I was going to suggest it was movie related, but they could just CG it out.

Nothing specific regarding a Medical Mutual office building, but it does offer some context for their business environment. Looks like a big growth opportunity for MM...

 

Medical Mutual, MetroHealth launch CLECare insurance product

June 06, 2016 UPDATED 18 HOURS AGO

By CRAIN'S CLEVELAND BUSINESS

 

In the wake of the demise of the HealthSpan insurance enterprise, Medical Mutual of Ohio and The MetroHealth System are hoping to scoop up some of that business with a new product — dubbed CLECare — that both parties say will offer roughly 15% lower premiums compared to other insurance products.

 

...Medical Mutual acquired the insurance business from HealthSpan effective March 1. MetroHealth, meanwhile, assumed care for more than 40,000 HealthSpan patients starting April 1.

 

“We expect significant interest from former HealthSpan insurance purchasers and the growing number of employers and individuals in Cuyahoga County who seek better value for their health care dollars,” said Rick Chiricosta, chairman, president and CEO of Medical Mutual of Ohio, in a statement.

 

Earlier this year, HealthSpan — the former Kaiser Permanente of Ohio operation — announced it would dissolve its medical group, and many of its physicians have since been hired by other systems, particularly MetroHealth. HealthSpan had hoped to move forward as just an insurer, but the competition in the market proved too fierce.

 

MORE:

http://www.crainscleveland.com/article/20160606/NEWS/160609885/medical-mutual-metrohealth-launch-clecare-insurance-product

Look for the Medical Mutual Building to be sold within 12 months....

 

Landlord That Mirrored Property Boom and Bust to Shut Down

Daniel Taub

June 7, 2016 — 5:01 AM EDT Updated on June 7, 2016 — 5:27 PM EDT

 

BentleyForbes once owned such renowned properties as the Watergate office complex in Washington and Bank of America Plaza, Atlanta’s tallest skyscraper. Now the company is on the verge of vanishing.

 

C. Frederick Wehba, who co-founded the Los Angeles-based real estate firm in 1993 and was chairman until 2012, said he will announce his official separation as an adviser and consultant this week. BentleyForbes now has just three employees and manages four properties, two of them small office buildings in Cleveland and Toledo, Ohio. It plans to sell the real estate within the next 12 months, then dissolve, Wehba said.

 

MORE:

http://www.bloomberg.com/news/articles/2016-06-07/landlord-that-mirrored-u-s-property-boom-and-bust-to-shut-down

Wow, BentlyForbes is the cheesiest, most gag-inducing name for a company I could imagine.  The lack of judgment implied by the name choice alone should have signaled its eventual demise.

Oswald ups offerings by acquiring Hoffman Group

June 13, 2016 UPDATED A DAY AGO

By JEREMY NOBILE 

 

An expansion for Oswald Cos. of both staff and practice groups has received a jolt from the firm’s acquisition of fellow well-known Northeast Ohio insurance firm The Hoffman Group.

 

The deal, which closed last week, grows Oswald’s staff by more than 12% and breaks the firm into new service areas — like transportation and health care — that have been on its radar for some time. The combination also extends new services to legacy Hoffman clients.

 

...In addition to the Columbus office and its Cleveland headquarters — which is also growing with the addition of 14,000 square feet of space at Oswald Centre, creating 86,000 square feet of office space across four floors — Oswald has offices in Akron, Cincinnati, Toledo and Detroit.

 

Hoffman has offices in Medina, which will serve as a new office for Oswald, and Berea, whose operations will merge into the Cleveland space.

 

MORE:

http://www.crainscleveland.com/article/20160613/NEWS/160619954/oswald-ups-offerings-by-acquiring-hoffman-group

This is really expert news. the simplest a part of the article is that they expect a solid perfomance within the next 12-18 months. I simply would like we have a tendency to may fast-forward to 2010.

This is really expert news. the simplest a part of the article is that they expect a solid perfomance within the next 12-18 months. I simply would like we have a tendency to may fast-forward to 2010.

 

My thoughts exactly, Kester.

Turing Test *Failed*.

Dick Pace spoke recently about lakefront development at a Young Professionals week networking event. One interesting tidbit was that he has expanded the SF of the office component of the project to 450-500k SF for a corporate HQ. He didn't divulge names of course but stated that he has a few corporations interested and hoped to have an announcement by the end of the year. Of the corporations interested, he said one was already downtown, and a couple were in the NEO region. In addition, he is talking to out of state companies.

 

The big office users in play are:

 

> Sherwin Williams (800,000-1 million sf)

> Medical Mutual (380,000-500,000 sf)

> Forest City Enterprises (110,000-250,000 sf)

> TransDigm (NA--began in 1993 and ranked as one of the fastest growing companies in the USA *before* it acquired Data Device Corp. last month for $1 billion. I don't know their HQ staffing or square footage, but their HQ is in Erieview Tower and a portion of that aging tower is transitioning to residential. If they want to continue to grow, it probably won't be at Erieview).

 

EDIT: TransDigm's total workforce before the Data Device acquisition was 5,400. Data Device has 600 employees, most of which are at their Long Island HQ/lab. What is a typical total workforce-to-HQ staff ratio? TransDigm is primarily a defense contractor, and I think they would eventually want their own building in a secure location such as on the lakefront where site access can be better controlled.

 

Handing this off from the Lakefront Developments thread, TransDigm now has 6,000 employees and is rapidly growing since it was founded only 20 years ago. In trying to figure out how many people it might have in its HQ, here are some Cleveland-area companies for possible comparison....

 

> Ferro has 4,860 total employees but only about 150 in its headquarters.

> Steris has 8,000 total employees but 1,500 at its Mentor location, with less than half in its operational headquarters.

> Eaton has 97,000 total employees but only 600 at its Highland Hills operational headquarters.

 

So we may be looking at anywhere from 1 percent to 7 percent of a company's total employees located in a corporate/operational headquarters.

 

TransDigm is a little bit different considering that its production is more workstation/technical/lab-oriented because it involves a lot of software development as well as traditional manufacturing, too. For example, the company that TransDigm just acquired, Data Device, has all of its employees located in the same building as its corporate headquarters on Long Island. So it's possible that some of TransDigm's existing employees and some of Data Device's employees might be relocated to a consolidated facility in Cleveland at some point. Usually new companies grow where they can, in scattered facilities that are eventually consolidated into a single location, or at least fewer locations where greater efficiencies can be achieved. We'll see what TransDigm does as they continue to grow.

I just have to say that the name Transdigm totally reminds me of the corporations in B-rated disaster movies that are always doing something that inadvertently threatens to destroy the world

I just have to say that the name Transdigm totally reminds me of the corporations in B-rated disaster movies that are always doing something that inadvertently threatens to destroy the world

 

Why, just because they have a subsidiary called Cyberdyne Systems  Corp.?

North Point and AECOM buildings added to market

July 03, 2016

By STAN BULLARD

 

Owners of two downtown Cleveland skyscrapers have joined the owner of 54-floor Key Center in the quest to sell properties while the commercial real estate market is hot and the city basks in a rare national spotlight as the host of the Republican National Convention and the Cavaliers winning the NBA title.

 

New on the market are North Point, the 19-story and five-story combination of buildings that house the Cleveland office of Jones Day and other tenants, and the AECOM Centre, a 21-story building that is home to the AECOM Technology Corp. engineering and architecture firm and others. Both buildings are on corners of East Ninth Street — North Point at Lakeside Avenue, and AECOM at St. Clair Avenue.

 

Equity Commonwealth, a Chicago-based real estate investment trust with famed realty investor Sam Zell as its chairman, is marketing North Point with three other buildings in the Midwest through Eastdil Secured. Miami-based Optima International is offering AECOM through CBRE Group Inc., according to marketing information obtained by Crain’s Cleveland Business and local real estate sources.

 

MORE:

http://www.crainscleveland.com/article/20160703/NEWS/160709962/north-point-and-aecom-buildings-added-to-market

Conversions slash older office vacancies

July 10, 2016 UPDATED 2 DAYS AGO

By STAN BULLARD   

 

Conversions of old office buildings to apartments in downtown Cleveland — and planned conversions — keep growing and increasingly promise to slash vacancy in the Class B and Class C office markets.

 

How much is forecast in a new study by the Newmark Grubb Knight Frank brokerage firm which estimates that if the 14 buildings slated for makeovers or functionally obsolete stand to slash more than a million square feet from inventory. NGKF estimates Class B vacancy drops to 14.7% from 23.5% and Class C vacancy to 13% from 22%.

 

Part of the growing impact is that big chunks of more prestigious, larger properties are targeted for conversion, such as Tower at Erieview, 1301 E. Ninth St., and Terminal Tower, 50 Public Square. Both have more than a million square feet of office space. For example, at Tower at Erieview, the volume of available space for office tenants stands to slip from 300,000 square feet to as little as 75,000 square feet if the apartment plan goes through.

 

MORE:

http://www.crainscleveland.com/article/20160710/NEWS/160709824/conversions-slash-older-office-vacancies

Bullard saying the vacancy numbers aren't telling the whole story.....

 

Stan Bullard ‏@CrainRltywriter  7h7 hours ago Beachwood, OH

CLEVELAND -- Zombie office market created by ofc2apt redos, much lower vacancy than #s show.  CRE http://bit.ly/2a1OdvM  @CrainsCleveland

55 Public Square hits market at key time

http://www.crainscleveland.com/article/20160724/NEWS/160729916/55-public-square-hits-market-at-key-time#utm_medium=email&utm_source=ccl-weekly&utm_campaign=ccl-weekly-20160724

Good to hear. Whether it stays offices or joins in with the other residential conversion projects, I'll just be happy to see that building fixed it. It's been looking very dingy lately.

I think a hotel conversion is more likely than residential.  The floor plates are too wide for residential.  Regardless, the building has a great location but needs a lot of work.  The garage is beat.  Single pane windows.  Dated lobby.  But the attached old restaurant is an interesting bonus even if it needs a total remodel. 

 

The same owner is going to be putting AECOM and One Cleveland Center on the market as well from what I've heard

I think this building has a future as an office property if it gets cleaned up, especially the garage. Maybe a partial conversion could work too. A lot of small law firms want an affordable option close to the courts. A small personal injury or criminal defense firm is not going to be in Key Tower.

I think this building has a future as an office property if it gets cleaned up, especially the garage. Maybe a partial conversion could work too. A lot of small law firms want an affordable option close to the courts. A small personal injury or criminal defense firm is not going to be in Key Tower.

 

There is a lot of vacancy in that building.  Entire floors.  I can't envision a scenario where you could move the occupancy enough

I didn't know it was that bad...still I know a lot of lawyers who got pushed out of their office space by apartment conversions and that is a very appealing location for a litigator. You're probably right that the building's primary use won't be offices but perhaps it could have some office space like Halle or Leader.

KeyCorp closes acquisition of First Niagara

http://www.crainscleveland.com/article/20160729/NEWS/160729715/keycorp-closes-acquisition-of-first-niagara?X-IgnoreUserAgent=1

Any rumors lately out of Sherwin Williams?

Any rumors lately out of Sherwin Williams?

 

I keep hoping we'll hear something, but we doubt we will until after the DOJ offers its opinion on the Valspar acquisition.

Hertz may add North Point to its portfolio

July 31, 2016 UPDATED A DAY AGO

By STAN BULLARD   

 

Hertz Investment Group of Santa Monica, Calif., is taking steps signaling it wants to make the North Point office complex, 901 Lakeside Ave., its third skyscraper in downtown Cleveland.

 

Hertz formed three company names July 20 at the Ohio Secretary of State’s office telegraphing its pursuit of the 19-story office tower and adjoining five-floor office building that house Jones Day and other tenants.

 

....

 

Kevin Piunno, a senior vice president at Cushman & Wakefield Cresco based in Independence, said the volume of downtown office space is declining thanks to conversions to apartments and tenants are expanding in Class A buildings.

 

“Hertz has a good crystal ball and sees things look promising in the downtown office market,” Piunno said. “In the next 18 months the Class A market will tighten up. North Point has had about the same amount of vacancy for some time. With the way the market is going, they may be able to take advantage as rents start going up.”

 

MORE:

http://www.crainscleveland.com/article/20160731/NEWS/160729752/hertz-may-add-north-point-to-its-portfolio

that's a done deal.  Hopefully Hertz makes some nice improvements to the building - it really is a great property but the lobby, common areas, all need upgrades.  Previous owner did very little in terms of upgrades and also did very little in terms of leasing.

There should be some office space opening up in North Point once the Medical Mutual of Ohio merger with HealthSpan is completed. I think HealthSpan has about 100-200 employees currently in North Point, but if I remember correctly, I read something in the recent past that Medical Mutual is not transitioning the HealthSpan employees over to MMO.  100-200 employees works out to approx. 20-40k sq ft.

 

Depending on HealthSpans current lease at North Point,  I would also think that either the space would become available for lease by the owner of the building, or MMO would have to sub-lease the space to another potential tenant.

Key Tower could be sold to Millennia Cos., a local buyer best known for apartment deals

 

By Michelle Jarboe, The Plain Dealer

Email the author | Follow on Twitter

on August 10, 2016 at 7:29 PM, updated August 10, 2016 at 7:30 PM

 

CLEVELAND, Ohio – Key Tower, the tallest building in Ohio, is under contract to be sold to a local developer who made his name in the subsidized apartment business.

 

Frank Sinito, chief executive officer of the Millennia Companies of Valley View, confirmed in an interview late Wednesday that he has a deal to buy downtown Cleveland's loftiest skyscraper and the attached Marriott hotel and parking garage. The seller is Columbia Property Trust, Inc., a publicly traded company that put Key Center on the market last year.

 

http://www.cleveland.com/business/index.ssf/2016/08/key_tower_could_be_sold_to_mil.html

Best part was that they'd be moving their HQ there from Valley View. I forget the number of employees they plan to move. I think it was between one and two hundred if I'm remembering correctly. It was talked about before when they said they were looking downtown when they bought the Garfield building.

From the end of Michelle's article:

 

"The company also owns 75 Public Square, but Sinito said that property is under contract to an unidentified buyer who hopes to transform the small office building into a hotel."

 

This is the first time we've heard this right?

I thought 75 Public Square was supposed to be converted to apartments.

^ Yeah it was. The plan was for Millennia to turn it into housing.

Yea that's definitely new... They also had some kind of Italian restaurant from LockKeepers in the plan for the ground floor.

 

 

Sent from my iPhone using Tapatalk

I just saw that the 57th (top) floor of Key Tower is available for sublease. I guess the big cheeses at Key don't want to stay on top of the ivory tower??

 

http://looplink.hannacre.com/xNet/Looplink/Profile/Profile.aspx?stid=hannacre&LID=19001052&LL=true&UOMListing=&UOMMoneyCurrency=&RentPer=PY&SRID=7828998951

KeyBank has never occupied the 57th floor - it was unfinished from the day it was built until 2007 a law firm moved in; looks like their lease is ending.  http://blog.cleveland.com/business/2007/12/key_towers_top_floor_finally_g.html

On what floor is their executive dining room and two-story piano lounge? I was in this area in 2000 to take pictures from the south windows and I had to get permission from Key to take them.

I took this photo of the 57th floor in 2000; I worked at Key from 2002-2004 and would have to zip up to the Executive area every now and then - pretty sure that encompassed 54-56 but definitely not 57.

 

Fun tidbit, that's fellow forumer Paul in Cleveland[/member] in the background:

 

 

 

 

 

Hertz Investment Group buys North Point office complex in downtown Cleveland

By Michelle Jarboe, The Plain Dealer

on August 29, 2016 at 11:59 AM, updated August 29, 2016 at 3:21 PM

 

CLEVELAND, Ohio -- Hertz Investment Group has snapped up its third downtown Cleveland office property, acquiring the North Point complex on Lakeside Avenue as part of a bigger Midwest buying binge.

 

The privately held real estate company, based in California, announced Monday morning that it had closed on the North Point purchase and three other deals, in Indianapolis and Milwaukee. Together, the acquisitions cost $416.9 million and added more than 3 million square feet to Hertz's portfolio.

 

The seller, in all cases, was Equity Commonwealth, a publicly traded real estate investment trust based in Chicago. Equity has been selling off its smaller office properties and buildings in secondary markets with lower occupancy rates. North Point, for example, is 78 percent leased.

 

MORE:

http://realestate.cleveland.com/realestate-news/2016/08/hertz_investment_group_buys_no.html

Kelley & Ferraro will move to Flats in 2017

September 04, 2016 UPDATED 3 DAYS AGO

By STAN BULLARD   

 

Prominent asbestos litigation firm Kelley & Ferraro LLP plans to exit the 22nd floor of Key Tower next year for the former corporate headquarters of OM Group on the 13th floor of Cleveland’s newest office building, Ernst & Young Tower, at 950 Main Ave. in the Flats.

 

John Martin Murphy, an equity partner who runs Kelley & Ferraro’s Cleveland office, said the firm will assume the 10-year balance on OM Group’s lease with the building through a sublease. OM Group, after being purchased in 2015 by three Apollo Management Group investment firms, was renamed Vectra, and the chemical firm’s headquarters was moved to St. Louis.

 

“It’s a fantastic space,” Murphy said in a phone interview. “The sightlines are such that I can offer all of our lawyers and support staff lake views. We’re the beneficiary of OM Group being bought out. We’re getting great space for less than Vectra pays for it.”

 

MORE:

http://www.crainscleveland.com/article/20160904/NEWS/160909947/kelley-ferraro-will-move-to-flats-in-2017

TransDigm started in 1993. It continues its buying spree after acquiring Data Device Corp. in May for $1 billion. Now this...

 

TransDigm Group buys maker of valves and actuators for $260 million

September 07, 2016 UPDATED 17 HOURS AGO

By SCOTT SUTTELL 

 

Aircraft components supplier TransDigm Group Inc. (NYSE: TDG) of Cleveland has acquired Young & Franklin Inc., a Liverpool, N.Y.-based maker of proprietary, highly engineered valves and actuators, for $260 million.

 

The company said in a news release that the purchase includes the Young & Franklin subsidiary Tactair Fluid Controls Inc.

 

The release did not disclose the purchase price, but the $260 million figure was included in this filing with the U.S. Securities and Exchange Commission.

 

MORE:

http://www.crainscleveland.com/article/20160907/NEWS/160909887/transdigm-group-buys-maker-of-valves-and-actuators-for-260-million

$260 million (reduced by the net present value of $73 million in tax savings?) seems pricey for a $75 million a year sales.  Aftermarket sale of proprietary products, however, is usually a very high margin business and TDG knows what they are doing. It's an impressive company.

Transdigm's "secret" to success seems to be their knowledge that it is extremely difficult and expensive to qualify new products or sources for aerospace applications.  So they purchase companies with solid sales of proprietary products or products that are source controlled from the customers.  Once TDG takes over a company you can expect prices to double overnight.  TDG knows that even if a customer decides to re-source the product it will take years and often times hundreds of thousands of dollars to do so and in the meantime they'll be able to charge whatever they want for the current product.

 

In my experience TDG is great at making money, but they aren't exactly an innovative company that is willing to invest in the future of the operations they purchase.

Some bad-news tidbits in here.....

 

Spec Office Development Gains Steam in Ohio’s Suburbs for First Time in Years

POSTED ON SEPTEMBER 8, 2016 BY CHRISTINA CANNON IN MARKET REPORTS, MIDWEST, MIDWEST MARKET REPORTS, OFFICE, OHIO, UNCATEGORIZED

 

From Cleveland to Cincinnati, speculative Class A office development is on the rise in Ohio for the first time in at least five years. Primarily occurring in the suburbs, 3 to 4 million square feet of spec development is driven by a lack of office space as well as pent-up demand for new space with an urban feel that contains retail and multifamily components...

 

Cost of financing guides developers in Cleveland

 

While downtown Cleveland has experienced a substantial uptick in marketing, technology and advertising firms — companies that attract Millennials in particular — the suburbs are drawing mortgage firms, insurance and financial companies due to their need for large parking lots. A spike in parking costs downtown has influenced the decision of some companies to locate in the suburbs.

 

Over 620,000 square feet of office space has been absorbed year to date in the greater Cleveland area, and the vacancy rate stands at 11.7 percent. With so much space being absorbed, developers are tying up land for spec projects that are not purely office.

 

Unlike other Ohio markets, Cleveland is not seeing true mixed-use developments due to financing. Most multifamily projects are funded through government programs, and it becomes more complicated to fund a mixed-use development than a purely residential development.

 

Because land costs downtown are prohibitive for smaller office projects, most spec development is occurring in the suburbs, including West Lake, Beechwood and Independence. Projects include the Chagrin Highlands Center at 3900 Park East Drive and the Pinecrest project.

 

MORE:

http://rebusinessonline.com/spec-office-development-gains-steam-in-ohios-suburbs-for-first-time-in-years/

^ I enjoy their spelling errors with the names of our suburbs lol

Interesting item in the Crain's article about Terminal Tower's residential conversion....

 

 

Forest City can keep its corporate headquarters in the building until the middle of 2018. However, the publicly traded company has as many as four options of six months to extend its stay in case it goes into a newly constructed building. Forest City occupies a substantial part of the space on floors four through 15 that will become apartments, so renovation can't begin until the company's headquarters moves, Price said.

http://www.crainscleveland.com/article/20160915/NEWS/160919895/kd-group-buys-terminal-tower-for-38-5-million

mjarboe[/member] updated her article with some new info in the following paragraphs...

______

 

After markets closed Thursday, Forest City confirmed the details in a news release.

 

"We're pleased to complete this sale, which aligns with our strategy of focusing our real estate portfolio on our major core markets, which include New York City; Washington, D.C.; Boston; Dallas; Denver; Los Angeles; and San Francisco," David LaRue, the company's president and chief executive, said in the news release.

 

The company bought Terminal Tower in 1983 and moved its headquarters into the building in 1997. Forest City launched a search for new corporate offices earlier this year. The real estate investment trust's current space, roughly 250,000 square feet, is outdated, fragmented and too large for a business that has restructured dramatically since the recession of 2007 to 2009.

 

Now Forest City could fit into 150,000 to 180,000 square feet of more modern space. The company has looked at new construction and existing buildings, including Post Office Plaza, its only remaining asset at Tower City. An announcement about new digs is likely within the next few months.

 

"We have narrowed the list somewhat," Jeff Linton, a spokesman for the company, said Thursday afternoon. "But we have not made a decision. We're still going through a very thorough process, getting input from our own associates."

 

MORE:

http://realestate.cleveland.com/realestate-news/2016/09/terminal_tower_sold_to_kd_grou.html#incart_river_home_pop

If you are correct about nucleus wouldn't that require a significant re-design of the space as currently proposed?  As I understand it Stark and Benesch are already eating up half the space which I believe is currently about 200,000 sq.ft.  If Forest City needs 150,000 sq. ft. that is 50,000 over what is currently proposed (plus I would add anther 20,000 or so for possible future expansion needs).  If you are right KJP that might mean a slightly taller builder which would make all the hilarious height junkies on the board jump up and down.

 

From this article http://www.cleveland.com/business/index.ssf/2015/04/nucleus_project_nabs_benesch_l.html

 

Leaders at the Benesch firm have reached an agreement with developer Stark Enterprises to occupy roughly 66,500 square feet at a new office building planned north of Quicken Loans Arena.

 

...And the size of the office building still isn't set.

 

Stark might expand the project, now 200,000 square feet on eight floors above a parking garage, by another 100,000 square feet, based on interest from potential tenants. If that happens, a skywalk-like hotel designed to rest atop the office building and to bisect the apartment tower would climb higher into the air.

 

#SomewhatRandom I think it would be cool if Forest City did anchor a new tower and put their green "Forest City" logo at the top.

#SomewhatRandom I think it would be cool if Forest City did anchor a new tower and put their green "Forest City" logo at the top.

 

Considering who you work for, this is a very intriguing comment.

I forgot an office building that might interest FCE...

 

This is on the PassovGroup website, they love these spec renderings.  Just looking to gauge interest. It is described as  235k sf of office space with 8.5k retail. Very Rockside Roadish.

 

As Forest City specializes in mixed-use/TOD-type projects, I'd rather not see them in a Rockside Rd.ish building! I'm still hoping for a Sherwin-Williams/Forest City Public Square new construction. Hopefully a beacon of mixed-use.