relatively flat population. Office construction is facing significant headwinds, but those conversions and other sectors like healthcare and large public projects continue to grow in Northeast Ohio, mirroring national trends.

Further highlights from the Northeast Ohio Survey include:

Financial snapshot

Twenty-nine percent of respondents said it was tougher to obtain financing, marking a modest increase from the prior year. Easier financing was cited

identifying tightening credit as their biggest threat, and 2% (up from 0%) citing the ability to obtain bonding as their biggest threat.

Bonding remains important in accessing capital, particularly for individuals acting as contractors. Just 9% of respondents believe it will be more difficult to obtain bonding, down from 15% last year and well below the 18% of the national survey. With 67% of respondents signing personal indemnity agreements with the surety, personal guarantee agreements with banks, or both surety and bank personal guarantee agreements, this is another critical issue for obtaining funding.

Lenders, developers and lessors are all concluding that the changes in how white-collar companies do business wrought by the pandemic are here to stay. Hybrid and fully remote jobs are increasingly the standard, leaving office spaces in limbo, with potentially significant consequences for lenders and borrowers alike.

To a lesser extent and for different reasons, housing construction is under pressure given the boost in interest rates from historic lows after the pandemic, the subsequent rise of inflation, and the

by just 1%, down from 3% in 2023. We believe the tightening of the credit markets will continue. Consequently, the 1% decline (to 70%) of respondents seeing the ability to obtain financing as unchanged will likely look quite different next year. Some respondents are already sensing this shift, with 14% (up from 10% last year)

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For the first time, we asked if securing project financing had caused a job delay or cancellation, and 34% of respondents said it had. Despite this, the overall stable environment has been largely positive. 38% of respondents expect more opportunities in Northeast Ohio over the next three years (up from 36% the previous year, and compared to 49% nationally), while only 12% expect fewer opportunities (down from 29% the previous year, and compared to 17% nationally).

Labor issues stymieing growth

It’s the same old story. The biggest pain point in this region is also shared nationally, with significant majorities citing the difficulty in finding and retaining skilled labor. In fact, the shortage was even worse in this region than the national survey suggested. And as the years tick on and retirees leave gaps, the challenge only seems to be growing.

The highest total ever – 38% of respondents – said labor shortages had caused job delays or cancellations. Respondents cited securing skilled labor as the biggest threat, leading the pack at 38%. And that’s with 95% of respondents increasing pay over the last year.

Most companies are trying multiple angles to address the skilled labor shortage, with few expressing concerns about the cost of labor. For the first time, the

survey asked if joint ventures were helping fill this gap, and 9% of respondents said yes. The other notable change from prior years is the decline in companies partnering with trade schools and high schools (down to 23% from 36% in previous years). This may provide some concrete evidence to the anecdotal belief that fewer schools offer such programs, possibly exacerbating this persistent problem.

As experienced construction talent ages out of the workforce and fewer young people learn the requisite skills, this problem is only worsening.

A resilient market

Marcum & CBIZ Merger Creates Largest FullService Professional Services Advisor in the U.S.

Earlier this month, CBIZ, Inc. announced it has completed the acquisition of Marcum. This is a significant milestone in the professional services industry, particularly in the construction sector, where both companies have established strong practices.

This strategic merger creates the largest full-service professional services advisor of its kind in the U.S., with a combined annualized revenue of approximately $2.8 billion. Marcum’s construction practice, known for its extensive industry expertise and client-focused services, will now benefit from CBIZ’s broader range of offerings, including enhanced technology solutions, benefits and insurance. More information about the transaction can be found at cbiz.com/stronger-together.

Despite persistent issues such as a lack of skilled labor and higher interest rates, opportunities remain plentiful in the region. If there were no jobs to bid on, no one would be concerned about finding the labor to win and complete projects.

Respondents were generally optimistic about maintaining or growing their operations, even in a lower-growth region like Northeast Ohio. The percentage of respondents anticipating backlogs as good or better than the previous year increased from 68% in last year’s survey to 73% this year. This helps explain why 71% of respondents reported an average of one to four bidders per job, up from 66% in 2023.

However, one indication of weakness was the decline in average job size, with only 31% saying it increased compared to 44% last year. The number of bidders is a complex metric, but it can be

The biggest pain point in this region is also shared nationally, with significant majorities citing the difficulty in finding and retaining skilled labor. In fact, the shortage was even worse in this region than the national survey suggested. And as the years tick on and retirees leave gaps, the challenge only seems to be growing.

tied to whether a firm has the resources (skilled labor and financing) to complete a project. Another sign of strength was that only 9% of respondents said the lack of work was their top threat,

down from an already low 11% last year.

Preparing for the future

Among the top priorities cited by respondents, organizational planning, strategic planning and finding solutions for the skilled labor shortage were the leading choices, with each garnering 56%. This was followed by restructuring for growth at 45% and cutting costs at 38%.

For the first time, the survey asked if succession planning was a top priority, and it was cited by 45%. In another question, 3% of respondents said succession planning was their biggest threat in the coming year. And 46% of respondents said they were not considering succession planning at this time. To this cohort, CBIZ/ Marcum notes that it is never too early or too late for succession planning. Even if you’re in the prime of your career, a succession plan not only provides peace of mind but also helps ensure your business is organized optimally. The benefits of a succession plan often include tighter finances, better processes and, ultimately, a better, more valuable company.

To download the complete results of the 2024 Marcum Northeast Ohio Construction Survey, visit info.marcumllp.com/hubfs/pdf/2024-marcum-northeast-ohio-construction-survey.pdf

VANTAGE POINT

Experts weigh in on industry issues

Navigating RE Tax Opportunities Amid Challenges

The real estate landscape is marred by alarming terms like “Debt Wall,” “Urban Doom Loop” and “Equity Gap.” However, real estate has proven resilient over time, even in the face of economic upheaval.

Despite today’s challenges, real estate investors have opportunities, especially when it comes to maximizing tax strategies. One effective approach for property owners is addressing potential overassessment in property taxes.

This year, Cuyahoga County will be among 19 Ohio counties to complete a six-year reappraisal of property values. This is an opportune time for investors to examine those assessments carefully. Much of the county’s valuation data is based on historical sales from periods of high sales volumes and inflated prices. This reappraisal coincided with the Federal Reserve’s aggressive interest rate hikes, which aimed to curb inflation by reducing transaction volume. The result: lower

sales volumes that will likely remain until both buyers and sellers adjust to the “new normal.”

Finding opportunities

Where can real estate investors find opportunities today? The effects of the COVID-19 pandemic on the workplace, combined with steep interest rate increases, have significantly impacted property valuations effective January 1, 2024. With recent interest rate cuts by the Federal Reserve and potential further reductions on the horizon, market dynamics are likely to continue shifting. As time progresses, sales data will reflect these changing market conditions, affecting the evidence available for property tax appeals.

J. KIERAN JENNINGS

One major change in recent years involves new restrictions on who can challenge property valuations. Specifically, third parties like school boards can no longer contest a proper ty’s value unless seeking a transfer with a sale price that exceeds the original county value of the property for that tax year by at least 10% ference between the original value and the sale is a minimum of $500,000. This change provides property owners with greater certainty regarding their assess ments. Successfully reducing property

Despite today’s challenges, real estate investors have opportunities, especially when it comes to maximizing tax strategies. One effective approach for property owners is addressing potential over-assessment in property taxes.

taxes now could mean a stable, lower valuation for six years, with only minor adjustments in the triennial reassessment cycle.

Timing is key for property tax appeals

The timing for taking advantage of this opportunity is crucial. The longer property owners wait, the less advantageous the window becomes. Filing for reassessment in 2024 provides a six-year benefit, while waiting until 2025 reduces that to five years. The data used for assessment comparisons will continue to evolve, and relevant sales comparables in 2024 may no longer be applicable in 2025 or beyond. Acting now ensures investors capture the current market’s reduced valuations before they begin to rise again.

Considerations for tax appeals

If property owners decide to pursue a reduction in their tax assessments, they need to be mindful of some important limitations. Under current regulations, property owners can only file one appeal

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during the three-year triennial assessment period. This means owners must carefully consider the optimal time to file to maximize their potential benefit.

Although school boards can no longer initiate valuation challenges independently, they are still allowed to join an existing challenge initiated by a property owner. If an owner files an appeal, the school board may become involved, potentially complicating the case. Once a complaint is filed, the school board may retain its own attorney and appraiser to argue against the reduction, and the counter-complaint has the same legal standing as the initial appeal. If an owner decides not to pursue their complaint, they may

The reassessment cycle and current market conditions have combined to create a unique window for lowering property values and securing those reductions for years.

be unable to halt the proceedings once they have started.

To navigate this complex process effectively, property owners should enlist the support of experienced professionals. A strong team – including skilled tax counsel and expert witnesses – can provide invaluable guidance on when and how to file an appeal and help present the best possible case. Engaging experts early ensures that property owners are well-prepared to argue their valuation before local boards or, if necessary, the state tax appeals board or court.

Acting while opportunity exists

While the economic outlook may seem daunting, real estate investors still have opportunities. One such opportunity is reducing property tax burdens by acting promptly and strategically. The reassessment cycle and current market conditions have combined to create a unique window for lowering property

values and securing those reductions for years.

In real estate, where cycles of growth and contraction are inevitable, understanding the nuances of property taxation can provide a significant financial advantage. For property owners willing to navigate the process thoughtfully and with professional assistance, this period

represents an opportunity to weather the current economic uncertainty and emerge with a stronger, more financially efficient real estate portfolio.

J. Kieran Jennings, CMI, CRE, Esq. is managing partner at Siegel Jennings Co., LPA He can be reached by phone at 216.763.1004 or email at kjennings@siegeltax.com.

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NAIOP NEWS

Family Office Investment in RE Poised to Increase

Real estate investors, including family offices, continue to look for stability in a rapidly evolving market, global economy and geopolitical landscape. Family office investment in real estate will continue to increase as rates normalize and repricing becomes clearer, leading to increased deal flow.

Smart money usually moves first, and large transactions have increased as real estate megafunds place bets across real estate sectors and investors bet their capital on the operational knowledge of seasoned fund managers. But it’s not all about megafunds. Middle market funds will also soon be taking advantage of opportunities in this recovery.

Why family offices prefer real estate

Real estate in a family office portfolio has long been regarded as a critical investment for maintaining generational wealth due to its tax-advantaged benefits, sustained cash flow and long-

term appreciation. Fundraisers across all real estate markets continue to focus on opportunities to secure family office capital. Amid disruption in some sectors, such as commercial office space, family offices are reviewing real estate portfolio risk-and-return profiles and adjusting allocations accordingly. Market headwinds have changed the investment strategy of many family offices as they strategize how to improve their risk profiles by investing at different points in the capital stack through private credit, preferred equity or historical limited partner positions.

The 2024 capital raise has been a story of big funds reporting record

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GENE GARCIA

amounts of capital raise as investors look for a soft landing and a less competitive capital market environment. A major source of this capital comes from family offices looking to lower their dispersion and downside risk by investing in real estate megafunds.

Leveraging family office capital

Family office capital is considered a “golden egg” for many real estate funds. Due to their flexibility and mass wealth, family offices can make an initial investment that evolves into a partner role as opportunities enter the market. Moreover, the relationship-based approach of family offices is valuable to real estate funds looking to secure long-term capital from a source that has the patience to weather macroeconomic volatility in exchange for healthy cash flow and long-term appreciation.

J.P. Morgan Private Bank’s 2024 Global Family Office Report, which presented the results of 190 single family offices (SFOs) surveyed globally, noted the average family office portfolio allocation to alternative assets is 45%, with a targeted return of 11%. The survey further reported that real estate generally accounts for 14.4% of assets under management for family offices, just under private equity at 18%.

In 2023, family offices increased their direct investments in private real estate as a strategy to achieve higher returns. During the same period, coinvestment activity also rose, as we saw families invest alongside funds with aligned interest, to increase transparency and flexibility in exit strategies. Family offices have remained focused on real estate due to the resilience of the asset class and continued strong fundamentals in core markets.

The appeal of megafunds

portfolio risk in the next 12 months. Perhaps as a result of this sentiment, we are seeing increased family office capital allocation to megafund managers due to their ability to spread out the

Family office capital is considered a “golden egg” for many real estate funds. Due to their flexibility and mass wealth, family offices can make an initial investment that evolves into a partner role as opportunities enter the market.

The UBS Global Family Office Report 2024, which presented insights from 320 SFOs, reported that 39% of participants mentioned “real estate correction” as a concern when asked about

risk. In turn, megafunds have wasted no time in making moves into real estate. These include KKR’s recent $2.1 billion bet on 5,200 units from Quarterra and Equity Residential’s plans to acquire a $1 billion apartment portfolio from

Blackstone Real Estate, reaffirming confidence in the multifamily market. Driving the megafund trend, private credit strategies have proved to be the darling for dollars as investors enjoy hearty returns in a higher-for-longer interest rate environment. Morgan Stanley predicts the private credit market will grow to $2.8 trillion by 2028. Private credit funds provide investors with flexible risk-and-return profiles in real assets via direct lending, mezzanine debt, second-lien debt, distressed debt and hybrid preferred equity offerings.

Family offices navigate new investment strategies

It is becoming apparent that families want new investment strategies to

increase their cash flow and achieve long-term appreciation, and the current capital market has presented unique opportunities.

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As distressed real estate funds take advantage of debt capacity situations, we will see behavior change around investing in real assets. Family office risk appetite may decrease, leading to movement in the capital stack. For instance, family offices may choose to invest in private credit funds; real assets senior debt or mezzanine debt; or a hybrid of debt and equity positions.

Meanwhile, the economic outlook is clouded with proposed legislation for

As distressed real estate funds take advantage of debt capacity situations, we will see behavior change around investing in real assets. Family office risk appetite may decrease, leading to movement in the capital stack.

additional regulations and tax reforms that could affect investments. Any changes to public policy concerning rent control, squatter rights, property taxes, insurance regulations and federal tax reforms can and will have an impact on the real estate industry.

The takeaway

Amid a rapidly evolving landscape, family office investment in real estate is poised to increase, with deal activity focused on megafunds. However, opportunity awaits middle market funds looking to get in on the action. While the last mile to the soft landing may be complicated, more investment in real estate amid rising optimism is always good.

Gene Garcia is a real estate senior analyst with RSM US LLP (www.rsmus.com). Visit NAIOP Northern Ohio online at www.naiopnorthernohio.com.

LEGAL PERSPECTIVES

Navigating property laws & regulations

Leave It to the Professionals

Some firms offer design, construction and construction management services, as well as other services to make them that “one-stop shop” for clients; marketing themselves as a “Jack of all trades,” reducing coordination obligations and (potentially) reducing costs. Particularly as the emphasis on speed, pace and schedule continues to drive delivery methods, contracts and other project considerations, professional services may be reduced or left out of the project team and contracts altogether.

However, we have heard the phrase “Jack of all trades, master of none.” These fast, collaborative projects likely would benefit from additional professional services. While professional services may often be viewed as an “extra” or “luxury,” they are not. They are essential for ensuring timely completion of the project according to the designs and contracts, within the project’s budget.

Construction administration services

Construction administration (CA) services keep the designers involved in

the construction process at a cost – often at an hourly fee – and are recommended to ensure that the project meets the quality standards intended by the design and set forth in the contracts; help to keep the project on schedule; can minimize conflicts and resolve issues; and help ensure a smooth completion of the project as intended.

Someone has to review and respond to contractor submittals, review and respond to requests for information, and review and approve or negotiate change orders. Designers should also be present at meetings throughout the preconstruc-

ALLISON TALLER REICH

Fire Protec tion & Mechanic al Contrac tor

tion and construction phases and are often tasked with reviewing progress of the work for payments, as well as often being tasked with serving as the initial decision maker when claims are presented. While these may be “additional costs,” they save money in the long run and are absolutely necessary for a successful project.

Construction management services

Construction managers (CMs) ensure coordination of project participants and oversee timely and proper completion of the project. CMs oversee and administer the construction, contract and parties. CM services may include preparing and monitoring cost estimates, preparing and monitoring schedules, coordinating trades, responding to notices or changes to attempt to avoid claims. CMs may be

Owner’s representatives (ORs) may be invaluable to inexperienced and experienced owners alike because they are hired to ensure timely performance of the owner’s obligations and prevent ownercaused delay.

responsible for scheduling and managing meetings and even for monitoring and enforcing safety programs. If a CM isn’t engaged, these tasks must be assigned and performed by other project participants, still at a cost.

Owner’s representatives

Owner’s representatives (ORs) may be invaluable to inexperienced and experienced owners alike because they are hired to ensure timely performance of the owner’s obligations and prevent owner-caused delay. Owner’s representatives’ services ensure the project stays on track, on schedule and within budget by assisting the owner in making informed decisions in a timely manner to prevent delays and claims on the project. While the OR works for the owner, all parties

and the overall project benefit from proficient execution of these services.

Scheduling managers

A master project schedule is necessary for keeping a project on time and coordinating trades. Contractors and architects may also provide or be required to provide schedules for their scopes of work,

submittal and response schedules, partial or three-week look ahead schedules, or other updates. However, changes happen. Such changes may cause no change or immense changes to schedules and coordination of the work. Professional scheduling services help all parties understand the impact – time and cost – of any delays and also iden-

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EA Group can help you make the pieces fit!

EA Group is a recognized leader in environmental analysis and management. We’ve worked with a multitude of businesses and institutions to help discover, analyze, and manage their environmental issues. Since 1982, we have provided environmental, health and safety consulting, field, and laboratory services to thousands of clients throughout Ohio and the region.

Our consulting staff has extensive experience in environmental, health and safety assessment, remediation, and management. Our laboratory capabilities include full environmental analysis, industrial hygiene analysis, and asbestos analysis.

EA Group works with clients in the following industries:

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tify whether resequencing, acceleration or other mitigation techniques may be more cost effective than incurring the delay. A correct schedule is essential.

Legal

Legal review of contracts – all con

obligations; the contract sets the house rules for each party and the project. Legal can also provide value with advice regarding project delivery methods. While most parties know to turn to legal when they receive notice of a lawsuit or claim, early

project moving while the claim is set aside or proceeds concurrently.

Insurance and sureties

For owners, consulting an insurance professional to confirm insurance programs and limits demanded in the contract can ensure the project is covered in the way you intended. For everyone contracting with the owner, or lower tiers, having an insurance professional review contracts at the beginning to confirm policies and limits, exclusions and umbrellas ensures contract compliance and peace of mind. These professionals can also determine whether it is necessary or cost effective to add additional insureds. Legal or insurance professionals should review the indemnification, standard of care, damages and work sections of the contract to make sure they are written such

If the project requires a performance or payment bond, a good relationship with a surety and broker is helpful in obtaining the necessary bonds for a good price. Even if the job isn’t bonded, a surety relationship is useful if liens need

Identify and define all of the tasks and responsibilities necessary to complete a successful project at the outset:

• Assign responsibility for each task and scope.

• Review and determine whether assigned parties have the time, experience, knowledge and ability to perform its obligation or whether it needs support to do so.

• Identify the kind and scope of professional services necessary to ensure timely and proper execution of the project.

• Engage your professionals.

Allison Taller Reich (areich@frantzward.com) is a partner in the Construction Group at Frantz Ward LLP in Cleveland, Ohio. For more information, please visit FrantzWard.com.

ACAR CORNER

One Property, Two Different Appraisal Results?

One of the most frustrating things for consumers, agents and even appraisers involved in a real estate transaction is seeing disparate results in two or more appraisals of a property. Dig beneath the surface and you’ll often find good reasons for the differences.

Here are factors to consider as you try to understand the two different opinions of value.

‘Estimated’ isn’t always market value

First, check the date of the appraisals. Appraisals typically have a short

may not be the same date the appraiser inspected the property.

Second, check the intended use, intended user and type, and definition of value. Appraisers must identify all three as part of their scope of work. If the intended use is “for insurance

MARK VITTARDI

as before a divorcing couple separated); value of a partial interest; and liquidation value. None of these are the same as the current market value.

Third, consider the highest and best use. You are likely familiar with this concept, which requires an appraiser to determine the one use of the property that is physically possible, legally permissible, financially (economically) feasible and maximally productive.

Reconciling differences of opinion

If the lender has reason to believe the appraisal work contains errors or the opinion reflects bias, the lender could request a reconsideration of value (ROV) by the appraiser. That’s a step we could see more frequently in the future

Appraisals typically have a short shelf life. In a volatile market, one over six months old will be hopelessly out of date. Even a more recent appraisal may become outdated because of a sudden economic shift, natural disaster or other occurrence.

as the result of a rule issued in late July by federal regulators (Comptroller of the Currency, Federal Reserve, Federal Deposit Insurance Corp., National Credit Union Administration and Consumer Financial Protection Bureau). The new rule outlines how lenders can incorporate ROVs into their processes and offers sample policies and procedures to identify, address and mitigate the risk of discrimination.

But there’s also a scenario in which you could encounter two current appraisals with different valuations, even though the definition of value, intended user and intended use are the same.

Why might that occur?

A review appraiser would look at a range of factors. The first would be

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a comparable selection. Did each of the appraisers select and use comparable sales that have, per Fannie Mae’s requirement, “similar physical and legal characteristics when compared to the subject property”? Were any potential comparable sales overlooked? Did the appraiser comment on sales that were not used because the appraiser had information about those sales that made them less reliable than other sales?

Second, the review appraiser would look at how the comparable sales were adjusted. Adjustments are changes made to the value of a comparable property to account for differences between it and the subject property. Are the adjustments defensible?

Let’s say an appraiser adjusts a comparable property down $4,000 because it has two-and-a-half baths, but the subject property has only two. The reviewer will look to ensure the adjustment was based on the market reaction – the difference a typical buyer in that market has paid for a home with an extra half bath, all other things being equal – rather than on the cost of adding one.

comments, such as “The acreage adjustment for comparable sale 2 is different from that for comparable sale 1 because the additional acreage for sale 1 is flat and useable, but the topography of sale 2 is a steep bank both in front of and behind the building, reducing the useable space.”

Finally, the review appraiser will pay attention to how the appraiser reconciled market data. For each comparable sale used in an appraisal, the appraiser notes gross adjustments and net adjustments and calculates them as a percentage of the comparable sales price. Gross adjustments are all adjustments added together, regardless of whether they are negative or positive; net adjustments factor in whether an adjustment is negative or positive.

Lower gross and net adjustments could indicate that the comparable sale is more similar to the subject property; however, they could also indicate that the sale was under-adjusted.

If the lender has reason to believe the appraisal work contains errors or the opinion reflects bias, the lender could request a reconsideration of value (ROV) by the appraiser.

Did the appraiser inadvertently “double dip,” i.e., adjust twice for the same issue? I’ve seen an example in which an appraiser adjusted in two places for a home having only two bedrooms – once when noting the bedroom count and once when spelling out “functional flaws.”

Were the adjustments consistent, and, if not, was there an explanation for why they were not? Let’s say the appraiser adjusted for additional acreage on the property and used an adjustment of $6,000 per acre on one comparable sale but only $2,000 per acre on another. To understand the inconsistency, the review appraiser will look for an explanation in the

The appraiser’s reconciled value must be somewhere in the range of the adjusted comparable sales. It can’t be lower than the lowest adjusted price, or higher than the highest adjusted price. The appraiser should explain how and why they reconciled to their final value.

So the next time you’re scratching your head about how two appraisal reports on the same property can result in different estimates of value, think about the detailed nature of appraisals and do a little digging. You’re likely to find the answer in the reports themselves.

CONSTRUCTION PROGRESS REPORT

Updated info on important projects in the region, provided courtesy of ConstructionWire (www.constructionwire.com)

TAYLOR TUDORS RENOVATION

Project: #3388541

PROJECT TYPE/SIZE: Multifamily (44 units), Athletic Facilities (< 10,000 sq-ft), Office (< 10,000 sq-ft), Retail (11,000 sq-ft)

CONSTRUCTION TYPE: New

ESTIMATED VALUE: $37 million

SECTOR: Private

LOCATION: 1946 S. Taylor Rd. Cleveland Heights, OH 44118

DETAILS: Plans call for the renovation of three existing three-story buildings to create a mixed-use development with 44 residential units with 11,000 square feet of ground floor retail spaces. Amenities will include a fitness center and office space.

Estimated Schedule (as of 10/22/2024)

STAGE: Starts in 1-3 months

CONSTRUCTION START: 11/2024

CONSTRUCTION END: Q2/2026

BID DUE DATE: N/A

DEVELOPER: WXZ Development Inc. 22720 Fairview Center Dr., 150 Fairview Park, OH 44126 P: 440-801-1690

Project: #3674516

SEASONS BUSINESS CENTER BUILDING 7

PROJECT TYPE/SIZE: Mfg./Industrial/Warehouse (119,608 sq-ft)

CONSTRUCTION TYPE: New

ESTIMATED VALUE: $5-$25 million

SECTOR: Private

LOCATION: 4861 Gray Ln. Stow, OH 44224

DETAILS: Plans call for the construction of a 119,608-square-foot high-bay industrial building.

Estimated Schedule (as of 11/1/2024)

STAGE: Planning

CONSTRUCTION END: N/A

BID DUE DATE: N/A

DEVELOPER/OWNER: Ray Fogg Corporate Properties

Contact: Michael Merle, Principal mikemerle@fogg.com

981 Keynote Circle, Ste. 15 Cleveland, OH 44131 P: 216-351-7976

Project: #3448944

OHIO VETERANS HOME EXPANSION

PROJECT TYPE/SIZE: Multifamily (101-150 units), Medical, Social

CONSTRUCTION TYPE: New

ESTIMATED VALUE: $90 million

SECTOR: Public

LOCATION: 3416 Columbus Ave. Sandusky, OH 44870

DETAILS: Plans call for the construction of 162,500 square feet of new housing facilities at Ohio Veterans Homes. The expansion will be split into four neighborhoods and will also include a community center.

Estimated Schedule (as of 9/5/2024)

STAGE: Starts in 4-12 months

CONSTRUCTION START: 7/2025

CONSTRUCTION END: 7/2027

BID DUE DATE: N/A

OWNER: State of Ohio

Contact: Todd Hager, Senior Project Administrator todd.hager@ofcc.ohio.gov

8995 E. Main St. Reynoldsburg, OH 43068

Department of Agriculture Headquarters P: 614-728-6200

Project: #3685657

NEW HOSPICE OF THE WESTERN RESERVE

PROJECT TYPE/SIZE: Medical

CONSTRUCTION TYPE: New

ESTIMATED VALUE: $12 million

SECTOR: Private

LOCATION: 18245 Lakeshore Blvd. Cleveland, OH 44119

DETAILS: Plans call for the construction of a hospice center for Hospice Of The Western Reserve.

Estimated Schedule (as of 8/22/2024)

STAGE: Groundbreaking

CONSTRUCTION START: 9/2024

CONSTRUCTION END: Q2/2025

BID DUE DATE: N/A

OWNER: Western Reserve Care Solutions

Contact: Bill Finn, President BFinn@HospiceWR.org

17876 St. Clair Ave. Cleveland, OH 44110

P: 216-430-2800

ARCHITECT: E4H Architecture

Contact: Evan Champagne, Project Manager evan.champagne@e4harchitecture.com

129th South St., 2nd Floor Boston, MA 02111 P: 617-772-0260

CONSULTANT: Harlan+Associates

Contact: Eric Greenberg, Project Manager egreenberg@siteconsult.com

3601 Green Rd. Beachwood, OH 44122 P: 216-245-6227

Project: #3409945

THE VIBE

PROJECT TYPE/SIZE: Multifamily (220 units), Parking Structures

CONSTRUCTION TYPE: New

ESTIMATED VALUE: $25-$100 million

SECTOR: Private

LOCATION: 2828 Clinton Ave. Cleveland, OH 44113

DETAILS: Plans call for the construction of two apartment complexes with approximately 220-unit apartment housing. There will be 223 parking spaces in 78,754 square feet of garage areas in the basement and first floor. The building at the southwest corner of Church Avenue and West 28th Street, is proposed to be six stories tall and called Hanover House; while the other one located at the northeast corner of Clinton and West 29th Street is proposed to be shorter at five stories and to be called Clinton House.

Estimated Schedule (as of 10/24/2024)

STAGE: Starts in 4-12 months

CONSTRUCTION START: 9/2025

CONSTRUCTION END: Q3/2026

BID DUE DATE: N/A

GC: Cleveland Construction, Inc. 8620 Tyler Blvd. Mentor, OH 44060 P: 440-255-8000

DEVELOPER: TurnDev Development

Contact: Jon Pinney, Managing Partner 3900 Park East Dr., Ste. 200 Beachwood, OH 44122

ARCHITECT: Vocon Design Inc.

3142 Prospect Ave. E Cleveland, OH 44115 Cleveland Office P: 216-588-0800

Project: #3682055

WALTON SENIOR APARTMENTS RENOVATION

PROJECT TYPE/SIZE: Multifamily (66 units), Athletic Facilities/Social (< 10,000 sq-ft)

CONSTRUCTION TYPE: Renovation

ESTIMATED VALUE: $5-$25 million

SECTOR: Private

LOCATION: Cleveland, OH 44109 Clark Ave., west of Fulton Rd.

DETAILS: Plans call for the renovation of 66 lowincome, affordable housing units for seniors totaling approximately 54,129 square feet. Walton Senior will provide wholistic, service-oriented housing for the senior tenant population, providing residents with a wide-array of health, wellness and socialization services. The project will serve seniors age 55 and older, who have incomes between 30% and 70% AMI. The building’s amenities include a fitness center with senior specific equipment, a community room with a kitchenette, and enhanced site and building security.

Estimated Schedule (as of 8/15/2024)

STAGE: Planning

CONSTRUCTION END: N/A

BID DUE DATE: N/A

DEVELOPER: Episcopal Retirement Services

3870 Virginia Ave. Cincinnati, OH 45227

P: 513-271-9610

ARCHITECT: RDL Architects, Inc.

16102 Chagrin Blvd.

Shaker Heights, OH 44120

P: 216-752-4300

DEVELOPER: Volker Development, Inc.

Contact: Lauren Schevets, Managing Director of Development l.schevets@volker.co

464 S. Hickory St. Fond du Lac, WI 54935

P: 720-308-8253

Project: #3366165

WILLOUGHBY POLICE DEPARTMENT STATION

PROJECT TYPE/SIZE: Public Safety (50,000-99,999 sq-ft)

CONSTRUCTION TYPE: Addition/Expansion, Renovation

ESTIMATED VALUE: $1-$5 million

SECTOR: Public

LOCATION: 37733 Euclid Ave. Willoughby, OH 44094

DETAILS: Plans call for the renovation and expansion of an existing building into the future Willoughby Police Department station.

Estimated Schedule (as of 11/4/2024)

STAGE: Starts in 4-12 months

CONSTRUCTION START: 5/2025

CONSTRUCTION END: Q1/2026

BID DUE DATE: N/A

ARCHITECT: Richard L. Bowen + Associates, Inc.

Contact: Robyn Wolf, Project Manager rwolf@rlba.com

2019 Center St., Ste. 500 Cleveland, OH 44113 P: 216-491-9300

OWNER: City of Willoughby (OH) One Public Square Willoughby, OH 44094 P: 440-951-2800

Project: #3422970

BELLE OAKS MARKETPLACE - PHASE 1ABUILDING 3

PROJECT TYPE/SIZE: Multifamily (97 units), Social (12,824 sq-ft), Parking Structures

CONSTRUCTION TYPE: New

ESTIMATED VALUE: $12 million

SECTOR: Private

LOCATION: 621 Richmond Rd. Richmond Heights, OH 44143

DETAILS: Plans call for the construction of a new four-story,180,100-square-foot apartment building with 97 residential units that will feature 20 one-bedroom units, 44 one-bedroom units with den/office, and 33 twobedroom units. The building will have 12,824 square feet of ground floor space for a clubhouse and other amenities. In addition, it will also include 123 underground parking spaces and 15 tuck-under parking spaces.

Estimated Schedule (as of 10/10/2024)

STAGE: Starts in 1-3 months

CONSTRUCTION START: 12/2024

CONSTRUCTION END: Q4/2025

BID DUE DATE: N/A

ARCHITECT: Bialosky Cleveland

Contact: Paul Deutsch, Principal pauld@bialosky.com

6555 Carnegie Ave. Cleveland, OH 44103

Cleveland Office

P: 216-752-8750

F: 216-752-9437

CM: Marous Brothers Construction

Contact: Mary Lou Correa Rivera, Project Coordinator

mrivera@marousbrothers.com

36933 Vine St. Willoughby, OH 44094

P: 440-951-3904

DEVELOPER, OWNER: Dealpoint Merrill, LLC

Contact: Dick Mason, Construction Manager

dmason@dealpointmerrill.com

22815 Ventura Blvd., Ste. 310 Woodland Hills, CA 91364

P: 310-671-3900

F: 310-671-4100

ENGINEER: Thorson Baker & Associates, Inc.

3030 W. Streetsboro Rd. Richfield, OH 44286

Cleveland Office

P: 330-659-6688

F: 330-659-6675

Project: #3658761

BROOK PARK ARMORY RENOVATION

PROJECT TYPE/SIZE: Public Safety (22,156 sq-ft)

CONSTRUCTION TYPE: Renovation

ESTIMATED VALUE: $1-$5 million

SECTOR: Public

LOCATION: 6225 Engle Rd. Brook Park, OH 44142

DETAILS: Plans call for the renovation of a 22,156-square-foot Brook Park Armory.

Estimated Schedule (as of 10/7/2024)

STAGE: Construction

CONSTRUCTION START: 6/2024

CONSTRUCTION END: 10/2025

BID DUE DATE: N/A

OWNER: State of Ohio

1970 West Broad St.

P.O. Box 182081 Columbus, OH 43223

Ohio Department of Public Safety

P: 614-466-3383

ARCHITECT: Weber Murphy Fox (WMF)

Contact: Clete Miller, Principal cmiller@wmf-inc.com

1801 E. Ninth St., Ste. 1500 Cleveland, OH 44114

P: 216-623-3700

GC: Action Contractors LLC

100 Northfield Road Bedford, OH 44146 P: 330-748-4884

Project: #3344675

CLEVELAND CLINIC COLE EYE INSTITUTE EXPANSION

PROJECT TYPE/SIZE: Office (44,903 sq-ft), Medical

CONSTRUCTION TYPE: Addition/Expansion

ESTIMATED VALUE: $57.9 million

SECTOR: Private

LOCATION: 2022 E. 105th St. Cleveland, OH 44106

DETAILS: Plans call for the construction of a 44,903-square-foot addition to the Cole Eye Institute.

Estimated Schedule (as of 9/25/2024)

STAGE: Construction

CONSTRUCTION START: 11/2023

CONSTRUCTION END: Q2/2025

BID DUE DATE: N/A

ARCHITECT: HGA

Contact: Bryce Hubertz, Project Architect bhubertz@hga.com

420 N. 5th St., Ste. 100 Minneapolis, MN 55401 Minneapolis Office P: 612-758-4000

OWNER: The Cleveland Clinic Cole Eye Institute

Contact: Travis Tyson, Director Healthcare Design Studio tysont@ccf.org

2022 E. 105th St. / I Bldg Cleveland, OH 44106 P: 216-444-2020

ARCHITECT: Bostwick Design Partnership

Jason T. Hejduk, Project Manager

hejdukj@bostwickdesign.com

2729 Prospect Ave. Cleveland, OH 44115

P: 216-621-7900

GC: Whiting-Turner

Contact: Mark Kilpeck, Project Manager mark.kilpeck@whiting-turner.com

1001 Lakeside Ave., Ste. 100 Cleveland, OH 44114 Cleveland Office P: 440-449-9200

Project: #3079926

AKRON CITY CENTER HOTEL REDEVELOPMENTRESIDENCES AT ASCEND

PROJECT TYPE/SIZE: Multifamily (151-250 units), Retail/Restaurants (< 10,000 sq-ft)

CONSTRUCTION TYPE: Renovation, Backfill

ESTIMATED VALUE: $20 million

SECTOR: Private

LOCATION: 20 West Mill St. Akron, OH 44308

DETAILS: Plans call for redevelopment of the 19-story Akron City Center Hotel into apartments named Residences at Ascend. This will include 71 one-, two- and three-bedroom affordable apartments, market-rate apartments, including six luxury penthouses and a restaurant as well as a rooftop bar at the tower.

Estimated Schedule (as of 10/11/2024)

STAGE: Starts in 4-12 months

CONSTRUCTION START: 7/2025

CONSTRUCTION END: Q2/2026

BID DUE DATE: N/A

DEVELOPER, GC, OWNER: Testa Companies Contact: Joel Testa, COO joeltesta@testacompanies.com 2335 Second St. Cuyahoga Falls, OH P: 330-928-1988

Project: #3408476

CLEVELAND CLINIC GLOBAL PEAK PERFORMANCE CENTER

PROJECT TYPE/SIZE: Athletic Facilities (210,000 sq-ft), Medical

CONSTRUCTION TYPE: New

ESTIMATED VALUE: $80 million

SECTOR: Private

LOCATION: Canal Rd. beside the Cuyahoga River Cleveland, OH 44113

DETAILS: Plans call for the construction of a more than 210,000-square-foot sports performance center and training facility that will anchor the Bedrock Riverfront Development. The facility, a joint-venture between Cleveland Clinic and the Cleveland Cavaliers, will offer personalized expertise in training, treatment, nutrition, and recovery from Cleveland Clinic’s professional medical specialists.

Estimated Schedule (as of 10/24/2024)

STAGE: Starts in 1-3 months

CONSTRUCTION START: 11/2024

CONSTRUCTION END: Q4/2027

BID DUE DATE: N/A

OWNER: City of Cleveland (OH)

601 Lakeside Ave. Cleveland, OH 44114

DEVELOPER: Bedrock Detroit

Contact: Dan Gilbert, CEO

630 Woodward Ave. Detroit, MI 48226

P: 313-373-7575

ARCHITECT: Populous

Contact: Jonathan Mallie, Senior Principal jonathan.mallie@populous.com

4800 Main St., Ste. 300 Kansas City, MO 64112

P: 816-221-1500

TENANT: The Cleveland Clinic

TENANT: Cleveland Cavaliers 1 Center Court Cleveland, OH 44115

P: 216-420-2000

GENERAL CONTRACTOR: Whiting-Turner

Contact: Mark Kilpeck, Project Manager mark.kilpeck@whiting-turner.com

1001 Lakeside Ave., Ste. 100 Cleveland, OH 44114

P: 440-449-9200

Cleveland Office

NEW FIRE STATION 12

Project: #3409802

PROJECT TYPE/SIZE: Government Buildings/Public Safety (14,959 sq-ft)

CONSTRUCTION TYPE: New

ESTIMATED VALUE: $9.5 million

SECTOR: Public

LOCATION: 112 S. Hawkins Ave. Akron, OH 44313

DETAILS: Plans call for the construction of a 14,959-square-foot fire station. It will have nine beds for a crew of nine firefighters/medics, an engine and a medical unit.

Estimated Schedule (as of 8/5/2024)

STAGE: Completed (past 6 months)

CONSTRUCTION START: 6/2023

CONSTRUCTION END: 10/2024

BID DUE DATE: N/A

OWNER: City of Akron (OH)

Contact: Stephanie Marsh, COO press@akronohio.gov

166 South High St., Ste. 202 Akron, OH 44308

P: 330-375-2754

GC: Metis Construction

175 E. Erie St., Ste. 303 Kent, OH 44240

P: 330-677-7333

GC: Kenmore Construction

700 Home Ave. Akron, OH 44310

P: 330-762-9373

ARCHITECT: DLZ Corporation

6121 Huntley Rd. Columbus, OH 43229

P: 614-888-0040

Project: #3710094

PORTAGE COUNTY ADMINISTRATION BUILDING RENOVATION

PROJECT TYPE/SIZE: Government Buildings/Office (< 10,000 sq-ft)

CONSTRUCTION TYPE: Renovation, Flash Project

ESTIMATED VALUE: $0.900 million

SECTOR: Public

LOCATION: 449 S. Meridian St. Ravenna, OH 44266

DETAILS: Plans call for the renovation of a Portage County Administration Building. Estimated Schedule (as of 10/21/2024)

STAGE: Starts in 1-3 months

CONSTRUCTION START: 12/2024

CONSTRUCTION END: Q1/2025

BID DUE DATE: 11/13/2024 2:00 PM

OWNER: Portage County (OH)

449 S. Meridian St. Ravenna, OH 44266

Portage County Administration Building

P: 330-297-3530

ARCHITECT: Hasenstab Architects

Contact: Greg Chaplin, Project Architect gchaplin@hasenstabinc.com

190 N. Union St. Akron, OH 44304

P: 330-434-4464

F: 330-434-8546

Project: #3132167

SKYLINE 776 (FKA CITY CLUB APARTMENTS)

PROJECT TYPE/SIZE: Multifamily (304 units), Cultural/Athletic Facilities (< 10,000 sq-ft), Social (< 10,000 sq-ft), Retail/ Restaurants (10,000-24,999 sq-ft)

CONSTRUCTION TYPE: New

ESTIMATED VALUE: $27 million

SECTOR: Private

LOCATION: 776 Euclid Ave. Cleveland, OH 44114

DETAILS: Plans call for the construction of a 23-story mixed-use building with 304 apartments, restaurants, a coffee shop, indoor and outdoor theaters, game areas, and fitness rooms. This is a concept to introduce apartment hotel experiential living.

Estimated Schedule (as of 10/2/2024)

STAGE: Interior Construction

CONSTRUCTION START: 12/2021

CONSTRUCTION END: Q4/2024

BID DUE DATE: N/A

DEVELOPER, OWNER: City Club Apartments

1 North State St., Ste. 1523 Chicago, IL 60602

P: 312-918-8122

ARCHITECT: Vocon Design Inc.

Contact: Michael Christoff, Director michael.christoff@vocon.com

3142 Prospect Ave. E Cleveland, OH 44115

Cleveland Office

P: 216-588-0800

F: 216-588-0801

CM, GC: Cleveland Construction, Inc.

Contact: Jeff Campbell, Project Manager

jcampbell@clevelandconstruction.com

8620 Tyler Blvd. Mentor, OH 44060

P: 440-255-8000

F: 440-205-1138

PM: Village Green Companies

28411 Northwestern Hwy., Ste. 400 Southfield, MI 48034

P: 248-851-9600

F: 248-851-9619

Construction project reports are provided with permission through ConstructionWire, courtesy of BuildCentral (www.buildcentral.com).

BuildCentral specializes in planned construction project leads and location analytics for CRE, hotel, multi-family/single-family, medical, mining & energy, and retail construction spaces. Properties Magazine makes no warranty of any kind for this information, express or implied, and is not responsible for any omissions or inaccuracies. To notify Properties of any reporting errors, we encourage you to email cpr@propertiesmag.com.

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