Posted March 22, 201213 yr K&D Group plans to buy, remake East Ohio Building in downtown Cleveland as 223 apartments by 2014 CLEVELAND, Ohio -- A downtown Cleveland office tower could become 223 apartments, eliminating a huge vacancy in the central business district and meeting strong demand for new living space. http://www.cleveland.com/business/index.ssf/2012/03/kd_group_plans_to_buy_redevelo.html
March 22, 201213 yr This is something I think many (including on this board) were predicting. Great news! :clap:
March 22, 201213 yr ^^^I park in the garage next door for work and there has been people working in the building for months now doing demo work (heard jackhammers today). Cool to see an article about whats going on.
March 22, 201213 yr I'm glad to see they're doing something with this building. This is where I had my first (temp) job after moving to Cleveland!
March 22, 201213 yr Good news. What does 223 Apartments translate into for addition downtown population? Assuming it will be a net gain? T, he article said that it's 135 one-bedroom apartments and 88 two-bedroom units. So does 300 people sound right?
March 22, 201213 yr I think the average is like 1.3 per apartment, so 300 is about right just by estimating.
March 22, 201213 yr I like this part... "K&D hopes to lease ground-floor space to a restaurant and a food market, and put a gym, spa and sauna on portions of the lower floors." Glad to see plans for a food market. https://www.instagram.com/cle_and_beyond/https://www.instagram.com/jbkaufer/
March 22, 201213 yr I don't like this part "We're going to need the state," Price said. "We're going to need the city. We're going to need the county. We're going to need God to get this done."
March 22, 201213 yr I notice that the deadline for round 8 of the Ohio Historic Preservation Tax Credit program is next week. Looks like a round 9 is scheduled for this fall. Does anyone know if both these rounds are actually funded or have a sense how the East Ohio Gas project might stack up given the types of projects in some of the more recent rounds?
March 22, 201213 yr ^that building is pretty new---would it really qualify for an historical preservation tax credit? I don't like this part "We're going to need the state," Price said. "We're going to need the city. We're going to need the county. We're going to need God to get this done." Me either.
March 22, 201213 yr ^^^I am just guessing (I am sure somebody on the board knows) but it would appear you can just have an option on a building rather than owning it out right (like k and d here) in order to get tax credits. However, does this count against you when they are ranking factors in deciding who gets the tax credits (in other words does an applicant who actually owns a building get more points when they do the formula to decide who gets them...I know they are competitive.)
March 22, 201213 yr It says right in the article that it is eligible... "Once the headquarters of the East Ohio Gas Co., the building is old enough to qualify for the national list" (only needs to be 50 yrs old). "And experts say it is both architecturally and historically significant", but it first has to be listed on the National Register or for state credits only needs to be certified as being of historic significance to the district, or is listed as a historic landmark by a certified local government.
March 22, 201213 yr "135 one-bedroom apartments and 88 two-bedroom units, ranging from 750 to 1,600 square feet. Price said monthly rents will be between $1.30 and $1.35 per square foot -- at the upper end of downtown rates. Based on those early projections, renters might pay $975 to $2,100 a month." Downtown residential rates ticking up. Good sign. "K&D hopes to lease ground-floor space to a restaurant and a food market, and put a gym, spa and sauna on portions of the lower floors." More good stuff! It's also great that it's across the street from where AmTrust Financial Services will be moving 1,000. These two deals combined will really add some life to the intersection of Superior and East 9th. But regarding financing... "We're going to need the state," Price said. "We're going to need the city. We're going to need the county. We're going to need God to get this done."" Uh oh.
March 22, 201213 yr I believe that thread you're referencing is in the city discussion's area. I would consider this a project/development now at this point, not something that's just being discussed. If someone can merge those posts over to here, that'd be great too. But I think this deserves it's own thread in the development page.
March 22, 201213 yr Not sure if there is an E.9th street development thread but if there is feel free to move this to the thread. That being said...more housing development going on downtown so if this goes through *fingers crossed* this will add 325 apartments in the next two years. (102 apartments for the old Hannah Annex) This also is major for the old financial district which was turning into a ghost town. By adding this development they will add vitality to the area and maybe cause spinoff development (Huntington Building anyone?) Which would change the face of the district and add momentum to this Nine-Twelve district proposal. This is also a large housing project with 21 stories it would decrease Cleveland's office vacancies which is still pretty high which last time I checked was 22.2 percent in Cleveland's central business district. So by converting this office and the old Hannah into residential they will take nearly a half-million square feet of office space away (350,000 for the East Ohio Building, 100,000 square feet for the Old Hannah Annex) so it decreases office vacancy without demolition (wish they thought of this in the 60's and 70's) My only gripe about this project is they apartments will only rent for about between $1.30 and $1.35 per square foot which means renters might pay $975 to $2,100 a month. This I don't believe is a high enough rate to spur apartment construction. Great News none the less. http://www.cleveland.com/business/index.ssf/2012/03/kd_group_plans_to_buy_redevelo.html
March 22, 201213 yr This is a great corner and perfect for a residential building. It would be nice to see it used as something besides a homeless sleeping area and kitchen (they use the manhole covers to cook...)
March 22, 201213 yr http://www.cleveland.com/business/index.ssf/2012/03/kd_group_plans_to_buy_redevelo.html K&D Group plans to buy, remake East Ohio Building in downtown Cleveland as 223 apartments by 2014 "If K&D's plans come through, the intersection of Superior and Ninth might represent a solution for the challenged business corridor: Office tenants and residents, in high-rise buildings, working and living side-by-side." -My preferred template for the Huntington.
March 22, 201213 yr ^aren't we already discussing this at length in the downtown Cleveland residence thread? When people post the same article in different threads the conversation tends to get diluted...you can never recall in which thread a certain comment was made when you have mutiple threads taking about the same thing. That thread is fine for speculating about potential projects, or for discussing the market as a whole. This is now a legit project and this building deserves its own thread, not just a reference to a district. It's a big enough project, like 668 Euclid or the Breuer Tower, which are not part of a Gateway District thread. They can stand on their and so should this project, which hopefully moves forward. And this project would also remove one option for the county to relocate/consolidate its offices. Now it seems we're down to the ex-Huntington and Eaton buildings. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
March 22, 201213 yr KJP...perhaps you should merger the comments from the downtown res. thread regarding this project. People have been discussing it at length in that thread since early this morning and there are a number of interesting points made therein.
March 22, 201213 yr If this goes through *fingers crossed* this will add 325 apartments in the next two years. (102 apartments for the old Hannah Annex) This also is major for the old financial district which was turning into a ghost town. By adding this development they will add vitality to the area and maybe cause spinoff development (Huntington Building anyone?) Which would change the face of the district and add momentum to this Nine-Twelve district proposal. This is also a large housing project with 21 stories it would decrease Cleveland's office vacancies which is still pretty high which last time I checked was 22.2 percent in Cleveland's central business district. So by converting this office and the old Hannah into residential they will take nearly a half-million square feet of office space away (350,000 for the East Ohio Building, 100,000 square feet for the Old Hannah Annex) so it decreases office vacancy without demolition (wish they thought of this in the 60's and 70's) My only gripe about this project is they apartments will only rent for about between $1.30 and $1.35 per square foot which means renters might pay $975 to $2,100 a month. This I don't believe is a high enough rate to spur apartment construction. Great News none the less.
March 22, 201213 yr It says right in the article that it is eligible... "Once the headquarters of the East Ohio Gas Co., the building is old enough to qualify for the national list" (only needs to be 50 yrs old). "And experts say it is both architecturally and historically significant", but it first has to be listed on the National Register or for state credits only needs to be certified as being of historic significance to the district, or is listed as a historic landmark by a certified local government. I'm not worried about eligibility, but about the likelihood of getting the Ohio credits. At least for the early rounds, didn't the cap on the program mean many fully-eligible projects were turned away, either because of first come/first served or because of the ranking system? And has the program definitely been funded for these next two rounds?
March 22, 201213 yr Renovating an eyesore building, 223 new apartments, some retail, and more pedestrian traffic in the CBD... I really hope the state, or city, or god or whatever can get them the funding they need! This could be a great addition to the city.
March 22, 201213 yr It says right in the article that it is eligible... "Once the headquarters of the East Ohio Gas Co., the building is old enough to qualify for the national list" (only needs to be 50 yrs old). "And experts say it is both architecturally and historically significant", but it first has to be listed on the National Register or for state credits only needs to be certified as being of historic significance to the district, or is listed as a historic landmark by a certified local government. I'm not worried about eligibility, but about the likelihood of getting the Ohio credits. At least for the early rounds, didn't the cap on the program mean many fully-eligible projects were turned away, either because of first come/first served or because of the ranking system? And has the program definitely been funded for these next two rounds? Oh that was for Pugu... It isnt first come first served now (changed since Cleveland was winning most of the credits), but the current ranking system also makes it hard for 1 region to win an uneven amount of the credits. Yes I also believe the program has been funded for the next 2 rounds* (not by as much as it should). But the building needs to qualify before it can be considered. *will confirm
March 22, 201213 yr So if it can get its historic designation in order and depending on what its competing with in the region I would expect it to be ranked relatively high. Remember also that the maximum credit has also been significantly reduced, again due to the fact that Cleveland was winning a disproportionately large amount of the credits.
March 22, 201213 yr Nice! Not a Condo, but I'll take it! I would have loved to buy a top floor unit here!
March 22, 201213 yr BTW, when this apartment project/building conversion has an actual name, like UC's Lot 45 being branded "Intesa", then we will rename this thread accordingly. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
March 23, 201213 yr I think "Gas Tower" is available And for good reason! "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
March 23, 201213 yr The more I think about this project, the more excited I get about the proposal. I think this has to be some of the best development news in Cleveland (though it has some stiff competition). To name a few: 1) It expands the residential base of downtown outside of the Warehouse District, E4th/Euclid centers further north up E9th 2) It brings life to a completely vacant property on a main Cleveland street 3) It provides full time residents to a predominantly 9-5 business district. 4) It is unique for downtown residential properties. The majority are redevolopment of warehouses and 3-5 story buildings. This is a 21-story, modern-feeling glass high rise. It brings a different dynamic to someone contemplating downtown living. But I digress. Now let's keep fingers crossed about that funding...
March 23, 201213 yr Anyone see the building rendering in the batch of photos on cleveland.com? K&D consistently has some of the worst ones ever. Incredible... Great project however.
March 23, 201213 yr I think they just applied a some sort of blur/watercolor filter to the existing photo. The PD probably asked them for a rendering and someone whipped that up in 10 seconds.
March 23, 201213 yr Anyone see the building rendering in the batch of photos on cleveland.com? K&D consistently has some of the worst ones ever. Incredible... Great project however. Yes that exterior rendering was absolutely horrible! BUT! K&D does have nice finished products so it all works out (reference: 668 Euclid)
March 23, 201213 yr Anyone see the building rendering in the batch of photos on cleveland.com? K&D consistently has some of the worst ones ever. Incredible... Great project however. I think they just applied a some sort of blur/watercolor filter to the existing photo. The PD probably asked them for a rendering and someone whipped that up in 10 seconds. Looks like (bad) still from a 3D video room presentation. I'm going to say there is a bad video presentation out there. Anyone see the building rendering in the batch of photos on cleveland.com? K&D consistently has some of the worst ones ever. Incredible... Great project however. Yes that exterior rendering was absolutely horrible! BUT! K&D does have nice finished products so it all works out (reference: 668 Euclid) As we've said here before, "nice" in terms of design, art, decorating and beauty is defined differently by each of us. I think there stuff is mediocre at best.
March 23, 201213 yr I also wish K&D had more competition downtown. I would guess they have many more housing units (existing + planned) in its portfolio than anyone else. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
March 23, 201213 yr I also wish K&D had more competition downtown. I would guess they have many more housing units (existing + planned) in its portfolio than anyone else. True but as downtown and the inner neighborhoods blossom, more developers from outside the region will come. It may not be today, tomorrow, six months or two years from now, but the Casino & MM/CC will garner interest. Similar to Philly, Boston & DC.
March 27, 201213 yr I wonder if they will do anything to the facade of the building (balconies, etc). How much was the facade of 668 changed? I know they added on some decoration to the top of the building, didn't they?
March 27, 201213 yr ^I don't think they can change the facade much if they're counting on historic preservation tax credits.
March 27, 201213 yr The facade of 668 was restored as closely as feasible, to what the original facade of the building was like.
March 27, 201213 yr I think this project is great - but I have a hunch it's going to be VERY difficult to piece together all the financing required. Hope I can be proven wrong
March 27, 201213 yr More housing development going on downtown so if this goes through *fingers crossed* this will add 325 apartments in the next two years. (102 apartments for the old Hannah Annex) Not to mention 300 more units at the Campus Village, some by fall 2012 and the rest by fall 2013 ... We've gotta start including Campus District development in our downtown numbers! So that's 625 downtown units in the next two years ... something like 800 new residents ... without counting other viable projects, like Wolstein Phase 2, apartment conversions at the Arcade or any number of properties between East 9th and East 12th along Euclid.
March 27, 201213 yr Not to mention 300 more units at the Campus Village, some by fall 2012 and the rest by fall 2013 ... We've gotta start including Campus District development in our downtown numbers! So that's 625 downtown units in the next two years ... something like 800 new residents ... without counting other viable projects, like Wolstein Phase 2, apartment conversions at the Arcade or any number of properties between East 9th and East 12th along Euclid. Don't forget the planned new high-rise apartment tower and hotel on the Jacobs lot on Public Square! Is it April 1 yet? Sorry, just practicing! :evil: "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
March 27, 201213 yr Not to mention 300 more units at the Campus Village, some by fall 2012 and the rest by fall 2013 ... We've gotta start including Campus District development in our downtown numbers! So that's 625 downtown units in the next two years ... something like 800 new residents ... without counting other viable projects, like Wolstein Phase 2, apartment conversions at the Arcade or any number of properties between East 9th and East 12th along Euclid. Don't forget the planned new high-rise apartment tower and hotel on the Jacobs lot on Public Square! Is it April 1 yet? Sorry, just practicing! :evil: Were you talking about the 20 story glass tower planned back in 2007-2008 before the recession completely hit
March 27, 201213 yr Not to mention 300 more units at the Campus Village, some by fall 2012 and the rest by fall 2013 ... We've gotta start including Campus District development in our downtown numbers! So that's 625 downtown units in the next two years ... something like 800 new residents ... without counting other viable projects, like Wolstein Phase 2, apartment conversions at the Arcade or any number of properties between East 9th and East 12th along Euclid. Don't forget the planned new high-rise apartment tower and hotel on the Jacobs lot on Public Square! Is it April 1 yet? Sorry, just practicing! :evil: :x Oh no ... I forgot ... I am definitely staying away from here ALL day April 1. I can't fall for it again.
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