VOL. 38, NO. 34
AUGUST 21 - 27, 2017
Source Lunch
Culture chatter Technology execs give valuable tips during StartupScaleup. Page 2
Anoo Vyas, co-director of the University of Akron’s EXL Center Page 23 FINANCE
CLEVELAND BUSINESS
The List Cuyahoga and Summit employers Page 18
REAL ESTATE
New firm can ‘cross hurdles’ in region By JEREMY NOBILE jnobile@crain.com @JeremyNobile
When two smaller, yet established, Cleveland financial managers met to talk business, neither really expected to join forces on a new firm. But that was before a new opportunity presented itself in the sparsely populated space for emerging manager funds. This month, members of Nirvana Analytics and Shaker Investments launched a new firm, Cedar Hill Investments, to capitalize on that incredibly underrepresented end of the investment market. Both of the existing firms have been around for some time, and their leaders have been doing business for decades. Shaker, which focuses solely on equities, was founded in 1991 by Edward Hemmelgarn. Nirvana, whose expertise is in fixed income, launched in 2008 under J. Burner Crew. The former is serving as managing partner at Cedar Hill. The latter is managing director. Both see Cedar Hill as a new way to grow their respective businesses. “We both feel a need to be larger,” Hemmelgarn said. “And we realize we can probably do it better together than we can just trying to slog through it on our own.” Quentin McCorvey, who joined Nirvana as a principal about a year ago, is leading the new firm as president. “When you think of the capabilities we have in a minority-owned firm, we are uniquely positioned in the state of Ohio and the country to cross hurdles for participation in this space,” McCorvey said. The definition of an emerging manager fund varies between states, yet there are similar characteristics among them. SEE CEDAR HILL, PAGE 21
Frank Sinito, CEO of Millennia Cos. and owner of Key Center on Public Square, is realizing his dream by revitalizing the former Key Tower overlooking Cleveland’s north shoreline. (Peggy Turbett for Crain’s)
Sinito has sky-high hopes for portfolio By STAN BULLARD sbullard@crain.com @CrainRltywriter
Frank Sinito recently bought the 57-story Key Tower and the attached 400-room Marriott Cleveland Downtown in a $267 million deal. It’s a long reach for a Cleveland native who started out with a 14-suite apartment complex and a bar in the suburbs. But at 54 with a tireless devotion to work, he’s fine-tuning things at the Key Center complex and has his eye on another big downtown building and renovation project.
Entire contents © 2017 by Crain Communications Inc.
“We don’t take the typical landlord’s view of the building. We look at it as a tenant. What do we want? A pleasant setting. Food. Artwork. Lots of light.” — Frank Sinito, CEO of Millennia Cos. and owner of Key Center
On Sept. 1, Sinito will move the last of about 90 employees of his Millennia Cos. to Key Tower and is eagerly undertaking enhancements to Ohio’s tallest skyscraper, as well as the hotel. Asked what’s next for him and Millennia in the wake of an epic transac-
tion, Sinito said he’s hoping to launch the multimillion-dollar conversion of the massive former Huntington Building — now called Union Trust, in honor of its original name — on the northeast corner of Euclid Avenue and East Ninth Street. “I have a bid in,” Sinito said. “I
hope I get it. It will be a real roll-upyour sleeves opportunity.” If a Sinito affiliate lands the 1-million-square-foot property or a stake in the project, it would be a big change and the biggest development for the massive Huntington Building since late 2015, when Hudson Holdings of Delray Beach, Fla., won an allocation for as much as $25 million in Ohio State Historic Preservation Tax Credits. Hudson Holdings has planned a $300 million adaptive reuse as apartments, hotel and contemporary office space, though construction is not yet underway. SEE SINITO, PAGE 17
Middle market << A
tax on medical device sales could make another appearance. Page 11 Middle market’s role in the supply chain Page 14 Q&A with Mariana Carrera, behavioral economist, Case Western Reserve Page 15