Ah, here we go, this is the division that will be making the loan per Michelle's article: http://www.related.com/our-company/businesses/11/Real-Estate-Fund-Mgmt

Phase one of Intesa in #CLE"s @inthecircle now involves 11-story, 196-unit residential bldg and 470-space garage, expandable to 750 spaces.

 

11 stories/196 units doesn't sound like much. What were these numbers when it was originally announced?

Michelle J. McFee mjarboe[/member]  ·  7m 7 minutes ago

 

Discussion re: Intesa phase one bond financing includes tidbit that N.Y.-based Related Cos. will participate as new-to-market lender. #CRE

 

 

Phase one of Intesa in #CLE"s @inthecircle now involves 11-story, 196-unit residential bldg and 470-space garage, expandable to 750 spaces.

 

 

Now @portofcleveland board discussing financing for Intesa in #CLE's @inthecircle. Developer says "We're finally in the delivery room." #CRE

 

 

nice. so now this will happen. related is as big as it gets.

Michelle J. McFee mjarboe[/member]  ·  7m 7 minutes ago

 

Discussion re: Intesa phase one bond financing includes tidbit that N.Y.-based Related Cos. will participate as new-to-market lender. #CRE

 

 

Phase one of Intesa in #CLE"s @inthecircle now involves 11-story, 196-unit residential bldg and 470-space garage, expandable to 750 spaces.

 

 

Now @portofcleveland board discussing financing for Intesa in #CLE's @inthecircle. Developer says "We're finally in the delivery room." #CRE

 

Haha, nice try Michelle.  April Fools is tomorrow!!  This project can't actually be starting...  Can it?

 

 

Kidding aside, I think this is a sign of good things to come!  "The board also unanimously elected Chris Ronayne, the president of University Circle Inc., as its new chairman, who will serve a two-year term."

Michelle J. McFee mjarboe[/member]  ·  7m 7 minutes ago

 

Discussion re: Intesa phase one bond financing includes tidbit that N.Y.-based Related Cos. will participate as new-to-market lender. #CRE

 

 

Phase one of Intesa in #CLE"s @inthecircle now involves 11-story, 196-unit residential bldg and 470-space garage, expandable to 750 spaces.

 

 

Now @portofcleveland board discussing financing for Intesa in #CLE's @inthecircle. Developer says "We're finally in the delivery room." #CRE

 

This is fantastic. They have a pretty aggressive timeline for this to be built.

Something more recent from Panzica Construction.

 

The Cleveland-Cuyahoga County Port Authority approved the loan package for Intesa – a University Circle mixed-use project, being developed by The Coral Co. and Anthony Panzica (President/CEO, Panzica Construction Company). On Tuesday, March 31, the Cleveland-Cuyahoga County Port Authority approved the $60 million loan package to finance Phase I of Intesa, which will ultimately be a four-building, 450,000 square foot, mixed-use development on a 2.2-acre parcel near the triangle formed by Euclid Ave. and Mayfield Rd.

 

Phase I ($68.3 million) will be an 11-story building with 196 upscale apartment units, a 412-space parking garage, and 14,000 square feet of commercial space. We expect Phase I of the building to be open in December 2016 and for Phase II (a 10-story office building) to begin sometime before Phase I completes.

 

http://panzica.com/uncategorized/next-step-for-intesa/

Explorys would be a great tenant for the office component.  They plan to add 80 jobs, were just acquired by a deep-pocketed company (IBM), and are focused on healthcare/tech.  All make sense for visible tech-oriented space in UC close to Case and the hospitals.  They will definitely be outgrowing their current space.  For those who missed it:

 

"Terms of the sale were not disclosed. The fast-growing company has about 145 employees. None of their jobs will be affected. In fact, the company wants to hire 80 people this year, said Stephen McHale, CEO and co-founder of Explorys."

 

http://www.cleveland.com/business/index.ssf/2015/04/ibm_buys_cleveland-based_explo.html#comments

Something more recent from Panzica Construction.

 

The Cleveland-Cuyahoga County Port Authority approved the loan package for Intesa – a University Circle mixed-use project, being developed by The Coral Co. and Anthony Panzica (President/CEO, Panzica Construction Company). On Tuesday, March 31, the Cleveland-Cuyahoga County Port Authority approved the $60 million loan package to finance Phase I of Intesa, which will ultimately be a four-building, 450,000 square foot, mixed-use development on a 2.2-acre parcel near the triangle formed by Euclid Ave. and Mayfield Rd.

 

Phase I ($68.3 million) will be an 11-story building with 196 upscale apartment units, a 412-space parking garage, and 14,000 square feet of commercial space. We expect Phase I of the building to be open in December 2016 and for Phase II (a 10-story office building) to begin sometime before Phase I completes.

 

http://panzica.com/uncategorized/next-step-for-intesa/

 

 

the facade on the panzica website renders looks like its wavy. did i see that right? if so, interesting look. ode to gerhy?

Explorys would be a great tenant for the office component.  They plan to add 80 jobs, were just acquired by a deep-pocketed company (IBM), and are focused on healthcare/tech.  All make sense for visible tech-oriented space in UC close to Case and the hospitals.  They will definitely be outgrowing their current space.  For those who missed it:

 

"Terms of the sale were not disclosed. The fast-growing company has about 145 employees. None of their jobs will be affected. In fact, the company wants to hire 80 people this year, said Stephen McHale, CEO and co-founder of Explorys."

 

http://www.cleveland.com/business/index.ssf/2015/04/ibm_buys_cleveland-based_explo.html#comments

 

I should mention this to my friends at Explorys :)

Was at an event this weekend where UCI prez Chris Ronayne said he expected a groundbreaking ceremony for Intesa soon. I don't remember him saying a date, and I should have asked him again if there was a target.

are they pre-leasing on any of the apartments?  Any update on the commercial office leasing?  I would expect some activity on either of those fronts prior to a ground breaking...

^How often do developers pre-lease apartments in a new-build project before ground breaking?  Pretty sure Flats East Bank didn't start actively marketing its units till this year.

^How often do developers pre-lease apartments in a new-build project before ground breaking?  Pretty sure Flats East Bank didn't start actively marketing its units till this year.

I'm sure that's probably not driven by the developer, rather the lender.  In the apartment market right now, I'm sure there's several builders that would build spec buildings if they could.  I'm not sure if the requirement here, based on the developers financials, have a lender drive pre-sale number to hit or not.  If they're breaking ground shortly, I'm assuming not. 

^Pre-leasing is crucial for securing financing for commercial space. Pre-sales is crucial for condo development. I just don't think the same really applies for new-build multi-family rental, for fairly obvious reasons (who commits to a rental apartment two years before move-in date?). If Intesa is close to breaking ground, chances are they have some un-announced commitments from commercial tenants and whatever conventional financing there is (if there is any) is happy with whatever rental demand marketing report it's seen.

 

EDIT: for reference, FEB phase II broke ground in Q1 2014. The leasing office didn't open till April 2015, more than a year later: http://www.cleveland.com/business/index.ssf/2015/04/first_look_apartment_leasing_s.html#incart_river

 

 

^I agree, with the exception that they might have commitments for some corporate suites.  I could see UH and the Clinic, perhaps some of the other UC institutions, locking up some residential units this far in advance.

Was at an event this weekend where UCI prez Chris Ronayne said he expected a groundbreaking ceremony for Intesa soon. I don't remember him saying a date, and I should have asked him again if there was a target.

 

Wait, Intesa is going to include a Target store?! :)

Edit.

Not much content now but good to keep an eye on.

 

http://midwestdevpartners.com/

 

Just heard from a very good source that Midwest Development Partners has become a partner to this project. Because of their involvement, there will be a little refining of the project design, residential vs office share of the project's total square footage, and possibly a little less parking owing to the new RTA station next door. However a groundbreaking by March still appears possible.

This project has had so many false dawns already. Hopefully this time it's for real. I'll believe it when I see it.

And the never-ending saga continues....

I really cannot believe this.  This has got to be the most "no brainer" lot to develop in Cleveland. 

I really cannot believe this.  This has got to be the most "no brainer" lot to develop in Cleveland. 

 

You called it back when Coral was named. Coral/Peter Rubin wasn't a good choice. I hope that Steve Rubin (I assume his brother?) has better luck here.

From Michelle Jarboe, Intesa project in University Circle reconfigured as Centric apartment building:

 

http://www.cleveland.com/business/index.ssf/2016/02/intesa_project_in_university_c_1.html

 

Gross

This lot should just stay undeveloped until they can bring the density back. What a disappointment.

I like it, it looks better than the original proposal still,is built to the street and contains plenty of storefronts. I don't see the problem. Sure it is shorter but it's not like we're dealing with a drop from 11 stories to 2 stories. Also I lie that they added color to the building, which continues the theme of a lot of U.C residential buildings. If this is what they have to do to get it off of the ground than so be it.

^^What's wrong with the new iteration? They altered it to include more apartments after striking out on large office tenants. It's built up to the street, contains first floor retail, and fills an unsightly gap between Little Italy and Uptown. If new apartments could be built on the fringe edge of the Hough neighborhood by the new Case-Cle Clinic Med School, then this project should be even more of a slam dunk with its central location.

I can't help but feel a little disappointed.  The difference between 7- and 11-stories in UC is huge; the latter would have added significantly to the developing "skyline" in this neighborhood.  A 7-story building won't stand out so close to the Triangle, Albington Arms, and the Commodore.  More disappointing, though, is the lack of office space.  The cle.com article seems to hint that the developers were looking for a splashy anchor tenant and struck out.  Given the "tech" talk, that was probably Google opening its first significant Ohio office or at least a related company.  Even without that big anchor, it's disappointing that the developers (or lenders) weren't confident enough to build office space on spec in Cleveland's second-largest employment center.

 

That said, this project will fill in the last major hole of development in the Triangle neighborhood and adds some very badly needed residential to the neighborhood.  Call it a hunch but I think these units will fill up faster than people think and add some momentum to the market in advance of One University Circle and (hopefully) the 3C development down the street.

It's a decent level of density that's at a more realistic scale for what the market can bear. Who knows, if this fills up fast, UHHS may wish to sell its parking lot on the south side of Mayfield for a big apartment tower.

BTW, ahem from 3 months ago... :)

 

Not much content now but good to keep an eye on.

 

http://midwestdevpartners.com/

 

Just heard from a very good source that Midwest Development Partners has become a partner to this project. Because of their involvement, there will be a little refining of the project design, residential vs office share of the project's total square footage, and possibly a little less parking owing to the new RTA station next door. However a groundbreaking by March still appears possible.

^It was the office space that was exciting about Intesa. Very sorry to learn that its gone. (And I hate ground floor offices like the new version is proposing.)

At the very least, I'm happy to see the number of parking spaces reduced

I really cannot believe this.  This has got to be the most "no brainer" lot to develop in Cleveland. 

 

You called it back when Coral was named. Coral/Peter Rubin wasn't a good choice. I hope that Steve Rubin (I assume his brother?) has better luck here.

 

Just FYI - Steve Rubin and Peter Rubin aren't related. They just happen to have the same last name and to work in Cleveland development circles.

 

/m

Thanks!

The best thing I got from Michelle's piece is that it won't be built in phases  If the final financing components come together it's all going up at once!

Gross

 

You're just saying that because you're staring at a rendering of a 30-story apartment tower for Playhouse Square! ;)

I don't mind the shift towards more residential, but the building itself lacks any personality or character whatsoever. Which wasn't the same for any of the previous renderings they've shown. All previous iterations felt far higher quality and had a clear character to them, like them or not. This is just...bleh. It looks like any bland residential building you see being thrown up all around the country.

^^What's wrong with the new iteration? They altered it to include more apartments after striking out on large office tenants. It's built up to the street, contains first floor retail, and fills an unsightly gap between Little Italy and Uptown. If new apartments could be built on the fringe edge of the Hough neighborhood by the new Case-Cle Clinic Med School, then this project should be even more of a slam dunk with its central location.

I don't have a problem with the design as much as there are very few spaces left in UC to develop. Sure it's 70 more apartments, but it's right on a transit line between two hot neighborhoods that are only growing in popularity. I like the idea of multiple buildings because it can be adjusted up and down. If it's built all at once, that lot is done for the foreseeable future. That said, I agree that it's what can be done now and will definitely help fill a void.

I don't mind the shift towards more residential, but the building itself lacks any personality or character whatsoever. Which wasn't the same for any of the previous renderings they've shown. All previous iterations felt far higher quality and had a clear character to them, like them or not. This is just...bleh. It looks like any bland residential building you see being thrown up all around the country.

 

Agreed,  and I think it looks like an extension of the Triangle Apts, and we all know how bad those look architecturally.

Gross

 

I second the motion to describe this building.

Looks like something that belongs on High Street in Columbus

This lot should just stay undeveloped until they can bring the density back. What a disappointment.

 

Really?  What more could they do?  Sure I would have liked more office development esp in towers, but the developers held out for a major tenant but couldn't land one.  While the one guy is confident that any empty space could be filled, the office expert noted that building on spec has its risks especially from a financing POV.  If this were New York, Chicago or even L.A. it would be one thing, but Cleveland is still not a hot market, esp for dense office development in such a non-traditional area: Michelle notes that U. Circle is very non-profit heavy.  There will be lower level, street level office space.  I'm sure that if the market warrants, there will be more offices and or apartment buildings rising in and around this location... there will still be plenty of undeveloped land around the footprint even after Centric is built.

 

I believe the developers did what they could: tested the market and held out as long as they feasibly could: the lenders are in love with the location now, but they're not going to stick around forever until the market's right... I'm thrilled that we're getting a high-density, mixed-use residential building which will be a true TOD with the new Rapid stop right there.  I'm also glad that Centric will not be a phased project but will be built at once.  Are the renderings the most sexy structure you'll ever see?  No, but they're not horrible either, esp the corner units with the penthouse garden/plaza.  This is already an extremely strong Cleveland neighborhood and Centric will only make it better.

This lot should just stay undeveloped until they can bring the density back. What a disappointment.

 

Really?  What more could they do?  Sure I would have liked more office development esp in towers, but the developers held out for a major tenant but couldn't land one.  While the one guy is confident that any empty space could be filled, the office expert noted that building on spec has its risks especially from a financing POV.  If this were New York, Chicago or even L.A. it would be one thing, but Cleveland is still not a hot market, esp for dense office development in such a non-traditional area: Michelle notes that U. Circle is very non-profit heavy.  There will be lower level, street level office space.  I'm sure that if the market warrants, there will be more offices and or apartment buildings rising in and around this location... there will still be plenty of undeveloped land around the footprint even after Centric is built.

 

I believe the developers did what they could: tested the market and held out as long as they feasibly could: the lenders are in love with the location now, but they're not going to stick around forever until the market's right... I'm thrilled that we're getting a high-density, mixed-use residential building which will be a true TOD with the new Rapid stop right there.  I'm also glad that Centric will not be a phased project but will be built at once.  Are the renderings the most sexy structure you'll ever see?  No, but they're not horrible either, esp the corner units with the penthouse garden/plaza.  This is already an extremely strong Cleveland neighborhood and Centric will only make it better.

I've already furthered my thought since this post.

I think we all would have hoped for more office space development in U.Circle- but I'll agree that as of right now, this is what the market calls for.  The good news is that when the other potential developments are built that interest in the adjacent areas will grow (there's still plenty to do and plenty of vacant land and historic housing in Hough, Glenville, Fairfax and E. Cleveland within minutes of U.Circle). 

 

I wonder why U.Circle wasn't able to land a big-name tenant (Google) for this location?  What more needs to happen before the area will be able to do so?  Is it a mix of both higher densities of people with advanced degrees along with growing office space, or some other factor?  I'm not too disappointed by what Intensa became since not too long ago there wasn't much development going on in U.Circle. I think it took Peter B. Lewis not giving money out in order for the institutions to work together and truly create a neighborhood instead of working apart from each other.  10 years later, U.Circle has come a long way.

....I wonder why U.Circle wasn't able to land a big-name tenant (Google) for this location?....

 

Where was it mentioned that Google was being courted? Multiple people have mentioned this and I'm just wondering. Thanks!

Gross

 

I second the motion to describe this building.

Looks like something that belongs on High Street in Columbus

 

Very surprised at the design considering the local firm involved. Although, looking at the international firm partner, I would say they probably called the shots.

....I wonder why U.Circle wasn't able to land a big-name tenant (Google) for this location?....

 

Where was it mentioned that Google was being courted? Multiple people have mentioned this and I'm just wondering. Thanks!

 

It was mentioned early on that Google and similar tech companies would be pursued as tenants. I remember it being mentioned in this thread, but I did a search and couldn't find it.

^As far as I can tell, the talk about high profile tech tenants was the result of some guy's blog post ;)  http://neo-trans.blogspot.com/2012/02/huge-cleveland-transit-oriented.html

From Michelle Jarboe, Intesa project in University Circle reconfigured as Centric apartment building:

 

http://www.cleveland.com/business/index.ssf/2016/02/intesa_project_in_university_c_1.html

 

 

It's been said this could be the most valuable piece of real estate in the city.

 

Does anyone here think that this new project reflects that idea in any way?

^As far as I can tell, the talk about high profile tech tenants was the result of some guy's blog post ;)  http://neo-trans.blogspot.com/2012/02/huge-cleveland-transit-oriented.html

 

Which was based on the developer's presentation to UCI board members and stakeholders. :)

 

It's been said this could be the most valuable piece of real estate in the city.

 

Does anyone here think that this new project reflects that idea in any way?

 

Whoever said it must've forgotten about the Jacobs lot on Public Square. But sometimes a property's value is so high or the standards expected of that property is so high that it actually prevents it from being developed. Would we be happy with a seven-story building built on the Jacobs lot? Of course not. Even the 21-story office building Jacobs proposed before the recession had its critics because it was too small. We seem to prefer keeping it a parking lot instead of building something too small, and that's what we've gotten. So the expectations for the Intesa/Centric/Lot 45 site is much less. In fact, if there never was an Intesa and this seven-story development was the only one proposed, would there be as much discontent regarding its scale?

^As far as I can tell, the talk about high profile tech tenants was the result of some guy's blog post ;)

 

Which was based on the developer's presentation to UCI board members and stakeholders. :)

 

Could Google not become an option because of their data center development around Columbus?