read - The Greater Cleveland Partnership

REACHING NEW
HEIGHTS
Investor Update 2015
MOMENTUM
A Letter from the Chairman and the President
Cleveland Development Advisors (CDA) is proud
to be a driving force behind projects currently
transforming our city into an energetic
community where people are free to grow—
personally and professionally.
Over the past 12 months, our city and our region have achieved numerous
rewarding accomplishments and generated unparalleled momentum with
exciting times still ahead. CDA experienced one of its most successful years in
2014, deploying over $26 million into five key developments. We anxiously await
the unveiling of the new heart of our city, which will shine brighter than ever with
the redevelopment of Public Square and Cleveland’s waterfront. The fully funded
Opportunity Corridor, a three-mile boulevard between I-490 and University Circle,
is transitioning from a vision to a sparkling reality. Our city is becoming a widely
acknowledged must-see destination.
Through smart management of private
funds, we facilitate the development
of vibrant places to work, live and
connect in Northeast Ohio.
Robert O’Brien
Chairman
After years of hard work and several game-changing investments, CDA is proud
to be a part of so many exciting projects that are reshaping the city. The Flats East
Bank neighborhood broke ground on its second phase that will bring residents
and additional amenities to the banks of the Cuyahoga River. The 9 began
welcoming residents, hotel guests and, with the opening of Heinen’s, shoppers
to the first full-service grocery store downtown. CDA continues to support projects
that build on previous momentum and is working to create and strengthen more
neighborhoods. We are proud to be part of the public/private collaboration that is
rebuilding and our community.
During 2014, CDA began deploying funds from our most recent capitalization,
the $31.8 million Advance Cleveland Development Fund. Our ability to provide
financing to projects that strengthen our community is only possible as a result of
the generous support of our investor partners. We believe this new fund represents
Yvette M. Ittu
President
an additional and effective tool, which will act as a springboard toward another 25
years of CDA identifying and helping catalytic investments redefine our city.
The 9
This project represents the revitalization of the former
Ameritrust complex, including the 29-story Breuer Tower, in
the heart of downtown Cleveland that sat vacant for 20 years.
This redevelopment by Geis Companies boasts Metropolitan at The 9,
a 156-room hotel and banquet facility. In addition, the complex offers
approximately 70,000 square feet of commercial and retail space and 194
apartments that are fully leased. The final piece was put in place with the
grand opening of downtown Cleveland’s first full-service grocery operation,
Heinen’s supermarket, in February 2015. CDA provided a $7 million New
Markets Tax Credit allocation for the project, $2 million in funding from
Cleveland Development Partnership II and $4 million from Advance Cleveland
Development Fund. The $80 million Cuyahoga County Administration
Building, which was financed separately, is immediately adjacent to the site.
GAME-CHANGING
INVESTMENTS
Flats East Bank: Phase II
Building on the success of the $275 million initial phase of the
Flats East Bank, home to the Ernst & Young office tower, Aloft
Hotel and several new restaurants, the Wolstein Group and Fairmount
Properties broke ground on the second phase in 2014. Cleveland
Development Partnership provided $3 million in financing and Advance
Cleveland Development Fund provided $1.5 million to assist this $146
million development. Upon completion, this phase will add 240 new
market-rate residential units and more than 100,000 square feet of
retail, restaurants and entertainment space completing the vision
of a fully integrated sustainable waterfront district.
240
100,000
new residential units
square feet of retail, restaurant
and entertainment space
PREVIOUS PAGE: Architect's
rendering of the Flats East Bank
revitalization project.
ABOVE: Interior view of The 9's
front desk and lobby.
RIGHT: Inside the new Heinen's
supermarket at The 9.
BUILDING ON
MOMENTUM
TOP: Interior of an apartment
TOP: The Corner Alley's
at The Residences at 1717.
impressive exterior in UpTown.
BOTTOM: Exterior view of The
LEFT: A mixture of commercial,
Residences at 1717 building in
residential and entertainment space,
downtown Cleveland.
the thriving UpTown neighborhood
comes to life at night.
UpTown
Residences at 1717
The transformation of the former East Ohio Gas Building
into The Residences at 1717 is nearly complete. The building began
welcoming tenants in July 2014 and the final three floors will be
ready for tenants by the end of March 2015. CDA provided a $7
million New Markets Tax Credit Allocation to make this project
possible. K&D redeveloped this massive 327,000 square foot,
21-story office building that had sat vacant for more than five
years into 223 apartments, which were fully leased prior to
the completion of construction.
The
30,000
square-foot Corner Alley
anchors the second
phase of the UpTown
development project
In 2009, CDA provided a New Markets Tax
Credit Allocation as well as direct funding from
Cleveland Development Partnership to assist MRN
Ltd. in completing the $45 million first phase of UpTown. This
initial phase included 114 apartments and 56,000 square feet
of retail, creating a 24-hour arts and entertainment district in
one of Cleveland’s fastest-growing neighborhoods. Building on
that success, Cleveland Development Partnership committed $5
million in funding for the $26 million second phase. This phase will
add 46,000 square feet of retail space anchored by The Corner Alley.
The 30,000-square-foot bowling alley and restaurant is the city’s second
location. In addition, 84 apartments will be constructed, 41 of which are
leased to the Cleveland Institute of Art for use as student housing.
The Fairmont Creamery
was vacant for more than
Fairmont
Creamery
In 2013, Sustainable
Community Associates
undertook the historic
renovation and creative reuse
of the former Fairmont Creamery.
This 100,000-square-foot, five-story
building constructed in 1930 was left vacant
for more than 30 years. It is situated as a key
connector between the Tremont and Ohio
30
YEARS
yet all residential
and commercial
spaces were leased prior to
construction completion
OPPOSITE PAGE: Innova will anchor a
24-hour community between Cleveland
Clinic and University Circle.
BELOW: A spacious residenital unit
at the Fairmont Creamery in Tremont.
City neighborhoods overlooking the industrial
valley. The 30 apartment units and 23,000 square
STRENGTHENING
NEIGHBORHOODS
Innova
Urban renewal efforts for the Upper Chester project in the Hough
neighborhood date back to the 1960s. Over the past 10 years, the Finch Group
has developed a master plan for the Upper Chester area that will transform the Hough
neighborhood. Innova will serve as an anchor to a 24-hour community while also
providing a connection between Cleveland Clinic’s main campus and the cultural
institutions in University Circle. Advance Cleveland Development Fund committed
$3 million to assist the Finch Group in completing the $42 million first phase of this
project, which will include 177 market-rate apartments and 23,000 square feet of
commercial space. Future phases will bring additional apartments, commercial
and retail locations as well as affordable housing for seniors.
feet of commercial space were leased prior to
construction completion. CDA provided a $5
million New Markets Tax Credit allocation and a
$1.25 million loan from Cleveland Development
Partnership II as part of this $15 million renovation.
BOTTOM: Exterior of the Fairmont Creamery
in Tremont, showing its proximity to downtown.
129
MILLION
5.9
$254 MILLION
$2.7 BILLION
$206 MILLION
INVESTMENTS
made toward growing and
strengthening our city
square feet of commercial
space created
in financing
provided to date
development generated
by CDA investments
in assets under
management
Board of Directors
Robert O’Brien, Chairman
Executive Vice President, Forest City Enterprises, Inc.
Paul Clark, Vice Chairman
Northern Ohio Regional President, PNC
Sashi Brown
Executive Vice President and General Counsel,
Cleveland Browns
James Geuther
President Northeast Ohio Region, JPMorgan Chase
Jerry Kelsheimer
President and CEO, Fifth Third Bank Northeastern Ohio Lillian Kuri
Program Director for Architecture, Urban Design
and Sustainable Development, The Cleveland Foundation
Quentin L. McCorvey Sr.
Principal, M&R Distribution Services
Brian Power
Tax Counsel, Sherwin-Williams Co.
Daniel Walsh
CEO, Citymark Capital
Jeffrey Wild
Partner, Chair Real Estate and Environmental
Practice Group, Benesch
Alan Zang
Northeast Ohio Market President, U.S. Bank
Staff
Yvette M. Ittu, President
Executive Vice President of Finance & Operations,
Greater Cleveland Partnership
Joseph D. Roman, 2nd Vice Chairman President and CEO,
Greater Cleveland Partnership
Deb Janik, Treasurer
Senior Vice President, Real Estate and Business Development,
Greater Cleveland Partnership
Steve A. Luca
Managing Vice President
Dean M. Parker
Vice President, Finance and Investor Relations
Cindy Binnig
Manager Accounting and Asset Management
Jessica Coffey
Manager of Project Development
Doniella Ligon
Executive Assistant
Acknowledgements
Cleveland Development Advisors sincerely thanks our corporate and civic partners
who have made possible our efforts to revitalize the Greater Cleveland community.
Investors
American Greetings Corporation
Goldman Sachs
Ohio Savings Bank
Applied Industrial
Goodrich Corporation
Parker Hannifin Corporation
Greater Cleveland Partnership
PNC Bank
AT&T
Huntington National Bank
PolyOne Corporation
BP America, Inc.
Invacare Corporation
Premier Farnell Corporation
Baldor Electric Co.
Jo-Ann Stores, Inc.
R.T. Foundation
Calfee, Halter and Griswald, LLP
Jones Day Foundation
Richard E. Jacobs
Case Western Reserve University
JPMorgan Chase
RPM International, Inc.
Charter One Bank F.S.B.
Key Bank
Scott Fetzer Foundation
Cleveland Clinic
Lincoln Electric
Scott Technologies, Inc.
Cleveland Foundation
LTV Corporation
Sherwin-Williams Co.
Cliffs Natural Resources, Inc.
Lubrizol
SS&D Foundation
David H. Jacobs
Luxottica, Inc.
Teachers Insurance & Annuity
DDR
Macy’s Department Stores
Dominion East Ohio
Materion Corporation
Tops Markets, LLC
Eaton Corporation
Nesco, Inc.
University Hospitals
Fifth Third Bank
Nestle USA, Inc.
U.S. Bank
FirstEnergy Corporation
Northrop Grumman
Win 6, LP
FirstMerit Corporation
Technologies, Inc.
Systems Corporation
Forest City Enterprises, Inc.
Cleveland Development
Advisors is an affiliate of
Association of America