From today. I kept the second pic big.

 

 

 

 

A week ago there were several workers on the scaffolding outside, now looks like that horrible metal crown might finally be coming off??  I really can't wait for this to be in full swing.

That's a hopeful sign!

Hey, its a sign of moving forward on this! Thanks for the pictures.

 

Yes it's great to see.

The 70s skin was removed summer of '09, so this would be the first movement on this in 3 years. Wow, it's been like pulling teeth.

I'm pretty sure that skin was added in the 50s or 60s. Anyone got a picture with the earliest view of that "skin"?

 

^Trés vrai.

I believe it's the 60s (I'd be surprised if it wsa the 50s).

 

I was using "70s" more as an adjective to describe its appearance/style, that was so mod for that era.

The guys that were on the scaffolding a week or so ago were doing something that looked like welding on a number of different levels of the building (sorry, building construction is unfortunately not my gay superpower). It definitely seems like this is about to start in earnest.

Excuse my ignorance, but does this project have the green light from a financing a city approval standpoint? 

^I'm not sure which your specifically asking about, but I believe nailing down the private financing has been the main obstacle for this project (like many).  So said an article linked to a few months back.  Every time I see this thread get bumped I hope it's because there's been a press release or Cleveland.com article confirming that things are officially underway.

I'm seriously beginning to wonder whether this project is ever going to get underway.  With a committment from Kimpton and a 98% apartment occupancy rate downtown, you'd think they would have been able to wrap up the financing by now, notwithstanding the challenging lending environment.  One wonders whether the developer simply doesn't have the ability to line up any investors or has some financial troubles of its own.  It would be great if the PD could make some inquiries with its sources. 

I've been wondering the same thing every time I look into the empty windows next door.

r.e.l.a.x. this is not that uncommon, especially in this lending environment. In cases such as this there may be 10+ lending sources invoved. It is incredibly complex and takes a long time to nail down. There are a LOT of people at the table on this one. They will get there, but it will take time. In many cases the public never knows about this time because they often don't find out about developments until they are ready to move forward. In redevelopment sometimes these things are more obvious because they have to "start" and do a lot of work just to get to a point they can start trying to cobble together the financing.

 

FWIW I heard they are close to closing. But its not a done deal till the doors open.

^Especially with tax credits in play.  I sometimes think people think getting tax credits means the "government" rolls a wheelbarrow full of money up to your door and you use that money to buy hammers and drywall and start building.  Getting tax credits is only the beginning of the process.  The tax credits themselves must be marketed and purchase agreements for said tax credits executed before anything can start.

^Do the tax credits that were awarded for this project expire at some point?  If that is indeed the case, when would that be?

^I was wondering the same looking at the read more books redevelopment that won funds as well.

 

r.e.l.a.x. this is not that uncommon, especially in this lending environment. In cases such as this there may be 10+ lending sources invoved. It is incredibly complex and takes a long time to nail down. There are a LOT of people at the table on this one. They will get there, but it will take time. In many cases the public never knows about this time because they often don't find out about developments until they are ready to move forward. In redevelopment sometimes these things are more obvious because they have to "start" and do a lot of work just to get to a point they can start trying to cobble together the financing.

 

FWIW I heard they are close to closing. But its not a done deal till the doors open.

 

*sigh* I feel better now.

I really dont see how this isn't going to work... Im very very hopeful

 

r.e.l.a.x. this is not that uncommon, especially in this lending environment. In cases such as this there may be 10+ lending sources invoved. It is incredibly complex and takes a long time to nail down. There are a LOT of people at the table on this one. They will get there, but it will take time. In many cases the public never knows about this time because they often don't find out about developments until they are ready to move forward. In redevelopment sometimes these things are more obvious because they have to "start" and do a lot of work just to get to a point they can start trying to cobble together the financing.

 

FWIW I heard they are close to closing. But its not a done deal till the doors open.

 

 

 

Let's hope they get there soon before Europe implodes and the capital markets completely seize up again.

State tax credits expire 5 years from date obtained.  I don't know if federal credits have an expiration.

State tax credits expire 5 years from date obtained.  I don't know if federal credits have an expiration.

 

The federal program is not competitive, so the credits do not really expire. The state credits expire at the end of the project rehab period, so it could be 2 or 5 years.

Jump to the bottom of the article

 

Cleveland developers win tax credits to bring 111 apartments downtown; Kent project also funded

Brian Intihar of CRM said the company also plans to convert the Chester Commons Building, at 1120 Chester Ave., into 36 apartments over retail.

 

And the developer just reworked its plans for the Schofield Building, at the southwest corner of East Ninth Street and Euclid, to include more apartments. The historic building, which won Ohio historic preservation tax credits in 2010, still will include a Kimpton Hotel.

 

But a financing deal for the project fell apart. The developer recently redesigned the building with more housing and less hotel space, to get traction with lenders. Intihar would not share details about the project, adding that CRM might be able to say more in a month or so.

 

http://www.cleveland.com/business/index.ssf/2012/06/cleveland_developers_win_prese.html

 

Finally something (from CRM) on the Schofield!!

Nary a peep for months (years?)

Im glad to hear some news.  More apartments is always good but I just hope this goes through without any more snags.  Its such an important project and location.

^Boy none of that really sounded that great to me (not the apartments but the fact that financing feel through and that things have to be worked out and some "news" in a month...which sounded very vague (and of course that is six months in developer speak)).

r.e.l.a.x. this is not that uncommon, especially in this lending environment. In cases such as this there may be 10+ lending sources invoved. It is incredibly complex and takes a long time to nail down. There are a LOT of people at the table on this one. They will get there, but it will take time. In many cases the public never knows about this time because they often don't find out about developments until they are ready to move forward. In redevelopment sometimes these things are more obvious because they have to "start" and do a lot of work just to get to a point they can start trying to cobble together the financing.

 

FWIW I heard they are close to closing. But its not a done deal till the doors open.

 

Apparently not. 

 

 

It's good to hear there may be some movement on the building soon.  Not to get off topic, but the rehab of 629 Euclid should be AWESOME. 

Why would reworking the project to add apartments help financing? 

Why would reworking the project to add apartments help financing? 

 

The project has always included apartments, it just appears they've increased the number of apartments (condos).

My guess would be the projected cashflows from apartments and hotel units are reflected differently in the underwriting models that the lending institutions are using when analyzing the project. This would make sense considering apartment vacancies are at 4% and hotel vacancies are closer to 50%.

My guess would be the projected cashflows from apartments and hotel units are reflected differently in the underwriting models that the lending institutions are using when analyzing the project. This would make sense considering apartment vacancies are at 4% and hotel vacancies are closer to 50%.

 

I don't think the hotel vacancies in Downtown are near 50% and since the casino has opened and the summer season is upon us, lenders would need to reestimate the hotel portion.

http://www.cleveland.com/business/index.ssf/2011/04/downtown_cleveland_hotels_pin.html

 

That article is a year old, but pegs vacancies at 57%. Also, lenders don't NEED to do anything. Generally, lenders will finance based on historical occupancies.

http://www.cleveland.com/business/index.ssf/2011/04/downtown_cleveland_hotels_pin.html

 

That article is a year old, but pegs vacancies at 57%. Also, lenders don't NEED to do anything. Generally, lenders will finance based on historical occupancies.

 

That was a year ago.  and the reason I say lenders would want to reestimate is because of the increase of room in Cleveland due to the casino opening and MM/CC and how our leisure market changes.  I'm sure they've done their homework.

Hey all -

 

CRM told me that the underwriting for the project fell apart and that they reworked the project with Kimpton to assuage lenders' concerns. Across the country, lenders are much more willing to finance apartments than they are hotels. And though the downtown Cleveland hotel market has been busier lately, it's been quite soft for years. Also, lenders aren't just making decisions based on this market. They're also considering the balance of different commercial real estate products in their portfolios and how to best manage their risk levels.

 

On the tax-credit point that someone mentioned: The tax credits on the Schofield actually come up for review at the end of this month. That doesn't mean CRM will lose them, but the project needs to come together fast. The Ohio Department of Development tells me that they'll examine any projects that are up for review and see what progress the developers have made. In this case, CRM could amend its application, showing progress and explaining what has happened and where they are at. Or they could choose to withdraw the project from the credit program.

 

Michelle

Thanks for the information Michelle.  I do find it interesting that CRM was awarded tax credits on another project in the most recent round when they are having issues with the first project on which they earned credits.

You're awesome Michelle...thanks for the info!

My guess would be that the banks want the project to cash flow based as much on the performance of the apartments alone as possible. Hospitality is still a tough nut to crack, and many banks have express policy limits on new hospitality lending (i.e., they won't do it). Those that do, in many cases, are only interested in very narrow parameters (only the big national chains like Marriott and Hilton, existing properties, corporate owned locations, etc.). Throw in that it's new construction in an historically soft market, and the underwriters will want to downplay reliance on the hotel portion as much as possible.

^That all makes 100% sense.

 

In addition, hopefully this is a lesson to all those on this board who are so quick to say off hand.... this should be done here and this is the project I proposed and why isn't something getting done on this plot of land or by this building owner or why hasn't a TOD gone forward at this intersection.  CRM has been working diligently to put together this package for more than two years now (actually it might be more like three) and is still running into road blocks (despite the fact it has a tenant and valuable tax credits).

Thanks for the information Michelle.  I do find it interesting that CRM was awarded tax credits on another project in the most recent round when they are having issues with the first project on which they earned credits.

 

Well, CRM did finish the Calfee Building project on East Sixth Street. That was a state historic preservation tax credit project that another developer couldn't pull together -- as a hotel. CRM acquired the building and redeveloped it as offices for the Calfee law firm.

Hopefully soon this will be old news - and we'll only have to wonder what flag the Kimpton property will fly --- Hotel Palomar, Hotel Monaco, etc... - or maybe the local touch - Hotel Schofield...

Hopefully soon this will be old news - and we'll only have to wonder what flag the Kimpton property will fly --- Hotel Palomar, Hotel Monaco, etc... - or maybe the local touch - Hotel Schofield...

 

I hope it would be an Eventi, their newest brand.  But as long as we have more hotel rooms that fit into a hip/young downtown I'm happy.

 

On the tax-credit point that someone mentioned: The tax credits on the Schofield actually come up for review at the end of this month.

 

Michelle

 

Any updates on the Schofield tax credit review that was supposed to happen at the end of June??

 

On the tax-credit point that someone mentioned: The tax credits on the Schofield actually come up for review at the end of this month.

 

Michelle

 

Any updates on the Schofield tax credit review that was supposed to happen at the end of June??

 

The tax credits and the project are still under review by the Department of Development. Based on what I've been told, we might have a final decision by the end of August. And it's unlikely that ODOD would pull the credits out of the project, but they want to see serious progress, indicating that construction will start in earnest this year.

 

Michelle

Thanks for the update Michelle!!

 

On the tax-credit point that someone mentioned: The tax credits on the Schofield actually come up for review at the end of this month.

 

Michelle

 

Any updates on the Schofield tax credit review that was supposed to happen at the end of June??

 

The tax credits and the project are still under review by the Department of Development. Based on what I've been told, we might have a final decision by the end of August. And it's unlikely that ODOD would pull the credits out of the project, but they want to see serious progress, indicating that construction will start in earnest this year.

 

Michelle

 

Hopefully great news!  Thanks for your insight. 

Yes, thanks Michelle as always!

Any reason the Schofield Building has went from 24 proposed apartments above a hotel to 50 apartments ?? (according to the Downtown Cleveland Alliance report -- page 8. )

 

http://www.downtowncleveland.com/media/71567/downtownmarketupdate_q2-2012.pdf

 

 

Hey all -

 

CRM told me that the underwriting for the project fell apart and that they reworked the project with Kimpton to assuage lenders' concerns. Across the country, lenders are much more willing to finance apartments than they are hotels. And though the downtown Cleveland hotel market has been busier lately, it's been quite soft for years. Also, lenders aren't just making decisions based on this market. They're also considering the balance of different commercial real estate products in their portfolios and how to best manage their risk levels.

 

On the tax-credit point that someone mentioned: The tax credits on the Schofield actually come up for review at the end of this month. That doesn't mean CRM will lose them, but the project needs to come together fast. The Ohio Department of Development tells me that they'll examine any projects that are up for review and see what progress the developers have made. In this case, CRM could amend its application, showing progress and explaining what has happened and where they are at. Or they could choose to withdraw the project from the credit program.

 

Michelle

Hey all -

 

CRM told me that the underwriting for the project fell apart and that they reworked the project with Kimpton to assuage lenders' concerns. Across the country, lenders are much more willing to finance apartments than they are hotels. And though the downtown Cleveland hotel market has been busier lately, it's been quite soft for years. Also, lenders aren't just making decisions based on this market. They're also considering the balance of different commercial real estate products in their portfolios and how to best manage their risk levels.

 

On the tax-credit point that someone mentioned: The tax credits on the Schofield actually come up for review at the end of this month. That doesn't mean CRM will lose them, but the project needs to come together fast. The Ohio Department of Development tells me that they'll examine any projects that are up for review and see what progress the developers have made. In this case, CRM could amend its application, showing progress and explaining what has happened and where they are at. Or they could choose to withdraw the project from the credit program.

 

Michelle

 

On the tax-credit point that someone mentioned: The tax credits on the Schofield actually come up for review at the end of this month.

 

Michelle

 

Any updates on the Schofield tax credit review that was supposed to happen at the end of June??

 

The tax credits and the project are still under review by the Department of Development. Based on what I've been told, we might have a final decision by the end of August. And it's unlikely that ODOD would pull the credits out of the project, but they want to see serious progress, indicating that construction will start in earnest this year.

 

Michelle

 

 

I hate to be that person (I know MTS, if there had been any news somebody would have reported it on the board), but what the hell is going on?  Was a final decision made at the end of August regarding the  continuation of the tax credits (and is there serious progress toward financing indicating that construction will start in earnest this year?) I am starting to get bummed out.

^Is the contractor completely done with Calfee Halter and the attached garage?

Good question, what the heck is going on????