This is the Twenty-third edition of Seeds & Sprouts – Early intelligence on Cleveland-area real estate projects. Because these projects are very early in their process of development or just a long-range plan, a lot can and probably will change their final shape, use and outcome.
IMG Group is reportedly moving from one for-sale downtown property to another that’s also for sale (Hertz). CLICK IMAGES TO ENLARGE THEM
IMG Group reportedly moving nearby
Talent agency IMG Group is reportedly moving from one downtown Cleveland office building that’s for sale to another that’s also on the market. And the move suggests some future transitions involving both buildings. According to a real estate insider who spoke off the record, IMG Group will likely move from the building that bears its name, IMG Center, 1360 E. 9th St., to Fifth Third Center, 600 Superior Ave.
IMG Group is considered a pioneer in the sports and entertainment business. The firm’s origins go back to 1960 when Cleveland lawyer Mark McCormack signed professional golfer Arnold Palmer as his client to promote his business and publicity-related affairs. McCormack went on to sign more professional golfers, then athletes in other sports, plus various entertainers. IMG Group established offices at what was then called the Cuyahoga Savings Bank building at East 9th and St. Clair Avenue. The firm is now headquartered in New York City.
The source says IMG’s Cleveland offices amount to about 15,000 to 18,000 square feet and have nearly 100 employees. Their departure from the 15-story, 281,000-square-foot IMG Center would reduce its 79 percent occupancy by 5-6 percent. The 57-year-old building is located in the Erieview Historic District and is eligible for historic tax credits that could support its full or partial conversion to residential. Cushman & Wakefield’s Cincinnati office has the sale listing.
On the other hand, by moving to the 31-year-old, 508,397-square-foot Fifth Third Center, the 27-story, Class-A building’s occupancy would improve from 69 percent to about 72 percent. Its current owner, Hertz Investment Group of Los Angeles, would reportedly use the sale proceeds to acquire, improve and possibly reposition within the market another downtown Cleveland office building, the source said.
Several sites in the Flats South district near downtown are the subject of potential property investments (TheFlatsSouth.com).
Flats South redevelopment activity increasing
Several redevelopment projects in the Flats South district in are indicative of increased real estate activity in this long-overlooked part of downtown Cleveland. And when we say it’s “overlooked” we mean it literally. Flats South is below the Lorain-Carnegie and Inner Belt high-level bridges that cross the Cuyahoga Valley. Development of 7-acre Flats South is the vision of investors Joel Scheer, Rico Pietro and Wald & Fisher.
One of the projects that’s slowly moving forward is the $6 million redevelopment of a 27,000-square-foot, 111-year-old brick warehouse at 601 Stones Levee Rd. into a new production facility for Cleveland Whiskey with a riverside restaurant and bar. The roof on part of the warehouse has been replaced while building permits are being sought for the installation of heating-ventilating-air conditioning equipment and ductwork. Cleveland Whiskey was founded by Tom Lix and grew at The Manufacturing Advocacy and Growth Network (MAGNET) incubator on East 25th Street.
On the other side of concrete supports for the overhead Lorain-Carnegie bridge, Firelands Scientific Dispensary, LlC of Huron intends to invest $1 million to renovate 6,200 square feet of space in a vacant, 22,000-square-foot building at 1978 W 3rd St. into a medical cannabis dispensary. Firelands, a tradename of OPC Cultivation LLC, was founded in 2018 and led by Clevelander Jeff McCourt, a former Benesch attorney. Their $20 million, 55,000-square-foot complex in Huron includes a 30,000-square-foot marijuana greenhouse.
Back to the other side of the Lorain-Carnegie bridge, yet closer to downtown, JAMM Homes LLC requested a certificate of disclosure about a two-story, 110-year-old brick building at 2380 Canal Rd., according to city records. The public record identified the Broadview Heights-based realtor as a prospective buyer of the 28,000-square-foot building, currently owned by Gillota Fuel Products of Hudson. When asked if the growing real estate agency was considering the property for a new office, JAMM partner Mike Coljohn replied “We are currently in the early stages and are evaluating all options at this time.”
Cleveland-based Analiza is expanding at the Tyler Village in the Asiatown section of Cleveland’s St. Clair-Superior neighborhood (LoopNet).
Life sciences biz expands at Tyler Village
Life sciences firm Analiza intends to expand its offices and lab facilities at Tyler Village in the Asiatown section of Cleveland’s St. Clair-Superior neighborhood, just east of downtown. The 25-year-old company wants to expand from a fourth-floor space at 3615 Superior Ave. into a 13,200-square-foot space on the sixth floor of the seven-floor building, according to a recent building permit application submitted to the city. Each floor in that building, called Building 44, measures 24,396 square feet.
According to the application by Analiza’s architect Beegan Architectural Design of Lakewood, the privately held company will spend $900,000 to buildout its expanded space in Tyler Village. The former elevator, wire and screen manufacturing complex of the W.S. Tyler Co. is owned by Graystone Properties which in turn is owned by the Asher family. The site offers 1 million square feet of leasable commercial space. It was converted to leasable commercial spaces in the late-2000s.
Analiza, Inc. is a leading contract research organization dedicated to discovering, developing and commercializing new technologies for the life sciences. Analiza provides integrated solutions to key applications in the pharmaceutical, biotechnology and diagnostics industries, according to its Web site. Its subsidiary Cleveland Diagnostics, formerly known as AnalizaDx, LLC, focuses on cancer diagnostics. A media inquiry was sent to and opened by someone answering Analiza’s general e-mail but not responded to prior to publication of this article.
Nestled in Ohio City, the May Dugan Center is about to undergo a $4.5 million renovation and small expansion of 606 square feet (Google).
May Dugan Center, Men’s Shelter expanding
On the near-west and near-east sides of Cleveland, two facilities that provide social services to the community are expanding. On the near-west side, the May Dugan Center, 4115 Bridge Ave. in Ohio City, is about to undergo a $4.5 million renovation and expansion project while the Lutheran Metropolitan Ministry’s Men’s Shelter, 2100 Lakeside Ave., will see a $3,175,000 expansion.
The May Dugan Center, run by a nonprofit organization but funded by the City of Cleveland’s Department of Development, will expand its three-story, 29,261-square-foot building with a new entrance and community room. Also, 18,385 square feet of the facility’s first floor and part of the second floor will be renovated, according to documents filed with the city. Bialosky Cleveland is the project’s architect as well as the mechanical, electrical and plumbing engineer.
On the other side of downtown, Cuyahoga County acquired two parcels in December 2021 totaling 0.65-acres — 2000 and 2020 Lakeside Ave. One of those properties has a 14,000-square-foot former manufacturing building that will be converted into an expansion of the adjacent 29,000-square-foot homeless shelter which can accommodate up to 350 men.
The expansion will increase that capacity by 100 men. Robert P. Madison is the project architect. Most of the shelter’s funding comes from Cuyahoga County, City of Cleveland, Veterans’ Administration, FEMA, state of Ohio and the United Way. Individuals, foundations, churches, organizations and businesses also provide financial and in-kind support.
- Sherwin-Williams to move Valspar to Greater Cleveland
- Park Place Tech to buy Progressive’s Alpha campus
- Major expansion of Fairview Hospital planned
- Largest Hough development in a century
- Canon, Cleveland Clinic form partnership
- Plaza sought atop Ohio City Red Line station