Kent State (MCG Holdings, Inc.)
A limited partnership purchased
the University Terrace property adjacent to Kent State University.
The property consisted of two dormitory-style residential
buildings, one office building, and one commercial building.
The partnership converted the office building and the two
dormitories into studio apartments. The residences were renamed “Celeron Suites”.
The commercial building was also modernized and was 100% leased. The financing
for the project was obtained from AmeriTrust. The financing
was renewed by Society Bank, the successor to AmeriTrust,
and was subsequently refinanced with Huntington National
Bank. MCG was
formed to acquire its assets and to assume all the financial
responsibilities of their original partnership. Subsequently, an independent property ownership
entity acquired 100% of all the assets.
Bemus Bay isa 40-unit condominium complex recently constructed on the shores of Chautauqua
Lake, NY. The units are contained in two identical 4-story buildings. All units
have decks with lake views, and each unit owner has
a boat slip in the adjacent marina. The initial financing for
the land acquisition and preliminary development activities
was provided by National City Bank of Cleveland, OH. A $13,375,000
construction loan was secured from Jamestown Savings Bank,
a division of Northwest Savings Bank. Flagship’s
partner was Lee Chilcote, a Cleveland-based real estate attorney. In late 2011, Bemus Bay Associates sold the remaining units to a subsidiary of Northwest Savings Bank.
Visit www.bemusbaycondos.com for more
Office Building (Flagship Carnegie Corp.)
Flagship Carnegie Corp. purchased a defaulted
note from Society Bank (now Key Bank) and acquired a vacant
and vandalized 25,000 sq. ft. office building located at
12000 Shaker Boulevard, Cleveland, OH via foreclosure.
The building was an award winning structure when it originally
opened in 1961. Its exterior was restored and the interior
thoroughly modernized to accommodate a medical clinic.
A “mini-perm” construction loan and an FF&E
loan were provided by Commerce Exchange Bank (now Second
Bank Corp). The project won the 1995 Friends of Shaker Square
President’s Award for a “Landmark
Renovation” and subsequently received an award from
the Cleveland chapter of The American Institute of Architects
for the rehabilitation of a historically significant building.
Positive Education Program
Flagship conducted a systematic search for
a new headquarters building for Positive Education Program.
PEP provides education and job-related training for multiply
handicapped youngsters throughout Cuyahoga County. Following
Flagship’s recommendations, PEP acquired
the former United Way Headquarters in the Midtown area
of Cleveland. The headquarters consisted of two buildings,
one of which was demolished to create additional parking.
The remaining building was thoroughly modernized and converted
to office use. Flagship subsequently negotiated the lease
renewal and coordinated the renovation of PEP’s Greenwood
Day Treatment Center located in the former Ludlow School
in Shaker Heights. Flagship also assisted PEP in the acquisition
of the former Community Guidance, Inc. headquarters building
Flagship arranged financing
for the projects utilizing low interest rate floating tax
exempt bonds issued by Cuyahoga County. A letter-of-credit
and interest rate swap facility were provided by Key Bank
and McDonald Investment Co.
Warren / Chaney
Office Furniture (Ayres Investments, Ltd.)
Flagship assisted Ayres in selecting an
existing building at 3200-3220 Euclid Avenue
in Cleveland for the headquarters/showroom of Warren/Cheney
Associates, a commercial office furniture company. The building
was built as a jewelry factory and showroom. It was functioning
as the office and warehouse for a novelty company when Flagship
acquired it from the family that owned the business. Flagship
arranged the initial financing from Key Bank and
the City of Cleveland Empowerment Zone. The City of Cleveland
vacated East 32nd Street and the roadway was incorporated
into a new parking lot. Flagship also coordinated the initial
leasing and renovation of the tenant space.
Maine Office Building (MaineTech Development Company)
MaineTech, in conjunction with the Town
of Orono, the University of Maine and Bennoch Road Associates,
an adjacent private landowner, served as the Master Developer
of the 70-acre Maine Technology Park in Orono, ME (a suburb
of Bangor) from 1987 to 1992. MaineTech Center, a 20,000
square foot office building, opened in August
1988 with the University of Maine as the major tenant. Subsequently,
the building was 100% net leased to MBNA, a Delaware financial
institution. MBNA exercised its option to purchase and acquired
the building in February 1999. Initial funding for the building included
a State of Maine Development Fund Loan and a construction
loan from Bangor Savings Bank, Bangor, ME. A parcel was sold
for an additional office building which currently houses
the Maine headquarters of the United States Department of
Agriculture, Soil Conservation Service. An existing service
station/convenience store located on a frontage parcel was
sold and thoroughly modernized. MaineTech Development Company
was a joint venture of Flagship Properties and DKM Properties.
Apartments (University Housing Company)
University Housing Company developed a townhouse
complex on the campus of Shawnee State University in Portsmouth,
Ohio. The complex, which opened in 1985 provided the first
on-campus housing for the newest branch of the Ohio State University
was provided by Ohio Savings Bank. Shawnee State acquired
the properties pursuant to the terms of the ground lease
Adaptive Reuse (LaSalle Holdings, Ltd.)
LaSalle acquired the former United Motors
Building, a 42,000 sq. ft. underutilized building in the
Midtown Corridor section of Cleveland. The initial financing was provided by Cleveland Development Partnership
II. Construction financing was arranged with Fifth Third
Bank. Permanent financing in the amount of $5,000,000 was
secured with long-term taxable bonds issued by the Cleveland/Cuyahoga
County Port Authority supplemented with debt financing
provided by a consortium of public entities including the
State of Ohio, City of Cleveland Empowerment Zone, and Cuyahoga
County. Historic Tax Credits were awarded to the project.
LaSalle transferred the building to CDP II as a new
home for the Cleveland YWCA.
University Residential (Highland Heights, KY Land)
Flagship acquired 12 acres of land adjacent
to Northern Kentucky University. Flagship had the property
annexed into the City of Highland Heights and rezoned to
multifamily use. It was subsequently sold to an Atlanta based
development company and has been since improved with 120
Leesburg, VA land
Flagship acquired 10 acres of land and secured
all approvals for the development of 72 townhouses in this
suburb of Washington, D.C. The land was sold prior to development
to Trammel Crow Residential. Flagship's partner was Wesley
Berger of Cleveland.