Aerospace Technology Park
TechPark Development Company, a Flagship entity, is a co-general partner of TechPark Limited Partnership, the developer of Aerospace Technology Park in Brook Park, OH. Brook Park is immediately adjacent to the Cleveland Hopkins International Airport and NASA's John Glenn Research Center. Glenn is one of NASA's eight research installations and focuses on microgravity research, aeronautics and aerospace power and propulsion. It has primary responsibility for all space station power systems. TechPark's initial responsibility was to construct office, research and laboratory facilities for the private contractors within the Park.
After assembling five privately owned parcels to form the Park, Flagship arranged public infrastructure financing with a consortium of the City of Brook Park, Cuyahoga County and the State of Ohio. Sverdrup Technology, Inc. took occupancy in October 1989 of the first building, a 90,000 sq. ft. build-to-suit. The $8,000,000 construction financing was obtained from AmeriTrust Company, NA (now Key Bank), Cleveland, OH. Also completed were a 28,000 sq. ft. calibration and repair laboratory for the Shuttle instruments, a 24,000 sq. ft. office building for NASA personnel and a 78,000 sq. ft. office/R&D building for Analex Corp. All construction was financed through National City Bank of Cleveland. A 100,000 sq. ft. flex building completed in 1992 was built as a joint venture with TIAA-CREF. Prudential Insurance provided permanent non-recourse financing for the first four buildings, which have since been refinanced with Lincoln Road Capital Holdings LLC and Transamerica Life Insurance and Annuity Company. the flex building was conveyed to the lender in 2014.
As NASA’s operations became more closely focused on space exploration, the importance of the Glenn Center waned in comparison with the other labs. Although this is changing, the percentage of aerospace tenants in the overall mix has declined over time. Many remain, and Eaton Corporation and Northrup Grumman are still amongst our largest tenants. To counter these trends, the owners have focused on attracting non-aerospace tenants to its park-like setting and immediate proximity to Hopkins Airport. At the same time, the R&D building was sold to the City of Cleveland for airport expansion purposes and Aerospace Parkway was connected with I-X Center Drive. That connection has given the Park excellent access to the regional interstate system.
NASA Glenn has recently been awarded more space exploration assignments. Glenn now has primary responsibility for the next generation of human operated spacecraft, including the Crew Exploration Vehicle (CRV), the Service Module and the Spacecraft Adapter. Time will tell what these changes will mean for Aerospace Technology Park, but, in the meantime, the buildings are 100% leased.
TechPark Development Company is a joint venture of Flagship Properties and IJC TechPark Corporation. IJC TechPark is owned by the estate of Cleveland developer Irving J. Chelm.
Celeron Square, UConn (Celeron Square Associates)
Celeron Square Associates has completed the first half of a 324-unit student housing complex on the Storrs campus of the University of Connecticut. Phases I and II, consisting of 64 and 96 units respectively, are 100% leased. Celeron Square consistently wins the “Best of Storrs” award in the apartment category. Phase III, consisting of 120 units, is currently under development.
Celeron Square is one of the closest apartment complexes to the UConn Storrs campus. It is less than one mile away, along both a wooded bike path leading to campus and the University shuttle bus.
The property is comprised of 20 two-story buildings. The 160 units offer an assortment of 1, 2, and 3 bedroom units. Celeron has among the highest staffing levels of any apartment complex and a Site Monitor team who help ensure the safety and security of the property and its residents.
Flagship acquired the interests of its original partner, DKM Properties Corp., a subsidiary of the Dyson Kissner Moran Corporation, a private investment company based in New York City.
Visit www.celeronsquare.com for more information.
Hannum Crossing is a 10-phase 232-lot single family residential subdivision in Streetsboro, Ohio. Streetsboro is a rapidly growing suburb of Cleveland located at the intersection of I-80 (the Ohio Turnpike) and I-480. As a result, Hannum Crossing has excellent access to all employment centers. It features a unique 25-acre environmental preserve with educational and esthetic enhancements. Five separate parcels were assembled to form the 184-acre tract. Initial financing was provided by Charter One Bank and more recently provided by Home Savings Bank of Youngstown, Ohio. Phases I-IX have been completed and are sold out. Flagship is currently developing Phase X into luxury homesites.
Click the video below to view the neighborhood!
Celeron Suites, 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 Condominiums
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.
Medical 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 in Cleveland.
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.
University of 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.
Shawnee State 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 system. Financing was provided by Ohio Savings Bank. Shawnee State acquired the properties pursuant to the terms of the ground lease in 1994.
LaSalle Dealership 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.
Northern Kentucky 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 student apartments.
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.