Cleveland's New Lake and River Love
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20160509-NEWS--1-NAT-CCI-CL_-- 5/6/2016 1:11 PM Page 1 VOL. 37, NO. 19 MAY 9 - 15, 2016 CLEVELAND BUSINESS Cleveland’s new lake and river love Economic opportunity | Fun on the water | Living on the shore SPECIAL REPORT | Pages 15-23 Entire contents © 2016 by Crain Communications Inc. EXCLUSIVE Jacobs unveils Nautica development plan with office towers, apartments Page 4 20160509-NEWS--2-NAT-CCI-CL_-- 5/6/2016 9:35 AM Page 1 Imagine the Possibilities When You Make a Big Impression 1.5 million 2.2 million 22 million visitors each year square feet of exhibit space digital signage impressions Allison Kimbrough Travis Poppell 216.265.2639 216.265.2612 20160509-NEWS--3-NAT-CCI-CL_-- 5/5/2016 10:22 AM Page 1 Cleveland is growing fast. And AT&T is growing with you. Our investment in Cleveland goes deeper than you thought. Underground and overhead, we’re building a cutting-edge fi ber-optic network in Cleveland. Giving businesses the speed and fl exibility they need to compete, create jobs, and thrive for years to come. We’re making Cleveland AT&T Fiber Ready. Learn more about business fi ber at att.com/fi berready © 2016 AT&T Intellectual Property. All rights reserved. Services not available everywhere. 20160509-NEWS--4-NAT-CCI-CL_-- 5/6/2016 1:23 PM Page 1 PAGE 4 z MAY 9 - 15, 2016 z CRAIN’S CLEVELAND BUSINESS AVAILABLE For Lease 24601 RICHMOND ROAD BEDFORD HEIGHTS, OHIO 156,460 SF BUILDING WITH 19,660 SF OFFICE Available November 2016 10 docks; 1 drive-in door 24’ clearance height A rendering of the Nautica Waterfront District, featuring office and residential buildings. (Contributed photo) Rail served (Norfolk Southern) Racking available Nautica plan calls for TERRY COYNE, SIOR, CCIM KRISTY HULL, SIOR, CCIM Vice Chairman Managing Director 216.453.3001 216.453.3055 www.TerryCoyne.com [email protected] [email protected] residential complexes BY STAN BULLARD boutique hotel. The other newly While Ernst & Young Tower filled proposed buildings would be devot- quickly after Wolstein Group and [email protected] ed to residential uses. Fairmount Properties completed it @CrainRltywriter “We will design them to be con- in 2013 in the Flats East Bank Neigh- verted to (for-sale) condominiums borhood, it’s on the east side of the Saying it is time to move the vi- in the future,” Jacobs said, “but I Cuyahoga River and abuts the IT’S SIMPLE. sion for the west bank of the Cuya- don’t think the downtown market is downtown office market. hoga River from entertainment dis- there yet for condos.” Although the top tier, or Class A, We help credit unions deliver trict to residential mixed-use Jacobs acknowledged the risk of part of the market is tightening, ten- exceptional fi nancing options to businesses district, Nautica developer Jeffrey Ja- proposing a hotel at a time when the ants have multiple alternatives in ex- cobs has unveiled a Nautica master downtown hotel market is almost isting buildings available, including and commercial real estate investors. plan calling for new towers upwards doubling in size, with additions of the eight floors in Key Center, an empty of 10 stories — with some as high as 600-room Hilton Cleveland Down- space one analyst privately labeled 20 — and 664 rental apartments. town Convention Center Hotel and “downtown’s next office building.” The new plan would retain major the new Kimpton and Dury hotels. At the same time, tenants who re- features of Nautica, such as its mas- However, the Windows on the quire more space than the market sive former railroad powerhouse River at the Powerhouse complex can easily provide might spawn a and amphitheater, but add an esti- hosts several weddings a week, and new structure. mated $405 million in additional Nautica constantly fields requests “I guess we’ll find out,” Jacobs real estate development to the 22- about where bridal parties and said of the office market’s appetite acre riverfront site. guests may stay nearby. for a west bank office building. “It’s risky, but it’s an important “When we first started out, the About the financing … idea was to bring young people back component to complete the mosaic to the city with an entertainment of a waterfront district,” Jacobs said Jacobs Investments has shared a district,” Jacobs said in an interview of the hotel. “The benefit of the ho- drawing of the proposed Nautica Wa- Thursday, May 5. “Now young peo- tel might not show in its books but terfront District master plan with the ple are excited about living in the would show up in other results in mayor’s office, but it plans to engage Commercial Real Estate Financing • SBA Loans • Construction Loans city. We will move to a live-work- the development.” in additional talks soon. Jacobs said his firm needs to know that the infra- play development. We’re excited to Time will tell Contact Jonathan A. Mokri be able to complete the painting.” structure on the west side will be ad- 440.526.8700 • [email protected] • www.cbscuso.com To that end, Jacobs, the chairman Absent from the plan are more equate for new development and that and CEO of Jacobs Investments, said entertainment uses or additional re- it might need a tax increment financ- Business Lending in Partnership with Area Credit Unions SM he has renamed the Nautica Enter- tail space. ing district to make the vision a go. tainment District as the Nautica Wa- “We feel there’s adequate enter- Jacobs said Nautica opposes a terfront District. tainment and restaurant use at the plan that has circulated among the The new master plan calls for a site,” Jacobs said. city of Cleveland and Ohio Depart- much denser development of the The lack of additional selling ment of Transportation to close the Complimentary site with seven, and perhaps eight, space also reflects lessons learned: eastbound entrance to the Shoreway buildings ranging from 12 stories in The Powerhouse and Nautica’s Sug- at West 28th Street, which has been In-flight WiFi height near Center Street to as much ar Warehouse originally had several the scene of several wrong-way traf- as 20 stories near the Nautica board- retailers, but they closed or relocat- fic accidents. He said the eastbound walk next to the river. ed elsewhere over time. access is important for Nautica and The proposed office building for its future residents. AIR CHARTER SERVICE The plan also calls for construction of three parking garages to service the would proceed only if preleasing for “We did the Powerhouse with a AIRCRAFT MANAGEMENT development. Jacobs said an initial half the structure is in place, Jacobs UDAG,” Jacobs said of the former garage would go in near the Nautica said, adding that Nautica would be Urban Development Action Grant powerhouse to serve guests of the interested in participating in a joint program the federal government op- aquarium, Windows on the River and venture with a large office tenant. erated in the 1980s and 1990s that Nautica Queen, perhaps as early as Over time, the west bank of the aided commercial redevelopment in 2017. The initial garage would allow Flats has been inhospitable as an of- urban areas with low-interest rate construction of buildings on parking fice district. The best example of that loans and flexible terms. lots near Main Avenue; the others is that prolific downtown apartment “We’ll probably have to have some would go in as various phases of the developer and office building owner JeffDAGs to make this go,” he added. project go forward. K&D Group of Willoughby lost its Jacobs Investments has also seen An office building of as much as Stonebridge Office Building to the the evolution of downtown Cleve- 187,000 square feet of work space lender after it was vacated by ten- land’s residential market firsthand. would go in one tower and another ants and new tenants were scarce The company continues to own the Northern Ohio's Premier Air Charter Service building would house a 150-room during the Great Recession. 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