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Inland, PGGM JV Buys Cedar Center North for $15.4M

17 Apr 2015, 8:50 pm

By Adrian Maties, Associate Editor

The joint venture between Inland Real Estate Corp. and Dutch pension fund administrator PGGM continues to add more retail properties to its portfolio. Its most recent acquisition is a  shopping center located in the east Cleveland suburb of South Euclid.

Cedar Center North, as the property is known, was acquired for $15.4 million. The shopping center was constructed in 2012. It totals 61,400 square feet, and, according to the new owners, was 90 percent leased at the time of the sale. Cedar Center North is anchored by PetSmart, with a tenant roster that also includes Panera, Starbucks, Five Guys, Chipotle, Jimmy Johns, Wing Stop, Sport Clips, Sprint and Huntington Learning Center.

As part of the acquisition, the Inland-PGGM joint venture assumed a $10.8 million loan that matures in 2039.

Cedar Center North is located just across the street from Cedar Center South, which the joint venture acquired in 2014. In total, the joint venture has five assets in the Cleveland area totaling more than 651,000 square feet of high-quality retail space.

With the acquisition of Cedar Center North, the Inland-PGGM joint venture’s portfolio now includes 34 high-quality retail assets with nearly 4.6 million square feet of space. Last year, it purchased Phases I and II of Northern Kentucky’s Newport Pavilion, for a total of almost $67 million.

Photo credit: Inland Real Estate Corp.



Asset Plus Buys Historic Heritage Hall for $4.5M

13 Apr 2015, 4:21 pm

By Adrian Maties, Associate Editor

Out-of-state investors have scooped up another historic building in Cleveland. Houston-based Asset Plus Cos., the largest privately owned student-housing company in the nation, recently acquired the century-old Heritage Hall building at 2200 Prospect Ave. in the city’s downtown. The price of the transaction was $4.5 million.

Asset Plus bought the property from Euclid Avenue Development Corp., a not-for-profit affiliate of Cleveland State University. Newmark Grubb Knight Frank’s Richard Sheehan, Terry Coyne and Michael Plaspohl worked together to represent the seller and secure the buyer.

Heritage Hall was constructed in 1912 on a three-acre site. The nine-story building has 140 dorm rooms and 152,390 square feet of space. It also includes 175 parking spaces. For a long time, Heritage Hall has been the home of the Downtown Cleveland YMCA. The organization plans to move to a new location, across town, next March.

According to NGKF, the new owner intends to convert the facility into a modern, private student housing complex. Heritage Hall will now be known as The Domain at Cleveland. It will feature a premier clubhouse with a fitness center, a computer lab, study rooms and a resident lounge. The studio, one-bedroom and two-bedroom units will all be renovated, with new appliances and cabinets, upgraded bathrooms and new A/C and heating systems.

Asset Plus is leasing apartments for the fall 2015 academic year.

Photo credit: Newmark Grubb Knight Frank



K&D Group Buys Another Cleveland Landmark

6 Apr 2015, 7:26 pm

By Adrian Maties, Associate Editor

Another downtown Cleveland office building recently changed hands. But in spite of the office-to-residential-conversion trend currently present in the Cleveland area, this one won’t be redeveloped into apartments.

Crain’s Cleveland reports that the K&D Group, an apartment owner and developer based in Willoughby, has expanded its portfolio with the acquisition of the 21-story Keith Building. K&D purchased the property for $5.2 million from a partnership led by Bill West in a transaction that closed on March 24. K&D also purchased the land lease, giving it control of both the property and the land beneath it. The company now owns almost 1 million square feet of office and retail space in Cleveland’s downtown.

The Keith Building opened in 1922. At that time, it was the tallest building in the city. The property is located at 1621 Euclid Ave., and offers about 270,000 square feet of space. According to PropertyShark, the building’s current market value is $8.1 million.

Last year, K&D purchased two other office buildings in Cleveland’s downtown, the Halle Building and the Leader Building, with plans to turn them into apartments. But in order to do so, it has to first find new space for their tenants. That’s where the Keith Building comes in: It will be receiving as office tenants those currently situated in the Halle and Leader properties.

The Keith Building currently has about 60,000 square feet of available space. Doug Price, CEO of K&D, told Crain’s Cleveland that he believes he will be able to fill this space with the tenants from the two other office properties. K&D is also offering space in empty offices and a former school at its Reserve Square mixed-use complex. Rents at Keith and Reserve Square range between $12 and $14 per square foot.

Photo credit: Google Maps



Brotherhood of Locomotive Engineers and Trainmen Buys New HQ Building in Independence

29 Mar 2015, 1:48 am

By Adrian Maties, Associate Editor

The National Division of the Brotherhood of Locomotive Engineers and Trainmen, the oldest labor union in North America, is moving its headquarters out of Downtown Cleveland after almost a century and a half in the area. Its new headquarters will be located in Independence.

Last week, the BLET announced that it has acquired the office building at 7061 E. Pleasant Valley Road. The purchase meets the requirements of the BLET Bylaws, which state that the National Division headquarters must be located in the Greater Cleveland area.

According to Cuyahoga County land records, the office property changed hands for $1.8 million. PropertyShark reports that the building was constructed in 1973. It stands two stories tall and encompasses 37,800 square feet of space. The real estate website also placed the property’s current market value at $2.9 million. RRZ Associates was the former owner.

The BLET is currently located in the 21-story Standard Building, at 1370 Ontario St. The union used to own the large office property but sold it in July 2014 to Weston Inc. for $3.9 million. The new owner plans to invest $60 million and turn the Standard Building into 287 apartments. A stipulation in the sale agreement allowed the BLET to lease back its space in the building and occupy it for a minimum of two years and a maximum of three.

“Work will begin immediately to fit the new property to our operations, and once completed, our new headquarters location will provide ample room for our National Division officers and staff in a more modern work environment. We will also use this opportunity to continue and expand our state-of-the-art education and training center,” BLET National President Dennis Pierce said in a statement on the union’s website.



Boston-Based Investor Buys 50-Unit Apartment Complex in Cleveland Heights

22 Mar 2015, 4:54 am

By Adrian Maties, Associate Editor

Noble Summit Apartment Properties LLC is the new owner of the apartment complex at 2734 Noble Road in Cleveland Heights. The Boston-based company paid $1.3 million, or $26,600 per unit, to purchase the multi-family property in a transaction that closed earlier this year.

2734 Noble Road is a 50-unit apartment complex offering a mix of one- and two-bedroom apartments, and includes a 50-car garage, as well as outdoor parking. According to PropertyShark, the three-story building was constructed in 1949. Its current market value is a little over $1 million.

Alec Pacella, CCIM, managing partner of NAI Daus, represented the seller, Noble Summit I&II LLC, in the transaction, which closed on Jan. 30. In a news release, NAI Daus said that the apartment complex was on the market for only four months before being scooped up by its new Boston-based owner.

Together with the sale of 2734 Noble Road, NAI Daus announced the disposition of Abbe Road Self Storage, a 37,120-square-foot, 166-unit self-storage facility located at 5302 Evergreen Parkway in Sheffield Village. The commercial real estate company represented the seller, Balch Properties, in the transaction. Abbe Road Self Storage purchased the facility for $975,000.

Photo credit: Google Maps







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