One of Downtown Cleveland’s most famous buildings is in limbo after buyer interest in the Rockefeller Building has faded due to repairs needed to the structure and a softening residential market (NEOtrans). CLICK IMAGES TO ENLARGE THEM.
Buyer interest in downtown building fades
The future of the Rockefeller Building, 614 W. Superior Ave., one of Downtown Cleveland’s most famous and historic buildings, is in limbo after all of its existing interested buyers reportedly walked away in recent weeks. Interest in the property has faded despite $70 million in public incentives that have been amassed and remain available to redevelop the property.
As recently as a few months ago, there was a great deal of interest in the Gilded Age structure, constructed in 1903-10 by Cleveland native John D. Rockefeller, and its surrounding properties in the Warehouse District. Of multiple potential suitors, one unidentified investor stepped forward and was pursuing a deal.
Rico Pietro, a principal at Cushman & Wakefield – CRESCO Real Estate brokerage in Independence, told NEOtrans in December that a Purchase Sale Agreement (PSA) for the 17-story building and its nearly 2 acres of land was on track to be finalized in the opening days of this year.
But nothing happened and the silence surrounding the site since then was noticeable. The rumor mill suggested that investor interest in the Rockefeller Building had evaporated.
Ornate brass furnishings adorned much of the historic Rockefeller Building in 2020 shortly before its sale by Benjamin Cappadora, owner of the property since 1967 (NEOtrans).
“We are still trying to figure out what the right development is for this site as well as who the right developer is,” Pietro told NEOtrans today.
Part of the problem is the cost of repairing the former office building before it can be renovated and repurposed, possibly with residential, hospitality and/or retail uses. Multiple reports show that the prior owner didn’t adequately secure the building, allowing vandals and thieves to enter it.
The trespassers damaged and stole ithe Rockefeller’s ornate, Gilded Age brass furnishings and decorative metal trim. Windows were also broken, letting in the Cleveland winter, and the basement was flooded when metal pipes were stolen. The building is listed on the National Register of Historic Places.
BridgeInvest, a Miami-based lender, took over the property in July after Rockefeller Building Associates defaulted on its obligations. Public records show BridgeInvest has spent several thousand dollars to secure the structure. But there have been additional trespassing incidents since.
Looking down from the top or 17th floor of the Rockefeller Building, its ornate railings, decorative trim and marble walls are visible. Unfortunately, thieves have stolen these and other salvageable items from throughout the building (NEOtrans).
Another factor is a softening residential market in Downtown Cleveland. While population downtown grew 12 percent from 2019 to 2023 to 21,000, it has flattened since. Despite that, more inventory has been added, causing occupancy to fall to 86 percent from the low- to mid-90s several years earlier.
Downtown Cleveland Inc. (DCI) called it a “reset” in the market in its latest State of Downtown report. NEOtrans reached out to DCI President & CEO Michael Deemer seeking comment on what could be done to boost interest in the Rockefeller Building but didn’t respond prior to publication of this article.
Terry Coyne, executive vice chairman in Newmark’s Cleveland office, confirmed buyer interest in the Rockefeller has faded. On social media, he recently expressed concern that if something isn’t done to safeguard and repair the property, the Rockefeller Building could be demolished.
“The city needs to take it over and spend money to protect it from further decay,” Coyne told NEOtrans.
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