In University Circle, the $140 million Stokes East Tower will rise 24 stories next to the Wade Park Lagoon and add to the residential inventory of one of the fastest-growing employment districts in Ohio (SCB). CLICK IMAGES TO ENLARGE THEM.
UC, Downtown, Hough projects win financing
Three major Cleveland development projects totaling nearly $300 million in value won financing today from the Port of Cleveland. Together, the trio of projects will add 536 housing units, 123 hotel rooms and more than 23,000 square feet of commercial space.
The Port board’s financing approvals will advance mixed-use development, add another tower to fast-growing University Circle, preserve an historic Downtown Cleveland landmark, and expand affordable housing in Cleveland’s Hough neighborhood.
“Collectively, these approvals demonstrate the Port’s continued commitment to leveraging innovative financing tools that help bring transformative projects to fruition, strengthen communities and expand economic opportunity throughout Northeast Ohio,” said a Port spokesperson in a written statement.
The largest of these is Project Scarlet at the northwest corner of East 9th Street and Prospect Avenue in Downtown Cleveland. This is a $120 million adaptive reuse project that will transform the former Medical Mutual of Ohio headquarters, into a mixed-use residential and hospitality destination.
Featured are 171 luxury apartments in the 10-story Rose Building, a 123-room Marriott Tribute Hotel in the six-story Sloan Building, ground-floor retail space, and a 6,000-square-foot locally inspired restaurant. The first apartments could open as early as the summer of 2027.
Project Scarlet is the redevelopment of the Rose and, to the left, Sloan buildings at East 9th Street and Prospect Avenue in Downtown Cleveland. This was the headquarters of Medical Mutual of Ohio until it relocated to suburban Brooklyn in 2023 (NEOtrans).
The Port Authority’s board authorized a capital lease and the issuance of up to $120 million in taxable lease revenue bonds, supporting an estimated $1.4 million in combined sales tax savings for the residential and hotel components of the project.
Last week, Project Scarlet won a $7 million Transformational Mixed Use Development tax credit from the Ohio Department of Development. It previously won $10 million in state and federal historic tax credits.
The Rose Building, a city-designated landmark, along with the attached Sloan Building have been vacant since 2023. Redevelopment efforts are already underway following the issuance of demolition permits.
Led by Spark GHC III, LLC of Cleveland in partnership with Cleveland Construction of Mentor, plus architects Berardi+ Partners and Vocon, the project represents another significant downtown office conversion to new uses.
In booming University Circle, financing was awarded by the Port to the East Stokes Block, 10700 Chester Ave., a new 24-story mixed-use tower that represents the next phase in the 4.5-acre Circle Square district.
Detailed construction plans for the 24-story East Stokes Block were approved last month by Cleveland’s Building Department, clearing the way for permit applications to be submitted which is happening now (SCB).
The Port’s board authorized a capital lease and up to $140 million in taxable lease revenue bonds, creating an estimated $2.7 million in sales tax savings, Port officials said.
“That will help support continued investment in one of Cleveland’s fastest-growing mixed-use districts,” the Port spokesperson said.
While no groundbreaking date has been set, the city’s Building Department approved construction plans for East Stokes on June 19; a construction permit application was submitted June 25 for the tower’s foundation and superstructure. It is still pending.
Those plans show the new tower will top out at about 266 feet tall. Just across Stokes Boulevard from it is the tallest building in University Circle, also part of the Circle Square district. The Artisan stands 267 feet tall.
Gateway66 is a two-building residential development on both sides of East 66th Street, across Linwood Avenue from historic League Park (PCI).
The Artisan, built in 2023 by the same development team as East Stokes, reached 90 percent residential occupancy in its first year after opening. That success is why UC City Center, LLC, in partnership with PCP Flow and PCP Voyager, are seeking this new tower.
Stokes East, with 436,923 square feet of floor space, will feature 285 apartments, 17,000 square feet of retail, and six levels of parking for 315 vehicles. Like The Artisan, it will have a rooftop amenity deck with pool, patio, grills, community room and views of the city.
Last but not least is the $26.8 million Gateway 66 in Hough. This is an 80-unit, mixed-income housing development divided among two new four-story buildings on both sides of East 66th Street, across Linwood Avenue from historic League Park.
The park was where major league baseball teams played from 1891-1950 until the Negro League Cleveland Buckeyes disbanded. It is now a community park that also hosts the Baseball Heritage Museum.
Looking north on East 66th Street, the Gateway66 development is the latest of many developments in Cleveland’s Hough neighborhood (PCI).
The Port approved a capital lease and the issuance of up to $25 million in taxable lease revenue bonds, a financing structure expected to generate approximately $541,000 in sales tax savings on construction materials.
Developed by Woda Cooper Development Inc. of Columbus and Frontline Development Group LLC of Cleveland, Gateway66 will measure more than 82,000 square feet and add to the many developments under way in Hough.
“It is designed to increase access to quality housing while supporting neighborhood revitalization,” the spokesperson said.
In addition to League Park, Gateway 66 is located near major employers and community assets, including University Hospitals, the Midtown Tech Corridor, the Cleveland Foundation, Fatima Family Center and Dave’s Market.
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