Start looking early for that apartment downtown

By STAN BULLARD

Originally Published: April 25, 2015 4:30 AM  Modified: April 29, 2015 3:23 PM

 

The rapid pace that new apartment developments in downtown Cleveland fill is showing no sign of slowing.

 

The last tenant at Residences at 1717 — the 2014 conversion to apartments of the old East Ohio Gas building — is scheduled to move in this week.

 

Moreover, the 223-suite project named after its East Ninth Street address has a 70-person waiting list for when suites become available, according to Doug Price, CEO of building owner K&D Group. The $60 million project opened in July 2014.

 

MORE:

http://www.crainscleveland.com/article/20150425/FREE/150429877/start-looking-early-for-that-apartment-downtown

I'm not sure I understand the article. 

 

"The last tenant at Residences at 1717 — the 2014 conversion to apartments of the old East Ohio Gas building — is scheduled to move in this week.  Moreover, the 223-suite project named after its East Ninth Street address has a 70-person waiting list for when suites become available."

 

It says the last tenant is scheduled to move in this week, then it says a waiting list when suites become available.  So is this actually the last tenant, and there are some units they have not constructed yet?   

 

 

It'll be full but there is a list of people waiting to be called when the first leases are up and units become available again. It's quite common in these project to develop a waiting list for when units are up for grabs again when the first wave of residents gets to the end of their leases and some don't resign.

It'll be full but there is a list of people waiting to be called when the first leases are up and units become available again. It's quite common in these project to develop a waiting list for when units are up for grabs again when the first wave of residents gets to the end of their leases and some don't resign.

Ah, I gotcha.  I should have picked that up.  Thanks!

It'll be full but there is a list of people waiting to be called when the first leases are up and units become available again. It's quite common in these project to develop a waiting list for when units are up for grabs again when the first wave of residents gets to the end of their leases and some don't resign.

 

Also helps a developer justify a "next project" to lenders, notably K&D which has many more projects in the pipeline.

 

BTW, I stopped by the office downtown about 6 p.m. last evening (a Saturday) and downtown Cleveland was really hopping. Maybe it seemed more active because I was in downtown Toledo two hours earlier... But it sure seemed extra busy to me.

Downtown was super busy today.  The Indians game and the weather helped.  Lots of people on the 9th St. pier and Voinovich Park as well.

^ya I saw that as I tried to make a seamless trip to heinens. It had a nice energy to it. Was three hours before the game too when I saw a lot of activity, I think this summer will be great

I don't understand their seemingly counter-intuitive remark that a 2.8% vacancy rate is lower than a 2.7%, 2.6% or 2.5% vacancy rate. Anyone understand what they mean??

 

Rising Rents, Falling Vacancies Projected for Commercial Markets

BY TANAYA MACHEEL

MAY 26, 2015 2:13pm ET

 

Demand for commercial real estate is on a gradual road to recovery, the National Association of Realtors says, thanks to a stronger labor market and growing household formation among young adults.

 

...However, the hike in multifamily completions coming onto the market has been steeper than anticipated. In multifamily markets, the NAR expects a modest rise in vacancy rates, from 4.3% currently to 4.4% in the second quarter of 2016. Vacancy rates below 5% are generally considered a landlord's market, where demand justifies higher rent.

 

The NAR expects apartment rents will rise 3.6% this year and then more slowly at 3.3% in 2016; and that net absorption will total 172,524 units in 2015 and 153,747 next year.

 

Cleveland, Oakland and San Diego hold the lowest multifamily vacancy rates at 2.8%, followed by New Haven, Conn., and Providence, R.I., at 2.7%; Sacramento, Calif., at 2.6% and San Bernardino-Riverside, Calif., at 2.5%.

 

http://www.nationalmortgagenews.com/news/origination/rising-rents-falling-vacancies-projected-for-commercial-markets-1051843-1.html

I think they got their list backwards.

CLE among cities where rising downtown pop is spurring surge in urban dev @CrainsCleveland http://t.co/gRVgrkR0Dq http://t.co/7l15XWSxWn

Downtown Cleveland's waterfronts propel renaissance momentum

 

More is on the way. The City of Cleveland selected downtown-based Cumberland Development and Dallas-based Trammel Crow to develop housing, office space, retail, entertainment venues, and other amenities in North Coast Harbor and along downtown’s lakefront. Cleveland may see ground-breaking as early as this fall on North Coast Harbor dining, entrepreneurial office space, and housing. With the addition of lakefront housing in addition to the continued development of Downtown’s historic buildings, Downtown Cleveland Alliance predicts the population of Downtown Cleveland will exceed 20,000 residents by 2018.

 

 

http://www.crainscleveland.com/article/20150720/CUSTOM1001/150719920/downtown-clevelands-waterfronts-propel-renaissance-momentum?rel=nowfollow

Where does downtown stack up against other city neighborhoods currently?

 

Exclusive first look: the Creswell

 

A new boutique apartment building with a quirky history, the Creswell, 1220 Huron Road, is set to open with 80 luxury one- and two-bedroom apartments in Playhouse Square.

 

Move in dates will commence in September on the first six floors. Units on floor seven will be available in October. Floors eight through 11 are scheduled to start coming online in November, with all the apartments slated for completion by year's end. Thus far, 54 have been released to the market, and they are going fast.

 

http://www.freshwatercleveland.com/devnews/creswell072915.aspx

 

Exclusive first look: the Creswell

 

A new boutique apartment building with a quirky history, the Creswell, 1220 Huron Road, is set to open with 80 luxury one- and two-bedroom apartments in Playhouse Square.

 

Move in dates will commence in September on the first six floors. Units on floor seven will be available in October. Floors eight through 11 are scheduled to start coming online in November, with all the apartments slated for completion by year's end. Thus far, 54 have been released to the market, and they are going fast.

 

http://www.freshwatercleveland.com/devnews/creswell072915.aspx

Wow...this one has been flying under the radar and over half sold out already.

 

Exclusive first look: the Creswell

 

A new boutique apartment building with a quirky history, the Creswell, 1220 Huron Road, is set to open with 80 luxury one- and two-bedroom apartments in Playhouse Square.

 

Move in dates will commence in September on the first six floors. Units on floor seven will be available in October. Floors eight through 11 are scheduled to start coming online in November, with all the apartments slated for completion by year's end. Thus far, 54 have been released to the market, and they are going fast.

 

http://www.freshwatercleveland.com/devnews/creswell072915.aspx

 

Love that view of Playhouse Square and the lake.

Do Slyman/Dalad know the Halle garage is planned to be converted to housing? Just curious.... :)

^Don't think that's true. Check the December posts from the Halle Bldg  thread: http://www.urbanohio.com/forum2/index.php/topic,29439.0.html

^Don't think that's true. Check the December posts from the Halle Bldg  thread: http://www.urbanohio.com/forum2/index.php/topic,29439.0.html

 

Ah, thanks. I read only that they were converting the garage first -- not that they were converting only "part" of the garage.

^As of December, they were no longer planning on converting any of the garage, unfortunately.

 

From the Crain's piece you posted in December:

 

Price said K&D will begin adding about 60 parking spaces on the first floor of the Halle Building garage, which K&D also purchased. He confirmed the company looked at installing apartments on the top two floors of the garage but decided the 600-space garage would not have enough parking for the Halle Building’s apartments if it reduced the size of the garage.

http://www.crainscleveland.com/article/20141204/FREE/141209889/halle-building-sold-to-kd-group-for-20-million

 

\from a Creswell tour a couple wks ago

 

 

 

 

 

 

I'm digging the atrium http://www.cicerchi.com/Southworth.htm

Growing Population helps Downtown Cleveland attract Business, retail

 

"The Downtown Cleveland housing market is struggling to keep up with the increasing demand. Despite adding 350 units over

the last year, apartment occupancy remains high at 97.5 percent with most vacancy attributable to a seasonal drop-off in

university students, faculty, and staff living downtown over the summer months.

Over 1,800 people are on waiting lists for downtown housing as of the end of Q2.

Even as new housing developments command lease rates over $2.00 per square foot, the average one bedroom rental

rate of $1,000 per month remains affordable for a high percentage of Cleveland households. Condominium sales are also on

the rise with the average sale price rising from $228,771 and $164.68 per square foot in Q2 2014 to $342,140 and $226.79

per square foot this past quarter."

 

http://downtowncleveland.com/media/249074/q2_2015-final.pdf

Office Today, Apts Tomorrow: Office-To-Residential Conversions Expanding Across More US CBDs

 

http://t.co/4DMezjUR5m

 

Lots of Cleveland info in this national publication.

Interesting article on the overall state of residential living in downtown/urban core....

 

Cleveland sees flurry of high-rise rental plans, in possible race to the top (photos)

By Michelle Jarboe McFee, The Plain Dealer

on August 29, 2015 at 7:00 AM, updated August 29, 2015 at 7:02 AM

 

CLEVELAND, Ohio – More than 40 years after the 25-story Reserve Square apartments opened south of Superior Avenue in downtown Cleveland, this city is revving up for another skyline-shifting residential boom.

 

Local developers are eyeing at least four sites for tall apartment buildings, stretching to 20 stories or more, in the first such push since the 1970s. That drive comes as Northeast Ohio is seeing record-low rental vacancies and its swiftest rent growth since before the recession – trends that allow builders to consider towering projects that, for decades, haven't been practical or financeable.

 

Construction could start in January on One University Circle, a 20-story, 280-unit luxury high-rise at Euclid Avenue and Stearns Road in the medical, educational and cultural district on the city's East Side.

 

MORE:

http://www.cleveland.com/business/index.ssf/2015/08/high-rise_apartment_plans_emer.html#incart_river

Downtown waiting list signals Cleveland’s popularity

Posted: Thursday, October 1, 2015 12:30 pm

JONAH L. ROSENBLUM | STAFF REPORTER

[email protected]

 

More than 1,800 people are on waiting lists for downtown Cleveland apartments, according to the Downtown Cleveland Alliance.

 

For the Downtown Cleveland Alliance and the City of Cleveland as a whole, that’s purely positive. Downtown Cleveland remains a powerful draw.

 

“It’s a great thing,” said Heather Holmes, director of marketing and public relations at Downtown Cleveland Alliance. “It kind of shows the want and need to locate and live close to where you’re working, where you’re playing, enjoying the various amenities that downtown now has to offer. It shows that there is a demand for downtown and there is a demand for downtown to continue to grow.”

 

MORE:

http://www.clevelandjewishnews.com/features/real_estate/downtown-waiting-list-signals-cleveland-s-popularity/article_0df2106c-6857-11e5-9322-23742fb1f71a.html

 

Cities Where Renters Are Most Disappointed By Rent Prices

BY CRYSTAL TSENG

SEPTEMBER 23, 2015

 

We’ve all heard the saying that Happiness = Reality – Expectations. With rent prices skyrocketing in many cities across the country, some renters are clearly not satisfied with what they are paying. Which had us wondering: which cities are renters most disappointed by rent prices?

 

To get an answer to this question, we dove into the data. Apartment List publishes monthly reports showing median 1BR and 2BR rent prices by city and state, and each renter on our site selects a size and price range on their profile. By comparing the two numbers, we were able to determine how renters’ expectations compared to reality. Our analysis focuses on cities with a population greater than 300,000. Let’s take a look at the results!

 

MORE:

https://www.apartmentlist.com/rentonomics/cities-where-renters-are-most-disappointed-by-rent-prices/

For-sale market in downtown Cleveland is missing spaces

There is plenty of demand for condos and townhouses, but inventory is lacking

November 01, 2015 UPDATED 23 MINUTES AGO

By STAN BULLARD

 

Overshadowed by downtown Cleveland’s apartment-building boom, demand in the for-sale condo and townhouse market has rebounded. Momentum is building for when banks, and even developers, overcome their wounds from the housing bust to again construct for-sale suites downtown.

 

“There is a severe lack of product downtown,” said David Sharkey, president of the Ohio City-based Progressive Urban Real Estate brokerage. “People who don’t know the city are stunned by the lack of availability. There are people moving to the neighborhoods who would rather have been downtown.”

 

A frustrated Ted Theophylactos, an agent who heads a five-person team at Howard Hanna’s Ohio City office, said, “There are significantly more buyers than there had been, but you can count the for-sale projects on one hand. Inventory was better last year than this year. If it’s not above $800,000, it moves. Above that and they’ll sit a little longer.”

 

MORE:

http://www.crainscleveland.com/article/20151101/NEWS/151039960/for-sale-market-in-downtown-cleveland-is-missing-spaces

 

Ezra Stark is quoted in the article by saying they still want to break ground on nuCLEus this winter.

Should have added 15 floors of condos on top of the Hilton!  Another public/private opportunity missed!

^OMG Cleburger, you have to seek professional help regarding your Hilton condo campaign  LOL.  You have got to have at least 50 separate posts in the past couple of years stating that they should have put condos on top of the Hilton in nearly 10 different threads.  I bet there is even one in the Restaurant News thread.  I think you need to win the lottery, build a hotel and put condos on top of it or you may never get a good night sleep again :wink:

^OMG Cleburger, you have to seek professional help regarding your Hilton condo campaign  LOL.  You have got to have at least 50 separate posts in the past couple of years stating that they should have put condos on top of the Hilton in nearly 10 different threads.  I bet there is even one in the Restaurant News thread.  I think you need to win the lottery, build a hotel and put condos on top of it or you may never get a good night sleep again :wink:

 

This city just needs my leadership due to lack of forward thinking.    Back in 96, I was in an AOL chatroom saying "We don't want the new Browns!  We don't want the new Browns!"

CLEVELAND - New numbers show downtown Cleveland’s rental market continues to show strength.

 

The Downtown Cleveland Alliance’s quarterly market update out on Monday will show downtown apartment rentals have a more than 97 percent occupancy rate, up from 95 percent the last quarter, despite adding more than 320 new apartments to the area.

 

Michael Deemer with the Downtown Cleveland Alliance said there’s also 1,700 people on wait lists.

 

http://www.newsnet5.com/news/local-news/cleveland-metro/more-apartments-planned-for-downtown-cleveland-as-occupancy-rates-exceed-97-percent?autoplay=true

CLEVELAND - New numbers show downtown Cleveland’s rental market continues to show strength.

 

The Downtown Cleveland Alliance’s quarterly market update out on Monday will show downtown apartment rentals have a more than 97 percent occupancy rate, up from 95 percent the last quarter, despite adding more than 320 new apartments to the area.

 

Michael Deemer with the Downtown Cleveland Alliance said there’s also 1,700 people on wait lists.

 

http://www.newsnet5.com/news/local-news/cleveland-metro/more-apartments-planned-for-downtown-cleveland-as-occupancy-rates-exceed-97-percent?autoplay=true

"Meanwhile, construction crews recently blocked part of East 6th to start renovating the Garfield Building, which is the former home of National City Bank. Crews have been at work removing the façade. It will soon be renamed Corning Place and will house apartments and retail. Right across the street, work is also expected to soon begin on 200 new apartments to be constructed above the 515 Euclid parking garage."

 

 

^Fingers crossed! Though I'm not sure local TV news is capable of delivering real scoops, so I'm not putting much stock in it. Though to be clear, we have other reasons to think there is action with that project.

So is this the new report that is to be released Monday? 

 

http://www.downtowncleveland.com/media/253192/q3_2015_spreadscompressed.pdf

So is this the new report that is to be released Monday? 

 

http://www.downtowncleveland.com/media/253192/q3_2015_spreadscompressed.pdf

Yea, Monday as in yesterday lol. They're a mess. Some awesome info in those few pages!

Anyone else notice the "Superior Warehouse Lofts" on West 9th and Superior under "Residences planned?"  That hasn't been announced, has it?

Anyone else notice the "Superior Warehouse Lofts" on West 9th and Superior under "Residences planned?"  That hasn't been announced, has it?

 

I wonder if that's 820 Superior Ave (the old union headquarters of the Brotherhood of Railroad Trainmen)? It hasn't sold since 2000, when a company called 820 Company LLC bought it. The company behind 820 Company LLC appears to be the EHLE Morrison Group: http://www.manta.com/c/mmdlqbx/ehle-morrison-group

 

That's an old building and its still used for offices. So it's a "likely suspect" for a residential conversion. Interestingly, the property just north of it on West 9th is owned by the Carney family which has a few other residential properties downtown and was a partner with Bob Stark in Crocker Park. And just north of that is the parking lots owned by Bob Stark plus the mid-19th century Hilliard Building that sold in September to an investor group called 1415 HILLIARD, LLC including Gary Lieberman et al.

That has interestingly been noted as planned since the Q1 2015 DCA report.  I assume it is different than the Perry Payne Apartments?

More apartments planned for downtown Cleveland as occupancy rates exceed 97 percent

http://www.newsnet5.com/news/local-news/cleveland-metro/more-apartments-planned-for-downtown-cleveland-as-occupancy-rates-exceed-97-percent

Interesting concept may be coming to Cleveland, as the article notes...

 

http://www.theatlantic.com/business/archive/2015/11/coliving/414531/

Has 515 gone infront of the planning commission yet?  This is the second time we have heard this is starting soon.  I remember several years ago, the tower crane for Pinnacle came out of nowhere.  Wondering if this will be the same way.

^That WEWS link is the same 'puff piece' that was posted a couple of days ago. I don't know how much we can learn from it.

Also I don't believe that 515 tower rendering that has been floating around for about 10 years ever went to design review.

No, there was a posting by someone who sounded like an informed person who said Stark is going back to the drawing board on 515 Euclid, which means the project will have to go back before the Planning Commission. So there's no way that 515 Euclid will start construction "soon."

I don't know how they can release a Q4 2015 report considering we're only halfway through it....unless it was a prediction report?

 

http://www.marcusmillichap.com/research/researchreports/reports/2015/11/06/cleveland-apartment-research-report

 

Cleveland Apartment Research Report

Cleveland Metro Area, Fourth Quarter 2015

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Strong Job Gains Spur Demand for Cleveland Apartments

 

The Republican National Convention is coming to town next summer, providing developers the necessary incentive to meet their project deadlines. The local economy is firing on all cylinders in preparation for the event with multiple hotels and entertainment sites undergoing renovations. This led to strong hiring in the construction and leisure and hospitality sectors, pushing the unemployment rate to a post-recession low. Many of these newly employed workers will seek rental options, particularly in the urban core, which has expensive single-family housing. New development has been focused on these high-rent areas, especially Downtown and the University Circle, where apartment demand is insatiable. Among the new projects this year, the Archer and the Flats at East Bank will attempt to capture the luxury market. Overall, construction will post an uptick from last year, although Cleveland development has been historically limited. Despite the increase, vacancy in the metro will remain very low as net absorption continues to outpace new supply. General market tightness will put upward pressure on rents, spurring another year of healthy rent growth.

 

New listings will receive multiple offers as demand for Cleveland apartments continues to outpace the supply brought to market. Yield-seeking investors, particularly those from Chicago, Denver and New York, are attracted to the metro due to higher cap rates and natural barriers to sprawl. Equipped with easy access to affordable debt, buyers have bid heavily on available properties, pushing prices up in the process. This has prompted many apartment owners to list assets and take profits while interest rates are still low. Out-of-state investors have been seeking opportunities in Youngstown and surrounding areas that offer upside due to increased shale activity. Cap rates for Class A assets average in the mid-6 percent range, although well-positioned properties can reach 25 to 50 basis points lower. Class B and C complexes will trade in the low-7 to low-8 percent bracket depending on asset quality and location.

 

2015 Annual Apartment Forecast

Employment: Organizations will expand the labor force 1.6 percent this year through the addition of 16,500 jobs. This more than doubles the employment growth in 2014, when the workforce increased 0.6 percent.

 

Construction: Developers will complete 1,100 rentals in 2015, expanding inventory 0.7 percent year over year with 1,860 units expected to be absorbed. This is an acceleration from last year when nearly 925 apartments were delivered.

 

Vacancy: The vacancy rate will fall 50 basis points to 3.4 percent in 2015 as Cleveland residents continue seeking apartments. A 160-basis-point plunge was recorded last year on more than 3,400 units of net absorption.

 

Rents: In 2015, continued demand for Cleveland apartments will spur a rent jump of 3.6 percent year over year to $840 per month. Last year a 2.0 percent increase was registered, pushing the average rent up 13.3 percent higher than the pre-recession peak.

 

###

This is for all Cleveland Metro, not Downtown.

An advertorial piece. But 1,800 apartments could be equivalent to 7.5 new towers the size of 515 Euclid (19-story tower atop 9-story parking deck & retail)....

 

1,800+ On Waitlist For Downtown Cleveland Apartment

By Northeast Ohio Media Group Marketing Staff

on November 24, 2015 at 12:47 PM, updated November 24, 2015 at 12:52 PM

 

Since 2011, the downtown market has absorbed more than 1,500 apartments while maintaining a 94 percent or higher occupancy rate. Currently, more than 1,800 people are on waiting lists for Downtown Cleveland apartments, according to a second-quarter survey of residential buildings conducted by Downtown Cleveland Alliance (DCA). All of this information suggests that there is no end in sight to downtown's exponential residential growth.

 

"It shows the desire to locate and live close to where people are working as well as where they are playing, and that downtown now has all kinds of amenities to offer," says Heather Holmes, director of marketing and public relations for DCA. "This growth shows the continued and growing demand for downtown apartments."

 

MORE:

http://blog.cleveland.com/downtown_cleveland_alliance/2015/11/1800_on_waitlist_for_downtown.html

An advertorial piece. But 1,800 apartments could be equivalent to 7.5 new towers the size of 515 Euclid (19-story tower atop 9-story parking deck & retail)....

 

1,800+ On Waitlist For Downtown Cleveland Apartment

By Northeast Ohio Media Group Marketing Staff

on November 24, 2015 at 12:47 PM, updated November 24, 2015 at 12:52 PM

 

Since 2011, the downtown market has absorbed more than 1,500 apartments while maintaining a 94 percent or higher occupancy rate. Currently, more than 1,800 people are on waiting lists for Downtown Cleveland apartments, according to a second-quarter survey of residential buildings conducted by Downtown Cleveland Alliance (DCA). All of this information suggests that there is no end in sight to downtown's exponential residential growth.

 

"It shows the desire to locate and live close to where people are working as well as where they are playing, and that downtown now has all kinds of amenities to offer," says Heather Holmes, director of marketing and public relations for DCA. "This growth shows the continued and growing demand for downtown apartments."

 

MORE:

http://blog.cleveland.com/downtown_cleveland_alliance/2015/11/1800_on_waitlist_for_downtown.html

 

I wonder if DCA de-duplicates the people that are on multiple waiting lists. If they do not, I could potentially be 4 of those 1,800 individuals from my apartment search this past spring. Either way it's still an impressive figure.

Why downtown for-sale housing lags

December 07, 2015

STAN BULLARD

 

For all the gains downtown Cleveland is making in the housing arena as real estate developers rush to produce rental apartments, a recent article in Columbus Business First brings to mind what developers are not undertaking here: more for-sale housing downtown.

 

Nationwide Realty Investors Ltd. of Columbus released a neat flyover video (linked at the same article) of the proposed design of the planned 12-story condo tower in the state capital’s Arena District. Nationwide wants them on the market by 2017.

 

Meantime, proposed downtown Cleveland for-sale condo projects: zero.

 

MORE:

http://www.crainscleveland.com/article/20151207/BLOGS14/151209845/why-downtown-for-sale-housing-lags

Housing experts predict a fairly good 2016 for Cleveland builders, homebuyers and sellers

Jill Sell is a freelance writer specializing in real estate, home and garden. Sell can be reached at [email protected]

on December 11, 2015 at 9:54 PM, updated December 11, 2015 at 9:59 PM

 

"The only sector that is really strong right now is multifamily housing," said Simons, who is also the faculty advisor for the Certificate Program in Real Estate Development and Finance, offered in conjunction with the Nance College of Business at Cleveland State University. "Downtown and University Circle are the areas that are hot."

 

Anyone even casually following Cleveland's housing scene realizes that's where the action is, but Simons said the tricky part is determining how long that growth will last and what the future will bring.

 

"I think there will be a couple more years where that market will be hot," said Simons. "There is a lot of pent-up demand for multifamily housing and there is another two years worth of supply online to be built up," he said.

 

Simons said "downtown is headed in the right direction," and feels 2016 will continue to be good for housing.

 

MORE:

http://www.cleveland.com/pdrealestate/plaindealer/index.ssf/2015/12/housing_experts_predict_a_fairly_good_2016_for_cleveland_builders_homebuyers_and_sellers.html