The wording in the article is pretty vague, but yes, the Key offices are in the Higbee building. Although it was my understanding from the articles at the time Gilbert bought Higbee, that Key would be moving those operations to Tiedeman when their lease was up.

 

Thanks. The way the article was written, I thought Key was in the old post office.

 

As opposed to in the building that bears their name?

As opposed to in the building that bears their name?

 

Their back-office stuff. I knew they had back-office operations outside of their HQ tower, but I thought it had all moved out to Brooklyn. They've had back-office operations in several buildings around/near Public Square for 20+ years.

As opposed to in the building that bears their name?

 

Their back-office stuff. I knew they had back-office operations outside of their HQ tower, but I thought it had all moved out to Brooklyn. They've had back-office operations in several buildings around/near Public Square for 20+ years.

 

Yes they used to have a check-clearance center in the old May Company building....

So, I saw some renderings of 45 Erieview Plaza with Medical Mutual signage on it. I'm really not sure what to make of that. I don't have access to the renderings and probably wasn't supposed to see them.

So, I saw some renderings of 45 Erieview Plaza with Medical Mutual signage on it. I'm really not sure what to make of that. I don't have access to the renderings and probably wasn't supposed to see them.

 

That wouldn't be terrible.

^ Not terrible, but a little disappointing. I was hoping that MM would build a new building downtown. Also, since 45 Erieview isn't all that big, it makes me doubt that there will be a consolidation of suburban offices into the new downtown office.

That is interesting regarding MM and 45 Erieview. But looking at the leasing brochure there is about 225k SF available. MM occupies about 380k SF at the Rose building.  And the space at 45 is somewhat scattered with floors 4-8 empty at 34k SF per floor. The other space is on floors 1-3. So it seems kind of small for their needs unless that space could be used for back office stuff that is now done in the burbs. And with the acquisition of HealthSpan their needs might change. It will be interesting for sure.

Building owners do that kind of stuff all the time to beg companies to move to their building.

Building owners do that kind of stuff all the time to beg companies to move to their building.

I hope this is all it is. I'm still holding onto hope that MM could build on the Hippodrome lot.

That is interesting regarding MM and 45 Erieview. But looking at the leasing brochure there is about 225k SF available. MM occupies about 380k SF at the Rose building.  And the space at 45 is somewhat scattered with floors 4-8 empty at 34k SF per floor. The other space is on floors 1-3. So it seems kind of small for their needs unless that space could be used for back office stuff that is now done in the burbs. And with the acquisition of HealthSpan their needs might change. It will be interesting for sure.

 

If Erieview 45 has open floors, then it probably could accommodate MMs downtown office workers only. The Rose Building has an inefficient floor design for modern offices. The 1,000 employees could fit into a 225k sf space. But only the existing downtown workers could fit in there. No suburban workers. No former HealthSpan workers. No room for future expansion.

 

I'm sure w28th is right. The proposal would be great for the landlord; not so great for the tenant.

Something more substantial could work here if 1100 Lakeside (the old Ferro building) became available - but they might as well just build completely new if that were on the table

That is interesting regarding MM and 45 Erieview. But looking at the leasing brochure there is about 225k SF available. MM occupies about 380k SF at the Rose building.  And the space at 45 is somewhat scattered with floors 4-8 empty at 34k SF per floor. The other space is on floors 1-3. So it seems kind of small for their needs unless that space could be used for back office stuff that is now done in the burbs. And with the acquisition of HealthSpan their needs might change. It will be interesting for sure.

 

If Erieview 45 has open floors, then it probably could accommodate MMs downtown office workers only. The Rose Building has an inefficient floor design for modern offices. The 1,000 employees could easily fit into a 225k sf space. But only the existing downtown workers could go in there. No suburban workers. No former HealthSpan workers. No room for future expansion.

 

I'm sure w28th is right. The proposal would be great for the landlord; not so great for the tenant.

 

What's the occupancy rate in Erieview Tower?  Could it handle "overflow"?

Cool story about a small office tenant downtown that does big things....

 

Cleveland studio has global appeal

May 01, 2016 UPDATED 2 DAYS AGO

By JAY MILLER

 

It was late at night — he doesn’t remember the time — on April 21 when Todd Mesek got an email from a producer for CNN’s early morning show, “New Day.”

 

The producer wanted Mesek, vice president of marketing and communications at the Rock and Roll Hall of Fame and Museum, on the air at 6:45 a.m. to talk about the career and musical impact of Prince, the 2004 Rock Hall inductee who had died that day.

 

The next morning, at 5:30, Noel Salwan, a partner in Global Broadcasting Services of Cleveland, was waiting at the front door of the Keith Building on Euclid Avenue in Playhouse Square to escort Mesek to Global’s eighth-floor studio — a space no bigger than the waiting room of a small law firm, which it may once have been. He sat on a chair with a video image of the Cleveland skyline behind him. In front of him, he could see only a cluster of lights that nearly obscured a small camera.

 

MORE:

http://www.crainscleveland.com/article/20160501/NEWS/160429715/cleveland-studio-has-global-appeal

hmmmm

 

 

K& D Buying Terminal Tower

 

http://www.cleveland.com/business/index.ssf/2016/05/kd_group_strikes_deal_to_buy_t.html#incart_river_home

Wow. I reported on this a while back. k&D told me they were about to close on an iconic building but I really didn't expect this. Wow!

 

 

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If FCE builds a new building in downtown Cleveland with average floorplates of 25,000 sf, then we're talking a 10-story building or possibly less considering Terminal Tower has older, inefficient floorplans. If in a stand-alone building, the Flats East Bank third-phase office building would suffice. If part of a larger, overall building project, nuCLEus should be able to accommodate FCE.

Why would they build a new building when they have been divesting of things here, and still own the soon to be mostly vacant post office building? 

That's true, they could always relocate to their post office plaza. It has an open floor design that is more efficient despite it being an older building.

 

Call it a hunch or the growing practice of HQs renting the buildings (even new ones) they occupy, but I suspect FCE wants something new. It might even be in a city other than ours.

For some reason, I have very low hopes that Forest City will stay in Cleveland. Just a feeling, no facts on that one. I hope I am wrong.

 

I'm not thrilled that K&D is waiting for tax credits to renovate the Terminal Tower. What are K&D's plans if they don't come about? This building is way too important to sit vacant hoping the state will pay for their renovation costs. I wish Geis had gotten their hands on this.

^ The most beautiful building (imho) in Cleveland in the hands of Geis' designers?? No, thanks.

^ The most beautiful building (imho) in Cleveland in the hands of Geis' designers?? No, thanks.

 

Geis would have moved on this project. I just worry the Terminal Tower will fall into disrepair if K&D doesn't get the funding. This isn't the East Ohio Gas building or something along those lines.

Plus weren't the historic tax credits already utilized for the recent restoration of the TT?  I don't believe they can be used simply for the sake of changing use from office to residential.       

For some reason, I have very low hopes that Forest City will stay in Cleveland. Just a feeling, no facts on that one. I hope I am wrong.

 

I'm not thrilled that K&D is waiting for tax credits to renovate the Terminal Tower. What are K&D's plans if they don't come about? This building is way too important to sit vacant hoping the state will pay for their renovation costs. I wish Geis had gotten their hands on this.

 

I'm not sure why the situation would be any better with Geis in charge, but I share this worry. The availability of the huge credit could end up creating perverse incentives to roll the dice instead of moving ahead with a feasible, though less profitable project. Hard to know from the outside if this in that category, though.

For some reason, I have very low hopes that Forest City will stay in Cleveland. Just a feeling, no facts on that one. I hope I am wrong.

 

I'm not thrilled that K&D is waiting for tax credits to renovate the Terminal Tower. What are K&D's plans if they don't come about? This building is way too important to sit vacant hoping the state will pay for their renovation costs. I wish Geis had gotten their hands on this.

 

I'm not sure why the situation would be any better with Geis in charge, but I share this worry. The availability of the huge credit could end up creating perverse incentives to roll the dice instead of moving ahead with a feasible, though less profitable project. Hard to know from the outside if this in that category, though.

 

It may not be better with Geis but the way they turned around Ameritrust in such a short amount of time was amazing. I worry about K&D. The Terminal Tower, to me, isn't a property to be flipped if the tax credit doesn't work out. The renovated PS would be facing a vacant May Co., TT and a Jacobs lot where it seems like nothing is ever going to be built.

^Geis turned around Ameritrust with a preservation credit and the cash flow from the county's tenancy in the office component. They've relied on the public till just as much as K&D. Both firms seem able to get stuff done once their slug of subsidy is lined up. K&D seems to have a pretty good record of completing these kinds of projects.

^Geis turned around Ameritrust with a preservation credit and the cash flow from the county's tenancy in the office component. They've relied on the public till just as much as K&D. Both firms seem able to get stuff done once their slug of subsidy is lined up. K&D seems to have a pretty good record of completing these kinds of projects.

 

Fair point on Geis.

 

As for K&D: this is the Terminal Tower and not a random early 20th-century building. The question should already have been asked about what's the plan going to be without the credit. City leaders or someone should find out.

For some reason, I have very low hopes that Forest City will stay in Cleveland. Just a feeling, no facts on that one. I hope I am wrong.

 

I'm not thrilled that K&D is waiting for tax credits to renovate the Terminal Tower. What are K&D's plans if they don't come about? This building is way too important to sit vacant hoping the state will pay for their renovation costs. I wish Geis had gotten their hands on this.

 

I was thinking the same thing; Forest City leaving Cleveland.  If it stays, can't see them building a separate HDQ building.  Would make a nice tenant in a new building though (nuCLEus, SW, MedM).  Who knows?  Wait-n-see; of course, we all hope FC remains committed to CLE at least HDQ's wise.

It's interesting we now have 3 very large employers downtown looking for different office space -- Sherwin Williams, Medical Mutual, and now Forest City RT. Anybody care to handicap the likely outcome of each?

I hope this doesn't beat out the May Co building for tax credits.  Terminal Tower just had major exterior renovations and is relatively marketable as is.

I don't know how I feel about this. Nervous I guess would be the best description of my feelings. I would love to see a new building for FC, but I think it's more likely they anchor another development (still a good thing) or skip town (terrible, and on the top of my mind). I also don't trust K&D with such an iconic structure. I've never had a good time dealing with them, and while I applaud their redevelopment of buildings downtown, their properties are mediocre at best. This building does not deserve mediocre.

 

At the very least, the tower won't be sitting empty like MayCo. FC is only one tenant, and from what I understand form the article, K&D plans to keep the rest of the office space as office space, and retain those other tenants. Adding apartments here though will go a long way to realizing Tower City as a true mixed use development, and attached residential would only help the mall (again provided FC and their employees also remain downtown). 

Rumors that FCE would move to Post Office Plaza may turn out to be false if FCE sells it, per Crain's....

 

 

In the call, Robert O’Brien, Forest City’s chief financial officer, said the company would consider selling Terminal Tower along with nearby Post Office Plaza, 1500 W. 3rd St.

Hmmm. Forest City still owns some land in the flats, no? Perhaps a new campus for them down there? Just wishful thinking

I don't know how I feel about this. Nervous I guess would be the best description of my feelings. I would love to see a new building for FC, but I think it's more likely they anchor another development (still a good thing) or skip town (terrible, and on the top of my mind). I also don't trust K&D with such an iconic structure. I've never had a good time dealing with them, and while I applaud their redevelopment of buildings downtown, their properties are mediocre at best. This building does not deserve mediocre.

 

At the very least, the tower won't be sitting empty like MayCo. FC is only one tenant, and from what I understand form the article, K&D plans to keep the rest of the office space as office space, and retain those other tenants. Adding apartments here though will go a long way to realizing Tower City as a true mixed use development, and attached residential would only help the mall (again provided FC and their employees also remain downtown).

 

FCE already has offices nationwide and, I believe, is interested in residential/mixed-use developments, something it has already said is not happening in the Cleveland market (at least in FCE world). 

For some reason, I have very low hopes that Forest City will stay in Cleveland. Just a feeling, no facts on that one. I hope I am wrong.

 

I'm not thrilled that K&D is waiting for tax credits to renovate the Terminal Tower. What are K&D's plans if they don't come about? This building is way too important to sit vacant hoping the state will pay for their renovation costs. I wish Geis had gotten their hands on this.

 

I was thinking the same thing; Forest City leaving Cleveland.  If it stays, can't see them building a separate HDQ building.  Would make a nice tenant in a new building though (nuCLEus, SW, MedM).  Who knows?  Wait-n-see; of course, we all hope FC remains committed to CLE at least HDQ's wise.

 

FC at nuCLEus would be a happy ending.

FC will not end up in Nucleus and they won't be leaving Cleveland.

I'm hoping a mini-mega project owned by either the Ratner family or a spin off company of FCE executives.  Scranton Penninsula?  Opportunity Corridor?

I could see them keeping their prestigious address on Public Square. Jacobs lot would be a nice, but didn't a bunch of space open up in Key Tower recently with Key's downsizing? I could also see them as one of the towers in the Weston block, they seem like they're the right size for their own building in that.

I think Scranton Peninsula makes a lot of sense. That land is difficult to sell now as it is. Putting an office development there with a couple of restaurants could make the rest of their land on the peninsula more attractive for a sale.

FC will not end up in Nucleus and they won't be leaving Cleveland.

 

Hmmm.... If I recall correctly you're in the CM business, what do you know?!? Lol

FC will not end up in Nucleus and they won't be leaving Cleveland.

 

That's great news about FC staying in Cleveland.

I apologize if this is a repeat posting but I don't thinK i saw anyone post this on UO: 

 

"Tower at Erieview owner considers apartment plan"

 

http://www.crainscleveland.com/article/20160508/NEWS/160509846/tower-at-erieview-owner-considers-apartment-plan

Forest City retains CBRE Group for headquarters site search

May 20, 2016

By STAN BULLARD   

 

Forest City Realty Trust is taking the next step in planning to move its headquarters from Terminal Tower after the planned sale of the landmark office building to K&D Group of Willoughby.

 

The Cleveland-based national real estate developer and owner has retained CBRE Group as the tenant representative for the company in its site search, Forest City spokesman Jeff Linton confirmed on Friday, May 20.

 

“Strong preference is to stay downtown,” Linton wrote in an email. “Looking at all options — Post Office (Plaza), other buildings (as a tenant) and possible new construction.”

 

MORE:

http://www.crainscleveland.com/article/20160520/NEWS/160529985/forest-city-retains-cbre-group-for-headquarters-site-search?platform=hootsuite

Forest City retains CBRE Group for headquarters site search

May 20, 2016

By STAN BULLARD   

 

Forest City Realty Trust is taking the next step in planning to move its headquarters from Terminal Tower after the planned sale of the landmark office building to K&D Group of Willoughby.

 

The Cleveland-based national real estate developer and owner has retained CBRE Group as the tenant representative for the company in its site search, Forest City spokesman Jeff Linton confirmed on Friday, May 20.

 

“Strong preference is to stay downtown,” Linton wrote in an email. “Looking at all options — Post Office (Plaza), other buildings (as a tenant) and possible new construction.”

 

MORE:

http://www.crainscleveland.com/article/20160520/NEWS/160529985/forest-city-retains-cbre-group-for-headquarters-site-search?platform=hootsuite

 

Good to hear from the horse's mouth that they're focusing on Cleveland instead of giving out some nebulous answer leaving the hint that they may leave.

 

Oops! Then I read the article. Looks like they did give out a nebulous answer as well. We'll see.

^Like every other corporate office, you can't shake money from the city, county or state unless you at least go through the motions of looking at other cities.

Hmm. This is obviously a significant acquisition. And TransDigm is headquartered on the top floors of Erieview Tower...

 

Business | Tue May 24, 2016 8:53am EDT Related: DEALS, AEROSPACE & DEFENSE

Aircraft parts maker TransDigm to buy ILC Holdings for $1 billion

 

Aircraft components maker TransDigm Group Inc (TDG.N) said on Tuesday it would buy ILC Holdings Inc from private equity firm Behrman Capital for $1 billion to expand its spare parts business.

 

ILC is the parent of Data Device Corp (DDC), which supplies power control and databus products to the global military and commercial aerospace markets.

 

Databuses help connect internal components of a computer.

 

MORE:

http://www.reuters.com/article/us-ilc-holdings-m-a-transdigm-group-idUSKCN0YF1MN

Hmm. This is obviously a significant acquisition. And TransDigm is headquartered on the top floors of Erieview Tower...

 

TransDigm is probably not done for the year either. The CEO said in a conference call they have the capacity to spend about $2.6 billion on acquisitions this year.

MM occupies about 380k SF at the Rose building.  And the space at 45 is somewhat scattered with floors 4-8 empty at 34k SF per floor. The other space is on floors 1-3. So it seems kind of small for their needs unless that space could be used for back office stuff that is now done in the burbs. And with the acquisition of HealthSpan their needs might change. It will be interesting for sure.

If Erieview 45 has open floors, then it probably could accommodate MMs downtown office workers only. The Rose Building has an inefficient floor design for modern offices. The 1,000 employees could fit into a 225k sf space. But only the existing downtown workers could fit in there. No suburban workers. No former HealthSpan workers. No room for future expansion.

I'm sure w28th is right. The proposal would be great for the landlord; not so great for the tenant.

 

I've heard the needs are between 450,000 and 550,000 SF.  I wouldn't expect many if any Healthspan employees to transition over.

I've heard the needs are between 450,000 and 550,000 SF.  I wouldn't expect many if any Healthspan employees to transition over.

 

If true and if floorplates averaged 25,000 sf, that's an 18- to 22-story "tower".

Is the Medical Mutual sign on top of their building down? and if so, anyone know why?

Could be Secret Service related.