Gray Media at Reserve Square, left, and AmTrust at 800 Superior both appear to be reversing directions regarding the decisions on where to locate their downtown Cleveland offices (Google). CLICK IMAGES TO ENLARGE THEM.
Gray Media, AmTrust Financial may reverse courses
ARTICLE UPDATED OCT. 2, 2024
Two large Downtown Cleveland employers may be reversing course regarding their future office locations. One was bound and determined to leave for the suburbs but now its plans are up in the air. And despite the grist coming from the real estate rumor mill, the other employer says it’s not going anywhere — yet.
Gray Media Group Inc., owner of local television stations WOIO (CBS affiliate), WUAB (CW) and WTCL-LD (Telemundo), has reportedly shelved plans for relocating to suburban Independence. The media company’s offices and TV studios for more than 100 employees are located in Reserve Square, at the northeast corner of Chester Avenue and East 12th Street downtown.
The destination for Gray was 5810 Rockside Woods Blvd., between Embassy Suites and Topgolf Cleveland — a site that would have been very visible from the interchange of Interstates 77 and 480. Gray had invested heavily in the site and not just the $2.8 million it paid in 2022 to acquire the 3.2-acre property, according to county records.
Two sources who spoke to NEOtrans on the condition of anonymity said Gray had advanced plans to build a 40,000-square-foot, $12 million building. It also sought to construct a large antenna that required getting lots of costly regulatory approvals. Those and other high costs ultimately doomed the project, the sources said.
NEOtrans left a voicemail for Gray Vice President and General Manager Matt Moran seeking more information and comment on the potential move. We also sought more information on where it might move, if not to its property on Rockside Woods. Independence Economic Development Director Jessica Hyser did not respond to a NEOtrans e-mail seeking information on whether another location in Independence might be considered.
Set on the southwest corner of the two towers of Reserve Square are Gray Media Group’s local offices and studios for WOIO, WUAB and WTCL. But the company’s dissatisfaction with the property caused it to look for a new home (Google).
While it isn’t known where Gray will land, it is unlikely they will remain on the ground floor of one of Reserve Square’s pair of 23-story apartment towers. The sources said Gray employees and management are unhappy with the conditions there, including the presence of insects, rodents and other pests onsite.
Employees working late have also reportedly expressed concerns about their safety in the immediate area. In a recent incident, a shooting occurred right outside Gray’s studios just three weeks ago. Reserve Square is owned and managed by Willoughby-based K&D Group.
“The statements made regarding Channel 19’s supposed pest issues are completely unfounded and inaccurate; we have zero pest issues within Channel 19’s space,” said Douglas Price IV, vice president of K&D Group.
“As far as a shooting outside of our property goes, we’re unaware of this event and would like to know more specific information,” he added. “We’re very present and active in management and oversight of all issues at our properties and take great offense to inaccurate statements being made about a space within our portfolio.”
Those same two real estate sources, plus a third, have told NEOtrans that AmTrust Financial of New York isn’t likely to stay downtown after its lease expires at 800 Superior Ave. on Dec. 31, 2026. They say the insurance company is seriously considering relocating its 600-plus employees from the 23-story office building owned by an affiliate of suburban Chicago-based Allstate Corp.
Location of Gray Media Group’s property on Rockside Woods Boulevard in suburban Independence (MyPlace.CuyahogaCounty,Gov).
They said AmTrust is considering locations in Cleveland’s suburbs to lease a smaller office space. Many of AmTrust’s employees work remotely or hybrid, so the company won’t need the 150,000 square feet it leases now. But AmTrust officials say they haven’t decided anything.
“AmTrust has a long history in Cleveland as a significant employer,” said a company spokesman. “We are currently occupying 800 Superior under a long-term lease and have no current plans to change our location.”
In May, an AmTrust official said the company had no plans of conducting a site search. But he also said “AmTrust has a long history as a company and employer in Cleveland and are committed to maintaining our presence in the metro area.”
The 587,118-square-foot 800 Superior building and its associated 328-space parking garage off Vincent Avenue, are listed for sale with brokerage CBRE. The parking is in poor condition and closed to vehicles.
In addition to AmTrust, National General Insurance of Charlotte also occupies about about 150,000 square feet of offices space and its lease is also due to expire on Dec. 31, 2026, according to a sale offering summary e-mailed to potential buyers by CBRE.
AmTrust Financial’s offices are in 800 Superior, a 23-story tower of the same address along downtown’s East 9th Street canyon of mid- to late-20th century office buildings, some of which have been converted to residential and hotel uses (Google).
National General is owned by Allstate Corp. Principals of AmTrust acquired the property through 800 Superior LLC in 2011 but later sold the limited liability corporation. Built in 1969 by Jacobs Real Estate Services for Central National Bank, the 305-foot-tall tower is currently 77 percent leased.
“Current ownership expects to terminate its current lease and vacate the premises upon completion of a sale, but is willing to stay through the end of its lease term in order to facilitate a transaction if it drives incremental sale proceeds,” said CBRE in an e-mail.
National General has not stated where it would relocate. In 2011, AmTrust consolidated more than 1,000 jobs from Cleveland’s suburbs and North Carolina to 800 Superior and later acquired other insurance firms, moving their jobs to the tower as well. It was considered quite jobs coup for Downtown Cleveland at the time.
NEOtrans reported in March that the building’s garage, located at East 9th and Vincent Avenue, was closed due to its poor structural condition. CBRE said the garage needs to be repaired or torn down and re-built with a new podium-style garage to develop a second building or to sell the air rights.
The condition of the office building’s façade has been an issue, too. Exterior decay of the garage and office building warranted temporary repairs last year. Cleveland-based Osborn Engineering and Broadview Heights-based Ram Construction Services of Cleveland LLC were hired by CBRE Group to make $356,800 worth of repairs to shore up conditions with the garage and office tower.
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