COMMUNITY BIZ~

3 Summit Park Drive Suite 200Cleveland, Ohio 44131

From left to right: Paul J. DiVincenzo, George J. Pofok, CCIM, SIOR, Simon Caplan, SIOR, Joseph V. Barna, SIOR and Eliot Kijewski, SIOR

LeBron James famously declared after the Cleveland Cavaliers won their first NBA title this past June that “It’s Cleveland Against The World”.

If you haven’t been paying attention since then, Cleveland is still on a winning roll. And I’m not just talking about the Cavs or the Indians, who are playing the Chicago Cubs in the World Series this week vying to win their first baseball championship in 68 years. This past July, every hotel room downtown was sold out for the week when the Republican National Convention came to town.

Unbeknownst to most outsiders, Cleveland’s rebirth has been happening at street level for years. This gritty, “underdog” city is now home to six James Beard award-winning chef-inspired restaurants, a thriving bar, arts, and music scene, and biomedical and “smart” manufacturing start-ups that are quickly luring America’s youngest and brightest away from Boston, Austin, and Silicon Valley. All of which makes every Saturday night along East Fourth Street just north of Quicken Loans arena look more like SoHo or South

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The Barna Caplan TeamCleveland • Ohio

www. crescorealestate.comwww.barnacaplan.com Fall 2016Presorted Standard

U.S. Postage PaidCleveland, OHPermit No. 283

Beach than the “Rust Belt” strip one might conjure up in their mind when someone says “Cleveland”. So just who sprinkled the fairy dust on Cleveland this year?

There’s no simple answer to this question of course. Engineering urban resurrection has been attempted for decades with mixed results.

Many mid-sized, Midwest cities have long gambled on professional sports to revitalize their historic cores and reinvigorate local pride. If you just also happen to be lucky enough to land a superstar like LeBron James and become a title contender, the logic goes, the downtown crowds and dollars will inevitably follow. This was precisely the bet that Quicken Loans founder Dan Gilbert made on Cleveland and LeBron James over a decade ago.

Notwithstanding the possibility of the second largest city in Ohio winning two of America’s four major professional sports titles in less than five months, Cleveland’s recent rebirth is far less linear and simplistic than the sports-only logic would suggest. It’s the result of years of forward-thinking investments in community revitalization, tourism infrastructure, and creating an identity that’s distinctly “Cleveland,” explains David Gilbert, Director of Destination Cleveland and the Greater Cleveland Sports Commission.

C O M M E R C I A L R E A L E S T A T E C O N S U L T A N T

1991 • 2016Celebrating

Barna Caplan TeamJoseph V. Barna, SIOR • 216.525.1464 • jbarna@crescorealestate.com

Simon Caplan, SIOR • 216.525.1472 • scaplan@crescorealestate.com

George J. Pofok, CCIM, SIOR • 216.525.1469 • gpofok@crescorealestate.com

Eliot Kijewski, SIOR • 216.525.1487 • ekijewski@crescorealestate.com

Paul J. DiVincenzo • 216.525.1470 • pdivincenzo@crescorealestate.com

Cleveland’s Hot

Featured Properties

Market Overview

Inside This IssueSpotlight Properties

Recent Transactions

Community Biz

Why Cleveland Is America’s Hottest City Right Now!“2016 has been a fairy dust year for Cleveland,” says Gilbert. “The trifecta between winning the NBA Championship this spring, hosting the Republican National Convention in July, and having the World Series in town now has put the national spotlight on us all year long. But we were ready. The timing wouldn’t have been right five years ago. When the microscope came on (this year) Cleveland was ready for prime time.”

Cleveland’s steady-as-she-goes revitalization should be instructive to every other city that’s struggling to reinvent itself. Sports dynasties and the superstars that fuel them are no different than manufacturing companies a century ago. Their dominance is fleeting. So every city, says Gilbert, should be careful who, and what, they bet on to sustain long-term urban revitalization.

“What sports’ titles and championship runs are for a city is a great front porch,” Gilbert explains. “The Cavs winning the championship this year meant more to any city than any other championship ever. And can you imagine what it will do to this city on the national stage if the Indians win the World Series in the same year? But the reality is that Cleveland’s been at a tipping point for years in terms of changing the narrative about who we are in the eyes of America, and this year we’ve been given a once-in-a-lifetime opportunity to re-define ourselves.”

Great Lakes Regional SIOR Conference

Allen H. Gump, SIOR, CCIM Inter-national Presi-dent, welcomes the attendees.

In August, 2016, approximately 150+ members and sponsors from Chicago, Ohio, Indiana, Kentucky, Michi-gan, Wisconsin and New York gathered in Cleve-land to attend this signature event.

Kamm’s Corners Development Corporation (KCDC) In June, 2016, George J. Pofok, CCIM, SIOR stepped down after fourteen (14) years of service on the Kamm’s Corners Development Corporation Board of Directors. This included serving the last three (3) years as Board President. “It was an honor and a privilege to serve the residents of West Park and seeing all the changes and improvements over the years is extremely gratifying,” said Pofok.

FORBES | October 27, 2016 | @ 5:19pm | Peter Lane Taylor, Contributor

Quicken Loans Arena. Courtesy of Destination Cleveland

Rock N’ Roll Hall Of Fame. Courtesy of Destination Cleveland

INDUSTRIAL More of the same is expected in the coming quarters –slow and steady movement in the market with a continued decrease in va-cancy rates. Developers are proceeding cautiously in terms of new speculative bulk distribution projects to service the pent up de-

mand in the market.OFFICE The region is in the midst of a revival. The Republican Na-tional Convention, which yielded posi-tive impressions of the Cleveland area to millions of visitors and viewers, is one of many recent events that has improved the image of the city and bolsters the business climate for continued success in the future.Public enthusiasm and city support is ev-ident and should fur-ther attract local and tourist traffic to the CBD and surround-ing region. With the Cleveland Indians on

their way to the World Series, hospitality occupancy rates will re-main high and Cleveland continues to rock.

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Local Market Overview

THE OFFERINGA “State-of-the-Art” Medical Complextotaling 7,141 SF situated on a fullyimproved 2.83 acre development site.

The campus has been master plannedwith ancillary site improvements in placeto accommodate two additional 5,000 SFto 7,500 SF buildings.

• 226,031 SF industrial building.

• Situated on 9.36 acres.

• One (1) exterior dock.

• Three (3) drive-in doors.

• Twenty-two (22) cranes ranging in size

from 3-100 tons.

• 20’ - 70’ clear height.

• 9,330 SF office situated on 1.2 acres with 175’ frontage. Built in 2003. Monument Signage.

• 33 surface parking spaces on cement lot. BUILDING LAYOUT

• 18 large private offices, 8 large hard cubes, 3 conference rooms, server room with Time Warner Cable Business Fiber servicing building, fully renovated and upgraded men / womens ADA compliant restrooms including showers, file storage space and copy room with work center, outdoor space with picnic area.

LOCATION• Busy business park less than 5 minutes from

I-77 and Rockside Road. Less than 5 minutes to 4 Interchanges of I-480 & I-77.

MAGNA - 3637 Mallard Run, Sheffield Village Joseph V. Barna, SIOR represented Cedar Tree Properties, LLC in the leasing of 66,800 SF to Magna Seating of America, Inc., a global supplier to the automotive industry. The property is located within the French Creek Business Park. A major obstacle included completing $1,000,000+ of tenant improvements within a compressed time frame. The end result being Magna Seating of America, Inc. executing a 10 year lease and bringing 50+ new jobs to Sheffield Village. Tim Breckner of Colliers represented the Tenant.

2210 International Parkway, Green, OhioGeorge J. Pofok, CCIM, SIOR represented a beverage distribution company in leasing 350,000 SF at 2210 Inter-national Parkway in Green, Ohio. The location is on the back side of the Akron-Canton Airport and within 5-7 minutes of the Shuffel Street exit on I-77. George teamed with Mike Jones of St. Onge Company on this assign-ment. St. Onge Company is a world recognized supply chain engineering and logistics consulting firm. Mike and his team evaluated the supply chain of the company and recommended consolidating four locations which were controlled by 3PLs into two company controlled locations. From company introduction to lease signing was less than 60 days. Lisa Trevino of NAI DAUS represented the landlord.

HEAT SEAL - 4922 E. 49th Street Cuyahoga Hts. CRESCO was enlisted by Heat Seal to assist in the search for a new home and headquarters for their company which specializes in the design, development and manufacturing of packaging and processing equipment for the food processing and industrial packaging industries. The requirement was for 85,000 +/- SF of very clean indus-trial space inclusive of office, engineering, showroom, testing, machine shop, fabrication, assembly, warehouse and shipping that was brightly lit and inclusive of 1200A of 480V electrical power, as well as many other manufac-turing amenities. We required a manufacturing area in a square configuration that would enable the reorganizing of the production line, installation of new equipment, in a similar size space, in order to gain overall efficiency and be very nearby the current facility to retain employees. We identified 4922 E 49th St. early in the search, at the time it was under contract to be purchased by a local developer. The biggest issue was the significant amount of Landlord and Tenant improvements. After many months with the assistance of company management and the Landlord we were able to overcome many obstacles and work out a long term deal that included the right space built-out to Heat Seal’s specifications with room to grow that fit into their budget.

Local Market Outlook

3Q

Our commitment and dedicat ion he lp you get resul ts‘‘

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The overall vacancy rate continued its steady decline to 4.9%. Net absorption rebounded in the Q3 16 with a positive 331,032 square feet (SF). The asking NNN rates remained steady at $3.88 per square foot (PSF). There are three speculative buildings totaling 441,920 SF currently under construction or completed. In speaking with the developers, they have multiple deals working on each property and expect to break ground on additional buildings in early 2017 as a result of the demand. Activ-ity includes both expansions for existing Northeast Ohio companies and new locations for companies not currently in Northeast Ohio Top leasing activity included a 306,010-SF lease by Royal Appliance at 1793 Enterprise Parkway, Twinsburg. Quarterly investor sales activity was down slightly with just seven transactions totaling 753,182 SF. The largest transaction was the sale Raintree Industrial Park, an 11-building portfolio totaling 563,182 SF, which Equity Commonwealth sold for $11.4 million ($20 PSF) to Mintz Management. The number of user sales increased slightly, however the 1.5 million SF was on par with previous quarters. Notable user sales included 787 Renaissance Parkway, Painesville, a 110,699-SF building acquired by Mar-Bal, Inc. from Welsh-Core Ohio LLC for $4.2 million ($38 PSF) and 12665 Corporate Drive, Parma, a 55,000-SF building acquired by the Cleveland Cavaliers for $3,250,000 ($59 PSF).

7000 CENTRAL AVENUECLEVELAND, OHIO 44104

9050 SWEET VALLEY DRIVEVALLEY VIEW, OHIO 44125

29143 CENTER RIDGE ROADWESTLAKE, OHIO 44145

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Meticulously Maintained Class A Office with High End Finishes.

PROPERTIESSpotlight

1199 S. Chillicothe Road, Aurora, Ohio 44202• Building Totals 174,224 SF with 28,877 SF Office and 145,347 SF Warehouse.• Built in 1972 and situtated on 16.98 acres.• Docks: Ten (10); 6 - 8’ x 8’, 4 - 9’ x 9’ all with levelers, locks & seals.• Drive-in doors: One (1) 16’ x 16’• Ceiling Height: 18’, 23.5’, 28.5’• Power: 12,500 KVA/480V/3P• Silos: Two (2) 80,000 lbs. / One (1) 60,000 lbs.

14301 N. Industrial Avenue, Maple Heights, Ohio 44137 • 103,830 SF Industrial Building For Sale with four (4) units for Lease.• Situated on 9.82 acres, built 1963/refurbished 1971.• Clear ceiling height 14’ - 18’ with four (4) drive-in doors and Six (6) docks.• Power: 1200A / 240V / 3P and 160 parking spaces.

Presciently what Gilbert and many of Cleveland’s business and political leaders realized on the run up to 2016 was that Cleveland didn’t have a product problem. It had a perception problem.

This hasn’t always been the case. John D. Rockefeller founded Standard Oil in Cleveland in 1870 (he’s buried at Lake View Cemetery in Cleveland Heights not far from former U.S. President James Garfield), cementing the city’s early reputation as an American industrial powerhouse. By the early-mid 20th century, automotive and other heavy manufacturing industries made Cleveland America’s fifth largest and one of its wealthiest cities.

By the 1960s, however, along with dozens of other Midwest and Southern cities, Cleveland had become a national symbol of urban flight, early-stage globalization, and racial unrest. Downtown Cleveland began hemorraging residents and businesses shuttered. The Cuyahoga River running through downtown famously caught on fire in 1969.

Just when Cleveland was at its lowest point five decades ago is exactly where Gilbert likes to pick up the city’s underdog story. From the outside in what tourists, business travelers, and even local residents see in 2016 are the results of a revitalized Cleveland on a roll. What they don’t see is the hard work it took to get there.

“If the real story here weren’t actually about what we’ve done to turn this city around on the ground it would be all just be about our sports teams,” Gilbert explains. “But this city is about so much more than the fifteen players on the Cavs, or the Indians being

in the World Series. Cleveland has lived with a strong head wind for decades. But this is our time. We have a tail wind to take advantage of right now, and that’s exactly what we’re doing.”

Gilbert is quick to spread the credit for Cleveland’s recent economic revival around. The Cleveland Clinic is ranked the second best hospital in the country, he points out, and the Cleveland Museum Of Art and The Cleveland Orchestra are two of the finest in America. Playhouse Square on the city’s east side is the largest theater district in the U.S. outside of New York’s Lincoln Center.

It’s also no small influence that Cleveland’s foodie culture has been invigorated recently by two of the most innovative celebrity chefs in the country who also happen to be local boys. Michael Symon and Jonathon Sawyer, both native Ohioans and James Beard award-winning chefs, collectively oversee six restaurants in downtown Cleveland. And while

Cleveland’s Hot If Cleveland keeps it up they might just be hosting the 2028 Summer Olympics.

Cleveland Museum Of Contemporary Art. Courtesy of Destination Cleveland

The Cleveland Orchestra’s Severance Hall. Courtesy of Destination Cleveland

Cleveland Museum Of Art. Courtesy of Destination Cleveland

also branching out into other cities, they’ve bet their culinary futures on their Ohio roots. Symon runs Lola and the recently opened Mabel’s BBQ joint, and Sawyer has four restaurants downtown including The Greenhouse Tavern.

“Everything in Cleveland these days seems to come from the same place,” Gilbert says of the city’s up and coming foodie scene. “Even the culinary experiences here are gritty and born out of hard times. We don’t want to change who we are. We want to amplify who we are. We’re Cleveland.”

Cleveland’s perfectly-timed, cosmically-aligned nexus of sports, food, culture, and business reinvention won’t last forever. Which is why business and civic leaders like Gilbert, as well as all of Cleveland’s award-winning chefs, hotels, and other businesses, have every intention of leveraging their ten months of fame on the national stage.

“Locals here never stopped believing in Cleveland,” Gilbert says. “They just needed a reason to believe in it again. Now they have it for the long term regardless of who wins the World Series or the NBA title next year.”

Just leased 27,000 SF to First Time Transportation