Lending Is Back for Big-Ticket Property
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20111121-NEWS--1-NAT-CCI-CL_-- 11/18/2011 3:21 PM Page 1 $2.00/NOVEMBER 21 - 27, 2011 With skills Lending is in demand, back for area trade big-ticket schools rise property PowerSport Institute, tech college eye growth But preference goes to newer commercial By DAN SHINGLER [email protected] sites with low vacancy With a lot of people looking to By STAN BULLARD switch careers or pursue an educa- [email protected] tion in something more pragmatic and potentially profitable than, say, Commercial real estate lending in literary history, the Cleveland-based Northeast Ohio has begun its journey Ohio Technical College and its Power- down the comeback trail, though Sport Institute in North Randall have obstacles remain for developers and had little trouble finding new students property buyers that are keeping the during the economic slump. path to loans from being as smooth As a result, the trade schools as it was prior to the 2008 financial have continued to grow, said Marc crisis. Brenner, the owner of both. Now Mr. Two recent deals are illustrative of Brenner might develop a campus in recovery — at least in the Class A, or Cleveland or take over more space high, end of the commercial market. in long-suffering Randall Park Mall, In our first Forty Under 40 choosing which folks to include.” First Interstate Properties Ltd., where the PowerSport Institute section — published Oct. 28, It’s a challenge we’ve faced for through an affiliate, secured a $5 already is the largest tenant. 1991 — Crain’s editor Mark 20 years, picking from a bevy of million mortgage Oct. 18 from Hunt- “We’ve got about 1,500 students ington Bank for the last phase of the now,” Mr. Brenner said of the two Dodosh wrote that “the easy talented, youthful difference acquisition of Oakwood Country schools’ combined enrollment. “We part was the abundance of makers in Northeast Ohio. Here, Club, which straddles the border of Cleveland Heights and South Euclid. hit 1,000 about four years ago, and 10 th years ago we were at about 400, so people under 40 who came to our 20 class, and updates on 60 First Interstate plans to turn the we’re still growing.” our attention and merit recogni- of our past honorees. property into a big-box shopping Ohio Technical College includes tion. ... The tough part was Enjoy. PAGES F1-F30 center in South Euclid and an age- the PowerSport Institute and its 250 restricted residential and continuing students. In total, it already has more care community in Cleveland Heights. students than Hiram, Lake Erie or Ur- Likewise, Archetype Advisors, a suline colleges, as well as the Cleveland private equity-backed lender in Institute of Art, Mr. Brenner notes, Miami Beach, provided $21 million citing Crain’s research on area schools. to Pittsburgh-based PWA Real Estate The schools teach students skills that when it acquired Great Northern will enable them to repair, restore,cus- Corporate Center in North Olmsted tomize and maintain vehicles rang- last month from Duke Realty Corp. ing from passenger automobiles and of Indianapolis. trucks to motorcycles, snowmobiles However, the road to a rebound See SCHOOLS Page 41 See LENDING Page 6 Founder, new owner of bankrupt software firm play blame game By CHUCK SODER In one of several documents MK2 owner in July 2010. but has only $630,000 in assets, MK2 is disputing. [email protected] filed when it sought Bankruptcy In an email to Crain’s, Mr. Kasper according to documents filed with The company also owes the Court protection from creditors said he was “not surprised” by the the U.S. Bankruptcy Court in Cleve- federal government $254,000 in A game of who’s to blame is in late October, the Cleveland com- allegation. land. The creditor that is owed the unpaid taxes, in addition to another under way in the Chapter 11 bank- pany’s lawyers argue that founder “All I can say is that they con- most money is Huntington National $56,000 in state and local taxes. ruptcy case of MK2 Technologies Donald E. Kasper II failed to dis- ducted their due diligence and had Bank, which has filed both a MK2 — which provides custom LLC, which once was one of the close that MK2 was delinquent on full access to everything,” he wrote $410,000 blanket lien on all the software development, hosting and region’s fastest-growing information “substantial” obligations when he in the email. company’s assets and a judgment IT staffing services — employs 15 technology companies. sold the business to its current MK2 owes creditors $1.5 million lien for another $245,000, which See MK2 Page 42 INSIDE 47 6 Akron electric car manufacturer still hopes plan can work — but he’ll NEWSPAPER need more cash ■ Page 3 Entire contents © 2011 74470 01032 by Crain Communications Inc. PLUS: HEALTH CARE DEVELOPMENT ■ Vol. 32, No. 47 0 RICK PERRY LESSONS ■ & MORE 20111121-NEWS--2-NAT-CCI-CL_-- 11/18/2011 2:59 PM Page 1 2 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM NOVEMBER 21 - 27, 2011 CORRECTION COMING KEEPING BUSY A Nov. 7, Page 3 story about NEXT WEEK Those of you who have a job are working very hard, indeed. The U.S. Bureau Constant Aviation Inc. contained an of Labor Statistics reported that nonfarm business sector labor productivity incorrect name for Sky Quest, a char- Plugged in increased at a 3.1% annual rate during the third quarter of 2011. Output rose ter jet and air service company based 3.8%, while hours worked were up just 0.6%, yielding the impressive productivity 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 at Cleveland Hopkins International Smart phone apps are gain. Productivity rose at an even faster rate in most of the manufacturing Airport. Phone: (216) 522-1383 starting sector. 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