20131202-NEWS--1-NAT-CCI-CL_--
11/27/2013
3:57 PM
Page 1
$2.00/DECEMBER 2 - 8, 2013
Can medicine tame big data? Three Northeast Ohio health care heavyweights are determined to take advantage of large amount of clinical info they’ve collected By TIMOTHY MAGAW tmagaw@crain.com
If Cleveland’s biomedical powerhouses — Cleveland Clinic, University Hospitals and Case Western Reserve University’s medical school — wanted to make mean-
ingful progress with using big data in advancing their research efforts, they knew they had to play nice with each other in the city’s sandbox. As such, the three recently locked arms to launch the Institute of Computational Biology — an ef-
fort its founders say will allow them to take advantage of the hulking amount of clinical information they’ve each collected over the years. The difficult task at hand is taking clinical data housed within the hospitals’ individual medical record systems, stripping it of sen-
sitive personal information and converting it into a format that can be digested by researchers at all three institutions. It’s not a cheap undertaking, either. Officials at Case Western Reserve, which is taking the lead on the project, said the three institutions contributed a combined $21.5 million to the institute. The university declined to break down each institution’s individual contribution, but officials stressed none
could launch an initiative like this on its own. “Big data is costly,” said Dr. Pamela Davis, dean of Case Western Reserve’s School Davis of Medicine. “There’s a certain economy of scale of being able to do this together.” See DATA Page 6
PARTYING HEARTIER ERC survey shows 10 percentage point jump in employers planning holiday get-togethers By MICHELLE PARK LAZETTE mpark@crain.com
C
aterers say they’re enjoying a taste of the action revealed in a local survey, which found the percentage of employers in Northeast Ohio planning holiday parties is the highest by far since the survey started asking about such festivities in 2009. This year’s Holiday Practices Survey by ERC, a human resources organiza-
tion in Highland Heights, found 83% of the respondents are planning parties for their employees, a 10 percentage point jump from 73% in 2012. That increase dwarfs any since the survey’s inception. In 2009, 2011 and 2012, 73% of respondents reported planning a holiday party, and in 2010, the figure was 71%. The survey also found 71% of the respondents this year say their parties will be catered, up from 64% in 2012.
INSIDE: More survey results. Page 17
See PARTIES Page 17
COMPANIES ARE FEELING FESTIVE A look at the percentage of organizations planning a holiday party this year, and how it compares to 2011 and 2012: 83% 73%
73%
73% 58%
27% 27%
58%
17% 6%
7%
9% 4%
8%
2011 2012 2013
2011 2012 2013
2011 2012 2013
2011 2012 2013
2011 2012 2013
We are planning to have a holiday party.
We are not planning to have a holiday party this year.
Yes, but we are budgeting less than last year.
Yes, and we are budgeting the same as last year.
Yes, and we are budgeting more than last year.
CRAIN’S PUBLISHER RETIRES
SPECIAL SECTION
FAREWELL
CITY LIVING
NEWSPAPER
74470 83781
7
48
■ Source: “2013 ERC Holiday Practices Survey”; view the full survey at tinyurl.com/n9gd48b
0
6%
Brian Tucker looks back on his career ■ Page 4
Apartment construction could be the next big thing in Downtown Cleveland ■ Pages 13-15
PLUS: RETIREMENT PARTY PICS, Page 10
PLUS: URBAN BOOM IS FELT ELSEWHERE ■ PROFILES IN LIVING
Entire contents © 2013 by Crain Communications Inc. Vol. 34, No. 48
20131202-NEWS--2-NAT-CCI-CL_--
11/26/2013
2:09 PM
Page 1
We’re proud to help drive growth for Ohio businesses. baml.com/growth
The power of global connections
“Bank of America Merrill Lynchâ€? is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliatesâ€?), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., both of which are registered as broker-dealers and members of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment MOLAR@QP LCCBOBA ?V &KSBPQJBKQ >KHFKD CCFIF>QBP  OB +LQ #!&  &KPROBA e *>V )LPB 3>IRB e OB +LQ >KH $R>O>KQBBA  s  >KH LC JBOF@> LOMLO>QFLK Â
20131202-NEWS--3-NAT-CCI-CL_--
11/27/2013
2:10 PM
Page 1
DECEMBER 2 - 8, 2013
WWW.CRAINSCLEVELAND.COM
CRAIN’S CLEVELAND BUSINESS
3
NRP Group expands its market, reach Garfield Heights company is building developments to meet apartment demand By STAN BULLARD sbullard@crain.com
This Northeast Ohio real estate firm is active in 13 states and operates eight regional offices seeking out deals that have resulted in upscale apartment developments in
Austin, Dallas and San Antonio, Texas; St. Petersburg and Orlando, Fla.; and Raleigh and Charlotte, N.C., among other places. Which developer is it? If you guessed giants Forest City Enterprises Inc. or Associated Estates Realty Corp., you’re wrong. Instead,
those projects are the handiwork of NRP Group, which since 1995 quietly has been building apartments well beyond its base in Garfield Heights. The surge in popularity of apartments nationwide has provided NRP an opportunity to accelerate
rapidly its development pace and to broaden its efforts beyond its original market of affordable housing for tenants of modest means. NRP is building 10 market-rate luxury apartment developments across the country this year, including one in Beachwood. It also
INSIDE: Apartment construction could be the next big thing in Downtown Cleveland. Page 13 plans to start construction of seven more between Thanksgiving and next April, said David Heller, an NRP principal and the company’s president of property management. See NRP Page 18
THE WEEK IN QUOTES
INSIGHT
“We have all of these data out there that we’ve been collecting, and no one has been looking at that in a big way. That’s what we’re trying to do.” — Dr. Jonathan L. Haines, who will lead the new Institute of Computational Biology. Page One
“The financial prowess of Warren Buffett will not necessarily translate into real estate success at a local level. It’s the brand and the model and the sales associate who knows the people and gets the referral that produces the business.” — John Ludwick, an operating principal of Keller Williams Realty Greater Cleveland. Page 7 MCKINLEY WILEY
Marty Albrecht has concocted many inventions in his Lakewood basement. His latest is a pressure regulator designed to help welding equipment work in the wind. By CHUCK SODER csoder@crain.com
BRINGING IDEAS M TO FRUITION New tech transfer office at LCCC helps individuals cultivate their inventions
arty Albrecht’s fourth attempt to get a big company interested in one of the many inventions to come out of the machine shop in his Lakewood basement would have failed — just like the first three — if he hadn’t taken that six-hour meeting with Russ Donda. Donda Today, Mr. Albrecht says, a major corporation is in talks to license his latest creation, a pressure regulator designed to help welding equipment function in the wind. But those talks wouldn’t have begun if it weren’t for Mr. Donda’s new Office of Community Technology Transfer, said Mr. Albrecht, a machinist and training aide specialist at Ohio Technical College in Cleveland. See IDEAS Page 12
Job cuts deal ‘visible’ hit to manufacturing Industry’s employment growth has slowed, but not by as much as well-publicized layoffs at such firms as Lockheed Martin indicate By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com
Tom Waltermire, CEO of business attraction group Team NEO, doesn’t view the recently announced plans for local layoffs at Lockheed Martin, PPG Industries and Honeywell as a harbinger of
manufacturing job losses to come. But Mr. Waltermire said those announcements — which could represent up to 850 jobs lost at those three companies — underscore the need for the economic attraction and retention efforts carried out by local chambers of commerce and state and regional
economic development groups, such as Team NEO. “It’s a reminder of the importance of doing this well,” Mr. Waltermire said. Recently, a lot of the “big visible chunks” of jobs gained or lost have been in the form of losses, Mr. Waltermire said. And while there are
exceptions, job growth has tended to be more incremental, coming in clusters of five and 10 positions, often at smaller companies that don’t have the visibility of a Lockheed Martin or PPG. But at least this year in Northeast Ohio, the gains only have allowed manufacturing employment to break even at best. And the job losses at companies such as Lockheed Martin loom as the region looks to 2014 and 2015. See MANUFACTURING Page 9
“We are thrilled to have the courts penalize individuals who spread false and malicious information about the industry.” — Rhonda Reda, director, Ohio Oil and Gas Energy Education Program. Page 8
“We really are running out of buildings downtown that are convertible to apartments.” — Doug Price, CEO of K&D Group. Page 13
“I don’t see myself moving any time soon. I’m painting the walls and getting comfortable.” — Gabe Stokes, a 25-year-old who is studying exercise science at Cleveland State University and living at The Langston. Page 14
20131202-NEWS--4-NAT-CCI-CL_--
4
11/27/2013
1:43 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
DECEMBER 2 - 8, 2013
PUBLISHER/EDITORIAL DIRECTOR:
Brian D. Tucker (btucker@crain.com) ASSOCIATE PUBLISHER/EDITORIAL:
John Campanelli (jcampanelli@crain.com) EDITOR:
Mark Dodosh (mdodosh@crain.com) MANAGING EDITOR:
Scott Suttell (ssuttell@crain.com)
OPINION
Rush job
H
aste makes waste. It also can make for poor decisions with bad long-term consequences. We hope the latter isn’t the case with last week’s approval by Cleveland City Counci of an agreement that would have the city hand over $30 million over the next 15 years to the Cleveland Browns for improvements to FirstEnergy Stadium. With so little time to digest the deal’s details, it’s hard to tell whether the agreement Mayor Frank Jackson reached with the Browns for how the city and team would divvy up the cost of $120 million in stadium upgrades is the best the city could have cut for itself. That’s how much of a rush job the process was for moving forward on this big expense. The Browns didn’t unveil publicly their plans for new giant scoreboards, a new audio system, two new escalators and other stadium improvements until Wednesday, Nov. 13. Browns CEO Joe Banner stressed during a news conference that day that the plan “is a proposal at this point,” and that the team was about to begin the process of working with the mayor and City Council to iron out details. And yet, just six days later, on Nov. 19, there were Mr. Banner and Mayor Jackson together at Cleveland City Hall announcing that they had reached an agreement on who would pay what for the stadium improvements. The public would learn that the city would kick in $2 million a year from its general fund for the next 15 years to help pay for the upgrades — and that the deal was on a legislative express train. Rather than follow normal procedures that require multiple meetings before a proposal can come to a vote, the mayor asked City Council to treat the ordinance as an emergency measure that it would consider on Monday, Nov. 25 — again, just six days later. So, in the course of 12 days, a $120 million plan went from “a proposal at this point,” to use Mr. Banner’s words, to a fait accompli. Considering how the deal seemed to be crammed down City Council’s throat, it’s small wonder the measure almost failed. An emergency measure requires two-thirds approval by the normally compliant City Council, and five of the 18 members voting said “no” to it. Mr. Banner said Mayor Jackson “kicked our ass” in his negotiations with the Browns, and that may be the case. As Crain’s assistant editor Kevin Kleps wrote in a story in last week’s issue, the share of the costs Cleveland is picking up for stadium improvements is in line with deals between other cities and their NFL teams for renovations to their ball yards. Still, we remain wary of these “must-be-donenow” deals pushed by government officials, because we’ve seen too many of them turn out poorly for taxpayers. Among them is the original stadium lease cut by then-Mayor Mike White, who was desperate to bring an NFL franchise to Cleveland after Art Modell moved his team to Baltimore on his watch. It’s that lease, with its big back-end obligations, that left the city in a weak negotiating position with the new Browns’ ownership almost two decades later. Will this expedited deal work out OK? We are left once again to cross our fingers, and that’s not good.
FROM THE PUBLISHER
A heartfelt finale, but hardly goodbye chief, something I had been set on durearly 29 years ago this time of ing my six-year career, but agreed to fly the year, I was tending to my to Cleveland and talk. duties as assistant buIt’s now a flurry of thoughts reau chief of The As- BRIAN from that February in 1985. Flysociated Press’ Los Angeles bu- TUCKER ing to Cleveland (via Chicago, reau. As was always the case in where I met with the editor of AP’s second-largest reporting Crain’s Chicago Business) and bureau, things were running at meeting the publisher, Lowell breakneck speed. “Chris” Chrisman, at Hopkins. And then came the phone We went to Don’s Pomeroy call. It was my dear friend and House in Strongsville and had a newspaper pal, Peter Brown, in Detroit. I assumed it was one of nice dinner. Then it was down the periodic catch-up phone to the Stouffer hotel on Public calls we’d been having since our reportSquare, where I stayed in a suite that was ing days together in Michigan’s Upper bigger than my L.A. apartment (I’m Peninsula. guessing Chris got a deal, being a weekWell, it was more than that, as Pete night in February). came to the reason he had called. “The The next morning, I walked into the Cleveland publisher was just in our ofnewsroom that I soon would be running, fices, “Pete explained, “and he asked me and was shocked to see a staff using elecif I knew a talented editor who might be tric typewriters. I may be leaving the interested, so I said I’d call you.” world’s largest news organization for I knew Pete had left the Free Press in this, I thought? Detroit to lead the start-up of a weekly But I was intrigued. The weekly paper business newspaper there, and that it was just shy of turning five years old in was owned by this family — the Crains this market, and had some talented writ— known for their dedication to excelers. Northeast Ohio was an important lent journalism at their business weekheadquarters city and had an immense lies. I was on a path to be an AP bureau amount of mid-market and small busi-
N
TALK ON THE WEB Re: FirstEnergy Stadium upgrades ■ I guess everybody forgets Reader responses to stories that in 1995, the Browns left for and blogs that appeared on: similar issues; I doubt we would www.crainscleveland.com have a team when they leave again. But maybe we cannot afford one. It’s no big deal. We have plenty of issues like empty buildings and houses, crack dealers, and incompetent government that can take up the slack time on Sunday afternoons. — David Howard ■ My information is that the NFL is sweetening this deal with forgivable and very favorable loans to the team (not city, though linked to the Browns remaining in CLE) as repayment for the 1995 move — guilt money on top of a sin tax. Thankfully, we’re not the Cleveland Angels. — Marc Vinson
Re: BakerHostetler merger with Philly firm ■ Woodcock Washburn? They were probably just desperate to get rid of the name! — Peter Jensen
nesses. There was a thirst for solid, insightful business journalism, and the Crain family was dedicated to producing just that. Chris made me a nice offer, and I went back to L.A. to consider my future. A few weeks later, I was moved into my apartment near Edgewater Park, and we were on our way to building something important here. I hired Mark Dodosh, another area native, who left Dow Jones to become managing editor of Crain’s Cleveland Business. Step by step, we improved all aspects of this weekly, adding digital news products and events, moving to new offices, upgrading to magazine-quality paper and color graphics. We were dedicated to the creation of a business newspaper that would help steer the region’s agenda, and now, I believe, we’ve done just that. This is my final column as publisher and editorial director, and I want you to know it’s been an honor to be associated with this grand project. And who knows — I just may be sharing my thoughts with you in the future. After all, you never really expected to get rid of me that easily, did you? ■
POLL POSITIONS What's your reaction to the Cleveland Cavaliers’ slow start this season? Be patient. Things will get better.
32.3%
They need a trade ASAP.
16.1%
When is next year’s draft?
51.6%
Vote in the poll each week at: CrainsCleveland.com.
20131202-NEWS--5-NAT-CCI-CL_--
11/27/2013
1:05 PM
Page 1
DECEMBER 2 - 8, 2013
BUSY PLACES
COMING NEXT WEEK What’s the trade-off? Crain’s Small Business section will look at Northeast Ohio businesses that specialize in fair trade. What does it mean and what’s involved? We will answer those questions and more.
CORRECTION ■ Nicole Koharik, global sustainability marketing director at Gojo Industries, was promoted into a sustainability position in 2010. In addition, the company’s purpose is “Saving Lives and Making Life Better through Well-Being Solutions.” Both pieces of information were incorrect in the Nov. 25 “Who to Watch in Sustainability” section.
REGULAR FEATURES Classified ....................18 Editorial ........................4 From the Publisher ........4 Going Places ...............11
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
Talk on the Web .............4 Reporters’ Notebook....19 The Week ....................19 What’s New..................19
Emergency department cases in the region have risen steadily in the past decade, reaching just over 1.07 million in 2012, a 14% rise since 2001, according to data compiled by the Center for Health Affairs. However, the center notes that the number of people admitted to the hospital from the emergency department rose in the early 2000s but has steadied in recent years.
Emergency department cases in Northeast Ohio Year Number of cases 2012 1,070,205 2011 1,060,156 2010 1,028,294 2009 1,028,803 2008 983,799 2007 1,000,682 2006 994,272 2005 1,006,931 2004 960,646 2003 969,729 2002 951,377 2001 940,670 ■ Source: Center for Health Affairs report, “Modern-Day Emergency Departments: Rewriting the Script”
700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 Phone: (216) 522-1383 Fax: (216) 694-4264 www.crainscleveland.com Publisher/editorial director: Brian D. Tucker (btucker@crain.com) Associate publisher/editorial: John Campanelli (jcampanelli@crain.com) Editor: Mark Dodosh (mdodosh@crain.com) Managing editor: Scott Suttell (ssuttell@crain.com) Sections editor: Amy Ann Stoessel (astoessel@crain.com) Assistant editor: Kevin Kleps (kkleps@crain.com) Sports Senior reporter: Stan Bullard (sbullard@crain.com) Real estate and construction Reporters: Jay Miller (jmiller@crain.com) Government Chuck Soder (csoder@crain.com) Technology Dan Shingler (dshingler@crain.com) Energy, steel and automotive Tim Magaw (tmagaw@crain.com) Health care and education Michelle Park (mpark@crain.com) Finance Rachel Abbey McCafferty (rmccafferty@crain.com) Manufacturing and energy Research editor: Deborah W. Hillyer (dhillyer@crain.com) Cartoonist/illustrator: Rich Williams Events manager: Jessica Snyder (jdsnyder@crain.com) Special events coordinator: Kim Hill (kroman@crain.com) Marketing strategist : Michelle Sustar (msustar@crain.com) Advertising director: Nicole Mastrangelo (nmastrangelo@crain.com) Senior account executive: Adam Mandell (amandell@crain.com) Account executives: Dawn Donegan (ddonegan@crain.com) Andy Hollander (ahollander@crain.com) Lindsie Bowman (lbowman@crain.com) John Banks (jbanks@crain.com) Office coordinator: Denise Donaldson (ddonaldson@crain.com) Digital strategy and development manager: Stephen Herron (sherron@crain.com) Web/Print production director: Craig L. Mackey (cmackey@crain.com) Production assistant/video editor: Steven Bennett (sbennett@crain.com) Billing: Michele Ulman, 313-446-0353 (mulman@crain.com) Credit: Todd Masura, 313-446-6097 (tmasura@crain.com)
Crain Communications Inc.
If your business needs a forklift, you need a loan from US. U.S. Bank works hard to tailor the right solutions for your business. With the help of a trusted U.S. Bank Business Banking specialist, you can manage your cash flow, payments, and loans for future growth. Straight business talk that speaks to your business, so more business owners like you can get what they need to move forward.
RATES AS LOW AS
2.99
% APR*
QUICK LOAN
Call Jerry Archambault Business Banking 216.623.5975
branch
Keith E. Crain: Chairman Rance Crain: President Merrilee Crain: Secretary Mary Kay Crain: Treasurer William A. Morrow: Executive vice president/operations Chris Crain: Executive Vice President, Director of Strategic Operations Brian D. Tucker: Vice president Dave Kamis: Vice president/production & manufacturing Mary Kramer: Group publisher G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to customerservice@crainscleveland.com, or call 877-824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777. Reprints: Call 1-800-290-5460 Ext. 125
usbank.com/smallbusiness
*Applications subject to credit approval. The 2.99% rate applies to new or used vehicles & equipment loans up to 80% LTV and terms up to 36 months for credit qualified applicants. Disclosed rate reflects 0.50% discount based on automatic monthly payments from a U.S. Bank Business Checking account. Standard fees apply. Advertised rate is as of October 1, 2013 and subject to change without notice. Some restrictions may apply. Deposit products offered by U.S. Bank National Association. Member FDIC. ©2013 U.S. Bank
Audit Bureau of Circulation
5
20131202-NEWS--6-NAT-CCI-CL_--
6
11/27/2013
1:04 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
Website helps businesses stay in know about their customers
LEASED 5595 TRANSPORATION BLVD GARFIELD HTS, OHIO
Local businessman invests $200,000 to help companies collect fees they are owed By MICHELLE PARK LAZETTE mpark@crain.com
Newmark Grubb Knight Frank is pleased to announce Marymount Hospital, Inc. has renewed two leases at 5595 Transportation %RXOHYDUG LQ *DUĂ€HOG +HLJKWV Bob Nosal & Terry Coyne represented the landlord.
DECEMBER 2 - 8, 2013
Visit
TerryCoyne.com Or Call Terry at
216.453.3001 1350 Euclid Ave, Ste. 300 Cleveland, Ohio 44115
A local businessman estimates he has pumped more than $200,000 into a website that’s intended to spare businesses from the “pain� he has encountered. Based in Broadview Heights, knowyourcustomers.com is a site where businesses can report — for other site members to see — customers who have not paid bills as they’ve agreed to pay them. “I was in business, and I’ve had many people not pay the bill fully,� said John Covender, who worked in construction and is founder and CEO of knowyourcustomers.com and its parent company, Elite Information Services. Launched last September, knowyourcustomers.com has been free, so far, for the more than 1,000 companies that have used it to report thousands of customers, both individuals and companies, who haven’t paid bills totaling an esti-
mated $1.5 million, according to Mr. Covender. Customers who are identified by site users are made aware of the complaints on the site and have the option to respond. The Better Business Bureau Serving Greater Cleveland soon will offer, for a fee, dispute resolution, arbitration and mediation services to those using the website, per an agreement signed Oct. 31 with Mr. Covender. And, according to Mr. Covender, other partnerships are in the works to grow knowyourcustomers.com into a resource that companies can use not only to report nonpayment, but also to secure payment and investigate fraud. “We wanted to not only warn them, we wanted to help them get their money,� Mr. Covender said. Knowyourcustomers.com offers a service businesses have requested for years, according to David Weiss, president of the local BBB. “Companies have often said, ‘Consumers have a place to check
us out. When will we have a place to check consumers out?’ â€? Mr. Weiss said. The nonprofit Better Business Bureau allows consumers to file complaints about businesses’ products, services and advertising. In the coming weeks, knowyourcustomers.com will begin charging for memberships, and in the first quarter of 2014, Mr. Covender expects to break even. Steve Giordano, general manager and owner of TeamLogic IT, a Westlake company that provides information technology service and support to small and midsize companies, reported a customer who owed his company more than $400, but had not responded to reminders and “polite asking.â€? In August, Mr. Giordano wrote a letter to knowyourcustomers.com that concluded, “Your service was easy to use and it got results.â€? “Up until that point, they had made no attempts to pay whatsoever,â€? Mr. Giordano told Crain’s via telephone. Following the posting on knowyourcustomers.com, the customer has made several payments, he said. â–
Data: Dr. Haines uses supermarkets as an example of what can be done The Power of Collaboration
continued from PAGE 1
Local Real Estate Financing Up to $7.5 Million in Financing Investment Real Estate and Owner Occupied Properties
Jonathan Mokri
440-526-8700
www.cbscuso.com
jmokri@cbscuso.com Providing Commercial Loan Financing in Partnership with Area Credit Unions
McDonald Hopkins
SM
BUSINESS HOUR B What your business needs to know about Chinese intellectual property Thursday, December 12, 2013 Noon to 1:00 p.m. EST – Business Hour Location: McDonald Hopkins, 600 Superior Ave. Suite 2100, Downtown Cleveland RSVP: mcdonaldhopkins.com PS DBMM UP SFHJTUFS
McDonald Hopkins LLC 4VQFSJPS "WF &BTU 4VJUF $MFWFMBOE 0) t Carl J. Grassi, President Shawn M. Riley, Cleveland Managing Member $IJDBHP t $MFWFMBOE t $PMVNCVT t %FUSPJU t .JBNJ t 8FTU 1BMN #FBDI mcdonaldhopkins.com
The three institutions hope Dr. Jonathan L. Haines, a rock star of sorts in the genetics and biostatistics arenas recruited as the institute’s director, can kick the effort into gear. Since 1997, Dr. Haines has been with Vanderbilt Haines University in Nashville, where he helped launch the university’s Center for Human Genetics Research and a biological repository linked to Vanderbilt’s medical records database. “For Dr. Haines, it was time for a change and something bigger and grander,� said Paul DiCorleto, chair of the Clinic’s Lerner Research Institute. “He wanted to make something happen in Cleveland. When you put together UH, the Cleveland Clinic and their patient numbers, he can have a great impact with his data analysis.�
Big data, big deal The Cleveland Clinic identified the ability to manage big data effectively as one of its top 10 medical innovations in 2012. However, despite all the talk in recent years about the concept, health care institutions have been slow to make inroads in harnessing big data, according to Dr. Haines. Other industry sectors, such as retail, already have embraced the concept by taking large amounts of consumer data and identifying trends. Dr. Haines singled out as an example those supermarkets that track spending and send customers coupons based on their purchasing
history. “We’ve been slow to appreciate that in the health care industry,� Dr. Haines said. “We have all of these data out there that we’ve been collecting, and no one has been looking at that in a big way. That’s what we’re trying to do.� Of course, the big data push in the health care space is more complex and costly than Giant Eagle’s Fuel Perks program. Health care researchers are dealing with far larger data sets that, in terms of sheer size, can balloon into exabytes. (An exabyte is the equivalent to more than a billion gigabytes.) Also, bioinformaticians — those charged with the data’s heavy lifting — tend to be among the most highly paid in the medical field. Privacy also has become a concern, particularly in big data ventures that can span across several different hospitals, according to a recent report from McKinsey & Co., a global consulting firm with offices in Cleveland. McKinsey also noted that even sharing data between departments within a single hospital can be tough. Dr. Haines, in a sense, will be the man charged with untying those knots. He envisions building an infrastructure where researchers can “relatively painlessly� come in and answer questions with the data, all in the spirit of improving health care. “Our goal is to mine big data to try to improve health care in every possible way,� Dr. Haines said. “There’s a tremendous amount of data collected every day through the electronic health records that’s just sitting there. There’s a tremendous amount of information in there that we can pull if we’re smart
about it.� Over time, the Institute of Computational Biology could go well beyond UH and the Clinic, as Dr. Haines said he expects other hospitals to become involved. The institute already is in discussions with MetroHealth, the hospital subsidized by Cuyahoga County, about using its data for the project.
Key to collaboration The convergence of Cleveland’s largest hospitals with its lauded medical school was a big reason Dr. Haines was lured from Vanderbilt. “Both institutions felt this was so important that they would get together and support this equally,â€? Dr. Haines said. “They both have investments in this, so they’re both expecting success. They’re going to help make that happen.â€? The new institute isn’t the first time the three institutions have joined forces. Case Western Reserve and University Hospitals founded the Case Comprehensive Cancer Center in the late 1980s, and the Cleveland Clinic joined the initiative in 2003. The center has nearly 350 scientists and physicians and is one of just 41 nationwide to hold the National Cancer Institute’s designation as a comprehensive cancer center. That sort of collaboration served as the model of sorts for the new institute. “If we wanted to get to the point where we could lead the field, we needed to find somebody of Jonathan’s stature,â€? said Dr. Fred Rothstein, president of UH Case Medical Center. “To do that, we had to put in a program that gave him a broad opportunity to be successful.â€? â–
20131202-NEWS--7-NAT-CCI-CL_--
11/26/2013
3:42 PM
Page 1
DECEMBER 2 - 8, 2013
WWW.CRAINSCLEVELAND.COM
CRAIN’S CLEVELAND BUSINESS
7
Eaton is amping up its hydraulics plant in Aurora Eaton Corp. has been making significant investments in its Aurora hydraulics plant, adding new lines this year to the thermoplastic hose maker and hiring employees to support its work. Part of the power management company’s strategy for the past decade has been to invest in business areas with the largest potential for growth, said Ann Marie Halal, manager of external communications for Eaton. Those units are the hydraulics, electrical and aerospace businesses, which make up about 80% of annual sales for Eaton, a diversified manufacturer now based in Ireland with U.S. headquarters in Beachwood. “Eaton’s investments in the Aurora facility reflect our commitment to that,” Ms. Halal said in an email.Eaton acquired the Aurora plant in 2006 when it bought the Synflex business unit of Saint-Gobain Performance Plastics Corp. Synflex had three locations in the United States and one in Belgium. At that time, the company said the acquisition gave Eaton an expanded range of thermoplastic hoses and tubing for industries such as transportation and oil and gas. Eaton’s Aurora plant has a skilled work force and serves a diverse mix of customers, said plant manager Laura Almazan. The plant makes products for the hydraulics, oil
and gas, beverage dispensing and air brake tubing markets. Ms. Almazan declined to share specifics of Eaton’s 2013 investments, but said they were about three times as large as the company’s investment in the plant last year. About 50% of this year’s investments are targeted for growth possibilities, she said. The plant has installed one new extrusion line so far this year, with three more to come, Ms. Almazan said. Some of those lines are new investments, while others are coming from a shuttered Eaton plant in Ontario. The plant also is installing a new bobbin winding machine. That new equipment led to necessary investments in infrastructure such as electrical and water lines and in safety equipment, including machine guards and sensors. Eaton is expanding its manufacturing space at the plant by about 20% by using former warehouse space, Ms. Almazan said. All those investments have led to new jobs in Aurora. In the past three to four months, the plant has hired 31 people and has plans to hire 12 more. There are a total of 185 employees now, including office and production jobs. The company regularly updates technology and safety measures in Aurora, but this additional investment is “exciting” for the plant, Ms. Almazan said. “It represents a better future,” she said. ■
Berkshire Hathaway soon will have a home in region By STAN BULLARD sbullard@crain.com
Look for the Berkshire Hathaway Inc. name — in the form of Berkshire Hathaway HomeServices — to start appearing on home-for-sale yard signs on Jan. 1 in Northeast Ohio. That’s when the nine Northeast Ohio offices of Mentor-based Prudential Select and its 160 agents begin operating under the company name associated with billionaire investor Warren Buffett. The Berkshire Buffett Hathaway HomeServices franchise will be headed by principals of Prudential One Realty of Beavercreek, near Dayton, which bought Prudential Select in 2011. Among the franchise owners are David Mussari of Prudential One’s West Chester office, who serves as its managing partner; Michael Smith of Prudential Select’s Strongsville office; and Dayton builder and Realtor Robert Arnold. Mr. Smith, a 25-year-veteran of residential brokerage in the Cleveland area, is the concern’s Northern Ohio regional president and partner. Mr. Mussari said he and Mr. Smith hooked up to be the first franchise to fly the Berkshire Hathaway flag in Ohio real estate because they believe the name conveys financial strength and support from a big company. “This will give us a fresh name in the marketplace, especially as a new generation of buyers enters the market,” Mr. Mussari said. He said they also expect to benefit from national advertising that Berkshire Hathaway HomeServices will launch next year.
Among changes in Northeast Ohio at the brokeragewill be more local offices, Mr. Smith said. A new Berkshire Hathaway office is under construction in Avon and will open in February, according to Mr. Smith, who said he plans to add a total of three offices in active market areas in Cuyahoga, Portage and Summit counties within the year. He also expects to add a commercial office, which will function under the Prudential Commercial name, in Northeast Ohio. Prudential Select has about a dozen commercial agents, Mr. Mussari said. The Ohio franchise headquarters will be in Beaver Creek; the company has about 30 administrative and corporate employees both there and in Mentor. Downstate, Prudential One will field 210 agents under the Berkshire Hathaway banner next year. Competitors did not express concern about the brokerage’s connection with Berkshire Hathaway and Mr. Buffet. Gary Stouffer, owner of Fairlawnbased Stouffer Realty, said the Berkshire Hathaway name will attract immediate attention but will bear fruit only if the parent company markets it effectively and the brokerage has good agents. John Ludwick, an operating principal of Keller Williams Realty Greater Cleveland, said many national concerns, from Sears and Merrill Lynch to Better Homes & Gardens, have tried to extend their brand to residential brokerage with limited results. “The financial prowess of Warren Buffett will not necessarily translate into real estate success at a local level,” Mr. Ludwick said. “It’s the brand and the model and the sales associate who knows the people and gets the referral that produces the business.” ■
RACHEL ABBEY MCCAFFERTY
Eaton Corp. has been investing in its hydraulics plant in Aurora, which makes thermoplastic hose. These bundled hoses are for the beverage industry.
Ohio inventors received nearly 3,400 patents in 2012.
PATENT POWER GUIDE
CRAIN’S
By RACHEL ABBEY McCAFFERTY rmccafferty@crain.com
So who’s getting all those patents? ...
... And who’s actually putting them to good use? Issue date: December 16 • Ad close: December 5 Book your ad today! Contact Michelle Sustar, msustar@crain.com to place your ad in front of Northeast Ohio’s innovators and thought provokers.
20131202-NEWS--8-NAT-CCI-CL_--
8
11/26/2013
2:11 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
29166 Euclid Avenue., Wickliffe Investment Retail Strip Center For Sale
WWW.CRAINSCLEVELAND.COM
DECEMBER 2 - 8, 2013
Calling a deicer ‘toxic’ leads to heated exchanges Duck Creek’s court win against Broadview Heights women who oppose fracking could be an influential case study for industry By DAN SHINGLER dshingler@crain.com
• 9,839 Total SF on .74 Acres • 67 Parking Spaces • Curb Cuts on Euclid Ave. & Lincoln Road • Great Corner Lot with High Visibility
FOR MORE INFORMATION, CONTACT: Gregory B. West Andrew H. Chess 216-861-7200 www.ostendorf-morris.com
STAY CONNECTED! Follow us today!
Facebook.com/CrainsCleveland | Twitter.com/CrainsCleveland Instagram.com/CrainsCleveland
has been recapitalized by
7KH XQGHUVLJQHG DFWHG DV H[FOXVLYH ÀQDQFLDO DGYLVRU WR ,QWHU:UDS LQ WKLV WUDQVDFWLRQ
If you’re going to protest the oil and gas industry, get your facts right or you might find yourself on the losing end of a lawsuit. That might be the key lesson that pro-drilling folks hope will be learned from a recent court battle between Duck Creek Energy of Brecksville and two Broadview Heights women, Michelle Aini and Tish O’Dell. Duck Creek won a judgment against the two women following a defamation lawsuit the company filed because it said the two were making false and defamatory statements about its product, a road deicer known as AquaSalina. AquaSalina is made from brine that comes up from conventional oil and gas wells — traditional vertical wells, not horizontal shale wells. AquaSalina only contains brine from wells that have been in production for a year or more, said Duck Creek president David Mansbery. There are two types of water that generally are byproducts of oil and gas drilling. There is flowback, which consists of water drillers use to stimulate a well’s production by injecting it at high pressures to fracture the rock around the well bore in a process known as fracking. About half of that water generally flows back to the surface soon after a well is brought online. That’s not the water that goes in to AquaSalina, Mr. Mansbery said. The other type of water is brine, sometimes called “produced water,” that is mostly ancient sea water already beneath the ground. When producers bring up gas and oil, some of this brine also comes to the surface, and that is the water that ends up in AquaSalina, Mr. Mansbery said. In early 2012, Duck Creek found that Ms. Aini and Ms. O’Dell, who oppose fracking, were telling local municipalities and others that AquaSalina was “toxic … fracking water” and were asking them not to use the product as a deicer, according to court documents. Mr. Mansbery said he wrote to the women asking them to stop making the statements, explaining to them the type of water used in AquaSalina and how it differed from fracking water. When they refused to stop their communications after multiple requests, Mr. Mansbery felt he had no choice but to file a defamation suit against the pair, he recently told Crain’s.
It depends on what ‘is’ is Mergers & Acquisitions . Capital Raising . Financial Opinions & Valuations . Restructuring & Bankruptcy
For more information, please call (216) 589-0900 or visit www.wesrespartners.com $ SURXG PHPEHU RI WKH SUHPLHU LQWHUQDWLRQDO DOOLDQFH RI LQYHVWPHQW EDQNLQJ ÀUPV
The matter was settled Sept. 13 after Cuyahoga County Common Pleas Court Judge Joan Synenberg ruled partly in Duck Creek’s favor — though her ruling did not find that everything the women said was false. For example, as experts told the court in depositions, no one knows how much fracking water comes
back as flowback over the longterm life of a well after some of the fracking water has mixed with the existing brine beneath the ground. The court cited the difference, saying the product “contains” fracking water as opposed to saying it “is” fracking water. Statements the women made that AquaSalina is “toxic” or that it contains harmful levels of benzene also did not result in a judgment against them, in part because the court said those were matters of opinion. But the court did rule that the women were wrong to tell others that AquaSalina is fracking water, and that they made statements they knew or should have known were false. It found the women sent emails and that “statements that AquaSalina is ‘frac water’ or a byproduct thereof were published with actual malice.” The two women are barred from discussing the case in detail, according to Ms. Aini, who spoke to Crain’s briefly by telephone. They also are barred from saying that AquaSalina is toxic, carcinogenic, poisonous or radioactive, according to court documents. That silence might be the biggest effect of the case, beyond its effects on Duck Creek and Ms. Aini and Ms. O’Dell.
Silencing the critics In a counterclaim filed by the two women, they maintained the defamation suit against them was brought basically to shut them up and keep them from exercising their First Amendment rights on issues concerning oil and gas drilling in residential neighborhoods. In addition to campaigning against AquaSalina, Ms. Aini and Ms. O’Dell are members of the group Mothers Against Drilling in Our Neighborhoods, which is active in several Northeast Ohio suburbs and opposes oil and gas drilling in residential neighborhoods. However, the court found Duck Creek legitimately was protecting itself by bringing the suit. Mr. Mansbery had tried to settle the matter without litigation, said his attorney. “The defendants circulated emails which called AquaSalina ‘frac water.’ Mr. Mansbery sent an email to Ms. O’Dell which explained why AquaSalina was not ‘frac water’ and he demanded that she issue a retraction. She refused. Duck Creek filed the lawsuit because the defendants left it with no other choice,” said Robert Zimmerman, an attorney with Benesch who represented Duck Creek. Many members of Ohio’s oil and gas industry have been more than happy to talk about the case, and the Ohio Oil and Gas Association sent out a press release about the case as recently as Nov. 12. “It is refreshing to see a company fight back against defamatory remarks regarding the industry,” said
“The defendants circulated emails which called AquaSalina ‘frac water.’ Mr. (David) Mansbery sent an email to Ms. (Tish) O’Dell which explained why AquaSalina was not ‘frac water’ and he demanded that she issue a retraction. She refused. Duck Creek filed the lawsuit because the defendants left it with no other choice.” – Robert Zimmerman, attorney, Benesch, who represented Duck Creek Shawn Bennett, director of the industry public relations arm Energy in Depth Ohio. Rhonda Reda, director of the industry’s Ohio Oil and Gas Energy Education Program, agreed. “We are thrilled to have the courts penalize individuals who spread false and malicious information about the industry,” Ms. Reda said.
Key endorsement Mr. Mansbery said his goal was simply to protect his product and its ability to do good. Not only is AquaSalina a better deicer that works at lower temperatures than the brine that currently is sprayed on winter roads, he said, but it also keeps water from being put in injection wells. Normally, oil and gas producers send their brine to injection wells, where they pay to have it disposed of deep underground. Also, Mr. Mansbery said, the brine in AquaSalina contains not just regular sodium chloride, but also salts made from potassium, magnesium and calcium that are less harmful to the environment. “We felt like the very thing these two individuals were trying to protect — the environment — was the very thing they were harming,” Mr. Mansbery said. Now that the case is over, Duck Creek will focus on growing the business for AquaSalina. So far, the product only is used in a few Northeast Ohio communities, Mr. Mansbery said. But he thinks it will begin gaining in acceptance, in part because it has been approved for use by the Ohio Department of Natural Resources, which requires that the water be tested annually for safety. Perhaps more importantly, in October AquaSalina was approved for use by the Pacific Northwest Snowfighters Association, which tests products on behalf of 26 state departments of transportation across the northern United States. “What will happen ultimately is this road show will be taken to other producing states to basically convert their native waters,” Mr. Mansbery said. “The formations from which this brine comes are not limited to Ohio, but can be found in Pennsylvania, New York, West Virginia — as well as Oklahoma, Texas and other producing states.” ■
20131202-NEWS--9-NAT-CCI-CL_--
11/26/2013
4:17 PM
Page 1
DECEMBER 2 - 8, 2013
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
9
Manufacturing: Monthly job figures in sector down slightly from 2012 continued from PAGE 3
For 2013, monthly employment in the manufacturing sector in the Cleveland-Elyria-Mentor area has ranged from 121,800 to 123,800, according to data from the U.S. Bureau of Labor Statistics. 2012 saw a slightly lower monthly low — 120,400 in January of that year — but also spent three months with employment above 124,000. Growth among companies in manufacturing has slowed this year, said Deb Janik, senior vice president for real estate and business development for the Greater Cleveland Partnership, the city’s chamber of commerce group. GCP works with Team NEO and other organizations to retain and attract companies as part of the JobsOhio network, performing about 300 to 350 retention site visits and working on up to 48 growth or expansion projects a year. JobsOhio is the statecreated nonprofit in charge of Ohio’s economic development strategy. Ms. Janik said companies in the region have been more cautious this year than in 2012, which she categorized as a stellar year that saw a lot of projects move forward. While there are still growth opportunities in the pipeline, projects aren’t closing as quickly as they did in 2012. She said manufacturers GCP works with are “keeping their feet on the pedal at a constant speed,” but Ms. Janik doesn’t expect to see a 2012-type of acceleration next year.
commitments add up to more than 18,000 new jobs across the state, according to information provided by Gov. John Kasich’s office. For instance, Republic Steel worked closely with state and local governments when deciding where to invest about $85 million in an electric arc furnace and supporting equipment. Chris Hoyt, Republic Steel director of sales, said the steelmaker had considered other locations for the investment, including Mexico, but the company’s existing Lorain plant made the most sense, aided by state and local economic incentives. Proximity to the shale, auto and energy markets also played into the decision. The steelmaker that describes it-
self as the nation’s leading provider of special bar quality steel just last week said it had begun hot commissioning of the new electric arc furnace in Lorain. Republic Steel plans to hire more than 400 people in connection with this investment, and more than 300 employees have been brought in so far. About half are new and half have been called back from a previous layoff. And Nestle in October announced plans to move its frozen pizza division — and 250 jobs — to Solon from Northbrook, Ill. In a news release, the company highlighted JobsOhio’s key role in gathering necessary information for the move.
What’s next Going forward, JobsOhio’s Ms.
Tanner said a priority for the retention visits will be to make sure the organizations are capturing the right information from these conversations. This will give JobsOhio the opportunity to track trends by region and by industry in the future. Locally, the Greater Cleveland Partnership will restructure its onsite calling program and likely pursue more outreach opportunities in 2014, Ms. Janik said. The organization put together a job fair for displaced Bank of America employees in October, after mass layoffs of about 1,100 were announced over the summer. Ms. Janik said she thinks there are more outreach opportunities for other networking and work force development needs.
Mr. Rebadow of Akron’s chamber thinks the region will be able to overcome the expected cuts at Lockheed Martin, though it will take a lot of work ahead to make sure the transition is a smooth one. The chamber has a good relationship with the company, he said, and wants to work with it once its final footprint has been identified. There are other companies that he knows are looking for employees, so a program could be arranged to help forge those connections. And the chamber will be reaching out to Lockheed Martin’s suppliers to help find jobs for affected employees. “I’m confident that we can absorb whatever transition we have to face,” he said. ■
Reaching out works JobsOhio and its partners have made retention a priority. Ohio in the past was inconsistent in making retention visits and calls to businesses, Mr. Waltermire said. The state group’s regional partners — such as Team NEO — now have a cohesive plan to work with local chambers of commerce and economic development organizations on those retention efforts. “JobsOhio is taking it far more seriously,” Mr. Waltermire said. Kristi Tanner, a managing director at JobsOhio who oversees the advanced manufacturing, automotive, aerospace and aviation sectors, said the first year of the statewide retention and expansion program has been a good one. Reaching out directly to companies, while also working with the regional and local partners, gives JobsOhio a good opportunity to canvas the state, she said. One of those local partners, the Greater Akron Chamber, has been performing these types of site visits for the past 10 years, said executive vice president Rick Rebadow. In that time, the organization has sat down with about 3,000 businesses to “take their pulse” and chat about their needs, Mr. Rebadow said. The program started with a focus in Summit County and was expanded to include Portage and Medina counties in 2011. The chamber talks to businesses about their competitors and the markets they serve, about whether there are any unique successes to build upon or any challenges they’re facing. “It’s quite comprehensive,” Mr. Rebadow said. Once problems are identified, the chamber can use its connections — from universities to banks to investors to attorneys — to help businesses reach the resources they need. This local and state collaboration has played a part in some big wins for manufacturing in the area. From July 2011 through the third quarter of 2013, JobsOhio’s manufacturing project
You won’t see a dome named after us, or a blimp with our logo flying over a major stadium. But supporting the communities where you live, work and play is important to us. Because that’s where we live too. It’s where we share everything we know about banking and insurance, and build trust with the businesses in our neighborhoods. Whether your business is a favorite meeting place, a physical therapy clinic or construction contracting – we’re here to listen. And you’ll know you’re getting solutions designed specifically for you, by people who care about the same things you do. People who cheer from the exact same seat every Friday night. Let’s talk about what we can accomplish together. Call us today at 330.887.8224 or visit us online at www.westfield-bank.com.
westfield-bank.com 330.887.8224
AKRON
|
B RECKSVILLE
|
CANTON
|
M EDINA
|
WESTFIELD CENTER
|
WOOSTER
20131202-NEWS--10-NAT-CCI-CL_--
10
11/26/2013
2:07 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
From left to right are Meredith, Graham and Kelsey Tucker.
WWW.CRAINSCLEVELAND.COM
DECEMBER 2 - 8, 2013
Brian and Janet Tucker
Fond farewell B
rian Tucker, who for more than 25 years has served as publisher of Crain’s Cleveland Business, was feted by colleagues, family and friends at a retirement party held Nov. 22 at the English Oak Room in Tower City Center. More than 150 people — many among the who’s who of Northeast Ohio — attended the event that recognized Mr. Tucker for nearly 29 years of service to Crain’s. Among those saluting Mr. Tucker was Keith Crain, chairman of Crain Communications Inc. Mr. Crain said it was the then-editor of Crain’s Detroit Business, Peter Brown, a longtime friend of Mr. Tucker, who recommended in early 1985 that the company steal
Mr. Tucker away from The Associated Press, where he was assistant bureau chief in Los Angeles, and hire him as editor of Crain’s Cleveland Business. “It was the best thing we ever did,” Mr. Crain said. “Brian has made a real mark on Cleveland, and I think he has been unbelievably important to the success of our publication.” The evening included a video with retirement well wishes and advice from many business and sports figures in Cleveland, and a presentation by the Crain’s editorial staff of a mock front page of the newspaper that played off of Mr. Tucker’s love of Kent State University (his alma mater), love of golf and obsession with orderliness.
Photos by Hal Stata Productions
RIGHT: Mr. Tucker is presented with a team jersey by Cleveland Cavaliers CEO Len Komoroski. Several Cavaliers players and coach Mike Brown also appeared in a video that wished Mr. Tucker well and congratulated him on his career. BOTTOM LEFT: Mr. Tucker is shown with longtime friend and former Automotive News editor Peter Brown, left, and Sherwin-Williams Co. chairman and CEO Chris Connor. BELOW: Mr. Tucker is presented with a mock front page by Crain’s editor Mark Dodosh. ABOVE: The page featured this illustration by Rich Williams.
Crain Communications Inc. chairman Keith Crain said the hiring of Mr. Tucker “was the best thing we ever did.”
20131202-NEWS--11-NAT-CCI-CL_--
11/26/2013
2:08 PM
Page 1
DECEMBER 2 - 8, 2013
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
GOING PLACES
Attn: Manufacturers & Warehouses
JOB CHANGES CONSTRUCTION PANZICA CONSTRUCTION CO.: Jeff Walters to senior project manager. SHOOK CONSTRUCTION CO.: Chris Halapy to executive vice president.
11
Halapy
Broome
Wincent
Helmick
✔ Reduce Lighting Energy Cost 50%
✔
✔ FirstEnergy Rebates up to 35%
✔
✔ Double Plant Light Levels
✔
✔ 8-24 Month Payback
✔
CONSULTING AON HEWITT: Ryan Black to local market leader, Cleveland/Pittsburgh.
EDUCATION KENT STATE UNIVERSITY: Barbara Broome to dean, College of Nursing; Joakim Wincent to visiting professor and Bridgestone Chair of International Marketing, College of Business Administration.
Stemen
Zalewski
Kocon
Davidson
Call Bob Taussig ROI Energy TODAY! 330-931-3905 www.ROI-Energy.com
WALSH JESUIT HIGH SCHOOL: Peter Sullivan to CFO.
ENGINEERING AUSTIN CO.: Christopher Uguccini to senior electrical designer; Andrew MacMillan to purchasing agent; Adriana Garcia to accounting technician. MS CONSULTANTS INC.: Justin Kerns and Dan Ford to oil and gas engineers; Stephen Preston to water/wastewater engineer; Deborah Burcham to accounting manager.
Burris
O’Donnell
✔
Save the date: Mooney
Lynch
associates.
FARMERS NATIONAL BANC CORP.: Kevin J. Helmick to president and CEO (corporation and bank).
MANUFACTURING FLAVORSEAL: Tiffani Gilbert to research and development manager.
FINANCIAL SERVICE
PT TECH INC.: Stacey Urdiales to marketing manager.
MCGLADREY LLP: Donna Sciarappa to managing partner, Great Lakes region.
TIMKEN CO.: Robert N. Keeler to vice president, industrial and mobile; Shawn J. Seanor to vice president, energy and distribution.
WALTHALL, DRAKE & WALLACE: Matthew J. Jones to staff accountant.
LEGAL BUCKINGHAM, DOOLITTLE & BURROUGHS: James S. Simon to equity partner. MANSOUR, GAVIN, GERLACK & MANOS LPA: Julie A. Fischer to associate.
Urdiales
✔
FINANCE
SKODA MINOTTI: Ryan Stemen, Shaun Zalewski, Jonathan Kocon, Anna Davidson and Paul Mucha to staff accountants; Sean Burris to art director; Allison O’Donnell to HR coordinator; Josh Stein to senior staff accountant.
Simon
Cloutier
Charney
DIRECT RECRUITERS INC.: Daniel B. Charney to president.
✔ Venue sponsor
✔ Thursday, February 20, 2014 Executive Caterers at Landerhaven ✔
RETIREMENT TIMKEN CO.: Cengiz S. Kurkcu, vice president, industrial, after 35 years.
Send information for Going Places to dhillyer@crain.com.
Advertising & sponsorship: Michelle Sustar at 216-771-5371 or msustar@crain.com
NONPROFIT KOINONIA: Tracy Federico to community development administrator, Young at Heart Home Services.
RETAIL STERLING JEWELERS INC.: Bill Mooney to division vice president, operations, Mall Division; Michael Lynch to vice president, talent acquisition and human resources program integration.
SERVICE DAVY TREE: Ken Cloutier to district manager.
ROBERT J. FEDOR, ESQ., LLC: Julianne D. Shenigo to associate.
STAFFING
ULMER & BERNE LLP: Daniel T. Falk, Daniela Paez-Paredes and James E. von der Heydt to
DIRECT CONSULTING ASSOCIATES: Dan Miller to health care IT recruiter.
Giambrone Construction, Inc. would like to take this opportunity to thank all of the Subcontractors and Suppliers that we have done business with over the past 15 years. There are significant rumors being circulated throughout the community regarding the viability of our companies, most of which are completely false and inaccurate. Giambrone Construction, Inc. has ceased pursuing new opportunities in the local market; however, our other companies remain active and viable. Giambrone Companies owns and operates many construction related businesses in the Northeast Ohio region, including the founding company, Giambrone Masonry, Inc. Giambrone Masonry, Inc. will continue to actively pursue work and will revert to our roots, a masonry subcontractor. We have recently been certified as a WBE certified business by the State of Ohio after the passing of our founder, David Giambrone. The companies are now wholly owned by David’s wife, Patricia Giambrone. Patricia will continue actively with the daily operations of the companies. Should you need to reach us for any questions or have any need for quotes or pricing, please contact:
STAY CONNECTED ■ Crain’s on Twitter: @CrainsCleveland ■ Crain’s on Facebook: Facebook.com/CrainsCleveland ■ Crain’s on LinkedIn: linkedin.com/company/crain’s-cleveland-business ■ Crain’s on Instagram: instagram.com/crainscleveland ■ Crain’s daily e-newsletters: CrainsCleveland.com/register Newsletter schedule ■ Weekdays: Morning Roundup and daily headlines ■ Mondays: Real Estate Report ■ Tuesdays: Health Care Report ■ Wednesdays: Dealmaker Alert ■ Thursdays: Small Business Report ■ Fridays: Shale and Energy Report
We look forward to many more successful years serving the Northeast Ohio community. Thank you again, Patricia Giambrone – President, Giambrone Masonry, Inc. Patricia@Giambrone.com
“Building relationships one brick at a time.”
✔ ✔ ✔
20131202-NEWS--12-NAT-CCI-CL_--
12
11/26/2013
4:06 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
Mesnac strengthens hold with new center in Akron By CHRIS SWEENEY Rubber & Plastics News
Mesnac Co., which supplies a wide range of tire manufacturing equipment and services, from raw material mixing to final product testing, is opening a research and technical center in Akron to serve the North and South American regions. The company already has research and development facilities in Qingdao, China, and a European unit based in Slovakia — the Mesnac European Research and Technical Center. P. David Jones, president of the North and Latin America region, said the new center in Akron strengthens the company’s North American presence. “In order to complete the link between the three vehicle centers, we obviously needed a facility here in the U.S.,” Mr. Jones said. “We can do our research and development on equipment and make that development more attuned to the local markets here in North and South America.” Mesnac considered a number of other areas in North America for its center. The company looked at Greenback, Tenn., because of its existing presence there and other cities in Ohio. Mr. Jones said the company narrowed its focus to Akron because of its rich rubber history, which will provide a number of resources to complement Mesnac’s research and development center. Mesnac acquired the building and is recruiting employees. The goal is to employ at least 35 highly skilled tire engineers and scientists by 2016.
BRUCE MEYER
P. David Jones (left), president of Mesnac’s North and Latin America region, is shown with Jerry Gu, the company’s director of strategy and marketing. “We have identified certain jobs that we need to fill now,” Mr. Jones said. “If business grows beyond our expectations, that figure could change quite easily. We wanted to be modest in terms of our projections.” The center is located off Interstate 77 in Akron. Mr. Jones said the building has all the facilities the company needs in terms of office requirements, but he added that at some point Mesnac will bring over laboratory engineering equipment. Jerry Gu, Mesnac director of strategy and marketing, said the company’s successful purchase of Wyko Tire Technology Inc. in 2011 gave the company confidence to break further into the North American
market. In addition to the new center in Akron, Mesnac recently acquired Test Measurement Systems Inc. for an undisclosed amount. Gerald Potts, CEO of Test Measurement Systems, will run the Akron center. Mesnac has research facilities in the United States, United Kingdom, Europe, and Qingdao and Beijing, China, along with sales and service operations in North and Latin America, Europe, Asia-Pacific, India and China. ■ (Chris Sweeney is a staff reporter with Rubber & Plastics News, a sister publication of Crain’s Cleveland Business.)
Our next great thing.
DECEMBER 2 - 8, 2013
Ideas: Pilot project given ‘really good’ chance to last continued from PAGE 3
“I wouldn’t have gotten anywhere,” he said. The Lakewood resident is exactly the type of person Mr. Donda wants to help. The new tech transfer office, which is based at Lorain County Community College, is designed to give local inventors working out of basements and garages some of the same business development resources that many universities provide to inventive faculty members. After picking ideas that appear to have potential, the office helps inventors develop business plans, protect their intellectual property, raise seed capital and either launch a business or set up a licensing agreement. There are far more ideas for inventions in the community than there are at research institutions, according to Mr. Donda. However, even the best inventors need a hand, said Mr. Donda, a former CEO in the medical technology field who has spent the last two years helping local inventors through the community college’s GLIDE business incubator and BioEnterprise Corp. “There are people who are not in research institutions who are geniuses,” Mr. Donda said. “And I’ve seen those geniuses make mistakes.” So far, inventors have submitted 16 ideas to the Office of Community Technology Transfer. Mr. Donda, who receives help from the GLIDE incubator, is working to license two of those inventions to other businesses. Several others have the potential to become their own startup companies, he said. The services Mr. Donda provides through the tech transfer office go deeper than the assistance he still provides as a part-time entrepreneur-in-residence at GLIDE and at BioEnterprise, a Cleveland nonprofit that assists area health care companies. For some companies, it’s almost as if he’s serving as a part-time CEO. “It’s a deep dive,” said Mr. Donda, who served as the first CEO of ViewRay Inc., a medical imaging company in Solon that has raised nearly $100 million since 2008. “In other words, I’m going to be seeing
“Now things are starting to happen.” – Marty Albrecht, on the help his invention — a pressure regulator — has received from the Office of Community Technology Transfer you every week.”
Now he’s cooking Lorain County Community College considers the tech transfer office a pilot project, but it already “has a really good chance of being sustainable,” said Dennis Cocco, co-director of GLIDE. The college’s foundation provided an undisclosed amount of money for the tech transfer office, but over time the foundation should be able to recoup its costs: It will receive 5% equity in any startup created through the office, as well as 2% of the sales generated by the inventions it helps commercialize. Mr. Cocco said other community colleges around the state could develop similar programs. Mr. Donda went a step further. “I’d like to take this program to other community colleges around the country,” he said. The Office of Community Technology Transfer could help inventive faculty members and students at the many local colleges and university that don’t have their own tech transfer offices, Mr. Donda added. “What do their students and faculty do if they have an innovation?” he said. But the office’s bread and butter will be people such as Mr. Albrecht. On his own, Mr. Albrecht was able to secure two patents and develop six prototypes of his inventions. However, he never could get companies to pay much attention to his previous creations, such as the tool he developed that mixes paint with caulk or the device that separates fuel injection lines and other tubes held together by a spring lock. He sorely needed the office’s connections and business experience. “Now things are starting to happen,” he said. ■
Chicago SHEFSKY & FROELICH IS MERGING WITH TAFT. AIR CHARTER SERVICE AIRCRAFT MANAGEMENT
We take great pride in announcing the merger of Taft Stettinius & Hollister and Shefsky & Froelich,
Northern Ohio's Largest Air Charter Service
effective January 2014. Now, with the addition of 70 lawyers in Chicago, our bench strength increases to 400. Together, we will offer clients a
Serving the area with 4 Beechjets and 2 Hawkers • In-flight Wi-Fi Now Available •
tradition of excellence, innovation and creativity. Taft: Since 1885
www.FlySkyQuest.com • 216-362-9904 Chicago
Cincinnati
Cleveland
Columbus
Dayton
Indianapolis
Northern Kentucky
Phoenix
taftlaw.com
20131202-NEWS--13-NAT-CCI-CL_--
11/26/2013
3:50 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
DECEMBER 2 - 8, 2013
13
CITY LIVING
INSIDE
14-15 A LOOK AT THE RESIDENTS OF FOUR DOWNTOWN SPOTS.
Building may be next big development
THE 9
THE PLACES TO BE
2017 E. 9th St.
Apartment construction may rise out of urban living trend By STAN BULLARD sbullard@crain.com
F
Photos by Stan Bullard
or years, talk in downtown Cleveland real estate development circles often focused on which sites might be most INSIDE: Spaces that likely or best for the are ripe for residential next new office building, hotel, projects. Page 15 or, before the housing bust, condominium project. Now, add to the mix speculation about ideal sites for construction of new apartments. Developer Bob Rains, who with partner John Carney in Landmark Development converted underused buildings to four loft projects in the 1990s, sizes up the prospects succinctly: build apartments near downtown’s dining and entertainment hotspots or on the waterfronts of the Cuyahoga River or Lake Erie. “The waterfront areas are what set the city apart,” Mr. Rains said. He noted people who have populated his concern’s suites in the Warehouse District want to shed the tiresome downtown commute and live near work. Or they want to live within walking distance of downtown’s entertainment, sports and dining attractions.
RESIDENCES AT 1717 1717 E. 9th St.
See DEVELOPERS Page 15
Downtown boom is felt elsewhere RESIDENCES AT HANNA 2051 E. 14th St.
By DANIEL J. McGRAW clbfreelancer@crain.com
DOWNTOWN HOUSING PROJECT UPDATE Project
Address
Units
1211 St. Clair Ave.
56
Spring 2013
Lofts at Rosetta
629 Euclid Ave.
97
Summer 2013
th
Reserve Square Apartments
1701 E. 12 St.
218
Fall 2013
The Langston
2303 Chester Ave.
318
Fall 2013
The Residences at Hanna
2051 E. 14th St.
102
Fall 2013
The Seasons at Perk Park
1120 Chester Ave.
36
Fall 2013
th
Schofield Building
2000 E. 9 St.
55
Fall 2014
The 9
2017 E. 9th St.
104
Fall 2014
Swetland Building
1010 Euclid Ave.
80
Fall 2014
Truman Building
1030 Euclid Ave.
26
Fall 2014
th
Flats East Bank (Phase 2)
West 10 Street
245
Summer 2015
Residences at 1717
1717 E. 9th St.
223
Fall 2014
Park-Southworth Buildings
2015 Ontario St.
34
Winter 2015
1224 Huron
1224 Huron Road
9
2014
Residences at Playhouse Square 1220 Huron Road
80
2015
MT Silver
39
2014
2320 Superior Ave.
C
Complete
Avenue District
■ Source: “Downtown Cleveland Market Update, 3Q 2013,” Downtown Cleveland Alliance; Units: Number of units; Complete: Scheduled completion date of project.
Other cities are experiencing promising growth, helped by younger, wealthier residents
SWETLAND BUILDING 1010 Euclid Ave.
leveland is far from alone in its downtown living resurgence, but it’s hard to say whether growth here is more robust than anywhere else.
Across the United INSIDE: The suburbs still States, urban cores are dominate when it comes to seeing a rebirth of sorts in population growth. Page 14 terms of residential interest after decades of people moving away to the suburbs. The reasons, of course, have been well-documented: Empty nesters don’t want the hassles of suburban maintenance; younger workers like communities that are blended in terms of race and economic demographics; and both groups like to live near work and play because no one likes to drive any more. But how that rebirth is defined in different cities ultimately makes it difficult to compare increases from one place to the next. Some of it has to do with how each city defines the size of its downtown, while other discrepancies have to do with the historical use of a city’s downtown area and if that city had a strong downtown housing market for decades before the recent growth. Take Detroit, for example. The city’s planning and promotional organizations define downtown Detroit as an area that encompasses 7.2 square miles and includes eight different neighborhoods. See BOOM Page 14
20131202-NEWS--14-NAT-CCI-CL_--
11/26/2013
2:28 PM
Page 1
CITY LIVING
14 CRAIN’S CLEVELAND BUSINESS
Boom: Businesses need to grow with downtown population
PROFILES IN LIVING
continued from PAGE 13
■ One-story lofts or penthouses, plus two-story penthouse townhomes ■ Walk-in closets ■ In-suite laundry ■ Personal balcony ■ Covered gated parking ■ Open kitchen with island ■ Fitness center
Studies say the downtown area of Detroit has a population of 36,550 people as of the last census, with 97% occupancy rates of housing units in the downtown core. (By comparison, Downtown Cleveland — with 3.2 square miles — had 9,523 residents with a 96% occupancy based upon the 2010 census figures.) What the Motor City’s leaders tend to avoid saying is that the downtown population of Detroit has fallen by 13% between 2000 and 2010. That said, the entire metro area dropped about 25% during that time, so the downtown loss is about half as much as the rest of the city. “What we are seeing is that the downtown housing market has seen a vast resurgence, and the demand for housing has spread to neighborhoods on the periphery,” said Mark Denson, business attraction manager for the Detroit Economic Growth Corp. “What cities are seeing is that a part of job growth downtown has to include housing, because there is a new group of people who want to live and work close by, and do not want a piece of property out in the suburb,” he said.
Something in the water Overall, downtown growth is notable in that it tends to be coming from a younger and wealthier population. According to the Pittsburgh Downtown Partnership, 34% of downtown residents earned more than $100,000 in 2000, while 48% earn that today. And the population there has grown from 6,500 two years ago to about 8,000 today, with an expected growth of up to about 10,000 in another two years, the Pittsburgh Downtown Community Development Corp. reports. The Iron City is emphasizing the downtown area’s access to the riverfront, and the parks and bike trails that go along with that. “The first thing people always ask when living downtown is how close they are to the river trails,” said John Valentine, executive director of the Pittsburgh Downtown Community Development Corp. “We are just finding people have different expectations,” Mr. Valentine said. “The younger workers and the emptynester baby boomers both like bike riding on those trails, because at those ages people like getting out and exercising and not using a car as much. I don’t have a car now, and I know a lot of other people who live downtown who have given it up as well.” A survey done last year by the Pittsburgh Downtown Partnership bears that out: 45.5% of downtown Pittsburgh residents walk to work, while 42.1% drive. Cincinnati also has used its riverfront as a catalyst for downtown housing growth. When Cincinnati and the state a few decades ago reworked the convoluted mess of Interstates 71 and 75 meeting at the river, the city decided to increase public space acreage and housing. The result has been an increase in population from 8,375 in 2008 to 13,401 in 2012, according to Downtown Cincinnati Inc. “The riverfront was always the back door in Cincinnati,” said David Ginsburg, president and CEO of Downtown Cincinnati. “It was where the barges docked and where the factories were. But when the city found itself fixing the highways there, they decided to find out what else they could do with that space while the highways were being rerouted.” “What we found is that we could serve a market for housing while redeveloping a long underutilized area of the city,” Mr. Ginsburg said. “That’s the advice I would give other cities. While you are making improvements to the infrastructure of
NUMBER CRUNCHING Despite the growth in downtown living, numbers suggest that a large number of people still do want that piece of property in the suburbs. According to a report last year by the U.S. Census Bureau, in the 51 metropolitan areas that had more than 1 million people, including Cleveland, 98.7% of the population growth between 2000 and 2010 occurred outside of the downtown areas. The census defined the downtown area as the land within two miles of the city hall of the major city in the metro area. There was small growth in that twomile radius among the 51 metro areas, with a total increase of 206,000 people in all downtown areas combined. That offset a total population loss of 272,000 in the two- to five-mile radius from the local city hall. And according to the census numbers, of that small growth of 206,000 between 2000 and 2010, 80% was in six cities: New York, Chicago, Philadelphia, Washington, D.C., Boston and San Francisco. — Daniel J. McGraw your downtown areas, see what else you can do while those changes are being made.” Milwaukee also used freeway changes to spark development downtown. The Park East Freeway had separated parts of downtown from river and lakefront parks and trails since the 1960s, and the city decided in a controversial move in the early 2000s to tear it down and replace it with a boulevard. The city reported a big increase in property tax valuations and residential projects after the freeway teardown. “It was a gutsy move on this city’s part to tell its citizens that a freeway was causing more harm than good,” said Beth Weirick, executive director of Milwaukee Downtown. Milwaukee has seen its downtown population increase by 25% to about 21,000 residents, according to Ms. Weirick’s group.
Different cities, same issues One of the problems that all of the downtown areas in the Midwest are seeing is the development of ancillary businesses to serve the growing number of residents. In Columbus, the downtown growth has been steady but not huge, and the current population is about 6,500 according to Capital Crossroads Special Improvement District. The city would like to grow to between 15,000 and 20,000 residents in the next decade. For many of the early downtown living pioneers, that growth would mean more grocery stores and dry cleaners and other retail options. “When we first moved down here eight years ago, the restaurants were mostly open just for lunch, but we are now seeing more and more open for dinner as well,” said Susan Ungar, president of the Downtown Residents’ Association of Columbus. “Eventually, we’ll see more and more retail as the numbers hit the critical mass. We’re seeing improvements with mass transit options as well as more housing is built and being planned.” “It’s funny how things can change in a short time,” Ms. Ungar said. “People used to ask us how we lived downtown, about how hard it must be, like where to you go grocery shopping and all that. Now, our friends from the suburbs are always coming down for events and concerts and to use the parks and they say to us, ‘We think we’d like to live down here.’ ” ■
DECEMBER 2 - 8, 2013
AVENUE DISTRICT 1211 St. Clair Ave.
By LEE CHILCOTE clbfreelancer@crain.com
W
MARC GOLUB
Michelle Amato, vice chair of the Cleveland Clinic Philanthropy Institute, says living in The Avenue District allows her to have everything she wants at her “fingertips.”
ith a “216” sticker proudly displayed her car, Michelle Amato always has been a city person. She’s lived in Tremont and Ohio City, and after a stint in the western suburbs, she was ready to move back into an urban neighborhood. However, she wasn’t sure she was ready for downtown, an area that she perceived as perhaps a little young. “I had preconceived notions of what it was like to live downtown,” says Ms. Amato, 41, who is vice chair of the Cleveland Clinic Philanthropy Institute. “But there are more empty-nesters and people my age moving downtown. Once I found that I could have a quiet, professional life and the amenities that I wanted, I started to look in this area.” Ms. Amato found what she was looking for in the Avenue District, a 10-story building at East 12th Street and St. Clair Avenue that was built as condominiums but was converted into apartments last year. Located in a business district whose bustle quiets down at night, it’s nonetheless a stone’s throw from East 4th Street and other entertainment districts. Ms. Amato’s two-bedroom apartment has all new finishes and views of downtown from large windows. She can step out her front door and
walk almost anywhere in the city center. “I love that there’s so much activity downtown,” she says. “I found that you can live your professional life and have all the action you want. It’s right there at your fingertips.” A huge sports fan, Ms. Amato enjoys the ability to walk to Cavs, Browns and Indians games. She doesn’t mind the traffic, which she says adds to the city’s excitement. “I’m always going to the home Browns games, so I’m not trying to get away from it,” she says. Her apartment is a short 10-minute commute from the Cleveland Clinic’s main campus. On warm days, she leaves her car in the garage and commutes to work on her scooter. Although she wishes there were more shopping options downtown, she says the new Heinen’s that is opening in the historic Cleveland Trust rotunda will help change that. Downtown is more convenient than most people think, she adds — for example, the Avenue has a concierge service for residents that can handle their dry cleaning. Her family now likes to gather at her place. “Everyone’s curious. You have the ability to shape people’s perceptions. I’m really proud of what we’ve been able to do downtown. ■
THE LANGSTON 2303 Chester Ave. ■ One- to four-bedroom suites available ■ Clubhouse with media room ■ Fitness equipment ■ Off-street and on-site garage parking ■ Shops, restaurants, cafes in complex ■ Modern kitchen with stainless/black appliances ■ In-home laundry ■ High-speed Internet By LEE CHILCOTE clbfreelancer@crain.com
A
MCKINLEY WILEY lthough the new 318-unit Gabe Stokes, 25, is studying exercise science at CSU Langston complex is located on Cleveland State University’s campus, the suites are “I don’t see myself moving any time filled with a diverse range of young professionals, from doctors at the Cleveland soon. I’m painting the walls and Clinic to graduate students to professionals who getting comfortable.” work downtown. – Gabe Stokes, on living downtown Gabe Stokes, a 25-year-old who is studying exercise science at CSU, says he was sold on the Langston complex by the suites, on-site ameniMr. Stokes says that the entertainment and dinties and professional environment. ing options downtown make up for the deficit. “I’m an older student, so I wasn’t looking for a “You’ve got the whole world right there,” he place where there were constant parties all the says. “Whether you want American burgers and time,” Mr. Stokes says. “I wanted a place where French fries or you want Brazilian cuisine, you you could have some fun, but it would really be can pretty much find it downtown.” more about young professionals taking care of Once largely a commuter campus, CSU has their business.” developed in recent years into a residential Mr. Stokes, a native of Orange, moved here community. Mr. Stokes says that many of his from Cleveland Heights, where he had rented an friends live in the Langston, too, and that the older apartment. “Everything was brand new,” Campus District is now seen as part of the larger he says of his one-bedroom suite, which comes downtown Cleveland community. with a washer and dryer, dishwasher, full set of “It’s being able to say you live downtown, and appliances, garbage disposal, air conditioning the lifestyle that comes with it,” he says of his and cable. “As soon as I saw it, I said, ‘I gotta decision to live here. “I have great views of Key have it.’” Tower and access to East 4th Street, Tower City The Langston, which opened this year, has an and the Warehouse District. Browns games and amenity center with a kitchen, lounge with flat Cavs games are right here.” screen televisions, and conference room for Asked whether he will remain downtown after group studying or presentations. he graduates, Mr. Stokes doesn’t hesitate. “I Although Downtown Cleveland lacks the don’t see myself moving any time soon. I’m shopping amenities offered by suburban areas, painting the walls and getting comfortable.” ■
20131202-NEWS--15-NAT-CCI-CL_--
11/27/2013
1:05 PM
Page 1
CITY LIVING
DECEMBER 2 - 8, 2013
CRAIN’S CLEVELAND BUSINESS 15
Developers: Buildings are filling
PROFILES IN LIVING LOFTS AT ROSETTA CENTER
continued from PAGE 13
629 Euclid Ave. ■ Studio, one- and two-bedroom units ■ Wood plank flooring ■ Secured access entry and camera system ■ On-site laundry and fitness ■ Dry cleaning pick-up and drop-off By LEE CHILCOTE clbfreelancer@crain.com
MCKINLEY WILEY
Shay Smith, 26, is the advertising coordinator at Horseshoe Casino Cleveland.
Every night before she goes to sleep, Shay Smith looks out from her bedroom window to see Key Tower all lit up at night. The dramatic, picturesque view reminds the 26-year-old Ms. Smith of why she decided to lease an apartment in downtown Cleveland, just a few blocks from where she works as advertising coordinator at Horseshoe Casino Cleveland. “I have three enormous windows, and I absolutely love that,” she says. “It reminds me of living in a big city like New York, and as a girl from a small town, that’s really appealing.” Ms. Smith, who is a native of Kent, never pictured herself living in Cleveland after she finished college. “It kind of seemed like the big city, and I was a little scared of it,” she says. “I realized quickly that Cleveland was not what I’d always perceived it to be.” After completing a master’s degree in journalism and mass communications at Kent State University, Ms. Smith landed her current job with the Horseshoe. Commuting one hour from Kent quickly grew exhausting, so Ms. Smith started looking at downtown apartments, bolstered in part by the positive buzz from friends and coworkers. “They had so many wonderful things to say,” she says. “I said, ‘Heck, why not? I
need to take the plunge.’” She chose the Lofts at Rosetta for the building’s historic details — the portico ceiling in the lobby is breathtaking — and the open, modern interior with all-new finishes. She lives in a one-bedroom suite that has an open, loft-like feel. “It’s very indicative of what’s happening downtown — taking old buildings and breathing new life into them.” Ms. Smith, who leaves her car in the garage for weeks at a time, enjoys her fiveminute walk to work and access to East 4th Street. “Knowing that I have covered parking right there is really nice, but most of what I want to do is a walk or short trolley ride away. If I go to happy hour, I can walk outside and have the best dining and amenities in Northeast Ohio.” Although more shopping options are needed downtown, living downtown is convenient. The Lofts at Rosetta has a fitness center, and concierge services are available. “They really want to make downtown living as enjoyable as possible,” she says. With more people moving downtown, she sees the population becoming more diverse. “That’s one of the great things about downtown. There’s something for everyone here,” she says. ■
RESERVE SQUARE 1701 E. 12th St. ■ One- to three-bedroom and penthouses ■ On-site market, dry cleaning, sports bar and grill, car rental ■ Indoor pool, fitness center, rooftop sundeck, outdoor grilling/picnic area, rooftop tennis court ■ Granite countertops (some units), hardwood cabinets (some units) ■ Ceramic tile flooring By LEE CHILCOTE clbfreelancer@crain.com
MCKINLEY WILEY
Julius Woodley was sold on Reserve Square’s gym.
As an employee of the Defense Finance and Accounting Service, Julius Woodley has called many cities home, including San Diego, Seattle and Tampa. Yet now, as a resident of the Reserve Square apartments, he calls downtown Cleveland his home. “It’s close to work, and all kinds of entertainment, from sports to theater to concerts, are right in downtown,” he says. “I don’t have to drive as much, and it’s really convenient.” Having lived in other cities’ downtowns, Mr. Woodley was drawn to Cleveland’s accessible, compact downtown. He chose Reserve Square for its location and amenities — with a small grocery store in the building, a gym and an indoor pool, it had all he needed. “Physical fitness is important to me, and that was a key element that sold me,” says the active duty Marine, a Norfolk, Va., native who has been in the military for 16 years. He enjoys the ability to walk or ride his bike to his office in the Anthony J. Celebrezze Federal Building at East 9th and Lakeside, where he helps process military
pay orders. When he’s not eating at a downtown restaurant or catching a professional sports game, Mr. Woodley enjoys traveling, something that’s easy to do from downtown. “I can jump on the train and don’t have to worry about taking a car and paying for parking,” he says. The only major downside of living downtown is that shopping options are very limited. “For my bigger shopping trips, I usually have to go outside of the city,” Mr. Woodley says. Although Mr. Woodley has only been in Cleveland for a few years, he’s found it very easy to meet people. There’s a growing sense of community among downtown residents, he says. “Now people recognize me before I recognize them,” he says. “I’m a local.” The continued growth of entertainment districts like the Flats East Bank has given him even more reasons to be excited about living downtown. “Downtown Cleveland has everything you need, and over the last couple of years, it’s grown a lot,” he says. ■
Downtown development often focuses first on the city’s vast Public Square. Now, the increasingly feasible concept of developing apartment rentals may be giving legs to one of the city’s primary sites: the parking lot on the northwest corner of Public Square that Richard E. Jacobs Group has operated since the 1990s. The space originally was intended as the site of a 60-story Ameritrust Center, an office-hotel project to replace the bank’s existing tower that was sidelined by KeyCorp’s, then Society Corp.’s, acquisition of Ameritrust Corp. Douglas Miller, executive vice president of Westlake-based Jacobs Real Estate Services, said in an interview that the concern no longer thinks of the site strictly as an office development opportunity. “We have entertained a mixed-use idea for our site. It probably does make some kind of sense for our site. I don’t see it being 100% apartments or office use anymore,” Mr. Miller said. “It will take something of fairly significant mass to finish (commercial development around) Public Square, some kind of mixed use development like we’ve not seen in Cleveland: office, perhaps a hotel, and apartments.” The project would still need an anchor use, Mr. Miller said, most likely a large office tenant. Such an anchor would be essential to landing financing for a project that might change the city’s skyline. Although he acknowledged Jacobs Group is not actively pursuing such a project, he sees it as a complement to the redevelopment of Public Square and the city’s downtown Mall — he is a member of the mayor’s Group Plan Commission charged with reevaluating the city’s public spaces — and opens the door to development west of Public Square.
High-profile sites Another high-profile prospect is part of the city’s long-discussed superblock — a vast block with just one small building otherwise covered with parking lots spanning the area between Saint Clair and Superior avenues and West Third and West Sixth streets. The block abuts the city’s Warehouse District, home to its largest concentration of loft conversions in former office or warehouse buildings. Most of the block is owned by affiliates of Warrensville Heights-based Weston Inc. real estate development firm, which has cooperated with planning discussions that the Greater Cleveland Regional Transit Authority has held for a West Side transit center, according to Tom Yablonsky, executive vice president of the Downtown Cleveland Alliance, a downtown marketing and maintenance nonprofit. Mr. Yablonsky also is executive director of the city’s Historic Warehouse District Development Corp. and Historic Gateway Neighborhood Corp. Weston did not return three calls for this story or in regard to its recent acquisition of the Marion Building, 1276 W. Third St., from Cuyahoga County for potential conversion to apartments. With the exception of two projects built as apartments years ago — the Crittenden Court apartments in the Warehouse District, which received a federal grant under the defunct Urban Development Action Grant program, and K&D Group’s Stonebridge apartments and condominiums in the Flats — the spark for apartment development downtown primarily has been lit by the recent success of a plethora of projects that converted underused office buildings, warehouses or garment factories to loft apartments. Mr. Yablonsky said active discussions are underway about some sites downtown, though he declined to be specific. However Mr. Yablonsky and others have a list of other potential sites for apartment development beyond Public Square. One reason eyes are turning to other development sites is that new projects to kick off the often-mentioned waterfront sites have surfaced. A 250-unit apartment and retail building proposed for the next phase of Flats East Bank Neighborhood by Wolstein Group and Fairmount Properties is in the final throes of closing a complicated financial package. That would put downtown dwellers within a few hundred feet of the city’s riverfront north of Main Avenue. Apartments also are among primary uses in
OTHER SITES RIPE FOR RESIDENTIAL BUILDING ■ Among other sites in the Warehouse District where new apartments might go is the parking lot between the Bingham and National Terminals apartment building where Marous Brothers of Willoughby had proposed constructing apartments before the Great Recession and collapse of the housing market. The original Chicago-based developer of Bingham, which has since lost the apartments in a lender action, had planned to build apartments and additional structured parking on the site to supplement the building. ■ Another site is on the south side of Euclid Avenue across the street from the city’s restored theaters. PlayhouseSquare, the foundation which operates the restored theaters and serves as the Theater District’s local development corporation, has acquired the site over the years and has a potential residential use on the site in its master plan. ■ The bluffs east of East Ninth Street and north of Lakeside Avenue also could be the site of apartment construction, as well as the spot immediately next to the Water Street apartment and condo building, 1133 W. Ninth St., which is controlled by Landmark. ■ The Avenue District, which was created as a new for-sale residential neighborhood from Lakeside south to Superior Avenue, along East 12th Street, may offer multiple opportunities. Streets and pipes were installed by Zaremba for the townhouse portion of the Avenue District north of the first dozen townhouses built on Lindazzo Avenue before the housing downturn. Zaremba, which is working with the lender that now controls the property, could propose apartments for the remainder of the site, which are easier to finance than condominiums. ■ Avenue Tower, the mid-rise condominium building at East 12th and St. Clair where unsold units were sold to an investor group to work out a foreclosure, also has space for a second phase adjoining the tower. — Stan Bullard responses to the Jackson administration’s request for proposals to develop the city’s lakefront near North Coast Harbor.
Running out of buildings One reason constructing apartments is gaining favor is that the stock of downtown buildings that are empty or underutilized that fed the recent projects is diminishing, particularly after Geis Cos. and K&D Group have launched projects to convert, respectively the Ameritrust building at East Ninth Street and Euclid Avenue to apartment and other uses, and the office building at 1717 E. Ninth St., to apartments. Landmark is in a group involved in plans to convert the May Co. on Public Square to apartments that is seeking hotly contested state historic preservation tax credits that will be announced by the state this month. Doug Price, CEO of Willoughby-based K&D Group, which has converted two buildings into major apartment buildings downtown as well as built Stonebridge in the Flats, said, “We really are running out of buildings downtown that are convertible to apartments.” Mr. Yablonsky sees other buildings as potential conversions. “It’s a question of whether the ownership will consider a conversion or selling to someone who will convert a building to apartments,” he said. However, he noted developers may find buildings for future conversions in outlying areas of downtown such as on Superior Avenue east of East 18th Street or in the Columbus Road area of the Flats. While sites abound, finding a site that offers enough ground at a price that would allow apartment construction remains a challenge. Andrew Brickman, CEO of Abode of Solon, said he has looked and continues to look for sites downtown, but has not found one large enough to create a community like his firm likes to create, as it has done in Little Italy and is doing in Lakewood. That is why he has proposed a 200-unit townhouse and rental project in Ohio City. He said the site is close enough to benefit from downtown attractions, enjoy dining and brewpubs, but large enough to permit a project of scale. ■
20131202-NEWS--16-NAT-CCI-CL_--
16
11/26/2013
2:11 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
DECEMBER 2 - 8, 2013
LARGEST OFFICE LEASES RANKED BY SQUARE FEET(1)
Rank Building
Address City, Zip
Tenant
Tenant representative
Landlord representative
487,621
KeyBank
Jones Lang LaSalle
NA
Cleveland, 44114
300,000
AT&T
Jones Lang LaSalle
NA
Eaton Center
1111 Superior Ave. Cleveland, 44113
88,575
Cleveland Metropolitan School District
Weston Inc.
CBRE
4
Oswald Centre
1100 Superior Ave. E. Cleveland, 44114
71,073
Oswald Cos.
Jones Lang LaSalle
Kowit & Passov
5
EastPoint I
6085 Parkland Blvd. Mayfield Heights, 44124
57,911
TMW Systems
Jones Lang LaSalle
CBRE
6
MK Ferguson Plaza
1500 Third St. Cleveland, 44113
42,133
S&P Data LLC
Newmark Grubb Knight Frank CBRE
7
Paragon Office Environment
30455 Solon Road Solon, 44139
41,564
Reimer, Arnovitz, Chernek & Jeffrey
Ostendorf-Morris Co.
NA
8
Canyon Falls Corporate Center I
8957 Canyon Falls Blvd. Twinsburg, 44087
40,000
RX Options Inc.
NA
CBRE
9
Shore Bank
540 E. 105 St. Cleveland, 44108
37,405
Gems Education Solutions
Jones Lang LaSalle
NA
10
Summit Office Park
3 Summit Park Drive Independence, 44131
31,982
Reliability First Corp.
CBRE
CBRE
11
Goodyear Medical Office
45 Goodyear Blvd. Akron, 44305
31,561
High Line Corp.
Newmark Grubb Knight Frank Industrial Realty Group
12
Ernst & Young Tower
950 Main Ave. Cleveland, 44113
27,694
OM Group
CBRE
Fairmount Properties
13
Highpointe Corporate Park
9555 Rockside Road Valley View, 44125
27,000
ExactCare Pharmacy
Luttner Real Estate Investment Services
Newmark Grubb Knight Frank
Ernst & Young Tower
950 Main Ave. Cleveland, 44113
26,324
Wells Fargo Advisors
Jones Lang LaSalle
NA
1351 Lloyd Road
Wickliffe, 44092
26,000
Coast 2 Coast Forklifts
Jones Lang LaSalle
NA
North Point Tower
101 Lakeside Ave. Cleveland, 44114
25,753
McGladrey LLP
Ostendorf-Morris Co.
Jones Lang LaSalle
17
One International Place
20445 Emerald Parkway Cleveland, 44135
23,382
Bravo Wellness LLC
NA
CBRE
18
Landerbrook Office Park
5875 Landerbrook Drive Mayfield Heights, 44124
22,967
PSC Metals Inc.
Jones Lang LaSalle
CBRE
19
Highland Business Park
24865 Emery Road Warrensville Heights, 44128
21,751
ITT Educational Services Inc.
Jones Lang LaSalle
NA
20
Tower at Erieview
1301 E. Ninth St. Cleveland, 44114
21,000
North Coast Research
Hanna Chartwell
Hanna Chartwell
Eaton Center
1111 Superior Ave. Cleveland, 44113
20,946
Maloney + Novotny LLC
NA
CBRE
14656 NEO Parkway
Garfield Heights, 44128
20,923
ChanTest
Jones Lang LaSalle
NA
Solon Business Park
5821-5895 Harper Road Solon, 44139
19,759
Marriott Worldwide Reservation Services LLC
CBRE
Cresco Real Estate
24
One Chagrin Highlands
200 Auburn Drive Beachwood, 44122
19,196
Cleveland Clinic Foundation
North Pointe Realty Inc.
Jacobs Real Estate Services
25
Ernst & Young Tower
950 Main St. Cleveland, 44113
18,690
McKinsey & Co.
Jones Lang LaSalle
NA
United Bank Building
2012 W. 25 St. Cleveland, 44113
17,688
Skyline Financial Group
CBRE
NA
200 Public Square
Cleveland, 44114
17,000
Western Reserve Partners
NA
Colliers International
DDR Building
3333 Richmond Road Beachwood, 44122
17,000
TOA Technologies
CBRE
CBRE
29
Ernst & Young Tower
950 Main St. Cleveland, 44113
16,788
Northwestern Mutual
Jones Lang LaSalle
NA
30
Embassy Corporate Park
3700 Embassy Parkway Akron, 44333
16,731
Centene Management
Ostendorf-Morris Co.
Munsell Realty Advisors
31
Overlook Court IV
4760 Richmond Road Warrensville Heights, 44128
16,500
VCA Great Lakes Veterinary Specialists
Hanna Chartwell
Hanna Chartwell
32
IMG Center
1360 E. Ninth St. Cleveland, 44114
15,884
Bellwether Real Estate Capital LLC
NA
Breen & Co.
33
Stonegate Tech Center I
4150 Highlander Parkway Richfield, 44286
15,773
Cisco
Jones Lang LaSalle
NA
Embassy 4000
4000 Embassy Parkway Akron, 44333
15,195
Merrill Lynch
CBRE
Munsell Realty Advisors
6200 Oak Tree Boulevard
Independence, 44131
15,189
Apple American Group LLC
Jones Lang LaSalle
NA
6555 Carnegie Ave.
Cleveland, 44103
15,125
Blue Chip Broadcasting Ltd.
Ostendorf-Morris Co.
Hemingway Development
1790 Graybill Road
Uniontown, 44685
15,112
Diebold
DTZ
NAI Cummins
7700 Hub Parkway
Valley View, 44125
15,000
Lubrizol Corp.
Jones Lang LaSalle
NA
Southwest General Middleburg Medical Center
18780 Bagley Road Middleburg Heights, 44130
15,000
Weston Educational Inc.
CBRE
Cresco; Crescendo Commercial Realty
40
The Halle Building
1228 Euclid Ave. Cleveland, 44115
14,594
Urbancode Inc.
CBRE
CBRE
41
Akron Centre Plaza
50 S. Main St. Akron, 44308
14,360
Roderick Linton Belfance LLP
NA
Jones Lang LaSalle
42
Akron Centre Plaza
50 S. Main St. Akron, 44308
14,303
McKinley Executive Center LLC
Jones Lang LaSalle
NA
43
Freedom Square
6000 Freedom Square Independence, 44131
13,217
Accurate Group
PlayhouseSquare Real Estate Jones Lang LaSalle Services
1 2 3
14 15 16
21 22 23
26 27 27
34 35 36 37 38 38
127 Public Square Cleveland, 44114
1180 Lakeside Ave. E
Key Center Tower
Square feet
Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com. (1) Source: Information provided by CoStar Group Inc. www.costar.com and the tenant and landlord representatives. Information is for Ashland, Ashtabula, Cuyahoga, Erie, Geauga, Huron, Lake, Lorain, Mahoning, Medina, Portage, Stark, Summit, Trumbull and Wayne counties for Oct. 1, 2012, through Sept. 30, 2013, and includes new leases.
RESEARCHED BY Deborah W. Hillyer
20131202-NEWS--17-NAT-CCI-CL_--
11/27/2013
2:47 PM
Page 1
DECEMBER 2 - 8, 2013
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
17
Parties: Catering companies are experiencing boost in revenues continued from PAGE 1
Among those party providers seeing increased demand is Executive Caterers in Mayfield Heights, which projects revenues this December will climb 14% from levels of the like month in 2012. Year-over-year December increases have been in the 3% to 5% range in other recent years, said Charles Klass, executive vice president. To capitalize on the renewed interest in corporate events, Executive Caterers has picked up its related sales and marketing efforts. “When companies were really cutting back, there was a question of whether it would be worthwhile putting effort into that,” Mr. Klass said. “But over the past year, we’ve started putting more resources (toward it). We’re seeing signs of life in the corporate community.” So, too, is Marigold Catering in Cleveland. The company has realized a roughly 15% increase in corporate holiday parties compared with last year, with marketing director Eran Weber noting a trend also cited by Mr. Klass: more interest in scheduling events in January rather than December. Cleveland Botanical Garden also has an “unusual” number of corporate parties scheduled for January — three, two of which are 200-plusperson events, said Paula Coakley, director of facility rentals and special events. “The reason they’ve chosen to do this is they feel people are too busy in December,” Ms. Coakley said of the companies hosting the events. The double-digit revenue growth some caterers project for the holidays not only reflects the ERC survey results, but also what executives with the National Association for Catering and Events are hearing. The association’s survey, conducted in early November, reveals that 53% of responding members said their holiday event business is increasing over 2012. “It’s a very good thing when you see that more people are more comfortable with committing dollars to year-end events,” said Bonnie Fedchock, executive director for the association, which counts 93 members in Ohio. “Two years ago, many weren’t holding them at all,” Ms. Fedchock said. “This year, it’s getting much more solid.”
Hold the lobster tails Those companies hosting holiday parties are on both sides of the spending spectrum. On the one hand, ERC in its survey of 162 local organizations in October and November found that weekday, lunchtime parties — events that cost less and tend not to involve employees’ guests — are on the rise. A majority of employers (59%) reported they are hosting their 2013 holiday parties during lunch. Still, 6% of respondents said they are budgeting more for corporate holiday parties than they did last year, and those respondents are planning an average spending increase of 27%, ERC found.
Marigold Catering has seen increased budgets, as has Spice of Life Catering Co. in Cleveland, where chef-owner Ben Bebenroth projects a 10% increase in corporate holiday party revenues this November and December compared with the like two months last year. Most of that growth, he said, is driven by the exposure the company has gained in opening its Spice Kitchen + Bar in January 2012 in Cleveland’s Gordon Square neighborhood. Mr. Bebenroth also is seeing both smaller parties — because smaller companies are booking with more frequency and because some companies are inviting only particular departments or executives — and rising budgets, some of them up a “ballpark” 10% to 12%. “I would say that spending is a little bit up with people more focused on the content of the event, not just wine and cheese,” Mr. Bebenroth said. “It’s not as routine as show up, get a cocktail, mingle for 30 minutes, sit down to the table, have your salad, your entrée and your dessert. They want to see their people engaged and entertained instead of just standing over a filing cabinet, drinking a rum and Coke.” As an example, at a corporate holiday party for roughly 30 people in late November, Spice of Life’s people did a demo about cleaning and filleting salmon, Mr. Bebenroth said. Though Mr. Klass said he, too, has seen business run the spectrum, he still doesn’t see many of the martini bars and the seafood bars — swimming with lobster tails and crab legs — that he did in the 1990s. “People are more budget-conscious,” Mr. Klass said. “To some degree, it’s the money. To another, it’s the concern about being seen as wasteful or ostentatious.” Asked when lobster-laden parties might return, Mr. Klass laughed and replied, “Wouldn’t I love to know that?” “I’d like to think that one day, they (companies) will go back to having the fabulous, no-holdsbarred parties, but it’s hard to predict when that might happen,” he continued. “We certainly wouldn’t object.”
Quick turnaround In some “very, very high-profit areas,” such as Silicon Valley, corporate holiday party spending is back to levels not seen since 2008, said Ms. Fedchock of the National Association for Catering and Events. In other areas, such as industrial regions, it remains about 10% to 20% lower. “It’s coming, it just takes longer,” she said. Last-minute bookings are a growing challenge for caterers, Ms. Fedchock said, noting that before the economic downturn of 2008, people would call well in advance to book parties. “Now, they don’t,” she said. “It’s, ‘Can I do an event in two weeks?’” Executive Caterers saw a bit of that trend this year.
Volume 34, Number 48 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for combined issues on the fourth week of December and fifth week of December at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2013 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio, and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373. REPRINT INFORMATION: 800-290-5460 Ext. 136
SURVEY SAYS ... More results from the ERC Holiday Practices Survey: Who is invited? Answer 2013 2012 Employees only 68% 62%
19%
More party practices Answer 2013 2012 Alcohol is served 43% 43% Transportation provided 4% 4% Timing of party Answer 2013 Undecided 9% First week of December 14% Second week of December 38% Third week of December 21% Fourth week of December 9% January 6% Another month 3% Day of the week Answer 2013 Monday 11% Tuesday 7% Wednesday 12% Thursday 9% Friday 40% Saturday 20% Sunday 2%
“What is interesting is that until about two months ago, bookings were running more or less on par with last year, but over the past two months there has been a significant jump in inquiries and bookings,” Mr. Klass wrote in an email. “Perhaps companies were holding off until they saw how the year was likely to end up for them.”
Ms. Fedchock offers two reasons for this year’s holiday party uptick. “People are feeling slightly more confident, so they’re willing to commit to spend for the year-end,” she said. “They also feel that they need to, I’ve heard from people as well. They want to give back to their employees who really have been working very hard. Everybody is do-
Employees and spouse or significant other
27%
30%
Party locations Answer 2013 2012 Party is on company premises 48% 44% Party is held at external location
51%
49%
Party is held at a coworker’s residence 1%
2%
Party practices Answer 2013 2012 Party is catered 71% 64% Party includes entertainment
23%
ing more with less.” The party scheduled in December for employees of Professional Travel Inc. was no last-minute decision. Executive vice president Rob Turk can’t recall a time in his 21 years with the North Olmsted company that it did not host a holiday party. And, with 150 employees, the global travel management company spends several thousand dollars to do it, Mr. Turk estimated, noting it will treat employees to much the same party it has in previous years, with a formal dinner, entertainment and an open bar at Avon Oaks Country Club. “It’s a fairly significant commitment, but we think the ROI (return on investment) on that commitment is very valuable,” he said. “We think it’s important that we have the opportunity to create that kind of dynamic among the staff where they can have an evening to celebrate the holidays together.” Like 68% of the respondents to ERC’s survey this year, Professional Travel only invites employees. Doing so keeps employees focused on one another, not on entertaining spouses and others, Mr. Turk said. ■
New content, same loyal readers.
Book your ad today in one of 2014’s most highly anticipated sections. SOCIAL MEDIA STARS Issue date: 1/27 Ad close: 1/16
HEALTH CARE LAW Issue date: 2/3 Ad close: 1/23
NORTHEAST OHIO’S POWER 150 Issue date: 2/17 Ad close: 2/6
CLEVELAND INTERNATIONAL FILM FESTIVAL
TWENTY YEARS OF BASEBALL AT GATEWAY
HEALTH CARE / THE BUSINESS OF CANCER CARE
Issue date: 3/17 Ad close: 3/6
Issue date: 3/24 Ad close: 3/13
Issue date: 4/21 Ad close: 4/10
SUCCESSION PLANNING Issue date: 7/7 Ad close: 7/26
TALENT DEVELOPMENT Issue date: 9/29 Ad close: 9/18
UNIVERSITY CIRCLE Issue date: 8/18 Ad close: 8/7
INNOVATIONS & IDEAS: PROTECTING INTELLECTUAL PROPERTY Issue date: 9/15 Ad close: 9/4
HIGH FLYERS Issue date: 10/20 Ad close: 10/9
Interested in advertising information? Contact Michelle Sustar at 216-522-1383 or msustar@crain.com.
20131202-NEWS--18-NAT-CCI-CL_--
18
11/27/2013
1:54 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
REAL ESTATE Phone: (216) 522-1383 Fax: (216) 694-4264 Contact: Denise Donaldson E-mail: DDonaldson@crain.com AUCTION
CHARTWELL AUCTIONS | DEC 11 NE OHIO MULTI-PROPERTY AUCTION
COMMERCIAL, INDUSTRIAL, OFFICE, DEV. LAND & RESIDENTIAL ALL PROPERTIES OFFERED REGARDLESS OF PRICE OR W/BELOW MARKET PUBLISHED RESERVE PRICES COMMERCIAL
1
72 Unit Apartment Building
5
Commercial / Retail / Office
9447 Olde Eight Rd., Northfield, OH
OFFERED ABSOLUTE, REGARDLESS OF PRICE! Suggested Opening Bid: $27,500
6,500 SF fmr. bank branch on 3.22 beautiful acres. Opportunity for expansion. 1866 Forest Hills Blvd., E. Cleveland, OH Excellent commercial location near I-271. OFFERED WITH A PUBLISHED Full basement with tunnel to drive thru windows. Variety of possible uses. RESERVE OF ONLY $395,000 FINAL On-Site Inspections: Mondays, 4 All-brick, 3-story buildings, 80% December 2nd & 9th, from 2:00pm - 3:30pm occupied w/$80,896 NOI. Near OFFICE University Circle & Case Western Lorain Office Building University. Value-added opportunity! 6 FINAL On-Site Inspection: Tuesday, December 3rd, 2-4pm
2 50,341 SF Industrial/5.3 Acres 1505 Kansas Avenue, Lorain, OH
OFFERED ABSOLUTE, REGARDLESS OF PRICE! Suggested Opening Bid: $10,000
3940 Congress Parkway, Richfield, OH
3,000 SF Completely renovated, 13 private offices, conference room, 4 baths and newly paved parking lot. Excellent for Medical/General Office or Retail.
OFFERED ABSOLUTE, REGARDLESS OF PRICE! FINAL On-Site Inspection: Tuesday, Suggested Opening Bid: $75,000
Great industrial/warehouse facility with 2,600 SF office. High ceilings, clear span, heavy floor loads, 5 loading docks, 3 overhead doors and 80 car pkg
7 Prime Location Office Condominium
OFFERED ABSOLUTE, REGARDLESS OF PRICE! Suggested Opening Bid: $25,000
Ideal location in the heart of booming neighborhoods Tremont and Ohio City. 3-Story, 18,000 SF former Warehouse/ Industrial building. Great redevelopment opportunity for Lofts/Apartments!
You could be golfing or boating right now. Jeff Hathy, Realtor
Jones & Co. Realty 239-322-6970 or jeff@gotoguyjeff.com
CLASSIFIED ADVERTISERS COMING UP! Our annual double issue Book of Lists December 23rd Ad deadline for this special issue is December 11 at 5:00 p.m.
Call 216.522.1383
OFFERED W/ A PUBLISHED RESERVE OF ONLY $39,500
List your Industrial, commercial, luxury property or Retail Space Here!
FINAL On-Site Inspection: Tuesday, December 3rd, from 1:00pm - 3:00pm
Crain’s Cleveland Business’ classifieds will help you fill that space.
10160 Queens Way, Unit 1, Auburn Twp., OH
2,300 SF All-Brick Office Condominium built in 2000. Great end-cap unit to 3-unit building. Small warehouse w/ garage door. Drive up to front door. Ample parking. Minutes from Chagrin Falls Village, SR 422 & SR 306. 1900 Train Ave., Cleveland, OH
FORT MYERS, FLORIDA REAL ESTATE
December 3rd, from 10:00am - 12:00 Noon
FINAL On-Site Inspection: Thursday, December 5th, from 10:00am-12:00 Noon
3 18,000 SF Fmr. Warehouse/Ind. Bldg.
REAL ESTATE SERVICES
LAND
8
52.28 Acres - Lender Directs Sale N
Prospect Rd
Contact Denise Donaldson at 216.522-1383
FINAL On-Site Inspection: Tuesday, December 3rd, from 12 Noon - 2:00pm
4
6,700 SF Commercial/Retail
BUSINESS FOR SALE
52.28+/- Acres
B-to-B Service Business in Stark County 215 Richmond Rd., Richmond Hts., OH
OFFERED ABSOLUTE, Acre Strongsville Industrial Site REGARDLESS OF PRICE! 52.28 Fronting Prospect Rd. to Foltz Pkwy. next
Suggested Opening Bid: $20,000 to Strongsville Business & Technology Located on 1+ acre, former hardware Park. Similar Land Parcels Offered between store divisible for 2 units, room for $60K and $79K/Acre. All utilities to site. expansion or redevelopment.
Highly-automated. Profit $275.000. Ask $850K.
Nutritional Supplements
For Terms of Sale & Brochure, Please Call:
High-end retail stores. Sales $525,000. Profit for owner-mgr., $140,000. Ask $279.9K. Seller financing available. Don Dreisig, Owner
Hanna Chartwell / Chartwell Auctions, LLC Michael Berland, Gordon Greene, Mac Biggar & Anna Maria Hamm, OH Auctioneers
330-492-6294
FINAL On-Site Inspection: Wednesday, December 4th, from 1:00pm - 3:00pm
TO BE SOLD AT OR ABOVE $495,000 UNDER $9,500/ACRE
216-360-0009 ChartwellAuctions.com
Fuller & Associates, Inc. (serving No. Ohio for 33 years)
CLASSIFIED BUSNESS SERVICES
FLYNN ENVIRONMENTAL For Assessments
(800) 690-9409 www.flynnenvironmental.com
C. W. JENNINGS INDUSTRIAL EXCHANGE Global Expansion Consulting Construction • Acquisitions Exporting • Financing
(855) 707-1944
DECEMBER 2 - 8, 2013
NRP: Company’s market-rate housing is ‘no cookie cutter’ continued from PAGE 3
“We had our ear to the ground in the multifamily industry,” Mr. Heller said during an interview last week at NRP’s headquarters. “We saw the opportunity created by the collapse of single-family housing combined with the demographics of empty nesters and the children of baby boomers who want to rent as a lifestyle.” Mr. Heller notes that NRP opened five market-rate apartment developments in 2010 — well before apartment construction began to take off after the Great Recession. Mr. Heller and partners Rick Bailey, who oversees construction, and Alan Scott, who oversees development, launched NRP to create affordable housing for low-income people and senior citizens using federal housing tax credits. Since then, the company has built its staff with the idea that it might participate in market-rate multifamily development as opportunities arose. “It was within our core competency,” Mr. Heller said. “We have built 16 to 18 developments a year since 2006, so it was really a question of shifting into market-rate development.” The company originally planned to have a 50-50 mix of low-income and market-rate projects. However, the pendulum has swung so much that Mr. Heller estimates 75% of NRP’s new units are in market-rate properties. Still, Mr. Heller said, “We will not abandon affordable housing. We’re committed to it.” He noted that this year NRP is constructing 3,500 market-rate units and 2,600 affordable-housing units.
R-e-s-p-e-c-t The aggressiveness NRP is using to attack the luxury apartment market is exceptional, according to Ralph McGreevy, executive vice president of the Northeast Ohio Apartment Association trade group. “NRP runs at a pace that is second to none,” Mr. McGreevy said. “When they enter a new market, I get calls from local apartment owners,” he said. “They have the respect of everyone.” Mr. Heller declined to disclose NRP’s revenues. However, it’s clearly a big business built on big-ticket projects. For example, at NRP’s Beachwood project, dubbed “The Vue,” NRP filed a mortgage with the Cuyahoga County Recorder’s office indicating it’s a more than $40 million construction project. Mr. Heller said NRP finances its projects with equity investments mainly from pension funds that account for 30% of project costs; bank loans account for 70%. Each time NRP adds a community, it adds at most six people to its staff to serve that development. NRP now has a national staff of
500. About 100 work at its Garfield Heights headquarters, but that number has been stable for several years, Mr. Heller said.
‘No cookie cutter here’ The market-rate apartments NRP builds are similar in basic design to its affordablehousing properties, Mr. Heller said, but they offer more amenities, including more community features than found in apartments just a few years ago. “This isn’t about granite countertops. This isn’t about a party center from an apartment building in the 1980s,” Mr. Heller said. “This is about how people live today.” NRP’s luxury offerings typically include big resort-style pools, fitness centers rivaling commercial operations and rooms for tenants to watch sporting events together or to play computer games with friends, Mr. Heller said. In San Antonio, the company has introduced a room that tenants can use as a dining room. That allows people who might have used a dining room once or twice a year in their homes to have the same dinner parties at an apartment. Some properties include a meeting room that allows tenants who work from their apartments to have a place to meet clients. NRP typically builds market-rate apartments that are two, three or four stories in height. However, their designs vary according to the size of the land for each project and its topography, Mr. Heller said. “There’s no cookie cutter here,” he said.
Seizing opportunities NRP does not fit easily into typical descriptions of real estate developers. Although it has more than 14,000 apartment units under management and has constructed more than 20,000 units for itself and clients over the years, its goal is not to go public or sell projects as it completes leasing them up, Mr. Heller said. That said, real estate broker CBRE Group currently is marketing two of NRP’s recently completed apartment projects in San Antonio, in part because the market for selling quality apartments there is “frothy,” Mr. Heller said. “We’re opportunistic,” he noted. Although developers nationwide are producing a multitude of apartments to seize on good demographics and favorable interest rates, Mr. Heller said he believes there is “a lot of runway” for more projects for NRP in the future. “We’re conservative,” Mr. Heller said, as the company’s staff looks to find opportunities and locations near entertainment and shopping that are attractive to people who increasingly fit the category of “renters by choice.” ■
Akron City Council OKs sale of land to Vadxx Energy ON THE WEB Story from Plans for Vadxx Energy The city of Akron isn't www.crainscleveland.com LLC's Akron plant are charging Vadxx anything moving forward. up front to buy the land, Akron City Council this said economic development specialist Brent week approved the sale of 5.1 acres of Hendren. Instead, he said a profit-sharing city-owned land at East Waterloo Road and agreement will be set up, likely through the Kelly Avenue to the company. The city's Akron Development Corp., a nonprofit arm of planning commission approved the proposal the city that acts on behalf of the city's in August, but it had to go before council interests. before being finalized. Cleveland-based Vadxx turns certain plastic Vadxx CEO Jim Garrett said the next step waste into fuel. Original plans had Vadxx for the company was to close on financing pursuing a plant in Cleveland, but those were for the project; he was optimistic that would set aside in favor of the Akron location this happen before the end of the year. He summer. The company has an existing doesn't expect construction on the Akron research and development center in Akron. plant — the company's first — to begin Mr. Garrett noted that the company has before spring 2014. had “enormous regional support” from The plant will be about 20,000 square feet, governments and various organizations in Mr. Garrett said, and it will include a recycling Akron and Cleveland. — Rachel Abbey McCafferty unit made by Rockwell Automation Inc.
20131202-NEWS--19-NAT-CCI-CL_--
11/27/2013
DECEMBER 2 - 8, 2013
1:44 PM
Page 1
CRAIN’S CLEVELAND BUSINESS
WWW.CRAINSCLEVELAND.COM
19
THEINSIDER
THEWEEK
REPORTERS’ NOTEBOOK BEHIND THE NEWS WITH CRAIN’S WRITERS
NOVEMBER 25 - DECEMBER 1
Is an office building encore in the offing?
The big story: The Cleveland Browns scored a major victory with Cleveland City Council, which approved the team’s proposal for $120 million in upgrades to FirstEnergy Stadium. Of the 18 council members present Monday night, Nov. 25, 13 voted in favor of the agreement hammered out between the team and Cleveland Mayor Frank Jackson. The move clears the way for the Browns to begin the first phase of their two-year renovation project in January, after the conclusion of the 2013 season. Included in the planned first phase is the installation of two giant scoreboards in each end zone.
■ Downtown Cleveland may get another multitenant office building soon — and it may be brought to market by the same ■ First there was cable TV. Then came cable people who created Ernst & Young Tower in Internet. the Flats East Bank Neighborhood, the first Next up: Cable medicine. commercial office building constructed Nurses and physical therapists at the downtown in 20 years when it opened last Cleveland Clinic spring. are starting to Adam Fishman, have face-toa principal with face conversaFlats East Bank cotions with their developer Fairpatients without mount Properties, actually visiting told the Clevelandthem. Instead, Cuyahoga County they’re talking Port Authority at via a TV screen its Nov. 21 meeting using the new that there are “Virtual Visit” “pretty advanced product offerdiscussions with a ing from Time couple of tenants” Warner Cable for another office building in the STAN BULLARD Business Class. Essentially, Flats. Another new building could join E&Y Tower in the Flats. the company’s With a size of cable guys (or gals!) visit patient homes and less than 200,000 square feet, the building install equipment such as video cameras would be designed so that it would accomand modems. The pilot program is starting modate tenants of 30,000 to 40,000 square with just a handful of patients, but it evenfeet that “could get lost” in a larger building, tually will include more than 200 people who Mr. Fishman said. The proposed structure’s need follow-up care after leaving the hospital. site is on the north side of Front Street near West Tenth Street. The pilot is part of the Clinic’s effort to After leasing more than 91% of the 23“rethink how, and where, we deliver care to story Ernst & Young Tower in less than a patients,” according to a statement attribyear, it is clear Fairmount and its partner, uted to Dr. Eiran Gorodeski, director of the the Wolstein Group, unearthed some Center for Connected Care at the Clinic.
Following a legend: Progressive Corp. president and CEO Glenn M. Renwick was elected to the additional role of chairman following the Nov. 23 death of previous chairman Peter B. Lewis, who was 80. Mr. Lewis began working full time at Progressive in 1955. He became CEO in 1965 and grew it to become the fourthlargest private passenger auto Lewis insurance group in the United States. In 2000, he stepped down as CEO, yielding that post to Mr. Renwick, but continued to serve as chairman. But Mr. Lewis was notable for far more than just his prodigious efforts at Progressive, making huge marks in philanthropy in Cleveland, at Princeton University (his alma mater) and in the art world, and most recently, on behalf of efforts to legalize marijuana. Read a profile of Mr. Lewis at tinyurl.com/mtzbb9g. Office shuffle: Northeast Ohio Media Group and The Plain Dealer Publishing Co. both are getting new, permanent homes. Northeast Ohio Media Group — the company responsible for editorial content, advertising sales and marketing for Cleveland.com, The Plain Dealer and the Sun newspapers — will move next year into renovated space at 1801 Superior Ave., the longtime home of The Plain Dealer. Reporters and editors at Plain Dealer Publishing Co. will move from 1801 Superior into the Skylight Office Tower at Tower City Center in downtown Cleveland.
Reality TV of the medical variety
WHAT’S NEW
No turning back
Feel the heat: Republic Steel, which makes special bar quality steel, firing up its new electric arc furnace in Lorain. The first batches of steel will be cast into 6-inch by 6-inch billets and will be rolled on the 9/10-inch rolling mill, also at the Lorain plant. Production on the billet caster is expected to ramp up over the next several months. The $85 million project will provide more than 1 million tons of steel annually for the production of bloom and billet cast semi-finished, bar and coil products. Looking up: A survey conducted by the Entrepreneurs’ Organization indicates large numbers of Cleveland-area entrepreneurs plan to hire staff in the next six months. The group said 54% of its entrepreneur respondents expect to hire more full-time workers in the next six months, and 42% expect to hire more part-time workers. Respondents also believe the economy is moving in the right direction, with 85% reporting positive feelings about starting a new business in the next six months.
COMPANY: Mobile Awareness LLC, Cleveland PRODUCT: MobileTRAQ Vue Mobile Awareness, a maker of transportation safety products, says the MobileTRAQ Vue comes with TireStat TPMS sensors and offers an advanced tire pressure management system for commercial trucks. MobileTRAQ Vue is a “field upgradeable, commercial-grade monitoring and maintenance system, designed to grow with fleets and changing industry demands,” Mobile Awareness says. It’s a “rugged, flexible assetbased monitoring system for both connected and stand-alone truck and trailer monitoring,” according to the company. The product features a programmable color touch-screen display that allows the driver to see and hear warnings. Mobile Awareness says the MobileTRAQ platform was developed to connect with Mobile Awareness wired and wireless sensors, the first of which is TireStat TPMS, a tire sensor mountable inside the tire or externally on the valve stem. The company says the TPMS sensors transmit data every 60 seconds to the MobileTRAQ monitor. MobileTRAQ Vue has adjustable tire alarm levels and integrated telematics communication interfaces for monitoring inside the vehicle and remotely, the company says.
“We know that great care can be delivered where patients want to be most — in their homes — and we see telemedicine as a way to help us do that better and more efficiently,” she stated. — Chuck Soder
Expert Crane picks up building for its new home ■ Expert Crane Inc., which installs and maintains overhead cranes inside commercial and industrial buildings, is the new owner of the former ThyssenKrupp Materials Inc. building overlooking Interstate 77 at 5755 Grant Ave. in Cuyahoga Heights. James Doty Jr., vice president of sales and marketing at Expert Crane, said the company needed room to expand because business has climbed as the region’s manufacturers recovered from the economic downturn. Expert Crane will consolidate operations in one location from three, including its current Cleveland headquarters and shop as well as rented space in Maple Heights and Lakewood. The 42-employee company has added seven jobs this year to handle increased business, Mr. Doty said. He declined to disclose revenues. An affiliate of Expert Crane paid $1.5 million for the nearly 50,000-square-foot ThyssenKrupp building, according to Cuyahoga County land records. The building originally was listed for $1.9 million last September, according to Bill Stevens, a senior associate who worked on the assignment as part of a team at the Colliers International brokerage. Expert Crane has listed its current, 16,000-square-foot home at 10737 Leuer Ave. for sale with Colliers. — Stan Bullard
BEST OF THE BLOGS Excerpts from recent blog entries on CrainsCleveland.com.
It’s a lock: FirstEnergy Corp. of Akron declared a lockout of members of Utility Workers Union of America Local 180 at its Pennsylvania Electric Co. (Penelec) subsidiary. Local 180 represents about 140 Penelec line, substation, clerk and meter services employees in the Altoona, Huntingdon, Lewistown and Shippensburg, Pa., areas. FirstEnergy said the lockout came “after several unsuccessful negotiation sessions between the company and the union.” Union members on Nov. 24 rejected what FirstEnergy characterized as its “last, best and final contract offer.”
prospective tenants it does not want to lose for lack of another property. — Stan Bullard
■ Give Gov. John Kasich credit for standing his ground on Medicaid expansion. The Wall Street Journal looked at how a handful of GOP governors have bucked the party trend to embrace a central tenet of Obamacare: expanding Medicaid to cover the poor. It’s not a popular position among Republicans, by Gov. Kasich isn’t soft-pedaling his support. The governor told The Journal that Medicaid expansion offered a chance to provide health care to people just scraping by, like a single mom making $7 or $8 an hour who lacked insurance or other lower-income families struggling to deal with drug addiction or mental illness. “For me, it was an easy decision,” Gov. Kasich said. “It’s going to save lives, it’s going to help people and you tell me what’s more important than that.” Gov. Kasich declined, though, to criticize other GOP governors who have resisted Medicaid expansion. “Can I judge why other people don’t want to do it?” he asked. “I don’t think that’s fair. But, for me, it is the right thing to do.”
Follow the money ■ Have a kid with a nose for economics? He or she can prove it in a contest sponsored by the Federal Reserve Bank of Cleveland. The Cleveland Fed said it’s offering high school juniors and seniors an opportunity to win prizes “by choosing the most significant advancement in the last century and explaining its impact on the economy.” The bank’s 2014 Creative Writing Contest is called “100 Years of Change: Once Upon a Time Before TV.” Students can submit an
essay, poem, play or short story. Deadline for submissions is Feb. 28, 2014. The top prize is a $500 cash gift card. The Cleveland Fed said entries will be evaluated on “comprehension, organization, conclusions, creativity, and clarity.” The contest is open to 11th- and 12th-grade students attending schools in the Fourth Federal Reserve District, which includes Ohio, western Pennsylvania, eastern Kentucky and the northern panhandle of West Virginia.
Don’t make them angry ■ Librarians across the country, including in Northeast Ohio, apparently are fired up about movie director J.J. Abrams’ elaborate story-within-a-story mystery, “S.,” co-authored with Doug Dorst. The book has been a hit with readers and won decent reviews as a result of its “elaborate production values — it’s chockablock with maps, postcards and marginalia, all stuffed into a well-wrought re-creation of an old library book.” And that, said The Hollywood Reporter, is not sitting well with librarians, “who have been complaining to one another on message boards that the loose material is easy to misplace and reporting they have canceled orders — 50 copies at Cleveland’s Cuyahoga County libraries alone.” Many libraries “are irked that an elaborate Hollywood-style marketing campaign, complete with stylized trailers and a strict embargo, left them clueless about the contents of the relatively pricey book,” the paper said.
20131202-NEWS--20-NAT-CCI-CL_--
11/26/2013
2:12 PM
Page 1
THE BMW HAPPIER NEW YEAR EVENT 2013 328i xDrive
$
2013 528i xDrive
279 mo. / 36 mo. lease
*
$2,000 Build-Out Cash, $500 Loyalty Cash are included in the payment.
• $279 first payment • $3500 Down payment • $0 Security Deposit • $799 Bank Fee • $4578 cash due at signing Stock # B09360
$
459 mo. / 36 mo. lease
*
$3,000 Build-Out Cash, $1,000 Loyalty Cash are included in the payment.
BMW Cleveland
• $459 first payment • $3500 Down payment • $0 Security Deposit • $799 Bank Fee • $4758 cash due at signing Stock # B09616
BMW Cleveland
6135 Kruse Dr. • Solon • 1-866-210-6710 www.BMWCleveland.com 36 month leases 30,000 total allowable miles, tax and title fees are extra. For full details contact BMW Cleveland. Offers expires 12/15/2013
BMWCleveland.com 440-542-0600
The Ultimate Driving Machine®
RANGE ROVER EVOQUE
120 AWARDS AND COUNTING. A JOURNEY 65 YEARS IN THE MAKING. , CK R TO E FO S L IN AB ATE AIL DI AV IMME IVERY L DE
LET IT SNOW. LET IT RAIN. LET IT ROAR. Introducing Instinctive All Wheel Drive.TM Jaguar doesn’t care what the weather is doing. The supercgarged V6 Jaguar XF with Instinctive All Wheel Drive* helps keep you in control under any sky. Without sacrificing performance. Visit your Jaguar Retailer and learn more about the only AWD vehicles with the instincts of a Jaguar.
$409 PER MONTH FOR 36 MONTH LEASE
*
2013 XF AWD MONTH 579 PER
$
36-MONTH LEASE, $2,799 + TAX, TITLE AND FEES DUE AT SIGNING, $0 SECURITY DEPOSIT, BASED ON $58,845 MSRP ✝
6137 KRUSE DR., SOLON (440) 542-0601 www.jaguarcleveland.com
$2,995 DOWN, BANK FEE, DOC FEE, PLATES. $4,455 DUE AT DELIVERY PLUS TAX
LAND ROVER SOLON 6137 KRUSE DR., SOLON • 1-866-210-6707 CLEVELAND
** Not a substitute for safe and attentive driving, nor can it overcome all extreme circumstances. ✝ For well-qualified lessees as determined by approved lender. All amounts shown are estimates; retailer sets actual amounts. Residency restrictions apply. 2013 Jaguar XF AWD. $2,799 due at signing includes $1,995 down, $0 security deposit, and first month’s payment; excludes retailer fees, taxes, title and registration fees. Actual rates and payment may vary. Lessee responsible for insurance, maintenance, excess wear and excess mileage over 10,000 miles at $.30/mile. Lessee has option to purchase vehicle at lease end at price negotiated with retailer and approved lender at signing. Termination fees may apply. Take new retail delivery from retailer stock by 12/15/13. Jaguar Retailer or approved lender may recind or amend this offer without notice. Vehicle shown with optional equipment. Images © 2012 JAGUAR LAND ROVER NORTH AMERICA, LLC
www.landroversolon.net * Lease rates shown for 2013 Range Rover Evoque to qualified buyers through US Bank. $2,995 down plus bank fee, doc fee, license fees and tax. Total due at delivery $4,455 plus local taxes. Actual rates and terms may vary. All amounts shown are estimates, retailer sets actual amounts. Lessee responsible for insurance, maintenance, excess wear and excess mileage over 40,000 miles at $0.30 /mile. Based on MSRP of $42,040 (including destination and delivery). Lessee has the option to purchase vehicle at lease end at price negotiated with retailer at signing. For special lease terms, take new vehicle delivery from retailer stock by 12/15/13. Termination fee may apply. See your Land Rover Retailer or call 1-800-FIND-4WD for qualifications and complete details. ©2013 Jaguar Land Rover North America, LLC.
6135 Kruse Dr. • Solon • (440) 542-0600 • www.DavisAutomotive.com