Two developments that were awarded financial assistance today by the Port of Cleveland’s board of directors are seen here — The Bell, at left, and Erieview Tower (Google). CLICK IMAGES TO ENLARGE THEM.
Downtown, Ohio City projects win financing
More than $54 million in bonds were awarded today by the Port of Cleveland for three Cleveland real estate developments including a luxury downtown hotel and an Ohio City apartment complex.
A third project won bonds awarded by the port authority’s board of directors to help reimburse a developer for a downtown mixed-use project along East Ninth Street that was completed in last year.
“The Port is using its unique economic development tools to assist these projects by closing financing gaps on these catalytic projects,” said Rhonda Winslow, vice president of development finance for the Cleveland-Cuyahoga County Port Authority.
One of the projects, the West 26th Apartments in Ohio City, is a new-construction development. The Port will issue up to $20 million in bonds for this $29 million residential project at 2120 W. 26th St.
The development is a four-story, 109-unit apartment building with a fitness center, social lounge and rooftop deck, among other amenities. Of the units, 34 will be junior one- bedrooms, 51 one-bedrooms, 22 two-bedrooms and two three-bedrooms.
Planned along West 26th Street, between Chatham and Monroe avenues, is a long, thin apartment building tentatively called the West 26th Apartments. The market-rate residential development won $20 million in bonds from the Port of Cleveland (GLSD).
The site features a large, vacant parking lot and one house that will be demolished. The site was acquired in April by West 26th Street Asset Holdings LLC, county property records show.
West 26th Apartments is being co-developed by Revival Residential. The company recently was founded by Luke Palmisano, who in a previous position led creation of the Van Aken District, and Dan Whalen.
Also in a previous position, Whalen led the development of INTRO Cleveland across from West Side Market. Separately, for a company called Places Development, he is pursuing a new-construction, Marriott Tribute Portfolio boutique hotel at 1950 W 26 St. on Lorain Avenue.
Speaking of hotels, the Port’s board approved up to $25 million in additional bonds for the $125 million hotel portion of the transformation of 61-year-old Erieview Tower. The 38-story skyscraper, at 1301 E. 9th St., is being converted into W-branded by Marriott luxury apartments and a 210-key, W-branded Marriott hotel.
This will be downtown Cleveland’s first new luxury brand hotel since The Ritz-Carlton opened at Tower City Center more than three decades ago. It is also the second round of Port financing for Erieview Tower.
Erieview Tower, Cleveland’s fifth-tallest skyscraper at 529 feet, stands behind the Galleria, the redevelopment of which remains on the developer’s to-do list but at a future phase (Google).
In July 2024, the board approved up to $55 million in taxable lease revenue bonds for the residential portion of the plan. The project is being done by Erieview Developer LLC, owned by the Kassouf family. The project manager is TurnDev of Beachwood.
Financing was reported to be closed for the overall $218 million project in January. Site preparation got underway almost immediately and construction work is progressing in the nearly vacated former office building, according to remaining tenants.
For the third project, the board approved up to $9.2 million in taxable bond-fund bonds to help reimburse developer Twain Financial Partners for a portion of the costs of redeveloping The Bell — the former Ohio Bell office building at 45 E. 9th — into apartments, retail and office spaces.
The $135 million redevelopment of the 1983-built, 16-story building was completed in 2024. The Port is using its bond fund to monetize the residential abatement from the City so the developer can obtain long-term fixed-rate financing through the bond fund. The bonds are purchased by an investor and no Port operating funds are used.
The curving northern façade of The Bell is probably its most distinctive feature. Its windows offer views of Downtown Cleveland’s lakefront and Lake Erie (NEOtrans).
The project was delayed for multiple reasons but finally began leasing and was opened to occupancy in summer of 2024. According to The Bell’s Web site, it shows only 20 units out of 367 apartments as available. But all of the commercial space — ground-floor retail and second-floor office — has yet to be spoken for.
In another Port news, its board today formally approved the hiring of Jeff Epstein as the Port’s next president and chief executive officer. He will officially begin his role on Oct. 15.
Board members said Epstein brings to the Port more than two decades of experience in economic development, public-private partnerships, and transformative urban investment.
Most recently, he served as the City of Cleveland’s chief of integrated development where he oversaw four departments and nearly 300 staff advancing major redevelopment, infrastructure, and waterfront projects.
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