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Hot Cleveland Office Market Registers Two More Sales

28 Jul 2015, 5:28 pm

By Adrian Maties, Associate Editor

Investors are starting to take note of the hot Cleveland office market. In recent weeks two office buildings changed hands for a total price of over $20 million.

According to Crain’s Cleveland, an affiliate of New York-based Shelbourne Global Solutions is now the new owner of One Corporate Exchange, an office building located at 25825 Science Park Drive, in Beachwood. The four-story property was sold by a company controlled by Dallas-based Lone Star Funds, for $11.25 million. It offers 89,000 square feet of space. At the moment, One Corporate Exchange has only about 8,000 square feet of vacant space.

The second office building to change hands was Corporate Place, a three-story structure also located in Beachwood, on the exact same street as One Corporate Exchange. The Plain Dealer reports that an affiliate of Group RMC purchased the property at 25800 Science Park Drive for $9.4 million. Just like One Corporate Exchange, Corporate Place was also owned by an affiliate of Lone Star Funds.

Alex Massa, a member of Group RMC, told for The Plain Dealer that the 85,000-square-foot Corporate Place is currently 80 percent leased. His company has hired a team from Colliers International’s Cleveland office to find new tenants for the property. Brian Hurtuk, managing director of Colliers’ Cleveland office, also told the newspaper that he expects to fill the office building by the end of the year.

In its Q2 2015 report, CBRE said that the Cleveland office market continues to experience a period of strength, with positive metrics in both the Downtown and Suburban markets. Investors are currently raiding the region, picking up both prime and underperforming assets. The latter are usually purchased for redevelopment.

The Cleveland area has already seen several important transactions this year. Duke Realty Corp. sold its last six office buildings in northeast Ohio at the start of spring, to Time Equities Inc. The transaction was followed by K&D Group’s acquisition of the 21-story Keith Building and by the $22.5 million sale of the Huntington Building to Florida-based Hudson Holdings LLC.

New Art Park to Enrich Downtown Akron

13 Jul 2015, 7:05 pm

By Adrian Maties, Associate Editor

Akron Art Museum is making good on its promise to play a leading role in the cultural, civic and economic development of the city of Akron. On Thursday, the museum announced its plans to build a one-acre art park in the downtown area.

The Bud and Susie Rogers Garden will be located along the south side of the museum. Not only will it reinvigorate the one-acre site, but it will also create a new civic commons in the heart of downtown. The park will be open to the public and will offer a wide range of activities, from introspection, exploration, social interactions and meaningful art experiences. It will also include bike trails, a picnic area and outdoor space for yoga.

“The Bud and Susie Rogers Garden will function as an art park and community space that will transform the urban landscape of downtown,” said Mark Masuoka, executive director & CEO of the museum. “The garden is just the first drop that will create a ripple effect of cultural development that we will champion in the blocks surrounding the current footprint of the museum.”

Masuoka also expressed his thanks to the city of Akron and Rick and Alita Rogers, who made the project possible. The garden is named after Rick Rogers’ parents, Bruce “Bud” Rogers and his wife, Suzanne “Susie” Rogers, two longtime community volunteers and museum supporters.

OLIN Partners, a Philadelphia-based landscape architecture firm, designed the Bud and Susie Rogers Garden. Work on the project is scheduled to start this month. The grand opening of the garden is planned for the spring of 2016.

Could a Change of Ownership Result in a Change of Luck for This Downtown Cleveland Hotel?

13 Jul 2015, 5:20 pm

By Adrian Maties, Associate Editor

 Hilton Garden Inn Cleveland DowntownDowntown Cleveland’s Hilton Garden Inn has a new owner. The property changed hands at the end of June for $16.6 million.

The Cleveland Plain Dealer reports that the hotel was acquired by a joint venture between Starwood Capital Group, based in Greenwich, Ct., and the Schulte Hospitality Group Inc., of Louisville, Ky., in a deal which closed on June 29. Schulte will now manage the Hilton Garden Inn Downtown Cleveland.

The 11-story hotel occupies a 0.7-acre site at 1100 Carnegie Ave. It offers 240 rooms and many amenities, including a restaurant, bar, pool, a 20,000-square-foot conference center, or meeting rooms for up to 500 people. PropertyShark reports that the hotel’s current market value is $11.4 million.

Hilton Garden Inn Downtown Cleveland was constructed in 2000. The hotel slipped into foreclosure in early 2011, after the group which owned it at that time defaulted on a $17.8 million loan. LNR Group, a Miami Beach-based special servicer, stepped in and purchased the property at a sheriff sale in 2012. PropertyShark reports that the sale price was $12.4 million.

The new owners did not reveal their plans for the hotel. However, with the 2016 Republican National Convention approaching fast, the property could be renovated.

Photo credit: Hilton Garden Inn

Hotel Chain Expands in Greater Cleveland

8 Jul 2015, 4:42 am

By Adrian Maties, Associate Editor

DoubleTree By HiltonDoubleTree by Hilton has opened a new hotel in Greater Cleveland. It is the company’s sixth such property in the area.

On July 2, Hilton Worldwide and DoubleTree by Hilton announced the opening of the new DoubleTree by Hilton Cleveland – Westlake. The hotel is located at 1100 Crocker Road in the suburb of Westlake. It is close to Cleveland Hopkins International Airport and many other retail and business destinations.

DoubleTree by Hilton Cleveland – Westlake was formerly a Holiday Inn. The property reopened following a renovation project that completely revamped the guest rooms, public areas, and meeting and banquet rooms. DoubleTree did not reveal the cost of the renovation.

The five-story hotel offers 267 rooms for both business and leisure travelers. Amenities include an indoor pool, a fitness center, a business center and a new Sanctuary Restaurant, led by award-winning chef Chris Hodgson. DoubleTree by Hilton Cleveland – Westlake also features 11,000 square feet of meeting space, with four conference rooms, a grand ballroom and seven flexible meeting rooms.

Cleveland Airport Hospitality owns the DoubleTree by Hilton Cleveland – Westlake. It is managed by Twin Tier Hospitality.

Bellwether Expansion: Southeast Progression Consumes Capital Advisors

6 Jul 2015, 4:19 pm

By Adrian Maties, Associate Editor

Bellwether EnterpriseBellwether Enterprise Real Estate Capital LLC continues its expansion in the United States. The Cleveland-based company recently strengthened its presence in the Southeast with the acquisition of Capital Advisors Inc., a privately held, full-service mortgage banking firm headquartered in Charlotte.

Bellwether announced its intention to acquire the assets of Capital Advisors at the start of June. The deal adds more than $1 billion in annual loan volume and $1.75 billion in servicing to the Cleveland-based company, bringing its total annual loan volume to more than $4.5 billion and its servicing portfolio to $10.2 billion.

Capitol Advisors was founded in 1994. Over the years, it opened offices all over the Southeast: Atlanta; Birmingham, Ala.; Columbia and Greenville, S.C.; Memphis; and Raleigh and Greensboro, N.C. As part of the deal, Capitol Advisors’ principals have received an equity stake in the newly expanded Bellwether. Also, the Charlotte-based company’s 31 employees have all been retained. From now on, Capitol Advisors will use the Bellwether Enterprise name.

“As a continuation of our mission to become the best and most respected mortgage banking company in the United States, our acquisition of Capital Advisors will allow us to further grow our market share in the Southeast. We look forward to serving the region for years to come,” Ned Huffman, president of Bellwether, said in a prepared statement.

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