James M. Russell ‏@BurghDiaspora  2m2 minutes ago

"Developer sees demand for Downtown Pittsburgh condominiums"

http://www.post-gazette.com/business/development/2016/01/22/Developer-sees-demand-for-Downtown-Pittsburgh-condos/stories/201601220122

This past weekend, I ran into two retiring couples who were looking at buying units in my building (Gold Coast area of Lakewood) because they wanted to downsize. One was a couple from Fairview Park and the other was a couple from Strongsville. Both couples were looking at buying an apartment-style condo downtown but couldn't find any. They weren't interested in renting. When I asked them if they were willing to consider free-standing townhouses, they said they'd consider it but it wasn't their preference. They wanted to be in a high-rise that had amenities on-site or very close by (restaurant/coffee shop/bar, small grocer/drug store, fitness/yoga, indoor dog park, etc).

 

So they were at my building and when I told them what amenities I had within a five-minute walk, they became more interested in the Gold Coast area. They certainly liked the price of the three units in my building (which had nine units on the market or in foreclosure at the end of the recession), as they were listed below $50,000 each. The units are dated, but they can be updated with terrific new finishes for under $20,000. And even the condo buildings right on the lakefront are listing for under $150,000, which is about what these two couple were prepared to spend downtown. Now, when for-sale housing kicks into high gear downtown (whenever that is), I don't foresee 800- to 1,000-square-foot apartment-style condos going for under $200,000 but I hope I'm wrong. I think downtown could really boom faster if some big buildings were planned with these types of for-sale housing and at those prices.

 

I realize that's merely the feedback I was getting from only two couples, but something tells me based on recent comments on this board and the current pace of change downtown that these couples weren't anomalies. Who knows, if downtown can't meet the demand, then maybe it will even lead to another condo tower getting building on the Gold Coast or near Edgewater Park?

The Population Boom in Downtown Cleveland is Very Real and Very Good. But How Long Can It Continue?

http://m.clevescene.com/cleveland/the-population-boom-in-downtown-cleveland-is-very-real-and-very-good-but-how-long-can-it-continue/Content?oid=4700955

Kinda funny to see people commenting thinking the whole thing is a big lie and that downtown is really empty and just a Potemkin Village set up to impress the people in power lol

Some people are unreachable.

Freshwater Cleveland chimes in with this piece...

Millennials are flocking to Cle, but city must prepare for the future https://t.co/QVmp64psk3 @CleveFoundation @CLE_State @LakewoodOhio

KJP[/member] I totally agree with the sentiment on downtown ownership. You can take a look at real estate websites and see how truly limited the inventory of condos is.

 

I've been looking to buy (millenial here), but it's discouraging when there are only two buildings with options...and one of them (Water Street) seems to just be converting as we speak. I'm not sure how analysts determine when there is "demand" but I can't imagine you could accurately judge it by one building having units available.

I understand that the for-sale market was hindered by the banks' tight lending policies post-recession until recently. But it's loosened up and the market here isn't responding. The only planned for-sale housing units downtown that I'm aware of are townhouses in the Avenue District. But what about apartment-style condos? Which of the emerging downtown hi-rises could include a for-sale component?

I'm hoping that new construction or conversions will include some amounts of condos. But I also had never heard of the "5 year rule" that was mentioned in the Scene article. I wonder if we'll then see more apartments-to-condo conversions, or lease-to-own, of existing inventory like Water Street.

I just bought in water street, and I have to say that we got unbelievably lucky in our search. There was nothing except one unit which we made an offer on the day of viewing. It's a tight market, and there is definitely high demand. Hence why our condo prices are on par with Chicago's (on average)

Cross-posted in the downtown office news thread...

 

Downtown Cleveland transportation options attract residents, workers

WKYC staff  11:21 AM. EST February 03, 2016

 

CLEVELAND -- – Downtown Cleveland Alliance today released the Downtown Cleveland Market Update for the fourth quarter of 2015. This quarterly report reveals a comprehensive overview of recent developments in Downtown Cleveland housing, office, retail, hospitality and transportation trends.

 

As Downtown Cleveland continues to grow its residential population and attracts businesses, the many transportation options in the urban core are increasingly important. Four out of five millennials have reported wanting a variety of transportation options for commuting to work and daily activities. Downtown Cleveland’s easy access to public transit, walkability and amenity rich neighborhoods makes it a desirable location to live, work and play. Since 2010, the overall ridership of the Greater Cleveland Regional Transit has grown five percent, with Downtown trolley ridership growing 62 percent.

 

MORE:

http://www.wkyc.com/news/downtown-cleveland-transportation-options-attract-residents-workers/31459964

New apartment tower for Milwaukee? No parking on site? Yep, learn from Cleveland (mentioned at the end of this article)!

 

Apartment plans tout upscale units, but little or no parking

http://m.jsonline.com/business/apartment-plans-tout-upscale-units-but-little-or-no-parking-b99663266z1-367918991.html

I'm hoping that new construction or conversions will include some amounts of condos. But I also had never heard of the "5 year rule" that was mentioned in the Scene article. I wonder if we'll then see more apartments-to-condo conversions, or lease-to-own, of existing inventory like Water Street.

 

Yes, I saw the five year rule in Scene magazine and was wondering if anyone could explain that? Anecdotally, I know other people living downtown who will be in the market for a condo in the next few years and have expressed strong interest in staying downtown. I wonder if buildings like Worthington Square and 425 Lakeside, both currently being shopped around by Jacobs Group for a buyer, would be candidates for conversions since they both need updates from their last renovations in the late 1990s.

I think the five year conversion restriction is tied to either the state or federal preservation tax credits. In any case, though, I suspect the lack of rental to condo conversions has more to do with the hot rental market than any regulatory barriers. That could easily change if some landlords start to worry about the rental supply coming on line.

Cleveland moves to legalize, limit and tax Airbnb and other short-term residential rentals

http://www.cleveland.com/business/index.ssf/2016/02/cleveland_moves_to_legalize_li.html

Cleveland moves to legalize, limit and tax Airbnb and other short-term residential rentals

http://www.cleveland.com/business/index.ssf/2016/02/cleveland_moves_to_legalize_li.html

 

Ugh.  Another attempt to make this town seem backwards and clinging to the 1950's. 

 

Mayor Jackson, please focus your attention on Columbus and recapturing lost revenue from Kasich's moves or ODOT funds for our roads, bridges and transportation.  Or why don't you start cleaning up the bloated ranks of city employees who sit around smoking cigarettes and taking coffee breaks all day, and STILL get an automatic raise each year, with a primo retirement plan, and often double-dipping.

 

 

 

 

Cleveland moves to legalize, limit and tax Airbnb and other short-term residential rentals

http://www.cleveland.com/business/index.ssf/2016/02/cleveland_moves_to_legalize_li.html

 

Ugh.  Another attempt to make this town seem backwards and clinging to the 1950's. 

 

Mayor Jackson, please focus your attention on Columbus and recapturing lost revenue from Kasich's moves or ODOT funds for our roads, bridges and transportation.  Or why don't you start cleaning up the bloated ranks of city employees who sit around smoking cigarettes and taking coffee breaks all day, and STILL get an automatic raise each year, with a primo retirement plan, and often double-dipping.

 

 

 

 

 

Seriously? There are several cities that are working through legislation to tax AirBnb. As they should.  Los Angeles is currently considering legislation. However I Guess that doesn't fit with your constant complaining narrative of Cleveland being some backwards town "clinging to the 50's". As if certain things only happen in Cleveland and not the thousands of other cities in the US. ONLY in Cleveland!? I'm not a tech guy, but as far as I recall,  Airbnb wasn't around in the 50's, so that's a pointless comparison.

 

Seriously? There are several cities that are working through legislation to tax AirBnb. As they should.  Los Angeles is currently considering legislation. However I Guess that doesn't fit with your constant complaining narrative of Cleveland being some backwards town "clinging to the 50's". As if certain things only happen in Cleveland and not the thousands of other cities in the US. ONLY in Cleveland!? I'm not a tech guy, but as far as I recall,  Airbnb wasn't around in the 50's, so that's a pointless comparison.

 

Los Angeles is also increasing in population, and has so since the 1950's.  Los Angeles attracts bright young college graduates, and even retains many of their own, rather than send them off elsewhere.    So an AirBnb tax in Los Angeles vs Cleveland is also a pointless comparison.  Also--if you read into the legislation there, they have some very real concerns of less scrupulous providers setting up "rogue hotels" for immigrants, druggies and wanna-be Hollywood starlets.  Once again, not something Cleveland really needs to worry about, at least on that level.

 

Please don't take my "complaining" the wrong way.  I am not a Cleveland.com hater.  I want to see our city get back to it's once-great status of population and wealth.  So in reaffirming your point about Los Angeles, this proposal a me-too cash grab by politicians unwilling to think outside the box.  It's easier to copy another city's proposals rather than find their own way.  I'd rather they focus on bigger ticket items and let the tech businesses run rampant here in the meantime.

It's akin to Cleveland Heights police allocating their attention to ticketing people rather than establishing a visible presence in more dangerous areas. Another form of political cowardice we see day in day out.

Cleveland Heights has a separate traffic bureau.  That is all they do.  It is a good source of revenue to fund the the PD do that they can focus on bigger issues.

OK, shall we get back on topic?

 

 

 

 

 

 

 

 

(The answer is yes)

The Real Source of America's Urban Revival

Millennials, housing costs, and shorter commutes are the usual explanations. But a careful new study points to another reason young college grads returned downtown in the 2000s.

ERIC JAFFE @e_jaffe Feb 23, 2016

 

Something strange happened in U.S. cities circa 2000: people started to move downtown. Not all people. If you look at the top 100 metro areas between 2000 and 2010, only two downtowns grew faster than their outlying suburbs in terms of total population. Two. But among young college graduates—a key indicator of an area’s growth potential, in the eyes of urban economists—moving downtown became more the rule than the exception.

 

From 2000 to 2010, more college-educated professionals aged 25 to 34 moved downtown than to the suburbs in 39 of the 50 largest U.S. metros. For 35-to-44-year-olds, the same held true in 28 of the 50 largest metros. This revival was true in the places you might expect, like New York City or San Francisco, and in places you might not, like Cleveland. It was true despite historical trend lines showing that, for the better part of a century, the wealthy typically moved one way when it came to cities: out of them.

 

“This is a huge reversal from decades of suburbanization of college graduates,” says urban economics scholar Victor Couture of UC-Berkeley. “Most large American cities experienced something like this rebound between 2000 to 2010. Over the last decade, broadly speaking.”

 

MORE:

http://www.citylab.com/work/2016/02/urban-revival-america-college-educated-2000-2010/470415/?utm_source=SFFB

 

Ironically, the long waiting list for downtown Cleveland apartments is equally as effective in stranding people in the suburbs too....

 

Eager to Move to the City, but Stranded in the Suburbs

http://www.nytimes.com/2016/02/28/nyregion/eager-to-move-to-new-york-city-but-stranded-in-the-suburbs.html?_r=0

March 08, 2016 SPECIAL SECTIONS » CITY GUIDE 2016

How Downtown Became Cleveland's Hottest Zip Code

By Eric Sandy

 

Amit Patel, CEO of apartment concierge service Quo, joined us recently as we toured the Bingham on a bustling afternoon. We wanted to get a sense of what it's like to scout apartments in the middle of the biggest population boom this city's seen in decades.

 

Downtown Cleveland at midday is a throbbing neighborhood in action: friends gathering for lunch; workers dashing down the street to run errands between meetings; Uber drivers threading through the buses and trolleys and delivery trucks of Euclid Avenue, then shepherding riders westward into the revitalized Flats. This is the delightful street-level consequence of having so many people down here now, we consider.

 

MORE:

http://www.clevescene.com/cleveland/how-downtown-became-clevelands-hottest-zip-code/Content?oid=4715717

Call me picky, but downtown is 3 zip codes. Four if you count the Federal Building lol

PHOTOS: Inside 3 Condos for Sale in Downtown Cleveland

https://t.co/74X0QbgKrX

Millennial Influx Helps Cleveland Shake Rust Belt Reputation

Downtown Cleveland's population grew 79 percent in the last 16 years, and developers are taking note

BY ALEXEI BARRIONUEVO  APR 6, 2016, 1:00P

 

Cleveland once held a vital place in America's industrial landscape. John D. Rockefeller kicked off his oil empire there, and the city was an early center for car production and later diversified into other manufacturing sectors.

 

But when American cities began de-industrializing and the American dream became a picket fence in the suburbs, Cleveland struggled with growing blight, and people started leaving in big numbers.

 

"Cleveland is the poster child for white flight out to the suburbs," said Conor Coakley, a broker with CBRE in downtown Cleveland. The 5.4 percent fall off in residents in 2000 actually accelerated in the 2010 census, to 17.1 percent.

 

But Cleveland has begun to embody another trend: The nationwide phenomenon of Americans, especially millennials, wanting to live a hipper, less-car dependent lifestyle in the urban core.

 

MORE:

http://www.curbed.com/2016/4/6/11376826/cleveland-downtown-development-housing

 

Cleveland apartment plan targets growing empty nester segment

 

K&D Group plans to take a new tack with the apartments at the Halle Building, which the Willoughby-based real estate firm is seeking Ohio State Historic Preservation Tax Credits to help fund.

 

If the $60 million redo of the former department store from office building to mixed-use complex wins the state credits, K&D will install what Doug Price, K&D CEO, describes as “large” suites on the sixth through 11th floors of the building at 1228 Euclid Ave.

 

“This is a different type of rental housing,” Price said. “These are designed for empty nesters who want to sell their house and downsize. But they don’t want a 700-square-foot apartment. They want 1,200 square feet.”

 

The plan calls for 125 units, which includes one-bedrooms with 900 to 1,500 square feet and two-bedrooms of 1,400 to 2,500 square feet. The units also will have large bedrooms and bathrooms, a fireplace and gourmet kitchens.

 

http://www.crainscleveland.com/article/20160408/NEWS/160409800/cleveland-apartment-plan-targets-growing-empty-nester-segment

Mostly a fluff piece as most of RE Journal articles are. But there's this enigmatic nugget in the article:

 

Lovett represents one of the largest developers of multifamily space in the Cleveland area, K&D Group.  This developer has already added new apartments to the city’s multifamily mix. Lovett said she is representing the developer as it readies another big apartment project in the city. That project, though, is still in the confidential stage.

____

 

Ulmer & Berne’s Lovett: Cleveland’s urban core is on the rise

April 11, 2016  |  Dan Rafter 

 

Mary Forbes Lovett has noticed something interesting about Cleveland: When people who’ve never been to this city visit, they are inevitably shocked, surprised at how much there is to do here and by the eclectic mix of Cleveland’s museums, restaurants, shops and parks.

 

This is why Lovett, partner of and chair of Ulmer & Berne’s real estate group, so enjoys introducing these visitors to the city in which she’s always called home.

 

MORE:

http://www.rejournals.com/2016/04/11/ulmer-bernes-lovett-clevelands-urban-core-is-on-the-rise/

Lovett said she is representing the developer as it readies another big apartment project in the city. That project, though, is still in the confidential stage.

 

I wonder if that confidential big project might be either the Rose building or Landmark Office Towers as those two properties could become available in the near future.

I wonder if that confidential big project might be either the Rose building or Landmark Office Towers as those two properties could become available in the near future.

 

I doubt it's either one of those. Sherwin Williams has put its HQ project on hold. And I doubt Medical Mutual knows what it wants to do yet. But if it is one of them, it's Medical Mutual. They sound like they don't want to be in Rose Building anymore.

 

If it's not one of those two, I don't know what it would be. What old, big building hasn't recently been targeted by developers to be converted to housing or renovated as offices? The old Ohio Bell building on Huron? The Caxton Building?

 

Or could it be a conversion of a currently active building whose primary occupant has either outgrown it (Quicken Loans at MK?) or perhaps has poor performance (Hyatt at The Arcade?)? Racking my brain here....

Random question. What is the vacancy rate of the Superior Building? I'm always surprised it hasn't been scooped up for a restoration and housing conversion. It's in need of some TLC but is one of our few great old tall buildings.

 

 

Sent from my iPhone using Tapatalk

New construction maybe?

^^Not sure but good question though.

 

I wonder if that confidential big project might be either the Rose building or Landmark Office Towers as those two properties could become available in the near future.

 

I doubt it's either one of those. Sherwin Williams has put its HQ project on hold. And I doubt Medical Mutual knows what it wants to do yet. But if it is one of them, it's Medical Mutual. They sound like they don't want to be in Rose Building anymore.

 

If it's not one of those two, I don't know what it would be. What old, big building hasn't recently been targeted by developers to be converted to housing or renovated as offices? The old Ohio Bell building on Huron? The Caxton Building?

 

Or could it be a conversion of a currently active building whose primary occupant has either outgrown it (Quicken Loans at MK?) or perhaps has poor performance (Hyatt at The Arcade?)? Racking my brain here....

 

Me too. The word 'big' is throwing me off and I thought about those that you reference.  My other thoughts were possibly JHB, Samsel building, Erieview Tower which I know is doing their own thing. Could it be new build? But I doubt that  considering the name that is referenced in the article specialises in restoration and historic tax credits. In fact she helped K&D secure the tax credits for 1717.  Something's gonna break soon...

Why the assumption that it will be downtown?

Because it's K&D....

 

"The conversions have been so profitable, says Mr. Price, that K&D is now selling properties in the suburbs to focus on downtown and is in talks to buy at least two additional office buildings that it plans to convert."

http://www.wsj.com/articles/SB10001424052702303626804579506073419741570

I don't want to fuel a speculation fire but a couple months ago a contact I have who is very high up at K&D indicated they were in talks for a building that would be a big deal and would surprise people. Wish I knew more. I don't know what is possibly available that would be such a building.  And it is downtown.

I don't want to fuel a speculation fire but....

 

No, that would never happen here!!

 

...a couple months ago a contact I have who is very high up at K&D indicated they were in talks for a building that would be a big deal and would surprise people. Wish I knew more. I don't know what is possibly available that would be such a building.  And it is downtown.

 

 

Terminal Tower? ? ? ?

I don't want to fuel a speculation fire but a couple months ago a contact I have who is very high up at K&D indicated they were in talks for a building that would be a big deal and would surprise people. Wish I knew more. I don't know what is possibly available that would be such a building.  And it is downtown.

 

Probably Erieview Tower. They've been purging tenants left and right to make room for something...

But the current owners of Erieview are already committed to at least a partial housing conversion.

 

If I'm K&D, I'm looking for a Class C office building that's underperforming as offices (thus making it a potential bargain buy) and is at least 50 years old or will be soon. Superior Building is probably a good guess, as would the City Club Building (both owned by the same owner). But something tells me it's something else, like maybe the Ohio Savings Building or the IMG Building. I think it's one of the East 9th steel/glass buildings.

Maybe the Rockefeller Building?

^^ Ding! Ding! (I hope)

Another (remote) possibility is the May Co building. The development team that keeps striking out on the catalytic credt doesn't own it. If they've let their purchase option lapse, K&D might have stepped in with their own plan. Probably not worth mentioning, but it would be a big deal (per mrclifton's rumor) and we know the owner is willing to deal.

I would love to see the Rockefeller Building redeveloped. I walk by all the time and its such a beautiful structure, but in need of so much care. I'm especially struck by all the spider webs that cover it in the summer time lol. But if Rockefeller, or the Superior Builder are redeveloped to residential, downtown is really going to be running short of class C. With K&D taking over the Keith Building last year, these are probably the largest class C office buildings left right? At least until some class Bs downgrade.

^ Is there really a market for Class C office space anymore?

Cheap office space is necessary in a weak economy like ours.  You find a lot of small professional practices in Class C space, like accountants and lawyers.  Some lawyers even prefer a historical setting.

New construction maybe?

 

Possibly K&D is looking into new construction on the West bank of the Flats?

Cheap office space is necessary in a weak economy like ours.  You find a lot of small professional practices in Class C space, like accountants and lawyers.  Some lawyers even prefer a historical setting.

 

It's also necessary for nonprofits, small businesses, new startups, and medium-sized national companies wanting to have a go-to office for salespeople to visit when in town to prepare/pick up presentation materials, etc.

 

Possibly K&D is looking into new construction on the West bank of the Flats?

 

I think Jeff Jacobs has a lock on the West Bank unless he plans to sub-contract the residential component of his development to K&D. But Jacobs has the residential experience to undertake it himself.

Downtown living has potential to energize urban centers (with photo gallery)

http://www.crainscleveland.com/article/20160423/REBUILD/160429925/downtown-living-has-potential-to-energize-urban-centers-with-photo?X-IgnoreUserAgent=1