Millennia Companies to buy Garfield Building for apartments, plans downtown Cleveland HQ move

 

http://www.cleveland.com/business/index.ssf/2014/04/millennia_companies_to_buy_gar.html

 

"A growing apartment business based in Cleveland's suburbs will establish a downtown foothold this year, starting with the purchase of the historic Garfield Building at Euclid Avenue and East Sixth Street.

 

The Millennia Companies recently signed a purchase agreement on the Garfield Building, a largely empty office building set for conversion into housing. Built in the late 1800s by two of President James Garfield's sons, the longtime bank building could become 172 apartments above ground-floor restaurants or stores."

Great news on the Garfield.  Not only the apartments but 200 employees! And importantly not just a downtown office shuffle but actually new to downtown.  Maybe this will spur something across the street.... Say on top of 515??? :):):)

Great news on the Garfield.  Not only the apartments but 200 employees! And importantly not just a downtown office shuffle but actually new to downtown.  Maybe this will spur something across the street.... Say on top of 515??? :):):)

 

Well, we don't know yet where the 200 employees will end up in the CBD. Garfield will be apartments and retail. As the story notes, Millennia is looking at other downtown buildings for a mixed-use redevelopment that would include its headquarters. So that would mean more apartments, plus the offices.

 

Michelle

^My brilliant idea.  Lets talk NEW mixed use.  Let's talk getting together with the Playhouse Square Association.  Let's talk about that parking lot on Euclid next to the Hanna Building which the PSA supposedly wants to see housing on.  I would imagine the Association would bend over backwards to get that lot developed and would assist mightly.  A win win for both groups.

 

Great news on the Garfield.  Not only the apartments but 200 employees! And importantly not just a downtown office shuffle but actually new to downtown.  Maybe this will spur something across the street.... Say on top of 515??? :):):)

 

Well, we don't know yet where the 200 employees will end up in the CBD. Garfield will be apartments and retail. As the story notes, Millennia is looking at other downtown buildings for a mixed-use redevelopment that would include its headquarters. So that would mean more apartments, plus the offices.

 

Michelle

 

Thanks for clarifying! That's actually better news

I tried to make that clear in the story, but I just went back and played with a few small wording things to amplify that the headquarters opportunity is a separate deal. Hopefully it makes sense.

 

Michelle

 

I tried to make that clear in the story, but I just went back and played with a few small wording things to amplify that the headquarters opportunity is a separate deal. Hopefully it makes sense.

 

Michelle

 

I read the article in a hurry so I'm sure it was clear, I just didn't connect the dots. ;) Great work, as always Michelle!

 

A quick google search shows what the building looked like originally... It would be nice to get some more windows back into the base. Does anyone know when they modified it?

Relocated the above posts here from the downtown residences thread in the discussion section.

^My post didn't apply to this project.  Since it covered occupancy expentancy for two separate projects, I had put it in the downtown residences thread.

I think their price-point is a bit low.  In my opinion, they should be able to get $750 to $1000 per 1 bedroom at this location. 

I tried to make that clear in the story, but I just went back and played with a few small wording things to amplify that the headquarters opportunity is a separate deal. Hopefully it makes sense.

 

Michelle

 

A quick google search shows what the building looked like originally... It would be nice to get some more windows back into the base. Does anyone know when they modified it?

 

Not sure but it sure looks like hell compared to the rest of the building's Ionic pilaster exterior & large windows.  I also hope they return the rest of the E6th and Euclid sides to match the rest.

^My post didn't apply to this project.  Since it covered occupancy expentancy for two separate projects, I had put it in the downtown residences thread.

 

Fixed.

^ I agree with that completely.

 

Another 200-300 residents; plus 200 employees... awesome!

 

This is a little disturbing to hear though: ""The downtown office market is dead," said Don Ankeny, Westcore's president and chief executive. "The resale market for empty office buildings in downtown Cleveland is more than dead.""

 

Can't wait to see some pics of the bank interior (as I'm sure someone here will eventually post)

 

Am I correct in saying this building as a whole also fronts Vincent?

I wonder how far down does that light well go?

Great news on the Garfield.  Not only the apartments but 200 employees! And importantly not just a downtown office shuffle but actually new to downtown.  Maybe this will spur something across the street.... Say on top of 515??? :):):)

 

Well, we don't know yet where the 200 employees will end up in the CBD. Garfield will be apartments and retail. As the story notes, Millennia is looking at other downtown buildings for a mixed-use redevelopment that would include its headquarters. So that would mean more apartments, plus the offices.

 

Michelle

 

Is the Leader Building still for sale?  I don't know if it is occupied or the occupancy percentage but I could see that as a mixed use office/apartment conversion for Millenia.  Plus right down the street from the Garfield.

Just looked at Milenia's listings of properties in NEO. it appears most of them are focused on low to moderate income and senior living. so i guess that price point fits into what they do. Still... downtown!!!

Re: the lower facade, Peter Ketter from Sandvick Architects, who put together the tax-credit application for this building, said that corner was modified in the 1940s for a drug store. There used to be a large sign on the stone, rather than a blank face.

 

Re: the comments from Westcore, that's how a California real estate exec views the Cleveland office market. Some local opinions might differ, particularly if you're talking about Class A office buildings.

 

Re: the rents, I think those are conservative estimates. Which are what you want to use if you're trying to finance a project.

 

Michelle

Re: the Leader Building, no. The owners took that building off the market because they didn't reach their desired price at auction a while back.

 

Michelle

Just looked at Milenia's listings of properties in NEO. it appears most of them are focused on low to moderate income and senior living. so i guess that price point fits into what they do. Still... downtown!!!

 

This one is definitely market-rate. They have market-rate properties other places, though they're best-known in affordable housing circles.

 

Michelle

This is a little disturbing to hear though: ""The downtown office market is dead," said Don Ankeny, Westcore's president and chief executive. "The resale market for empty office buildings in downtown Cleveland is more than dead.""

 

That's because there is a reason most of those buildings are empty.  They don't have the layouts and amenities companies are looking for in modern office space...... and this City has an abundance of less-than-Class A space available, particularly with the reshuffling of the major players.  It's a bit discouraging, but you could also look at it as the perfect storm given the current demand for residential, the (largely) prohibitive cost of new construction, and the tax credits available to buildings such as this one, 1717 Euclid, Hanna, etc.  Without these "empty office buildings", there would not be nearly as much opportunity for increasing the residential population of downtown, which I think we can all agree is just as important (if not moreso) than the commercial landlords being able to fill up buildings which, more than anything, desperately need a gutting.

Yes, the reuse of existing, less than desirable office space is a given. But to start out with that sort of a statement... I don't see it. Perhaps I'm reading it wrong though. I believe the demand is there for new office space, but the financing (and balls) are not.

 

Anyway... I don't want to get off topic again. I hate getting in trouble (classic conflict avoider).

 

My biggest design question though is in regards to the possible rooms facing the light well. It looks like those might have a great view of the Holiday Inn express windows, no? ¯\_(ツ)_/¯

Perhaps we should split the Garfield Rehab and Millennia's Headquarters move into separate threads. They are different discussions and Garfield is significant enough to be discussed by itself.

Thanks Michelle!

mjarboe,

Michelle, thank you for always keeping us abreast on Cleveland.com. Though it takes every once of patience to read through ignorant comments(I wish the PD would turn of the message boards), you make sure we get the real story. I commend you for staying positive and thanks again for all of the work that you do!

Yes, the reuse of existing, less than desirable office space is a given. But to start out with that sort of a statement... I don't see it. Perhaps I'm reading it wrong though. I believe the demand is there for new office space, but the financing (and balls) are not.

 

Anyway... I don't want to get off topic again. I hate getting in trouble (classic conflict avoider).

 

My biggest design question though is in regards to the possible rooms facing the light well. It looks like those might have a great view of the Holiday Inn express windows, no? ¯\_(ツ)_/¯

 

The Garfield doesn't look very wide.  Maybe they will be single loaded to the E. 6th and Euclid sides to avoid views into the light well.

When I first started working downtown in the early 80's, I believe there was a Burrows (Borroughs?) store in the corner space in that building. Of course, that chain (and even that type of store) is long gone.

The rents are very reasonable for its location. Boy, if I moved to Cleveland, it'd be on my list for rentals.

 

That said - the office market is dead? Or is it that the building had fallen to class B office space and would need extensive work to make it class A ready?

^That was a statement probably a bit out of context.  I would agree that the market is very tight (although not dead) for this type of space (which I would think is Class B at best), simply because there is so much of it available at the moment.  Some of the vacancy is caused by companies such as Eaton relocating to the suburbs and other vacancy is caused by the domino effect which the constructio of the new E&Y Tower caused.  You could probably build a new office building in downtown and fill it up with tenants quite easily (as they did with the E&Y Tower)..... but it probably wouldn't be good for the downtown office market's overall health given the fact that your tenants are most likely to be ones you poached from other downtown locations.

^

The rents are very reasonable for its location. Boy, if I moved to Cleveland, it'd be on my list for rentals.

 

That said - the office market is dead? Or is it that the building had fallen to class B office space and would need extensive work to make it class A ready?

 

Context: this is from a West Coast landlord who may either be bitter that he didn't own the type of office building for a large enough scale company, didn't put in the time or effort to develop properties for such a company, or both.  All the evidence tends to belie that assertion starting with Millennia’s Valley View-to-downtown planned office move highlighted in Michelle’s article.  I'm just thrilled that the Garfield is joining the hot Euclid apartment corridor and can help connect and develop the not only the north-south axis discussed in the article, but also connect the nodes along Euclid between E. 4th and E. 9th.

 

I think Class B is a stretch as well.  As stated in the article National City (Previously National City) had along term lease on the space and used to have employees there.  I was in the building a few times and it has a very confusing layout.  Additionally it would either be burning up or freezing cold.  I think there is going to need to be a good amount of HVAC work along with new windows (they were pretty flimsy 5 years ago). 

 

Also, the PNC bank branch is open to anyone and is really ornate.  It is more a part of the Holiday Inn building, but is connected to the Garfield Bldg.  Hopefully this will liven up the E 6th st. corridor there.

I have always loved the Garfield Bldg. Walking down E6th has kind of a special vibe, a NYC type feel to it. Hope the transition to residential is successful and without delay. Props to @mjarboe for getting them to reveal probably more than they wanted to at this point. The guy's phone is most likely ringing off the hook.

More good news........

 

Garfield Building apartments, Tremont church conversion among winners of Ohio preservation tax credits

By Michelle Jarboe McFee, The Plain Dealer

on June 24, 2014 at 10:15 AM, updated June 24, 2014 at 10:32 AM

 

CLEVELAND, Ohio -- Ten Northeast Ohio preservation projects, ranging from a downtown Cleveland apartment building to an office conversion in Cuyahoga Falls, won nearly $20.2 million in valuable state tax credits this week.

 

The Ohio Development Services Agency announced Tuesday morning that 35 historic buildings in 13 communities will get a boost from $37.7 million in credits designed to support historic preservation. Those  awards will support roughly $250 million in private investment, much of it in downtowns or growing neighborhoods.

 

For downtown Cleveland, the announcement brought a mix of good and bad news. The Millennia Companies, a Valley View real estate group, won a $5 million credit for its planned makeover of the historic Garfield Building on East Sixth Street. The former bank building is set to become 172 apartments, with restaurants on the ground floor.

 

READ MORE AT:

http://www.cleveland.com/business/index.ssf/2014/06/garfield_building_apartments_t.html

@mjarboe reporting The Millennia Companies has been awarded a 5mil tax credit for the Garfield Building conversion.

 

http://www.cleveland.com/business/index.ssf/2014/06/garfield_building_apartments_t.html#incart_river_default

The Drury Plaza missed out however.  Hopefully that doesn't derail that project for awhile.

Great news for the Garfield and other winning projects.  I've posted the news (good and bad) in some of the other relevant threads.

While I'm happy for some sort of use on the ground floor, another restaurant makes me worry that the restaurant market is becoming over saturated downtown, which could cause closures.

 

^Never worry about too many restaurants or hotels.  The best will survive. That's how you maintain a strong inventory of stable businesses.  When you are in the service industry you must work everyday to make yourself better.  If you do that you have less to worry about. I say bring on the competition, the strong will survive.

Plus, the new residents and workers in this building (and others) will add more restaurant customers.

^Never worry about too many restaurants or hotels.  The best will survive. That's how you maintain a strong inventory of stable businesses.  When you are in the service industry you must work everyday to make yourself better.  If you do that you have less to worry about. I say bring on the competition, the strong will survive.

When looked at from that perspective it makes having more restaurants easier to accept. THANKS!

While I'm happy for some sort of use on the ground floor, another restaurant makes me worry that the restaurant market is becoming over saturated downtown, which could cause closures.

 

 

Why??  Why do we always think of our city as "having too much".  Wasn't this the case when the WHD became popular, TC was said not to survive.  Most recently East Fourth came online, people said it would hurt TC and the WHD.  Did that happen??

 

When people say things like they "worry", "are nervous" or are "concerned" to me it says you have little faith in local business owners to build, manage, operate a business (execute a business plan) or that the residents of the city wont patronage it.

 

As I've said in previous threads, why do so many people here always see the negative first?  I'm not picking on  you, just responding based on what you wrote.

 

I see this as another great addition on the South Side of Euclid, and downtown as a whole, which will bridge the gaps in the city between Prospect and St. Clair.  Restaurants are usually the first things to open in a development.  We'll have business people (daytime workers), residents (residents/night time) and restaurant patrons - a combination of the two - patronizing this venue.  Not to mention more workers puts more eyes on the street. This also fights the "perception" that downtown is dead.  It's a win/win.

 

Why do you think/feel that our city is becoming over saturated with dining establishments?

^Never worry about too many restaurants or hotels.  The best will survive. That's how you maintain a strong inventory of stable businesses.  When you are in the service industry you must work everyday to make yourself better.  If you do that you have less to worry about. I say bring on the competition, the strong will survive.

When looked at from that perspective it makes having more restaurants easier to accept. THANKS!

And remember with the convention center there are going to be hundreds of thousands of tourists every year.

(Otherwise the hotels wouldn't be building here!)

The PNC branch that is in the Garfield Building will close Dec. 1st.  I believe at that time they will move to the new branch being constructed in the PNC building. 

 

The historic branch will be converted to a restaurant. 

 

The PNC branch that is in the Garfield Building will close Dec. 1st.  I believe at that time they will move to the new branch being constructed in the PNC building. 

 

The historic branch will be converted to a restaurant.

 

THATS what they're building in the PNC tower!! Thank you. I have been trying to figure it out. Can't wait to see what will be done with the old building. It's beautiful

The historic Previously National City (PNC) lobby is in the New England/Guardian Building. The Garfield Building is only a pass-thru into the New England Building.

Good news and a sign of work possibly beginning soon. As I was leaving for work this morning, I noticed they were pulling off some of the ugly bland concrete facade on the lower floors of the building. I presume this is to get an idea of the condition of the original facade underneath. I hope they make the ground floors half as beautiful as they used to be!

 

 

Look there's brick underneath!

I don't understand why anyone felt the need to cover that part of the facade with concrete. It seems like people in the 60s-80s just hated beautiful things and always tried their darndest to destroy them or cover them up. I can't wait to see this building restored!

It's nothing new really. When something is between the ages of about 20-50 years old it's viewed as dated and generally disliked. It then has a period of about ten years where people start to realize it actually does have some beauty to it. Then it sees full-blown praise and admiration. The explosion of American cities in the 10s and 20s meant there was  a LOT of architecture around from that era. Then, right when that period was viewed as "ugly" and "old" and "dated" we saw another massive expansion in America, this time to an automobile-centric form of design and construction. This meant we were not only building lots of new places with a lack of street life, but also modifying the old in order to fit what was then trendy. Currently everything built in the 60s and 70s is well within the "ugly and dated" phase of its life and the stuff from the 10s and 20s is sitting comfortably in the "we must save this gorgeous example of architecture" phase of its life.

 

The cycle is going to continue. The things we find ugly now (aka, the 60s and 70s, brutalism, etc.) will more than likely be looked at with admiration and appeal in the coming decades. And rightfully so. Every era has its merits and has aspects with which we should save.

The cycle is going to continue. The things we find ugly now (aka, the 60s and 70s, brutalism, etc.) will more than likely be looked at with admiration and appeal in the coming decades.

:shoot:

 

 

Dude speaks the truth. The era of the 1950s-80s will be viewed with a Mad Men noir-like reverence of that brand of cool. It's not elegance or flowery ornate architecture. It's lots of angles and shadows and clean lines and starkness.

The cycle is going to continue. The things we find ugly now (aka, the 60s and 70s, brutalism, etc.) will more than likely be looked at with admiration and appeal in the coming decades.

:shoot:

 

 

 

Hey, don't shoot the messenger, it's not my fault!