Details about the first phase of Village 55, represented by the three buildings at right from a rooftop patio across Broadway Avenue in Cleveland’s Slavic Village, are becoming clearer as it seeks financing. The project intends to rejuvenate the intersection of Broadway and East 55th Street (HDG). CLICK IMAGES TO ENLARGE THEM.
Financing for first phase at Broadway-E. 55th sought
A Cleveland-New York development partnership is seeking financing for a significant remake of the heart of Cleveland’s Slavic Village at Broadway Avenue and East 55th Street. And an application for Low Income House Tax Credits (LIHTC) is bringing more clarity to the partnership’s redevelopment plans that were first revealed publicly by NEOtrans in May 2023.
Independence-based Veda Capital LLC has joined forces with Slate Property Group of New York City to pursue Village 55, a multi-phase, mixed-use development. Their $30.8 million first phase involves the construction of 125 units of affordable housing in a new building that’s five stories tall plus the renovation of an historic structure. On the ground floor will be a retail space plus building management offices, a programming space and common areas.
According to a newly submitted LIHTC application to the Ohio Housing Finance Agency (OHFA), the partnership Village 55 Investors LLC is seeking non-competitive 4 percent tax credits that it is almost certain to get approved as along as OHFA says the project checks all of its boxes.
In July, the Cleveland-Cuyahoga County Port Authority’s board of directors voted to support a non-binding agreement to finance Village 55 with $20 million in tax-exempt revenue bonds. That would be in addition to the LIHTC application now pending with OHFA.
Of these four existing buildings on the northeast corner of East 55th Street, Broadway and Hamlet avenues, only the Columbia Building at far left is proposed to remain. A five-story building and a two-story building, both with apartments over retail and community spaces, are planned where the other three buildings now stand (Google).
According to the OHFA application, four existing buildings between and including 5601-5619 Broadway are affected. One historic building that’s still in good condition will remain standing and be renovated. That’s the three-story Columbia Building that has stood at the northeast corner of Broadway, East 55th and Hamlet Avenue since 1885.
The other three buildings are slightly newer, having been built over several decades after the Columbia. But all of them are either in bad condition and/or too small to contribute prominently in the new development whose goal is to repopulate and reactivate this mostly intact neighborhood.
The development site measures 0.75 acres and includes a vacant city land bank lot that is proposed to remain a greenspace. Village 55 Investors has control over the site through direct ownership or purchase agreements.
According to the partnership’s OHFA application and to plans its principals shared with the community at recent public meetings, the Columbia Building will be renovated with a handful of apartments over a ground-floor retail space. A total of about 5,660 square feet of ground-floor retail space is planned in the Columbia and in new, adjacent buildings.
Two conceptual planned phases of development are shown here, both shaded in blue. The first phase is planned at the upper-right with a future phase at the corner of Broadway, East 55th and Hamm Avenue (Veda).
Next to the Columbia would rise a new, five-story apartment building atop retail space and 2,300 square feet of support and program spaces, such as for wellness, entrepreneurship or educational programs. Plans show the new construction totaling 90,000 square feet that could include an additional two-story structure next door.
“Building amenities will include an outdoor garden, gym, common room and surface parking” behind the new and historic buildings, according to Village 55 Investors’ OHFA application. It further states that “The building will also benefit from security and maintenance staff.”
The application also specifies that the new development will have only 19 off-street parking spaces. But community development officials say owning a car isn’t necessary here. They note that residential eligibility at Village 55 will be limited to low-income tenants, the development is located on a busy 24-hour bus line that could soon be enhanced, and is a short walk to restaurants, banks, grocery and clothing stores.
The OHFA application states that at least 25 of the housing units in this development will be targeted to households earning up to 50 percent of the area’s median income (AMI) and 100 units will be for households earning up to 60 percent AMI. Planned are a mix of 32 studios, 87 one-bedroom units, and six two-bedroom suites.
Street-level view along Broadway Avenue of the proposed first phase of the Village 55 development. The building at far left is the Columbia Building. The light-colored building is proposed as a five-story structure. And a new two-story building is partially seen at far right (HDG).
The 4 percent LIHTC typically subsidizes about 30 percent of the costs of a low-income housing development. In this case, the 4 percent credit is used for the acquisition of existing buildings and for new construction or rehabilitation projects that use tax-exempt bonds.
A future phase could be of similar size and located at the southwest corner of Broadway, East 55th and Hamm Avenue. Two buildings located at 5478 and 5484 Broadway were acquired by the partnership and would be demolished for a new building or two with more apartments over ground-floor retail or other public spaces, according to conceptual plans.
Village 55 Investors includes architect The Heart Design Group of Cleveland. It and Veda Capital both have their roots in the diverse real estate firms of the DiGeronimo Companies of suburban Independence. Donnie DiGeronimo is a principal at Veda Capital. Once built, the property will be managed by Veda Lifestyle.
Across Hamlet from Village 55’s first phase, another New York City-based real estate firm is investing in the neighborhood. Genesis Global Holdings Inc. plans to renovate the 113-year-old Olympia Building, 3335-3361 E. 55th for $2.3 million. That building will feature renovated apartments over existing storefronts and the preserved lobby for the Olympia’s adjacent movie theater that was demolished long ago.
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