For Doug Price, CEO of K&D Group, the timing for the new Terminal Tower Residences couldn’t have been better.
“Forest City was relocating, and they were a major tenant,” says Price. “So that left a huge vacancy where we could convert a portion of the building to residences.”
It also opened up Cleveland’s most historic landmark to residential development. Finished in 1930, the Terminal Tower was built by the Van Sweringen Brothers and quickly became a 700-foot-tall iconic landmark for the city.
Up until 1967, it was the second tallest building outside of New York City. K&D acquired the Terminal Tower from Forest City in 2016 as part of a $100 million plus project that converted floors four through 14 into apartments and floor 15 into tenant amenities and management offices.
“Floor 16 on up is still office space, and we’re at about 95 percent [occupancy] right now,” says Price.
When completed, the Terminal Tower Residences, leasing now, will include 297 apartments ranging in size from 550 to 1,300 square feet. Apartments came online starting with the fourth floor, with other floors coming online every three to four weeks after that.
Many of the apartments run between $1,200 and $1,600 per month, an ideal price for young professionals and empty nesters who have been flocking to downtown during the past 10 years, although penthouse apartments will be more. The obvious draw is living within historic architecture with modern amenities and conveniences, something that appeals to many people moving back into the city’s center.
So is that the only reason people are choosing to move downtown?
“It’s also about lifestyle and convenience,” says Price. “The Terminal Tower Residences are right in the center of the city. You can walk downstairs and get a train to the airport. Public Square is right out the front door, so you have easy access to public transportation. And there’s a walkway over to Rocket Mortgage FieldHouse.”
Which makes it pretty easy to catch a game or a concert.
“And you really don’t need a car,” Price adds, although K&D Group did acquire the parking garage under Terminal Tower as a part of the deal.
The $185 million Rocket Mortgage FieldHouse upgrade is the latest in a series of renovations in the immediate area, Price notes. The Ritz-Carlton Hotel in the Tower City complex has been renovated, and the Higbee Building is now the JACK Casino.
Terminal Tower itself underwent a $40 million upgrade in 2010 that renovated the building’s facade, lighting and windows, while reopening the historic observation deck. In addition, K&D Group, which is Northeast Ohio’s largest privately held owner and manager of apartment buildings, is quickly becoming a major player in downtown office space as well. The company purchased Post Office Plaza in 2017 and is currently leasing out space.
“And, we have had tremendous success,” says Price. “This will bring in more jobs to downtown, which means you will have more people living in downtown.”
Which is a nice cycle of developmental growth for all of downtown.