17 adviser - Crain`s Cleveland Business
Transcription
17 adviser - Crain`s Cleveland Business
CCLB 02-05-07 A 15 CCLB 2/1/2007 2:32 PM Page 1 CRAIN’S CLEVELAND BUSINESS FEBRUARY 5-11, 2007 INSIDE 17 ADVISER: KEEP AN EYE ON PROPERTY REAPPRAISALS 15 REAL ESTATE COMMERCIAL&INDUSTRIAL S H O R T TA K E S “We spend half our day laughing and half working. If we’re not joking around, one of us is sick.” ■ SWITCHING TEAMS: Robert L. Stark Enterprises Inc. has made a strategic hire. Cyndie O’Bryon, a 20-year vet of Northeast Ohio office leasing, has joined the developer as vice president of leasing. She made the move as her former colleagues at Trammell Crow Co.’s Cleveland office joined CB Richard Ellis in a national merger of the companies. Robert Stark, CEO of the Woodmere Village-based realty development company, said he wanted to bolster his office leasing capability because of the addition of office space at Crocker Park and his long-planned mixed-used development downtown, which calls for 1 million square feet of office space. “She’s seasoned, highly regarded and knows everybody” in the office side of the business, said Mr. Stark, who primarily has focused in the past on shopping centers. For her part, Ms. O’Bryon said the move to Stark rather than CB was “completely coincidental. Being part of what (Mr. Stark) is trying to do is a dream come true.” – Chris Semarjian, real estate developer, on working with Stuart Lichter MARC GOLUB Real estate developer Chris Semarjian (pictured above at Akron’s Lockheed Martin complex) and his partner, Stuart Lichter, plan to convert the shuttered Ford Motor Co. van assembly plant in Lorain to a multitenant industrial park. DIVIDE&CONQUER Real estate duo forges ahead with plans to parcel Ford plant By STAN BULLARD [email protected] converted a dozen Ohio properties to multitenant use since 1998, some 15 million square feet of industrial property. hen Los Angeles real The Ohio properties are part of a estate developer Stuart portfolio of 60 million square feet of Lichter and his Ohio industrial, office and movie studio partner, Chris Semarjian, properties that Mr. Lichter’s Los Angelestrooped into a Dec. 20 press conference based Industrial Realty Group owns behind Lorain Mayor Craig Foltin, Mr. between New Jersey and California. Semarjian said he gulped when he saw With that experience behind them, it dozens of television, radio and newslikely won’t take the two long to digest paper reporters crowding the room. Ford’s Lorain plant because the pair “I thought, ‘My God,’” Mr. Semarjian has a well-honed strategy for tackling said. “I’m not used to this. This must be such complexes. really important to the community.” PHOTO PROVIDED And then they can move on to satisfyImportant, indeed. Through IRG Through IRG Lorain LLC, Chris SemarLorain LLC, the two longtime partners in jian and Stuart Lichter purchased the ing their even bigger appetite for more December purchased the shuttered Ford closed Ford Motor Co. van assembly deals. Mr. Semarjian said he and Mr. Lichter Motor Co. van assembly plant in Lorain. plant in Lorain. are working on “another monster deal” They plan to subdivide the supersized 4 millionin Northeast Ohio, one of four industrial properties the square-foot plant on 220 acres into a multitenant duo has under contract. Neither man would disclose industrial park. W They both know the process well. Together, they have See DIVIDE Page 20 ■ ON THE MARKET: The Northeast Ohio retreat by Tops not only threw empty stores on the market, but also a huge empty warehouse in Maple Heights. CB Richard Ellis reports it landed the listing for the former C&S Wholesale Grocers Inc. warehouse at 17000 Rockside Road, which served Tops stores in the region. No asking price is set to buy or lease the 700,000-square-foot warehouse. The building includes a 25,000-square-foot refrigerated area that is a whopping 38 feet tall. Keene, N.H.-based C&S shut the warehouse Dec. 8, when Tops shut down. Howard Lichtig, a CB vice president, is working on the listing with a CB broker from Boston. ■ SUPPLY AND DEMAND: According to a report released last week from Colliers International, the fourth quarter of 2006 was a strong one for the office market nationwide, with demand surpassing expectations. Fourth quarter office vacancies measured 12.55% versus 13.59% during the year-ago period. As such, downtown rents increased, reaching a national average of $41.01 per square foot. In comparison, downtown rents in Cleveland averaged $20.31 per square foot, according to the Colliers report. SNAPSHOT ENVIRONMENTALLY FRIENDLY According to a study titled, “Green Perspective from Corporate America,” more corporations are placing value on green buildings. 40% consider green building to be a high priority in their organization. 60% agree that green building would lower their operating costs. 43% view green building as part of their company’s growth strategy. Source: Siemens Building Technologies, Siemens USA study CCLB 02-05-07 A 16 CCLB 2/1/2007 10:28 AM Page 1 16 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 5-11, 2007 REAL ESTATE Galleria courts weddings, events to aid comeback By STAN BULLARD [email protected] W ithin the past year, events as varied as a Golden Gloves bout and a reception for Bishop Richard E. Lennon of the Catholic Diocese of Cleveland have played out under the glass-topped roof of the Galleria, next to the Tower at Erieview office building. Art galleries occupy the key East Ninth Street end of the Galleria, and a mélange of nearly 40 retail, service and office tenants fill some of the storefronts. However, empty stores still line the two-story mall once hailed as part of downtown Cleveland’s comeback when it opened in 1988. Although Werner Minshall, CEO of Bethesda, Md.-based Minshall Stewart Properties Co., will not disclose the Galleria’s vacancy figure, he did report the adjoining Tower at Erieview office building is 80% occupied. Minshall Stewart Properties leads the Erieview Land Group investor group, which owns the 40-story office tower and attached mall. He is frank, however, in describing the situation at the retail portion of the nearly 900,000-square-foot complex, which is comprised of the Galleria and Tower at Erieview. “It’s not as great as it once was,” Mr. Minshall said. “It’s not the disaster that it was.” Mr. Minshall’s company has focused on resurrecting the Galleria since purchasing the complex in 2002 from Cigna Corp. of Philadelphia. The Richard E. Jacobs Group, which built the Galleria next to the Tower at Erieview, had given the lender the keys to the complex the prior year. “From an economic point of view, we’ve gone from a complete disaster to a break-even point last year,” Mr. Minshall said of the Galleria portion of the complex. “This year, we hope to make a little. We see it as money we don’t have to spend.” Current events The goal with the Galleria, he said, is “to keep the place interesting and provide some things to surprise our office tenants. You’ve got to see that place as (the building’s) lobby.” And what a lobby it is. Brian Bower, Minshall Stewart senior vice president of operations, estimates more than 8,000 people walk through Galleria every day. Mr. Minshall said since he has owned the building, he has had to contend with unfounded rumors that the Galleria might be shut down or be razed. So, he said, the management decided it just had to prove to the community that the Galleria is here to stay, get as many people to visit it as possible and hope to start collecting better rents in the future. Along the way, the realty operator realized it could reap some cash by renting out the mall in the evening and on weekends, extending beyond the types of events typical for a mall. A key part of the transformation came in December 2005 when Vicky Poole, Galleria marketing director, sat in the building’s round food court and looked skyward. She wondered how she could emphasize the view of the city and the sky and broaden the room’s appeal. Her answer: She persuaded Mr. Minshall to install a huge curtain that swings around the food court during evening and weekend FIND THE PEOPLE WHO WANT TO FIND YOU. START YOUR NEXT SUCCESS STORY BY ADVERTISING WITH CLEVELAND.COM AND THE PLAIN DEALER. You’ll reach home buyers and sellers when they’re beginning the real estate process. In other words, when they’re looking for you. TO ADVERTISE CALL 216-515-1180 OR EMAIL [email protected] The Best Local Real Estate in print and online events when eateries are closed. “The difference is huge,” Ms. Poole said. “It creates a huge room in the round. It gave us a room that emphasized the ambiance of downtown. It’s a room for a sit-down dinner.” Or add a bandstand and it is a theater in the round. Last year, the Galleria hosted 38 events compared with four the prior year. This year, Ms. Poole expects to host even more. The Galleria has been used for two weddings, a bar mitzvah and large fundraisers for charitable groups. The center can accommodate 1,500 people. The food court converts into a dining room for 400 people. For smaller groups, the center rents out two empty storefronts, such as the former Limited Inc. store. Tim Donovan, who plans the popular Scrooge’s Night Out party and fundraiser as director of the Ohio Canal Corridor nonprofit, said the group wound up at the Galleria because it could accommodate a large event such as his, which drew 1,200 people last December. “It gives you a location in the heart of the business sector,” said Mr. Donovan, adding that the Galleria management is accommodating. “A lot of people aren’t comfortable going to the fringes of downtown for a more unique setting. The Galleria also allows people to leave their coat in the car if they park in the underground garage and take the elevator upstairs.” Chasing success The make-do strategy and emphasis on the arts to give the Galleria panache came slowly to the center’s operators. Originally, Mr. Minshall wanted to restore the retail fabric. Then there was an emphasis on locally produced food, but Mr. Minshall said most such operators prefer home-based or neighborhood storefront locations. “We chased a lot of rabbits down the wrong hole,” he said. But Mr. Minshall and his staff keep chasing. ■ CCLB 02-05-07 A 17 CCLB 2/1/2007 3:39 PM Page 1 FEBRUARY 5-11, 2007 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 17 REAL ESTATE Stay vigilant to ensure fair property valuations P ay attention, Northeast Ohio property taxpayers: County auditors in Cuyahoga, Lake, Portage, Stark and Lorain counties have reappraised taxable values for commercial and industrial properties within their districts. The reappraisal typically will result in an increase in tax obligations. The tax obligations, referred to as ad valorem taxes in Ohio, are levied against the property according to its value. Pursuant to state statute, county auditors, using the best information available, are required every six years to reappraise each parcel of real property within their district. This is followed by a statistical update in the third year after the reappraisal. Usually, a recent arm’s-length sale of a parcel of real estate affords the auditor with the best evidence of value, but this type of evidence often is not available. Therefore, auditors often rely on appraisals, market data and actual cost, income and expense information provided by taxpayers to determine values. ■ Trends in assessments: As a result of this most recent reappraisal for tax year 2006 (of which first half tax payments are due in January or February 2007), property values have increased. Specifically, in Cuyahoga County commercial/industrial property values have increased 6.1%; in Portage County, the increase is 8.62% for commercial and 9.5% for industrial; in Lake County, the commercial/ industrial increase is 9%; in Stark County, the commercial/industrial increase is 10.6%; and in Lorain County, the increase is 5.65% for commercial and 6.97% for industrial. In comparison, the percentage increase in property values after the 2000 reappraisal was 13.3% in Cuyahoga; 6.61% in Portage; 8% in Lake; and 13.4% in Stark. It is interesting to compare the auditors’ assessments as an indication of the strength of the real estate market compared to actual industry figures. For example, in Cuyahoga County, the overall increase in commercial/ industrial values for 2006 was half of the increase that was seen in 2000. This is consistent with a report prepared by CB Richard Ellis on the Cleveland industrial market that showed vacancy rates increasing while lease rates remained relatively stagnant from 2002 through 2005. ■ Costs to taxpayers: Historically, real property taxes have been the largest single source of income for local government programs and services. For example, a $50,000 obligation for an industrial warehouse taxpayer in Cuyahoga County’s Solon is allocated between several entities. The Solon School District receives $32,500 or 65%; the City of Solon, $3,000 or 6%; the Cuyahoga County Public Library, $1,500 or 3%; and Cuyahoga County, $13,000 or 26%. However, of concern to property owners and tenants responsible for tax payments is that real property taxes generally have a significant downward effect on investment returns or profits. It is imperative for taxpayers to review the reappraised values and determine if the values as determined by the auditors are fair and lawful. This review should include a determination of whether the industrial or commercial real property is overvalued because the reappraisal did not adequately reflect changing market conditions; changing economic conditions; actual vacancy or other structural problems associated with the property; or actual reduction in income attributed to the property. Taxpayers should review the information utilized by the auditors in performing the reappraisal and to verify the accuracy of the property information. Some information can be obtained on auditors’ websites. ROBERTDANZINGER ADVISER ■ Contesting the assessments: Most often, county auditors perform an excellent job to ensure that properties are assessed fairly. Notwithstanding, the auditors may not always possess sufficient or accurate information regarding properties, which may result in the determination of value that is unfair. If a taxpayer concludes the new assessment is too high resulting in an unfair tax obligation, then Ohio law gives the taxpayer an opportunity to contest the assessment. Initially, a complaint must be filed with the auditor in the county in which the property is located. This complaint must be filed by no later than March 31. The Ohio Supreme Court has held that in many circumstances it is the unauthorized practice of law to prepare and file a tax complaint. Prudence requires contacting an Ohio licensed attorney prior to filing a complaint. Tax assessments should be carefully reviewed to ensure the resulting tax obligations are fair and that the property is not being burdened with an unjust tax obligation. ■ Mr. Danzinger is a partner with Sleggs, Danzinger & Gill Co. LPA. He can be reached at (216) 771-8990 or [email protected]. CCLB 02-05-07 A 18 CCLB 2/1/2007 1:21 PM Page 1 18 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 5-11, 2007 REAL ESTATE PLACESOFNOTE A look at Northeast Ohio’s interesting spaces Twist Creative Inc. By SHERRY GAVANDITTI [email protected] U niversity Heights residents Michael and Connie Ozan are finding creative stimulation by running their design firm from an old Ohio City flophouse used in the late 1800s. Once used to house weary travelers, the building at 1985 W. 28th St. and Lorain Avenue now is home to Twist Creative Inc., founded in 1997. The firm moved into the second floor of the more than 100-year-old building in 2003. And since then, Twist has become part of a commercial push for the Ohio City area, with the designers making their mark — floor by floor. In 2005, Twist expanded into the building’s third floor, and last year the Ozans took over the fourth floor. While there is nothing unique about what’s been done to the Ozans’ work space, the couple is far from alone in their attraction to Ohio City, according to Joseph C. Mazzola, executive director at Ohio City Near West Development Corp., a Cleveland nonprofit that oversees community development activities in Ohio City. He said businesses are beginning to see the economic, architectural Twist Creative’s lower-level conference room features architectural details like bay windows. The graphic design firm is housed in a West 28th Street flophouse from the 1800s. MARC GOLUB CREW CREW Cleveland is the association of choice for successful women in the commercial real estate industry. Commercial Real Estate Women, Inc. of Cleveland Join us on Thursday, February 15, 2007 for our monthly luncheon with featured speaker Jane Campbell, Former Mayor of Cleveland. Go to www.crewcleveland.org Interested? for more information and Callregistration. 216-???-???? and cultural advantages of the area, with roughly 10 to 15 businesses opening annually. In the Twist building, three other businesses are at street level. “Just 10 years ago, the area was in really rough shape,” he said. “If you look at West 25th Street now, I don’t know of another commercial corridor that has gone so far down and come back up like it has.” The Twist Creative building and Ohio City are authentic Cleveland experiences, according to Mr. Ozan. “Being a graphic design firm, we wanted an older space to work with,” he said. “We love the bay windows and the banister and the old staircase going up to the second floor and the old brick.” Mr. Ozan is Twist’s president and creative director, and Mrs. Ozan is design director and founder of the company, which employs four designers and an administrative assistant. They’ve been married for eight years. So far, the Ozans have spent more than $30,000 in renovations to make the 2,500-square-foot space uniquely theirs, with an artistic, modernized renaissance movement present throughout. “We hired an interior designer, then proceeded to do things like put in old columns from other houses in the area and an old window as a divider space. On the second floor, everything was done by hand,” Mrs. Ozan said. Twist just recently acquired the fourth floor, which is 400 square feet overlooking the roof. Plans call for spending an additional $40,000 on renovations to the third and fourth floors. Mr. Ozan said work might involve using that space as a library or private meeting and relaxation space, perhaps a deck for cookouts and summer meetings with clients. The Ozans say they are so happy with Ohio City that they plan to restrict future staff growth to a maximum of 15 so the business will not have to relocate. “What we really liked about Ohio City is the little-city feel. For a creative firm it is a great place to be energized, get out of your office and walk some place,” Mrs. Ozan said. According to Mr. Mazzola, his organization has been taking inventory of vacant buildings in a step toward economically reviving Cleveland’s oldest and most diverse neighborhoods. “What that area has is beyond potential,” he said. Ohio City business owners are being encouraged with grants, low-cost loans and reimbursements of up to $25,000 for building and property enhancements. “There has been a lot of reinvestment and we’re trying to knit it together by devoting significant organizational resources to the planning and the development of Lorain Avenue in Ohio City,” Mr. Mazzola said. “It’s part of a regional strategy with the Detroit Shoreway Community Development Organization and Stockyards Redevelopment. Let’s not just let investments happen in isolation, let’s have the three groups work together.” ■ 101 years of business lending experience Commercial Real Estate Financing We finance all types of commercial real estate—office buildings, retail centers, warehouses, apartments and land developments. Call today for our low rates Darlene Goldbach Senior Vice President 216-520-1964 Subject to credit approval. CCLB 02-05-07 A 19 CCLB 2/1/2007 10:50 AM Page 1 FEBRUARY 5-11, 2007 CRAIN’S CLEVELAND BUSINESS 19 WWW.CRAINSCLEVELAND.COM REAL ESTATE BREAKING NEW GROUND? Modular walls move office space design into future By CHRISSY KADLECK [email protected] W hen the 32 employees of the Convention and Visitors Bureau of Greater Cleveland move into their new office on May 18, they will find work spaces designed with glass moveable walls. Paul Johanni, vice president of constructive solutions at Cleveland’s S. Rose Co., which specializes in furniture for businesses, believes that easily installed and reconfigured walls like those being used by the CVB in the former Higbee’s building are the future in office design. He said he has noticed over the last two years an overall willingness by more companies to consider this design option. “We have a couple of businesses here locally that have just made major investments into the philosophy that today I could have four offices and 10 work stations, and tomorrow I could have 20 work stations in the same place,” said Mr. Johanni, whose company sells two modular wall product lines and recently remodeled its own 25,000-square-foot, four-story building using the moveable walls. “So because there is not one businessperson out there that can say in three years he knows exactly where you are going to be, these modular walls are helping businesses create environments that will meet those future needs, whatever they may be,” he said. As for the CVB, the organization elected for the modular method for the sake of design. “We are using movable walls to maintain the historic aspects of the Higbee’s building so that you can have clear sight lines across the whole first floor we will be occupying,” said Tamera Brown, the CVB’s vice president of marketing. “When you walk into the front door you can see back as far as possible and the moveable walls gave us that option,” Ms. Brown said of the benefits of using movable walls in the 15,000-square-foot space. “With 28-foot ceilings, building floor-to-ceiling walls would have been difficult anyway.” A tipping point with modular walls seems to have occurred in the last 12 to 15 months, according to Bill Eberhard, principal of Oliver Design Group in Cleveland. That’s when, for the first time, he said he and his colleagues priced three different manufacturers on glass systems that cost less than conven- tional construction. According to Mr. Eberhard, basic drywall partitions of normal height cost $50 a lineal foot whereas modular walls typically carry a price tag of $300 to $350 a lineal foot in a normal height. The price gap closes when you look at glass systems where a conventional glass wall is $300 per lineal foot compared to a movable glass wall that costs $350 to $450. “On the front end, it may appear that modular walls are significantly more than drywall because people like to do lineal foot comparisons,” Mr. Johanni said. “But with modular walls the painting, finishes, electrical, bases are included in the price, and if you have doors, the hardware, trim, all of that is included. So you can’t use just a straight lineal foot number because there is so much included in the modular product that is not included in drywall.” The Oliver Group’s Mr. Eberhard pointed out that if a company does move, they can take every wall with them. The walls can clip into a conventional ceiling system and have gripper feet at the bottom that keep them secure and stable enough to put in doors that swing or slide, Mr. Eberhard said. He said another reason this method is becoming more relevant is that the movable walls are now considered personal property under changed IRS rules. As such, the depreciation period on the walls has been significantly reduced. “Your capital cost goes up (when you invest in the products), but your tax advantages explode,” he said. Tom West, director of office services at Cresco Real Estate, said while these products are not new, he too has noticed an accelerated interest among his clients to incorporate modular walls into their office space. “Businesses who do a substantial amount of reconfiguration and who want some flexibility prefer this kind of system because of the reduced cost, and frankly it can be written off in a much shorter period of time than typical improvements,” said Mr. West, a 25-year veteran of the real estate industry. “Many, many tenants move because they don’t want to go through the reconfiguration of their space,” Mr. West said. “It’s dusty, dirty, noisy and disruptive and with this kind of system you don’t have that kind of aggravation. It can literally be done relatively quietly while people are working in the immediate area.” ■ BUILD ON OUR EXPERIENCE Whether you’re developing a multimillion dollar real estate project or negotiating a commercial lease for retail space, our team of Real Estate attorneys can guide you through the most difficult terrain. We have experience in every aspect of real estate law, including development, real estate finance, zoning, and land use. Our attorneys will work closely with you to proactively identify issues and provide real solutions. To learn more about Roetzel & Andress, visit our website at www.ralaw.com. 200 attorneys. 40 areas of practice. 10 offices. One address: www.ralaw.com. PA R T N E R I N G F O R S U C C E S S For additional information, please contact Real Estate co-chairs: Brian J. Moore [email protected] 330.849.6616 Michael J. Haas [email protected] 216.615.4837 AKRON CINCINNATI CLEVELAND COLUMBUS FORT MYERS NAPLES ORLANDO TALLAHASSEE TOLEDO WASHINGTON, D.C. RENEW ONLINE NOW! www.CrainsCleveland.com/renew Real Growth Is Never A Solo Act Vorys’ experienced attorneys regularly team with developers, lenders, contractors, investors and public agencies in the full range of real estate development matters. Vorys was recognized as a Leading Firm by Chambers and Partners in real estate and zoning/land use. Named a Cross Practice Powerhouse Law Firm by Fortune 1000 companies in the BTI Consulting Survey — Vorys was one of only 25 law firms that earned this national distinction. Let the Vorys Real Estate Group provide you with the solutions and strategies you need to grow your business. For more information, contact Teresa Beasley at 216.479.6160 or Anthony Calabrese at 216.479.6139. 1375 East Ninth Street 2100 One Cleveland Center Cleveland, Ohio 44114 216.479.6100 www.vssp.com Akron, OH Cleveland, OH Cincinnati, OH Columbus, OH Alexandria, VA Washington, DC CCLB 02-05-07 A 20 CCLB 2/1/2007 2:33 PM Page 1 20 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 5-11, 2007 REAL ESTATE Divide: Duo tackled Akron’s Lockheed complex in 2005 continued from PAGE 15 what properties they are eyeing. Mr. Lichter’s company has bought another 6 million square feet around the country since closing on Ford, Mr. Lichter said. Opposites attract Congratulations to our 2006 Top Achievers! Don Bain, Jr. George Elliott Chris Livingston A.J. Magner Rob Roe And special thanks to... Real Estate Advisors 216.861.7171 …Our clients who made it possible! All Foils The Hartford IMG Worldwide Initial Tropical Plants OfficeMax Owens Corning Patterson Dental PepsiCo Quest International St. Paul Travelers Real Estate Advisors 216.861.7171 Media glare aside, colleagues say Mr. Lichter and Mr. Semarjian shun the limelight and are a study in opposites. Mr. Lichter is quiet and low key. Lorain’s Mayor Foltin said he was surprised that the real estate guru — who flew into the Lorain County airport on a recently purchased private jet — didn’t wear $500 suits, instead opting for the more casual look of khaki pants and a sweater. “He would fit in at the Slovak Home in Lorain,” the mayor said. While Mr. Lichter’s name is now widely recognized, it was a different story in the 1980s when the littleknown realty investor was a partner in the purchase of Akron’s former B.F. Goodrich headquarters, which became the Canal Place, and the former Caterpillar Inc. plant in Mentor, now the multitenant Liberty Business Park. Terry Coyne, director of Grubb & Ellis Co.’s industrial unit, remembers one recent meeting during which Mr. Lichter tapped on his Macintosh laptop while eight lawyers debated how to structure a deal. Mr. Lichter “looked up and quietly said, ‘I think you should do it this way’ to resolve the problem,” Mr. Coyne said. Conversely, Mr. Semarjian, 42, is “extremely intense and focused,” Mr. Coyne said. Mr. Semarjian’s sentences are short exclamations. He’s always in a hurry. Although Mr. Semarjian helps shepherd a huge realty empire today, he does not even operate out of a stand-alone office. Instead, he occupies a corner office as vice president at the NAI Daus brokerage, located at Enterprise Place in Beachwood. Mr. Semarjian went into the industrial brokerage business two weeks after graduating from Kent State University in 1987. He met Mr. Lichter three years later, when they were introduced by a New Jersey broker who had worked with Mr. Lichter on investments in the Garden State and in acquiring the Caterpillar plant. While Mr. Semarjian learned the realty business in Cleveland, Mr. Lichter’s background is broader. Mr. Lichter worked for the General Services Administration, then as an appraiser at New York Life Insurance Co. in New York. He also worked out troubled commercial loans at Marine Midland Bank before setting out to do his own realty investments in 1971. He founded Industrial Realty Group 30 years ago. Although Mr. Lichter’s Industrial Realty Group operates in 16 states, Mr. Lichter said Ohio is “one of the few states” where he has a statewide partner, which Mr. Lichter credits to Mr. Semarjian’s deal-making ability. That means Mr. Semarjian invests in Ohio properties along with Mr. Lichter and shares in the risks and rewards of ownership. Mr. Semarjian is not a partner in Industrial Realty deals outside Ohio. For his part, Mr. Semarjian laughs when he’s asked how the two became partners. “I sold Stuart more than seven million square feet of property between 1991 and 1998, it was time we became partners. It was costing Stuart too much (in brokerage commissions).” The four deals and 600 jobs the developers imported to Akron surprised even Bob Bowman, deputy mayor of economic development in Akron. “I did not think they’d fill it this fast,” Mr. Bowman said. “It’s been phenomenal.” Although the developers said every property is different, there is one similarity in how they approach each corporate relic. “We cut the hell out of expenses,” Mr. Semarjian said, noting corporations often have to use union labor for jobs such as mowing The most surprising part of IRG Lorain’s plans for the former Ford plant is that the new owners originally planned to tear down nearly 1 million square feet in the center of the 2.5-million-square-foot main assembly building to make the building more marketable. Over the years, Messrs. Lichter and Semarjian have formed a friendship from their business relationship. Today, the two talk about four times daily. Mr. Lichter visits Ohio every two weeks. “We spend half our day laughing and half working,” Mr. Semarjian said. “If we’re not joking around, one of us is sick.” Deal-makers The duo’s most recent big deal in Northeast Ohio before Ford was the purchase in November 2005 of the 2.1-million-square-foot Lockheed Martin Corp. complex at 1210 Massillon Road in Akron. The sale cut overhead for Lockheed Martin’s MS2 unit, which produces maritime systems and sensors, and allowed it to consolidate its 500 jobs at the four-building complex into one structure, which it now leases from the new owners. Just 14 months later, after bringing in four new tenants and investing “significantly” in the complex, Mr. Semarjian said the developers only have 250,000 square feet left to fill in the 1940vintage complex. One tenant there, Charles Rowe, the CEO of Sharon Holdings Corp., remembers that when he was looking for a new site for his company’s Sharon Stairs Co. last year, Mr. Semarjian showed him a property in Orrville, then asked if he had a minute to check out the Lockheed Martin plant. “When I got there, it was, ‘Oh boy,’ nothing pretty,” Mr. Rowe said. “It looked like it had been abandoned 25 years. It was surrounded by barbed wire. (Mr. Semarjian) says, ‘It looks rough now. But this is what I can do with it,’” and outlined his plans. Today, Sharon Stairs’ 200 employees are making steel staircases in 225,000 square feet in the complex, which Mr. Rowe said was selected from dozens of buildings not because it was the least expensive — it wasn’t — but because of the landlord’s willingness to customize the space. He even stops himself short of calling the complex a showplace. grass; the developers do not. Mr. Lichter said to reduce a property’s costs, he focuses on reducing property tax bills from the prior corporate tab, “even though we know it’s painful for the community,” and making improvements to cut energy bills. Ford site’s future For the most part, the two embrace flexibility in planning. It already shows at the old Ford plant. The most surprising part of IRG Lorain’s plans for the former Ford plant is that the new owners originally planned to tear down nearly 1 million square feet in the center of the 2.5-millionsquare-foot main assembly building to make the building more marketable. Mr. Lichter even factored the salvage value of the steel beams in the middle of the building into the economic model the developers prepared for the project. However, Mr. Semarjian said the plan might change; a company that IRG Lorain is wooing to buy 340,000 square feet on the north end of the main building is now entertaining an offer from the property owners to instead lease or buy the building’s center. The developers also have proposals out to another four tenants who will virtually fill the main building if they lease or buy portions, though no deals are signed yet. The developers and Mayor Foltin refused to identify prospective space users at Ford. Other plans include putting up for sale 70 standalone acres for new industrial buildings. More challenging for the developers is a 500,000-square-foot plant to paint vans that Ford built in 2000 and used on a test basis. “I’d have bet the farm that was going to be the first thing to move,” Mr. Semarjian said. “It may be the last.” However, there is one thing sure for Messrs. Lichter and Semarjian: The Ford plant in Lorain may be a big deal, but neither expects it to be their last. ■ CCLB 02-05-07 A 21 CCLB 2/2/2007 3:06 PM Page 1 FEBRUARY 5-11, 2007 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS Study: Suppliers to see how they stack up against companies in Ohio, other regions continued from PAGE 1 representation; budgeting for work force training; and inventory practices. To entice auto suppliers to participate in the confidential study, each company will receive a benchmarking report explaining how it compares with its peers. “The good thing is they don’t have to wait for some magical consultant to ride to the rescue,” Dr. Hill said. Dr. Hill said improving the performance of individual companies should raise the overall competitiveness of Ohio’s auto supply sector. He said planners hope to get at least 100 survey responses, which would give them a good base for their report. Companies interested in participating in the study should visit the web site and apply by Feb. 17. ‘Under pressure’ Dr. Hill said Ohio’s auto suppliers face a critical moment, as domestic automakers such as Ford and General Motors scale down their operations to combat an erosion of sales. At the same time, so-called “new domestics” such as Honda and Toyota are pushing their advantage by increasing production capacity in the United States. “This is an industry under pressure,” Dr. Hill said. And that pressure has big implications for the economy in Ohio, which is one of only a handful of states where auto supply volume is split fairly evenly among Detroit’s Big Three — Ford, GM and DaimlerChrysler — and foreign automakers. Ohio in 2006 produced more than 1.7 million cars, trucks and vans, ranking it second behind Michigan in U.S. vehicle production by state, according to trade publication Ward’s Automotive. More than onethird of that production — 650,000 units — comes from Honda’s two assembly plants in East Liberty and Marysville. Honda helped draft some of the survey questions, Dr. Hill said. CompeteColumbus, a business group that focuses on advancing select industrial clusters in central Ohio, is financing the study privately. MPI Group, a Shaker Heights firm that conducts research on the manufacturing industry, is putting together the report. The study’s cost wasn’t disclosed. John Brandt, MPI’s CEO and founder, said the benchmark study is similar to others the group has conducted regarding auto suppliers in the Midwest and Southeast. When the survey data is compiled, auto suppliers that participated can see how they compare with companies in Ohio and other geographic regions, including the so-called “Southern Auto Corridor,” which includes such states as Alabama, Mississippi and Tennessee. Those states in the last 20 years have been popular with foreign automakers seeking sites for assembly plants. Foreign automakers also are adding capacity in the Midwest. For instance, Honda plans to build a $500 million assembly plant in Greensburg, Ind., and Toyota is considering a major engine plant in Michigan. Jim Samuel, vice president of CompeteColumbus, said as foreign manufactures weigh where to locate such plants, Ohio retains a key advantage in its deep labor pool and strong supplier base. While the target region for the study was Greater Columbus, evaluating auto suppliers statewide, “regardless of whom they support, whether it’s Honda or Ford,” was necessary to better evaluate the industry, Mr. Samuel said. to keep production costs down. The fallout has resulted in numerous bankruptcies of big parts companies such as Delphi Corp. and Toledo-based Dana Corp. “If you said to me (10 years ago) that Delphi and Dana would every declare bankruptcy, I never would have believed it,” Mr. Allen said. Those companies not quick to adapt to the demands of a changing auto industry risk becoming little more than speed bumps to more nimble auto suppliers, Dr. Hill said. Though Northeast Ohio suppliers remain closely tied to Detroit automakers, more are seeking out the Japanese Big Three of Honda, Nissan and Toyota. Magnet is working in concert with TechSolve of Cincinnati — a nonprofit similar to Magnet that provides business services to area companies — to tailor a program to provide “floor services” to help auto suppliers that participate in the study improve their operational processes, whether it’s introducing lean manufacturing concepts or improving inventory cycle rates, Dr. Hill said. ■ has been recapitalized by Bill Burke and The undersigned acted as financial advisor in the recapitalization of Fire-Dex, LLC. For more information, please call (216) 589-0900 or visit www.wesrespartners.com. Cost controls critical Tracy Allen, manager of Ohio’s Development Finance Advisory Council, said he has seen more requests in the last two years for state aid for capital projects from automotive suppliers squeezed by rising materials costs and demand for price cuts from big automakers struggling ON THE WEB Story from www.crainscleveland.com Simbionix wraps up financing for cardiac device Simbionix USA Corp. has completed a $3 million equity round of financing led by Early Stage Partners of Cleveland in December. Early Stage invested just under $1 million in Simbionix, which also is in Cleveland, said Charles MacMillan, chief financial officer of Capital One Partners, the parent company of Early Stage. Simbionix will use the investment to further develop a cardiovascular surgery simulation device for use in training surgeons. The product is scheduled for release this year. Simbionix’s domestic manufacturing partner, Astro Manufacturing & Design of Eastlake, invested in the company, as did investors from Cleveland, Switzerland and Israel. Early Stage invested $1 million in Simbionix as part of a $4 million funding round when the firm moved its headquarters to Cleveland from Israel in April 2002. "«iÊÌ iÊ`ÀÊÌÊ>ÊÜ iÊiÜÊiÛiÊvÊ«iÀÃ>âi`Ê ÃiÀÛViÊLÞÊV>}ÊÕÀÊÀi>ÊiÃÌ>ÌiÊ«ÀviÃÃ>ð 7iÊÀi«ÀiÃiÌÊ ÀÌ i>ÃÌÊ" ½ÃÊ«ÀiiÀÊvwVi LÕ`}] `ÕÃÌÀ> >` à ««} ViÌiÀ ÜiÀà >` ViÀV> Ài> iÃÌ>ÌiÊLÀiÀÃ°Ê Ì>VÌÊÕÀÊ,i>ÊÃÌ>ÌiÊÌÌÀiÞÃÊvÀÊÌ iÊÀi«ÀiÃiÌ>ÌÊÞÕÊ`iÃiÀÛi° < ,]Ê /<,Ê E Ê , Ê°Ê,i`iiÀ]Ê >À>]Ê,i>ÊÃÌ>ÌiÊ*À>VÌViÊÀÕ«ÊÊÀi`iiÀJâi}iÀiÌâ}iÀ°V ÀÃÌ« iÀÊ°Ê-ÕÕ«ÊÊVÃÕÕ«Jâi}iÀiÌâ}iÀ°V Ü>À`Ê°Êi`iÀà ÌÌ]ÊÀ°ÊÊ i`iÀà ÌÌJâi}iÀiÌâ}iÀ°V ivviÀÞÊ°ÊLiÀ}ÊÊLiÀ}Jâi}iÀiÌâ}iÀ°V Ã>Ê°Ê,Ì ÊÊÀÌ Jâi}iÀiÌâ}iÀ°V -VÌÌÊ°Ê ÀVÀÃÃÊÊÃÀVÀÃÃJâi}iÀiÌâ}iÀ°V V >ÃÊ °ÊiÊ->ÌÃÊÊ`iÃ>ÌÃJâi}iÀiÌâ}iÀ°V ÌÌÀiÞÃÊ>ÌÊ>Ü ÜÜÜ°âi}iÀiÌâ}iÀ°V ÓäÓäÊÕÌ}ÌÊÕ`}\Ê ÓxÊÕV`ÊÛiÕi]Ê-ÕÌiÊÓäÓäÊUÊ iÛi>`]Ê" Ê{{££x * i\ÊÓ£ÈÇn£x{ÇäÊUÊ>Ý\ÊÓ£ÈÇn£äÇ£{ *>iÃÛiÊ"vvVi\ £äÊ7iÃÌÊÀiÊ-ÌÀiiÌÊUÊ*>iÃÛi]Ê" Ê{{äÇÇ * i\Ê{{äÎxÓÎääÎÊUÊ>Ý\Ê{{äÎx{ÎÓ 21 CCLB 02-05-07 A 22 CCLB 22 1/31/2007 3:13 PM Page 1 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 5-11, 2007 LARGEST 2006 SBA GUARANTEED LOANS RANKED BY LOAN AMOUNT Name Address Rank Phone 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 ANIMAL CLINIC NORTHVIEW INC. 34910 Center Ridge Road, North Ridgeville 44039 440-327-8282 PMC GAGE INC. 3900 Ben Hur Ave., Willoughby 44094 440-953-3300 SHAHAN INC. 30560 Lakeland Blvd., Wickliffe 44136 NA MANUFACTURER'S HOLDING INC. 186 Commerce Drive, LaGrange 44050 440-355-4200 J & M MACHINE INC. 1234 High St., Fairport Harbor 44077 440-357-1234 LIQUID RESOURCES OF OHIO LLC 909 W. Smith Road, Medina 44256 330-721-7900 PALATINE CORP. 30760 Center Ridge Road, Westlake 44145 440-317-0582 6640 ENGLE ROAD LLC 9841 York Alpha Dr., Unit 1, North Royalton 44133 440-625-3625 BLACKJACK DEVELOPMENT CO. 1856 Pearl Road, Brunswick 44212 330-721-8000 PREMIER PARKWAY PROPERTIES LLC 34600 Lakeland Blvd., Eastlake 44095 440-975-8778 ENGINEERED LAMINATES & COATING 404 N. Howard St., Akron 44304 330-374-0500 L. L. KLINK & SONS INC. 23920 Snell Road, Columbia Station 44028 216-271-0177 ADVANCE COMPUTER SERVICES INC. 800 S. Broadway Ave., Akron 44309 330-785-5200 MERLIN MANUFACTURING INC. 5185 New Haven Circle, Barberton 44203 330-848-6796 DEEP BLUE DISPLAYS 103 Karl St., Berea 44017 440-260-7797 MANDEL VETERINARY HOSPITAL LLC 1794 S. Taylor Road, Cleveland Hts. 44118 216-321-6040 CRUZ-SAMSA CORP. DBA PETLAND 2255 Lee Rd., Cleveland Heights 44118 216-321-7387 Business owner Loan amount SBA-guaranteed Type of loan (1) Participating lender Purpose of loan (000) amount (000) Type of business Robert Hutchinson $1,984.0 $1,984.0 7A NA NA Veterinary practice Nicholas W. Bosworth Jr. $1,789.2 $1,341.9 7A Chase Refinance Manufacturer of precise measuring equipment Saif Khan $1,678.0 $1,258.5 7A KeyBank Business purchase Gas station Mark A Zupan $1,659.2 $1,244.4 7A Huntington National Refinance Bank Manufacturer of high precision metal components John W. Stoneback $1,378.0 $1,033.5 7A NA NA Tool maker Timothy Curtiss $1,265.0 $948.8 7A NA NA Disposal solutions for non-hazardous waste materials NA $1,239.0 $929.3 7A NA Construction and real NA estate Richard Ferruggia $1,215.0 $911.3 7A Republic Bank Real estate purchase Own and manage real estate Randal Virost $1,200.0 $900.0 7A Huntington National Business Bank development Kenneth DeFranco $1,140.0 $855.0 7A KeyBank Real estate purchase Automotive paint supplier Steve Goldsword $1,060.0 $795.0 7A NA NA Manufacturer John Heline $1,050.0 $787.5 7A NA NA Special construction James W. Fuller $990.0 $742.5 7A American National NA Bank Distributor of computer parts and services Michael Ligas $947.0 $947.0 504 CFBank Construction Window treatments and bedding for hospitality industry Jake Miceli, Douglas Miceli $892.0 $892.0 504 NA NA Custom exhibits and displays William Mandel $856.8 $642.6 7A Huntington National Real estate purchase Veterinary practice Bank Susan Cruz $850.0 $637.5 7A UPS Capital Business purchase NA=Not available. This list of the largest U.S. Small Business Administration guaranteed loans was compiled from information obtained from the Cleveland District Office of the SBA and the companies. The Cleveland District approved a total of 2,177 loans in the fiscal year that ended Sept. 30, 2006, for a total dollar amount of $293 million; the average SBA loan was $135,000. Crain's Cleveland Business uses staff research, company surveys and the most current references available to produce its listings, but there is no guarantee these listings are complete. We welcome all responses to our lists. Business lists and The Book of Lists are available at www.crainscleveland.com (1) The 7(A) Loan Guaranty Program is the SBA's primary business loan program. The 504 Certified Development Company Program provides financing for major fixed assets only. Industrial supplies Pet store RESEARCHED BY Deborah W. Hillyer CCLB 02-05-07 A 23 CCLB 2/2/2007 2:22 PM Page 1 FEBRUARY 5-11, 2007 Produce: Past collaborative effort failed continued from PAGE 3 78-year-old produce terminal, which is the hub of the region’s wholesale food business. Connie Perotti, executive director of Maingate Business Development Corp., a neighborhood community development corporation that has an office at the food terminal, described the expansion as “the emerald city.” She can see the expansion from her office. Ms. Perotti said she hopes Sanson’s project will spur redevelopment by other members of the food terminal cooperative. Most of the structures date to the late 1920s. At that time, Nickel Plate Railroad and a number of the food brokers that were located along the rail spur that brought produce to the city consolidated operations into the food terminal. Ms. Perotti said the terminal is the seventh- or eighth-largest wholesale food terminal in the United States and is the hub for a group of about 50 food processors and wholesalers in the area. She said the food terminal companies had begun work on a coordinated redevelopment plan a few years ago, but that effort stalled. “It would be wonderful if it (the Sanson expansion) were catalytic,” Ms. Perotti said. The Sanson effort itself almost stalled because the company couldn’t reach agreement with Norfolk Southern Corp., Nickel Plate’s successor, over the cost of a 1.8-acre parcel needed for the expansion. Sanson sought the land for $120,000, or $65,000 an acre, but Norfolk Southern wouldn’t budge from its $300,000 asking price, according to an account presented to Cleveland City Council. The city’s Economic Development Department stepped in with a $20,000 grant to help with the purchase and Sanson bought the land from the railroad. The company didn’t ask for a tax abatement. Rudy Husband, a spokesman for Norfolk Southern, said the company does not discuss real estate negotiations. This is not Sanson’s first major expansion. In 1995, it created a joint venture, Produce Packaging Inc., to cut and package fresh fruits and vegetables. That business since has been spun off to a location on Carnegie Avenue. ■ WWW.CRAINSCLEVELAND.COM 23 Group: Merger to make specialties less so continued from PAGE 3 commitment from both institutions, Dr. Keating said. That’s part of what attracted Dr. Daniel Simon last summer to the UH Case Medical Center, where he is the chief of cardiology. He formerly was an associate professor of medicine at Harvard University and associate director of interventional cardiology at Brigham and Women’s Hospital in Boston. Case and UH jointly have set aside $20 million to expand the heart program at UH Case Medical Center. Much of that initial investment will go toward hiring doctors and researchers, program development and capital expenditures in the medical school. That’s just one example of how the two institutions are working together to set priorities, Dr. Keating said. Case and UH also plan to collaborate to develop centers of excellence in neurology, cancer, children’s medicine and women’s health, according to Dr. Keating. Strength in numbers Dr. Davis said the presence of more doctors in one large practice group should be beneficial when it comes to negotiating with health insurers and Medicare and Medicaid on reimbursement rates for services. “There’s a tremendous advantage in contracting if the practice plans are unified.” – Dr. Pamela Davis, interim dean, Case Western Reserve University medical school “There’s a tremendous advantage in contracting if the practice plans are unified,” she said. Doctors who are part of the UH Medical Group also will be eligible for employee benefits through UH, Dr. Keating said. Dr. Jeffrey Ponsky, chairman of the surgery departments at Case and UH Case Medical Center, said merging the practices into one large group is a great step away from the “old days, when every specialty was its own group.” Dr. Ponsky said the physicians in various specialties now can work together to develop strategic initiatives, align their visions to create institutes, and share revenues and losses. Under the previous model, “it was difficult for some groups to make strategic investments in development of their specialties based on financial constraints,” said Dr. Ponsky, who also is on the executive committee of chairpersons that helped create UH Medical Group. ■ Save some serious Jack with COSE. And you could win a trip to Las Vegas! The Lucky 7! 1 Natural Gas 2 Payroll 3 Health Insurance 4 Office Products 5 Electric 6 Meeting Space 7 Small Business Conference COSE offers your small business several ways to save serious Jack…meaning serious money! Just call us and ask about our Seven Ways to Save Las Vegas Getaway. How it works: for each savings estimate you ask for on the following services, you’ll be entered into our drawing. Seven chances to save! Seven chances to win! ON THE WEB Story from www.crainscleveland.com OAI names CEO The Ohio Aerospace Institute has appointed Michael L. Heil as its new president and CEO. Mr. Heil, who will start in March, comes to OAI from Wright-Patterson Air Force Base in Dayton, where he served as director of the Center for Space Studies and Research at the Air Force Institute of Technology. Mr. Heil replaces William R. Seelbach, who resigned from OAI last November to become an operating executive at Riverside Co., a private equity firm in Cleveland. CRAIN’S CLEVELAND BUSINESS Health plans provided by: Visit 7waystosave.com for more details and a demo of how much our members save on average. To be entered into our Seven Ways to Save Las Vegas Getaway, call COSE at 216.621.3300 to confirm your savings. Enter by February 28th. CCLB 02-05-07 A 24 CCLB 24 2/1/2007 2:50 PM Page 1 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 5-11, 2007 REAL ESTATE Don Schwaller - Classified Manager Phone: (216) 771-5172 Fax: (216) 694-4264 E-mail: [email protected] Copy Deadline: Wednesdays @ 3 p.m. All Ads Pre-Paid: Check or Credit Card INDUSTRIAL SPACE CRESCO real estate 216.520.1200 • INDUSTRIAL HIGHLY VISIBLE - multi-tenant building in Westlake for lease - 2,760 to 36,310 sf - 14’ to 16’ clear - George Pofok, CCIM or Kevin Kelly AIRPORT AREA - office/warehouse - 2,910 sf with 1,400 sf office - dock and drive-ins good freeway access - Pamela Bertovich FLEX SPACE FOR LEASE - 4,000 sf office/whse with 700 sf newly constructed office - 16’ clear height with dock and drive-in - Ken Anderson I-77 AND I-480 - for sale - 5,000 sf on 7.23 acres - fenced in lot suitable for storage or redevelopment - Tyler Newman, CCIM BROOKLYN HEIGHTS - freestanding for sale 12,000 sf with 2,000 sf office - 3 docks - 2 drive-ins - 16’ clear - some neutral income - Fred Christie, SIOR I-271 AND I-480 - 25,000-44,000 sf available for lease - 4 drive-ins - 5 docks - heavy power - 4,400 sf offices - many amenities - CAT 5/DSL - Simon Caplan, SIOR or Eliot Kijewski 25,660 SF - 1.07 acres - recent building renovations - dock - drive-in - up to 25’ clear - fenced in land and parking - Bob Garber, SIOR or Tyler Newman, CCIM AIRPORT AREA - high image 43,000 sf on 3 acres - immediately available - clear span - 28’ clear - 18 DKS - sprinklered - Armand Aghajanian, Fred Christie, SIOR or Joe Barna, SIOR www.crescorealestate.com SALE/LEASE - I-480 and Lee Road - 33,000 sf manufacturing building on 1.9 acres - 6 docks - 480 volt power - sprinkler - 1 ton crane - Matt Beesley, SIOR SALE PRICE REDUCED FOR IMMEDIATE LIQUIDATION - priced below $8.00 PSF - west side 90,000 sf manufacturing/assembly facility on 3+ acres - great highway access - Kevin Kelly OFFICE RENOVATIONS UNDER CONSTRUCTION - LANDERHAVEN OFFICE SPACE OPPORTUNITY - suites from 1,800-28,000 sf - leasing incentives - must tour - Rico Pietro PLAYHOUSE SQUARE AREA - unique historic building with 2 floors at 2,226 sf each plus 4,332 sf basement - currently bar/restaurant - sell at $525,000 or lease - Tom West, SIOR GREAT SUBLEASE OPPORTUNITY- located in Fifth Third Center on 18th floor - approx. 4,700 rsf available - great views - combo of private and open offices - Patrick Reardon, SIOR 9,000 SF ROCKSIDE CORRIDOR - half floor - immaculate former call center - open floor plan with great glass lines - Leah Kukulka FIRST OFFERING - 18,000 sf of office immediately available - excellent access to I-77/ I-480 - motivated owner - asking $8.75/sf - Joe Barna, SIOR or Fred Christie, SIOR COMMERCIAL SPACE Available FOR LEASE AT I-77 & I-480 IN VALLEY VIEW • 5,000sf w/ 1500sf Office, (1) Dock (1) Drive-in, 480v 200 Amp, 19', Occupancy 3rd Quarter, 2007 • 10,000sf w/ 1500sf Office, (2) Docks (1) Drive-in, 480v 200 Amp, 19', Occupancy 2nd Quarter, 2007 • 11,250sf w/ 1200sf Office, (2) Docks (1) Drive-in, 480v 400 Amp, 17', Occupancy 2nd Quarter, 2007 Lombardo Investments LLC 216.524.0715 www.lombardobusinesspark.com Strongsville 5 Acres Commercial. Corner of Prospect and Route 82. High Traffic 440-846-2108 Let A Mouse Find Your New Location Classified Ads WORK! www.colliersomlistings.com STORAGE FOR RENT REAL ESTATE SERVICES OFFICE/WAREHOUSE SPACE HEATED STORAGE Loading Dock Services STREETSBORO PROPERTY RV’s, Boats, Campers Concrete floors, 20 ft. high ceilings, 20 ft. drive-in door, secure, competitive rates. Call Mr. King 330-995-1070 Service, Maintenance and Sales of Dock Levelers, Bumpers, Seals, Truck Restraints and Metal Stairs. Free Inspections and Estimates. 800-34-DOCKS / 440-729-0380 FOR SALE OR LEASE Two cranes, 3 docks, 1 double door. 40,000 sq. ft. of Warehouse/Office Call Mr. King @ 330 995-1081 Because smart & experienced beats smart every timesm 216.861.7200 www.colliersom.com List your Industrial, commercial or Retail Space Here! Contact Don Schwaller at 216.771-5172 request Private Lender’s desiring a 12% to 20% return secured by real estate. Western Reserve Land Conservancy WAITE HILL: Vacant Land 29-ACRE RIVERFIELD FARM - The Chagrin River runs along the 1140' southern boundary of this property easy river access. A large level ag field makes up the center portion of the property. The east boundary is a wooded 20' ridge w/ panoramic views to the west. This is an ideal equestrian devotee, alpaca breeder, tree farm, etc. Open house 1-4 p.m. on Sunday February 11 PRICE REDUCED Visit a home designed for real lakeshore living and entertaining, one distinguished by unique architectural features, cathedral ceilings, astonishing sunsets on the lake, and with golf, tennis, boating, and dining only a few steps away at CIC. For sale by owner. For details see: www.Lakehouse.com/page-10593.html 216.233.2837 INVESTMENT OPPORTUNITY SafeHarbor Network LUXURY PROPERTIES Catawba Island Lakefr ont Home Global commercial real estate expertise Contact: Jean Mackenzie Call 440-333-9500 to request Free Report on Private Mortgage Lending. Classified Ads WORK! (216) 522-1383 FOR SALE Lantern Arms Apartments •Substantial Upside •49 Units (7 Story Mid-Rise) •Minutes from Downtown Dayton •Close to Major Employment •Easy Access to Major Freeways (SR-35, I-70 & I-75) •No Set Asking Price Barry Swatsenbarg 248.324.2000 [email protected] 34975 W Twelve Mile Rd Farmington Hills, MI 48331 www.friedmanrealestate.com Kent $749,000 One of a kind! Last available lakefront residence! Timeless design ensures enduring value and will accomodate any style of living or furnishings. Over 6,200 sq. ft. with 1.400 sq. ft. quest house, & shed. Conveniently located 800 ft. from country club, pool, tennis, golf and major highways. Price: $750,000 Because these are conservation properties, the buyer may potentially realize significant tax benefits. For more information about our Conservation Buyer Program or to walk these properties, please call: Western Reserve Land Conservancy (440) 729-9621 AVON APARTMENTS Jeannine Dyer 1-800-341-1141 Motivated Seller Engaging Newer home 4 bd and 2.5 bath. Great kitchen, cedar cabinets, spacious master, garden tub, and marble counter tops. 2,300 sq ft. $256,777. Call 216-513-5818 To Advertise your Luxury Property contact Don Schwaller at (216) 771-5172 CCLB 02-05-07 A 25 CCLB 2/1/2007 2:49 PM Page 1 FEBRUARY 5-11, 2007 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM 25 CLASSIFIED BUSINESS SERVICES BUSINESS OPPORTUNITY DON’T FORGET: Crain’s Cleveland Business on-line @ CrainsCleveland.com For all the latest business news...online OFFICE FURNITURE SPORTS & ENTERTAINMENT Owner of a lower level, third base suite at Jacobs Field REAL ESTATE AUCTIONS looking for multiple or single game partners for the 2007 Indians Season. LL Design, Ltd. Print Media Logo Design Catalog Design Art Production Illustration Web Design 216-431-2700 www.theofw.com Package includes 8 tickets and 3 parking passes. Mon. – Fri. 8-5 • Sat. 9-1 4100 Payne Ave.• Cleveland Interested parties should call Sal Caroniti at 440-243-8200 BUSINESS FOR SALE Presentations 440.465.6866 www.LLDesignStudio.net Huge selection of pre-owned and New Office Furniture at Low Prices. Immediate Delivery. For daily on-line Selling A Business? Ohio Business Brokers Assoc. updates, sign up @ WWW.OBBA.ORG CrainsCleveland.com/Daily Find hundreds of businesses. Find a good broker to help. E-MAIL US YOUR AD: [email protected] Buying A Business? Crain’s Executive Recruiter Sales Representative - Media Sales We are seeking an entry-level sales representative to replace a promoted associate, for our DECOR Expo shows held twice annually (Baltimore and Atlanta). The selected candidate will work out of our Cleveland headquarters, and be responsible for prospecting, selling and servicing decorative art and framing exhibitors in a defined geographic territory in the U.S. DECOR Expo is the largest decorative art and framing exposition in the United States. Each year, more than 15,000 trade buyers attend the 2 shows to see the latest trends in decorative art, design, color and associated framing products. See www.decor-expo.com for more details. Qualified candidates will possess a bachelor's degree in marketing, advertising, psychology, political science or business management, and some experience in sales. Outgoing personality, self-motivation, excellent organizational skills and a demonstrated desire to succeed in business are important attributes of the selected candidate. Ashland University’s Richard E. and Sandra J. Dauch College of Business and Economics seeks adjunct faculty to teach undergraduate and MBA courses at campuses in Ashland, Columbus, Massillon, Medina, and Westlake. Evening, Saturday and daytime openings are available in accounting, business law/ethics, business management, business statistics, economics, entrepreneurship, finance, hotel/restaurant management, human resource management, international business, management information systems, marketing, operations management, and organizational behavior/development. Master’s degree and work experience in related field required. Prior teaching experience preferred. Applications accepted on rolling basis and consideration begins immediately. E-mail letter of application and current resume/vita to Carol Pietrasz at [email protected]. Further information pertaining to these positions can be found at www.ashland.edu/jobs. Ashland University is an equal opportunity employer and is committed to diversity in the workplace. CASE WESTERN RESERVE UNIVERSITY Please send resume and salary history to Rob Spademan at [email protected]. Independent Internet Sales Account Exec Web Solutions & Advertising for ThomasNet.com in Northern Ohio for over 100 years. Top commission rates. OFFICE SPACE F ROM O FFICE S PACE TO C LASSROOMS Draw based on experience. Residual income. Top earners exceed $100K/yr. 3TANDARD¬"UILDING Discover the Difference In Leasing MADE SIMPLE! Fulfilling needs of any business 4HE¬ONLY¬WAY¬TO¬BE¬CLOSER¬TO¬THE¬ *USTICE¬#ENTER¬IS¬TO¬LIVE¬THERE Contact Tammy 216.255.3915 s#OMPETITIVE¬2ATES¬¬s,AKE¬6IEWS s5NBEATABLE¬,OCATION www.evbco.com #OMMERCIAL¬ "ROKERAGE¬ -ANAGEMENT Resumes to [email protected] or Fax 216-328-5541 To place your Executive Recruiter ad Call Don Schwaller at 216-771-5172 Weatherhead School of Management Department of Economics Applications are invited for a full-time, non-tenure track faculty position as Professor for the Practice of Management in Economics position. The successful candidate must have teaching experience in the field of Economics at the Undergraduate level. A Master’s degree in a related field is required and ABD or Ph.D preferred. The person will teach 6 courses a year and will counsel and advise undergraduate students in economics. Experience and demonstrated excellence in teaching economics courses, working with students individually and in teams, and ability to create and implement new ideas and classrooms exercises is mandatory. In employment, as in education, Case Western Reserve University is committed to Equal Opportunity and Affirmative Action. To apply, applicants may forward their resume and 3 letters of recommendation to: Economics Department Search Committee, Weatherhead School of Management, Case Western Reserve University, Cleveland, OH 44106-7235. Phone: 216/368-5537. Application deadline: Open until filled. CCLB 02-05-07 A 26 CCLB 26 2/2/2007 4:50 PM Page 1 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM FEBRUARY 5-11, 2007 THEINSIDER THEWEEK REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS JANUARY 29 - FEBRUARY 4 A building by any other name … The big story: The Hong Kong company that ■ Some believe it’s best to wait until a person dies to name a building after them — just in case. Kent State University probably should have taken that advice. Kent State’s board of trustees last week struck the name of Paul H. Jones from its Child Development Center. It’s now the Kent State University Child Development Center. The decision was made after the recent guilty plea by former state representative Paul Jones to multiple counts of tax evasion and fraud. The building was named after Mr. Jones in 1990, when he used his clout in the Ohio House to get $1.56 million in state funds to build the center. The money covered the total cost of the center, which provides day care to 200 preschool children plus training and research opportunities for students in the early childhood education program at Kent State. Mr. Jones also helped Kent State secure state money for various other projects, said university spokesman Scott Rainone. When trustees voted to name the building after Mr. Jones, the resolution noted that the state representative was “a close friend of the university … who has devoted considerable time and effort to the education of Ohio’s young children.” Even after Mr. Jones’ felony convictions, Kent State has not changed its policy on naming buildings after the living, Mr. Rainone said. “The authority to name buildings rests with the board of trustees,” he said. “It will makes Dirt Devil vacuum cleaners completed its acquisition of Whirlpool Corp.’s Hoover floor care business. Techtronic Industries Co. closed its $107 million cash acquisition of Hoover after passing federal and state antitrust reviews. Techtronic will combine Hoover with its existing Dirt Devil and Royal business in Glenwillow to create TTI Floor Care, North America. Chris Gurreri, 41, was named president of TTI Floor Care, which plans to add 110 jobs in Glenwillow during the next three years. Settling up: The Electrolizing Corp. of East Cleveland paid the federal government $1.5 million to settle a civil claim that the metal plating company submitted a false claim for work it performed as a subcontracted supplier for U.S. Navy nuclear submarine parts. Patrick M. McLaughlin, attorney for Electrolizing, said the company agreed to the settlement, in part, to avoid the time, risk and expense of possible litigation with the government. Electrolizing had been hired as a subcontractor to perform metal plating on parts used to build nuclear submarines. After it was notified by a whistleblower, the government determined that between 1997 and 1999 Electrolizing had performed some of the work improperly and covered it up by falsifying test results and certifications. Hit the road: TravelCenters of America LLC completed its spinoff from Hospitality Properties Trust and now is a public company. The Westlake company’s shares began trading Feb. 1 on the American Stock Exchange under the symbol “TA.” TravelCenters operates a network of 163 hospitality and fuel service areas primarily along the U.S. interstate highway system. WHAT’S NEW On the move: Seeley Savidge & Ebert LLC plans to move the law firm’s main office to Westlake from downtown after purchasing a 5-year-old office building in the suburb for $2.78 million. Gary Ebert, a name partner at the firm, said the decision to move its 30 employees to Jamestown Professional Building was difficult because Seeley Savidge has been downtown for 29 years. The firm now is in the Fifth Third Center building. Its new home will be a brick Georgian-style building at 26600 Detroit Road visible from I-90. For the record: TransDigm Inc., a subsidiary of aircraft component maker TransDigm Group Inc., said it’s privately offering $300 million in notes. The offer, for 7.75% senior subordinated notes due 2014, is expected to close Feb. 7. … Kalahari, the massive indoor water park resort south of Sandusky, will expand its water park to 173,000 square feet from 80,000 squarxe feet. The expansion is expected to open next December. To keep up with local business news as it happens, visit www.crainscleveland.com. and will remain a shareholder of Western Reserve and a member of its board of advisers. The split was amicable, said Mark A. Filippell, a managing director at Western Reserve. “It’s as friendly as it could be,” he said. — Shawn A. Turner Queen City investment firm taps a King for key post Web firms won’t let hiring get ahead of revenues ■ The former top man at Fifth Third Bank’s Cleveland office has found a new job. Robert J. King Jr. is now managing director in the private equity division of Cincinnatibased investment firm Financial Stocks Inc. It’s the second position for Mr. King since he retired in early 2005 as president and CEO of the Northeast Ohio region of Fifth Third Bank of Cincinnati, a company at which he King worked for 30 years. Most recently, Mr. King was a managing director at Cleveland investment bank Western Reserve Partners LLC, a post he began in January 2006. The private equity business in which Mr. King will be involved seems a perfect fit. The group he’ll head primarily will focus on taking noncontrolling positions in commercial banks, but it also will do some investing in insurance companies and real estate investment trusts, Mr. King said. “The opportunity intrigued me, and it’s a space I have some familiarity with, obviously,” he said. Mr. King will retain an office in Cleveland ■ In terms of revenue, things are looking up for Internet-based businesses in Northeast Ohio that responded to a survey by the Web Association. But in terms of employment, things are looking a bit more sideways. About 52% of the Internet-based businesses that responded to the nonprofit group’s State of the Web survey expect revenues to grow by more than 20% this year, while 33% anticipate modest growth and the other 15% expect flat figures. Regardless, 54% expect to maintain their current staffing levels in 2007, according to the survey, released at a Web Association luncheon last week. Another 22% expect to hire at least 20% more employees and 22% expect smaller staff increases. Only one organization said it expects to cut employees. Web Association president Jon Eggleton said respondents probably want to ensure the revenue predictions are correct before hiring more people. “If sales continue to grow, then maybe next year they’re going to add staff,” Mr. Eggleton said. The association received 54 responses to the survey. — Chuck Soder STOCKS 10 BEST PERFORMERS COMPANY Swinging for the fences: Andre Thornton, the former Cleveland Indians slugger, bought a majority stake in ASW Services Inc., an Akron supply chain management company that operates 1 million square feet of warehouse space in Akron, Cleveland, Green, Mogadore and Belleville, Mich. Phil Maynard, previously majority owner of ASW, remains with the company as a minority owner. Mr. Thornton has merged his GPI Procurement Services in Warrensville Heights with ASW. The two will operate under the name ASW Global and have 200 employees. be on a case-by-case basis.” Mr. Jones earned his master’s degree from Kent State and then was a six-term state representative, two-term mayor of Ravenna and former chairman of the Portage County Democratic Party. — Shannon Mortland 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. COMPANY: Alcoa Forged Specialty Wheels, Cleveland PRODUCT: Pro Series and Adventure Series wheel lines The Pro Series and Adventure Series lines offer new wheel designs to the Alcoa product portfolio of wheels forged from one piece of 6061-T6 aluminum. Both lines are available for most ½-ton trucks, full-size SUVs and Jeeps, and each wheel has been designed, engineered and manufactured “to optimize strength, durability and design while lowering wheel weight,” Alcoa says. Each style is available in 17- and 20-inch sizes with polished clearcoat and chrome finish options. Polished clearcoat is a surface coating that reduces maintenance and increases surface durability. Chrome eases maintenance, according to the company. Brandon Stotsenburg, marketing director for Alcoa Forged Specialty Wheels, said the Pro Series line “reflects an aggressive, competitioninfluenced appearance while offering unmatched strength and durability for on-road and off-road use.” Visit www.alcoawheels.com for information. Send new product information to [email protected]. CLOSE 2/2 Sifco Industries Inc. (SIF) 6.90 Oglebay Norton Co. (OGBY) 21.00 Olympic Steel Inc. (ZEUS) 27.85 Park-Ohio Holdings (PKOH) 17.80 Nacco Industries Inc. (NC) 145.47 Cleveland-Cliffs Inc. (CLF) 55.40 Lincoln Electric Holdings (LECO) 63.24 Lesco Inc. (LSCO) 10.84 Parker Hannifin Corp. (PH) 85.26 Nordson Corp. (NDSN) 53.17 WEEK’S % CHANGE 12.01 9.37 9.26 6.27 6.24 5.48 4.96 4.73 4.46 4.23 52-WK HIGH 52-WK LOW 7.35 21.00 39.49 21.36 172.45 55.60 63.30 18.17 88.00 57.81 3.72 12.10 21.03 12.72 119.05 31.39 43.30 6.70 69.70 38.70 10 WEAKEST PERFORMERS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. COMPANY CLOSE 2/2 WEEK’S % CHANGE 52-WK HIGH 52-WK LOW DataTrak International (DATA) Preformed Line Products (PLPC) Invacare Corp. (IVC) CBiz Inc. (CBZ) Omnova Solutions Inc. (OMN) LNB Bancorp Inc. (LNBB) Boykin Lodging Co. (BOY) Aleris International Inc. (ARS) Hawk Corp. (HWK) Penton Media Inc. (PTON) 5.32 34.36 21.10 6.75 6.13 15.94 7.62 52.48 11.00 0.80 -14.19 -4.53 -2.04 -0.59 -0.33 -0.13 0.00 0.00 0.23 0.50 9.05 46.37 36.40 9.00 6.83 19.73 13.45 54.00 16.00 0.91 4.05 30.02 19.78 5.72 4.00 15.78 7.58 35.37 9.77 0.20 CLOSE 2/2 WK’S VOL. COMPANY (in thousands) 52-WK HIGH 52-WK LOW Progressive Corp. (PGR) National City Corp. (NCC) Goodyear Tire & Rubber Co. (GT) FirstEnergy Corp. (FE) KeyCorp (KEY) Eaton Corp. (ETN) Sherwin-Williams Co. (SHW) Parker Hannifin Corp. (PH) PolyOne Corp. (POL) Cleveland-Cliffs Inc. (CLF) 23.57 38.10 24.89 60.84 38.77 78.62 68.39 85.26 7.28 55.40 15,796 13,061 11,427 6,640 6,036 5,922 4,173 3,953 3,509 3,131 27.86 38.35 25.33 61.70 38.88 79.98 69.64 88.00 9.89 55.60 22.18 33.26 9.75 47.75 34.24 62.81 37.40 69.70 6.62 31.39 10 MOST ACTIVE 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Source: FinancialContent Inc. CCLB 02-05-07 A 27 CCLB 1/31/2007 3:13 PM Page 1 In business, it’s better to receive. Free Incoming Calls for small business starting at $49.99/month. Other monthly charges apply. See below.* Requires two-year subscriber agreement. The power to take every call and still save money. It’s just another way Sprint helps your small business cut costs and stay productive. And yet another reason why twice as many business customers choose Sprint over Cingular. SCP-7000 by Sanyo® Buy one $29.99 get four FREE After $119.96 mail-in rebate. Requires activation of new line of service and two-year agreement per phone. > Text Messaging Capable > Rubberized Form Factor > Built-in Speakerphone CALL 1-8SPRINT-BIZ CLICK sprint.com/business GO to the nearest Sprint or Nextel retailer THE POWER TO GET MORE DONE. SWITCH TO SPRINT TODAY. *Rates exclude taxes and Sprint fees (including USF charge of up to 2.41%, which varies quarterly, cost-recovery fees up to $1.55 per line and state/local fees that vary by area). Sprint fees are not taxes or government-required charges. “Twice as many business customers” claim based on a survey of corporate-liable customers. Nationwide Sprint PCS Network reaches over 250 million people – coverage not available everywhere. See sprint.com/coverage for details. Not available in all markets or retail locations. Subject to credit approval. Phone Offer: Expires 3/31/07 or while supplies last. Up to $36 activation fee and $200 early termination fee apply. Must be same-model phone. Mail-in Rebate: Taxes excluded. Line must be active 30 consecutive days. Allow 8 to 12 weeks for rebate. Device model subject to availability. Free Incoming Plan: Offer ends 3/31/07. Free Incoming applies to calls received in the US. Overage ($0.45 per minute). Nights: 9pm–7am; weekends: Friday 9pm–Monday 7am. Partial minutes charged as full minutes. ©2007 Sprint Nextel. All rights reserved. Sprint, the “Going Forward” logo and other trademarks are trademarks of Sprint Nextel. CCLB 02-05-07 A 28 CCLB 2/2/2007 4:33 PM Page 1 2007 BMW 328i • Auto. Steptronic Transmission • Dual climate control A/C • Heated Seats • CD Player 2007 BMW 750Li • Power Windows/Locks 230 HP in-Line 6 cylinder • Nasca Leather Comfort Seating • Logic7 Audio System • Park Distance Control • Moonroof 339*/month for 24 months 995*/month for 36 months $ * 24 month lease. Total due at signing $3,884. Tax, title and registration fees extra. Due at signing includes: 1st payment, $400 refundable security deposit, $2,500 down payment and bank fee. Customer responsible for excess wear and tear. 10,000 miles per year. 20¢ per mile over. One available at this price. MSRP: $34,870. SALE PRICE: $34,085. Other 328i’s available at similar savings. Expires 2/28/07. Oil Changes Windshield wiper blades Brakes, including rotors and pads Scheduled service inspections Belts Lights Roadside Assistance TOTAL $ * 36 month lease. Total due at signing $5,640. Tax, title and registration fees extra. Due at signing includes: 1st payment, $1,000 refundable security deposit, $2,950 down payment and bank fee. Customer responsible for excess wear and tear. 10,000 miles per year. 25¢ per mile over. One available at this price. MSRP: $84,795. SALE PRICE: $80,923. Other 750Li’s available at similar savings. Expires 2/28/07. SPECIAL LEASING ALSO AVAILABLE FROM BMW FINANCIAL SERVICES, LLC Full Maintenance standard on all new BMWs Maintenance cost over 4 years/50,000 miles* $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 • Adaptive Xenon Headlights • Alloy Wheels WWW.BMWCLEVELAND.COM BMW CLEVELAND 6135 KRUSE DR. • SOLON 1-866-210-6710 2007 JAGUAR XK COUPE bmwusa.com 1-800-334-4BMW The Ultimate Driving Machine® 2006 LAND ROVER LR3 Stock # J01507 Black with Black Leather Interior LOADED WITH: Luxury package, premium surround sound, 20” alloy wheels, Advanced Technology package. Executive Driven. M.S.R.P. $87,800 74,900 SALE $ PRICE WIDE VARIETY OF LEASE AND PURCHASE PACHAGES AVAILABLE. Photo for illustration purposes only. • V-6 Ex-Service Loaner (NO MILES!) M.S.R.P. $45,900 • SE Premium Package Discount $ 9,000 • Cold Climate Package BUY OR • Rear Seat Package LEASE AT • Sirius Satellite Radio • All Leather 6 AVAILABLE AT THIS PRICE! $ 36,900 Complimentary Scheduled Maintenance Included! 4 Years/50,000 Miles! X-TYPE • S-TYPE • XJ • XK JAGUAR CLEVELAND 6137 KRUSE DR., SOLON • (440) 542-0601 www.jaguarcleveland.com LAND ROVER SOLON 6137 KRUSE DR.• SOLON, OHIO • 1-866-210-6707 www.landroversolon.com