Additional financing was approved today for the $200+ million dollar Cleveland Clinic Global Peak Performance Center to be built over a restored Eagle Avenue ramp, extending up from this intersection of West 3rd Street to Downtown Cleveland’s Gateway District (Populous). CLICK IMAGES TO ENLARGE THEM.
Revitalization of downtown riverfront, housing included
The Port of Cleveland today approved the issuance of more than $171 million in bonds and notes for four transformative projects, including the pivotal first new development in Bedrock’s Riverfront project along the Cuyahoga River and a major affordable housing renovation in downtown Cleveland, among other strategic initiatives.
“The projects approved today are a good showcase of the port’s ability to add value to a diverse group of projects during a time when projects are a challenge to get done,” said Rhonda Winslow, the port’s vice President of development finance, in a written statement.
Today’s financing awards bring the total development bonds approved by the Cleveland-Cuyahoga County Port Authority in 2024 to approximately $753 million. Port officials said it underscores the authority’s pivotal role in advancing the economic landscape of Northeast Ohio and supporting Property Assessed Clean Energy (PACE) funded projects.
“Today’s approvals assist in moving forward a riverfront development to bring Cleveland closer to an 18-hour 15-minute neighborhood, give non-profits access to the tax-exempt bond market, provide PACE financing through collaboration with another port, and rehabilitate a low-income property in downtown, Cleveland,” Winslow added.
Location of the Cleveland Clinic Global Peak Performance Center as well as infrastructure and public realm improvements associated with this major riverfront project which is due to be completed in 2027 (Populous).
“The financing projects approved by the board throughout 2024 highlight the critical role our agency plays in Northeast Ohio’s development,” said J. Stefan Holmes, chair of the port’s board. “I’m proud of what we have been able to accomplish this year.”
The Cleveland Clinic Global Peak Performance Center, at West 3rd Street and Eagle Avenue, was among the projects financed by the port today. Up to $50 million in taxable lease revenue bonds will help fund this new, 153,247-square-foot athletic training and medical facility. The project saw its groundbreaking ceremony held Oct. 14.
Developed by Bedrock Real Estate, this project represents an investment of more than $200 million. And it is sought as a cornerstone of Bedrock’s 20-year, $3.5 billion Riverfront development in Downtown Cleveland that envisions new housing, offices, hotels and entertainment venues.
The Global Peak Performance Center will accommodate a new training facility for the Cleveland Cavaliers basketball team, returning their practices to downtown Cleveland from suburban Independence for the first time since 2009. Plus the Cleveland Clinic will offer its sports health and wellness programs here. Construction work is due to be completed in 2027.
Downtown Cleveland’s Section 8-subsidized Allerton Apartments, originally built as a luxury residential hotel in 1926, will be renovated for $60 million. It is just one of several projects for which the Port of Cleveland approved financing today (Google).
Next, up to $34 million in tax-exempt multifamily housing revenue notes were issued by the port authority’s board to support a $60 million overhaul of the Allerton Apartments, 1802 E. 13th St., in Downtown Cleveland. It was built in 1926 as a luxury residential hotel by the Allerton Company which also built hotels in that same decade in Chicago, New York City and Detroit.
The 15-story Allerton was turned into 199 subsidized apartments in 1971 and renamed the Parkview Apartments by an affiliate of its owner Parkview Housing LLC of Beachwood. It was sold in 2007 to another affiliate of Parkview, Allerton Apartments LP, public records show.
Although county records show the building was renovated most recently in 2008, the U.S. Department of Housing and Urban Development has been responding to complaints of potential building and health code violations for at least five years. Complaints included open ceilings, open walls, chronically broken elevators, exposed electrical wiring, unsecured windows and exposure to lead paint poisoning.
The port’s financing will allow the renovations to move forward on this 146,094-square-foot building, located where the Nine-Twelve District meets the northern portion of Playhouse Square’s theater district. Officials at Playhouse Square are seeking to redevelop the nearby Greyhound bus station and other properties in the northern end of the district.
The Medical Center Company has more than 125,000 square feet of heating and cooling facilities that serve growing customers in the University Circle-area. So the plant will be expanded to serve them (Google).
Work will also get underway on expanding the Medical Center Co., 2250 Circle Dr., in Cleveland’s University Circle. Up to $80 million in variable-rate revenue bonds will refinance existing bonds and fund the expansion of steam and chilled water services to University Circle non-profits, primarily Case Western Reserve University and University Hospitals’ Case Medical Center.
This expansion will enhance operational efficiency and support future growth in this essential district, port officials said. The Medical Center also serves the Cleveland Museum of Art, Church of the Covenant, Musical Arts Association (Severance Hall), Cleveland Botanical Garden, Cleveland Medical Library Association and the Cleveland Institute of Art.
Lastly, the Port of Cleveland will help fund repairs to a project far outside of Greater Cleveland. Up to $7.4 million in PACE bonds will support $12.3 million in repairs to the Central Mutual Insurance Co.’s historic headquarters in Van Wert, located in Northwest Ohio.
This project, in partnership with the Toledo-Lucas County Port Authority, will strengthen infrastructure for a major property and casualty insurer serving 24 states, and helps to geographically diversify the port’s bond fund portfolio. Central Mutual also has offices in Columbus, Ohio, Salt Lake City, UT, plus the suburbs of Atlanta, Boston and Dallas.
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