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, Joseph D. Roman, 2nd Vice Chairman President and CEO, Deb Janik, Treasurer Senior Vice President, Real Estate and Business Development, 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 Applied Industrial Technologies, Inc. AT&T BP America, Inc. Baldor Electric Co. Calfee, Halter and Griswald, LLP Case Western Reserve University Charter One Bank F.S.B. Cleveland Clinic Cleveland Foundation Cliffs Natural Resources, Inc. David H. Jacobs DDR Dominion East Ohio Eaton Corporation Fifth Third Bank FirstEnergy Corporation FirstMerit Corporation Forest City Enterprises, Inc. Goldman Sachs Goodrich Corporation Huntington National Bank Invacare Corporation Jo-Ann Stores, Inc. Jones Day Foundation JPMorgan Chase Key Bank Lincoln Electric LTV Corporation Lubrizol Luxottica, Inc. Macy s Department Stores Materion Corporation Nesco, Inc. Nestle USA, Inc. Northrop Grumman Systems Corporation Ohio Savings Bank Parker Hannifin Corporation PNC Bank PolyOne Corporation Premier Farnell Corporation R.T. Foundation Richard E. Jacobs RPM International, Inc. Scott Fetzer Foundation Scott Technologies, Inc. Sherwin-Williams Co. SS&D Foundation Teachers Insurance & Annuity Association of America Tops Markets, LLC University Hospitals U.S. Bank Win 6, LP Cleveland Development Advisors is an affiliate of