A decade ago, the K&D Group was transforming the 21-story East Ohio Gas Building (the first all-glass structure in Downtown Cleveland) into the upscale Residences at 1717. Karen Fanger, president and COO of K&D Group in Willoughby, has always been a hands-on real estate owner, especially with regards to design and decorating. “Our properties must be warm and welcoming from the lobby to the suite. Each building has its own feel,” says Fanger.
For 1717, she envisioned carpeting that featured small flames, a nod to the building’s proud history. “Unfortunately, the designer first sent sketches that looked like Harley-Davidson flames. I was thinking more like a small pilot light,” says Fanger, referring to the company’s long tradition of supplying gas for furnaces and appliances to homes and businesses. “We did get that corrected. But in every renovation we do, we try to honor the historical contents of that property.”
Those decisions — large and small — have taken a lot of thought since K&D was
founded in 1984 by Fanger and CEO Douglas Price. Today the company owns 40 properties and manages about 10,000 residential units.
“We own probably 35% of the Downtown market,” says Price. “We are sort of at the point where we don’t want to get much bigger. But looking at future expansion means we may go back to buying buildings again, probably on the West Side.”
With 2 ½ million square feet of commercial space in Downtown Cleveland, K&D is “the largest commercial landlord in Downtown,” according to Price. Commercial real estate makes up a third of the business’ portfolio, which also includes 15 buildings designated for senior living.
“We are very proud of what we do in the area. We provide the very best product. And we are moderately priced. We aren’t the most expensive in any of our markets. But we have touched a huge part of Northeast Ohio’s population and will continue to do so,” says Price, who has been vocal in advocating for development incentives in the area.
K&D’s ownership list is long and impressive, including Reserve Square, The Residences at 668, Residences at Halle, The Residences at Hanna, Residences at Leader and other projects. Both Fanger and Price agree, however, that their hand in creating The Terminal Tower Residences was a once-in-a-lifetime opportunity to breathe life back into what is Cleveland’s most iconic building. And it was challenging. K&D owns The Terminal Tower, but not Tower City Center, so as Price says, “there were lots of things to get around creating residences from the 15th floor and down.”
By the end of June 2024, K&D will know whether the third try to get state historic tax credits for the proposed renovation of the former United Church of Christ headquarters (recently known as the 700 Prospect Avenue building) will be successful. It’s been frustrating for Price, who is ready to go on the project, and says the state needs to dedicate more funding to the tax credits and revise its award process.
“Ohio, and especially Cleveland, has been a leader in historic restorations and we have done most of them. We are a national leader in converting office buildings and now it’s getting tougher. We don’t want to lose our leadership on this,” says Price, adding that the project will also offer a significant percent of affordable housing.
Fanger said K&D usually has another project in the wings, but likes to complete a major project before moving on to the next. However, delays in obtaining the necessary tax credits for 700 have caused us to delay moving forward.
“As far as what’s next, our eyes are always open, and we are always looking,” says Fanger. “I look at this as an opportunity to do things within the company. There are always internal improvements such as processes or software enhancements you can improve or change. So, when you have time like this, you take advantage of it.”
Life as a K&D Resident
There is never a problem finding K&D building residents who like to talk about where they live.
“I can sit in my living room, look out my window and see huge bridges and ships coming through all day,” says Cleveland resident John Stursa, who lives in the Stonebridge Waterfront complex, alongside the historic Superior Viaduct in The Flats. “I call the view my life-size screen saver. It’s the same cool view they show all the time on television.”
Stursa has been living at Stonebridge for almost three years. Initially he and his roommate were interested in the building because it was a dog-friendly property.
“We also wanted to make sure we could take the dog for a walk and Heritage Park is close, they just re-did it, and it’s a nice little area,” says Stursa. “The dog was a major reason we chose Stonebridge, but I also looked around at other places and Stonebridge was just cool.”
Stursa says he is grateful that the nearby and historic Center Street Swing Bridge over the Cuyahoga River opened last fall after several years of rehab work. That gives him easy access to restaurants and entertainment venues.
“I even like walking to Cavs and Guardians games. It’s so easy. We make our way into Tower City and then you are inside for the rest of your walk,” says Stursa. “And you can get last-minute, inexpensive tickets because we don’t really have to plan far ahead. We can be there in 10 minutes.”
Besides its convenient location, Stursa appreciates Stonebridge’s ability to respond to any request for maintenance work “either the same day or the next.”
Stursa is director of marketing and operations for Underdogs, a marketing agency. He is also co-owner of “I’m From Cleveland,” a media outlet that focuses on positively promoting Cleveland’s culture, including music, fashion and sports. When Stursa proudly wears his “I’m From Cleveland” trademarked apparel, that includes Stonebridge.
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Dean Frederick is an accountant who works Downtown and lives in the new Residences at 55, near Public Square and the Warehouse District. After graduating from John Carroll University with a master’s degree in 2022, Frederick was ready to live on his own for the first time.
“The 55 building couldn’t have worked out any better for me,” says Frederick. “I looked at other places around Cleveland, like Tremont, but they have the same pricing as living Downtown. When this came up, I couldn’t jump on it faster. It’s just the perfect spot for me. I like to walk and it’s in the middle of everything.”
Frederick appreciates “the fantastic security guards” at 55 and being able to always feel comfortable. He also gives a thumbs up to the outside patio where he can “go watch a sunset,” as well as 55’s community room where he enjoys studying.
“I’ve never had an issue with anything at all here,” says Frederick. “If I do put in a ticket (for maintenance), I’ll go to work, come home, and see a note on my counter that says everything is good to go.”
Frederick also likes his unit’s open floor plan because he likes to cook and entertain. An island allows him to “see into the living room” from his “perfect kitchen.”
“I told everyone that I am going to paint everything in my future homes the same colors. I like it that much,” he says.
