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New Apex Dermatology & Skin Surgery Center built for growth in Mayfield Heights
50 5 Steps to Improve Energy Efficiency: Exploring ways companies can better control energy consumption, conservation
52 Project Profile: Cedar Point Causeway Wetlands Breakwater – City of Sandusky project showcases sustainable design practices for coastal resiliency
55 Mitigating Bird Strikes: Specialized glass enhancement deters bird collisions at Tri-C Westshore Campus
58 Project Profile: Oberlin College’s Sustainable Infrastructure Program – Multifaceted energy conservation effort earns Green Building Challenge recognition
62 Financial Wins for Greener Buildings: How the math works out for everyone through C-PACE
64 Legal Perspectives: ‘Greening’ Your Contracts
68 ACAR Corner: Innovations in Concrete
PROPERTIES PEOPLE
Highlighting notable industry events
23rd Annual SMACNA Golf Outing
SMACNA-Cleveland hosted its 23rd annual golf outing recently at Columbia Hills Country Club, located in Columbia Station. The outing was limited to 132 golfers and filled up within two weeks. Each golfer received a 40-ounce stainless insulated tumbler at registration and everyone received a gift from the prize table. More than 165 people attended the entire event for lunch, dinner and participation in the famous putting contest.
ABC Summer Golf Scramble
The Northern Ohio chapter of Associated Builders and Contractors (ABC) recently hosted its annual Summer Golf Scramble at Coppertop Golf Club in Valley City, with approximately 100 golfers in attendance. A post-golf barbecue, happy hour and networking event followed the presentation of awards.
1 Sam Hudspath, Brandon Linder, Will Pabst and Bill Linder (All Construction Services)
2 Rob Schiffhauer, Jeff Hattendorf, Steven Hattendorf and Greg Novicki (Tetra Tech)
3 Andy Norman, Tanner Norman, Eddie Norman Jr. and Eddie Norman (Staffworks)
4 Todd Kikol (Beneco), Matt Solden (Assured Partners), Tammy Kerr (Tenna), Lou Colagrossi and Austin Gosner (Assured Partners)
5 Frank DiMasa (DiMasa Electric), Dave Kromer (Kromer Concrete), AJ Lisiewski (ADMAR) and Eric Szimya (Kromer Concrete)
The Cleveland Engineering Society (CES) recently held its 46th Annual Golf Outing and Fundraiser at Weymouth Country Club in Medina. More than 100 CES members and guests enjoyed breakfast, 18 holes of golf and an awards banquet with door prize raffles. Proceeds raised from the event go to the CES scholarship fund and STEM outreach.
1 Michael Moores (Envalo), Nicole Rosario (Marketing on Demand), Mike Rosario (Cleveland Vicon) and Tom Cammock (Buckeye Sales)
2 Verity Green (intern) receives $1,000 scholarship from CES President David Oshins (The Austin Company)
3 Nat Wallace, Matt Tyson, Ken Marous and Jason Smith (Marous Brothers Construction)
4 Don Huller, Melena Huller, Elliot Joyce and Matt Locandro (Nexus Engineering Group)
5 John Alexander (GPD Group), Joe Puch (Arcis Golf) and Michael Heil (M.L. Heil Consulting LLC)
6 David Oshins (The Austin Co.), Steve Belliveau (Steven Douglas Corp.), Dan Belliveau (Steven Douglas Corp.), Jon Belliveau (Steven Douglas Corp.), Brady Foley (Steven Douglas Corp.) and Trish Pekarcik (CES)
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for the continued support of our many sponsors and partnersyou’re helping shape the future for students in Northeast Ohio
Making the Connection ACE students take on the Veterans Memorial Bridge for 2023 summer program
By Rhonda Crowder | Photos by Alaina BattleThe first year that ACE Mentor of Cleveland program held its Summer Career Experience, students responded to a Request for Proposals (RFP) asking them to imagine a dog park on E. 71 Street and Chester Avenue with support from the Cleveland Foundation and MidTown Cleveland.
The second year, they were asked to reimagine the former Hough Branch of Cleveland Public Library in Cleveland’s Ward 7, from Cleveland City Councilwoman Stephanie Howse.
This summer, they had to think through how they would improve the Veterans Memorial Bridge Streetcar Level that spans across the Cuyahoga River to connect the city’s east and west sides, at Superior and Detroit Avenues, which is being encouraged by Cuyahoga County.
Indeed, each year the projects seem to get more complex. But as demonstrated during ACE Mentor of Cleveland’s Summer Career Experience’s final presentation held this past July at Cuyahoga Community College, the students continue to step up to the challenge.
“It’s been a great experience,” says Diaa Khaled, a recent graduate of Bard Early College who aspires to become a structural engineer. He will be attending Cleveland State University his fall. Khaled’s older brother Mohammed, an ACE Cleveland alumnus, introduced him to the program.
The ACE Mentor Program is a not-forprofit organization that helps to prepare
high school students for careers in architecture, engineering and construction. Through mentoring by industry professionals, the mission is to engage and enlighten high school students as well as support their continued advancement
engineering and construction communities participate in the program.
For the last three years, the ACE Mentor Summer Career Experience, along with strategic partners such as Turner Construction, Youth Opportunities Unlimited and Dale Carnegie Training, has provided high school seniors and college students with an enriched, paid six-week project-based experience, which includes college credit, immersions into career development and shadowing experiences with AEC companies. In addition, several upper-class college students were placed locally in paid internships within the industry.
and achievements in the industry. Since its inception in 2008, the Cleveland affiliate of the program has provided more than $1.5 million in scholarships to over 180 students with nearly 2,000 students participating. ACE works in partnership with Cleveland/CMSD, Warrensville Heights and Shaker Heights high schools. Approximately 120 volunteers from more than 70 local firms within the design,
“We were thrilled to have been a part of the ACE Summer Experience again this year,” says Rachel Friend, human resource administrator with Turner Construction – Cleveland. “It has been incredible to witness the development in confidence, knowledge and experience in these young professionals.”
Reimagining the bridge
This year’s RFP required program participants to research, discuss and develop a design concept to utilize
“These are the people you are going to want to hire one day. They are going to be the leaders, the spokesperson in a company, the role models we want our employees to become.”
Jeannie Wendt Dale Carnegie
the Veterans Memorial Bridge and adjacent land in ways that would enhance the immediate area and provide uses such as entertainment, recreation, general leisure and public gathering.
The students’ recommendations included improvements to existing entry points; possible new entry points including new landscaping (hardscape, softscape and public art); surface improvements on the lower deck; plus lighting, security cameras, security fencing and new crosswalks. As instructed, their concept included recreation, entertainment and creative expression on the lower deck. They saw the historical walkway as a representation of all these parts of Cleveland. They also recommended having diverse vendors as part of the experience.
In consideration of sustainability, students suggested installing a solar panel arch over the bridge to power the lower deck. They saw this as a symbol for growth and progress as a city. They even considered the homeless population surrounding the bridge by
suggesting helping them find housing or building housing to accommodate. Asked to think of some “big ideas,”
IDEAS INTO ACTION In July, ACE Summer Career Experience participants provided a presentation of their project in front of an audience of mentors, sharing their ideas to reimagine the Veterans Memorial Bridge.
“City in the Sky.” They also noted seasonal considerations.
Keeping in mind the scope and short timeframe, ACE Mentor Career Experience Coordinator Alaina Battle says this project seemed more community-based than in the past as the students got an opportunity to tour bridges, which helped them generate ideas and learn more about the history of the area beyond a Google search. “They got more excited about the project and jumped right in,” Battle says.
Once the students finished their presentation, Matt Danis, ACE Mentor Cleveland board chair and vice president of Shook Construction, challenged them to continue to opt in.
Camron Dillard, Jalen Grady and Carlise Brown with ACE Alumni Diaa Khaled and Mike Pipoly (Turner Construction)
2 Camron Dillard, Corea Tate, Diaa Khaled, Samuel Dillenbeck, Kevin Rivera, Jalen Grady and Cedric Infante
3 (Seated) Jalan Grady, Corea Tate, Diaa Khaled, Kevin Rivera, E’laycia Linder, Camron Dillard, Cedric Infante III and Samuel Dillenbeck with (standing) Nate Conway (Fifth Third Bank), ACE Summer Experience Coordinator Alaina Battle and Latoya Smith (Fifth Third Bank)
long project” so for the students to cut it down and get it to a point where they could wrap their arms around it, they did a great job. He suggested considering it as a continuation next year.
“This has been our pleasure,” says ACE Mentor Cleveland volunteer Rich Iafelice, of CT Consultants. “We encourage our colleagues to get involved.”
Annie Pease, senior advisor of transportation for Cuyahoga County, enjoyed hearing the ideas and the enthusiasm displayed by the students.
“The presentation is timely,” she says. “We plan to have the bridge open for more public events.”
Jeannie Wendt, Dale Carnegie, has worked with the students on their speaking and presentation skills over the past three summers. “It warms my heart every year,” she says. “These kids knew the presentation was important. With their confidence and other personal skills, these are the people you are going to want to hire one day. They are going to be the leaders, the spokesperson in a company, the role models we want our employees to become.”
Corea Tate, a second-year ACE Mentor Cleveland Summer Experience student and sophomore at Cleveland State University studying film and media, says she recognizes that she can use her background in film and media to promote and showcase construction. She says she came to the program more confident this year.
“I’m glad I came back,” she says. “The more I do this program, the more knowledge and connections I gain. It gives me a pathway to a career.”
For additional info about the ACE Mentor Cleveland program, visit www.acecleveland.org. Contact Glen Shumate, ACE Mentor executive director, by email at ace@acecleveland.org.
Cleveland Construction, Inc. has successfully completed the historic renovation and adaptive reuse of Residences at 55 Public Square building in Cleveland, Ohio. This redevelopment project involved the conversion of the 24-story, 500,291 SF office building into a vibrant mixed-use development with luxury apartments, offices, and the new Fahrenheit restaurant. The building has been converted into 202 luxury
At Cleveland Construction we’re passionate about preserving the beauty of the past and disrupting the traditional and ordinary by guiding our clients through the renovation process while minimizing the project’s risk.
apartments, penthouses, a fitness center, and a Community Room that provide sophisticated urban living. The redevelopment also included office build-outs, the new restaurant, and interior updates throughout.
We are thrilled to have partnered with K&D Group to breathe new life into this iconic landmark, creating a dynamic living space in the heart of Cleveland’s Public Square.
Lighting Up Downtown
The Residences at 55, Fahrenheit reenergize historic office tower
By Scott Esterly | Photos by Aerial Agents, David Joseph and Mark WattWhen it opened in 1958, 55 Public Square in downtown Cleveland represented several firsts. The 300-foot-tall, 22-story office building, the first new skyscraper constructed in the city since the Terminal Tower opened in 1930, became the first high-rise structure in Cleveland constructed with glass and aluminum cladding. It also became the first such building to feature a reinforced concrete frame, utilized on the top 12 floors due to a steel shortage at the time of construction.
Listed on the National Register of Historic Places, 55 Public Square was originally the headquarters building of Cleveland Electric Illuminating Company and for years was known as the Illuminating Building. Notably, John Q’s Steakhouse served patrons for decades on the first floor of the tower and was a landmark restaurant until it closed in 2013. However, over the past
two decades, commercial tenants slowly began leaving the tower. Once considered an architectural gem, 55 Public Square was in need of new investment to reinvigorate it.
Flash forward to the present and an $80 million adaptive reuse project by K&D Group has done just that, transforming 55 Public Square into a mixed-use commercial and residential
development that embraces modernity while celebrating the past.
Previously the tower was occupied solely by commercial tenants – primarily law firms and, since 2013, anchor tenant First National Bank. Today, all of its commercial tenants occupy the top third of the building. The balance of the 500,000-square-foot tower has been converted into a 15-story high-end apartment
your New Space
55 PUBLIC SQUARE
complex, called The Residences at 55, with 202 high-end multifamily housing units situated on floors two through 15.
“It started with K&D Group’s vision,” says George Berardi, managing partner and design strategist at Berardi + Partners. “They selected this building as another opportunity to develop housing and mixed uses, continuing the transformation of downtown Cleveland.”
LFSystems L864 Stairwell Pressurization Controls
55 Public Square, the first residential high-rise in Ohio that features state-ofthe-art stairwell pressurization controls from LFSystems. The L864 is the industry’s only factory-built controller listed to UL864, the standard for smoke controls.
The L864 maintains a constant positive pressure in the stairwell, ensuring smoke will not enter through an open door. The smoke will migrate away from the stairs, providing a safe environment to evacuate in the event of a fire.
K&D Group completed acquisition of the property in February 2021. Immediately prior to beginning work on 55 Public Square, the real estate management and development firm completed the transformation of nearby Terminal Tower into a mixed-use development. K&D Group also owns other downtown properties, including Reserve Square, Residences at 1717, The Residences at 668, Residences at Halle, The Residences at Hanna and Residences at Leader, all of which similarly feature the conversion of office space to residential use.
To complete the transformation of 55 Public Square, K&D Group found a new occupant for the long-vacant John Q space. Chef Rocco Whalen opened his restaurant Fahrenheit in Tremont in 2002 where it thrived from the beginning. Fahrenheit’s new home is in the historical John Q’s space on 55 Public Square’s southwest corner. In Whalen, K&D Group has found a match for its vision of making downtown Cleveland a truly residential neighborhood.
“This isn’t just a restaurant space or office tower,” says Whalen. “This is a city reckoning of Public Square being re-contained in a controlled space with plaza events and music festivals.”
Team + timeline
Work on the tower, the restaurant and an attached parking garage required an all-star team. Cleveland Construction provided preconstruction and construction management for the entire project. Berardi + Partners served as architect for the historic renovation and adaptive reuse of the tower and Residences at 55, while Vocon led the design of Fahrenheit. Groundbreaking occurred in September 2021.
Inside + out
Almost immediately after property acquisition was complete, work on rehabbing the parking garage took place. K&D Group spent nearly $6 million on the garage alone, which proved to be a shrewd decision as a plethora of surface parking space has recently gone offline for the new Sherwin Williams headquarters being built on the neigh-
boring blocks of 55 Public Square. Now, a “Lot Full” sign appears most mornings before 8 a.m.
The tower’s entire glassy façade was rigorously cleaned and resealed, which was a key portion of the project that
helped to secure $5 million in historic tax preservation credits through the Ohio Development Services Agency and State Historic Preservation Office. Exterior work also included a renovation of the plaza’s entrance.
Thankfully, the existing roof did not require replacement and only needed building code and safety updates.
Tower reimagined Construction wrapped on Residences at 55 in June 2023, although the first residential tenant moved in nearly a year prior in September 2022. Currently, the
building is 80% leased residentially and 90% leased commercially. When K&D Group bought 55 Public Square, it was only 40% occupied with commercial tenants scattered all throughout the building. At the moment, there are 20 different commercial tenants, still including First National Bank, which has prominently placed signage on 55 Public Square.
“The first step was building up the new space for the commercial tenants,” says Doug Price IV, vice president at K&D Group.
This was easier said than done, of course, as commercial tenants needed to be able to work in peace while construction took place. The project was completed in phases, beginning
with life safety upgrades and refurbished elevators, and then a sequenced demo and build-out of each floor, working from bottom to top. The process allowed entire floors to be turned over and occupied by tenants as soon as they were completed, according to Meghan Bracken, project executive for Cleveland Construction.
“Keeping mechanical systems up and running while putting in all new mechanical systems was the toughest aspect,” says Bracken says. “Commercial tenants don’t need what residential tenants need. It’s two different mechanical systems that must come into play with each other. And we needed to swap out old systems for new systems completely seamlessly.”
Aside from the construction and mechanical work, properly re-stacking the tenants had logistic and contractual hurdles. Most of the tenants were on month-to-month leases, which required K&D Group to simultaneously work on build-out designs and new leases.
“We moved five large companies in the building right away and had to simultaneously negotiate new leases,” says Matt Driggs, vice president of commercial real estate for K&D Group.
“We were under a time crunch. We had guys on the floor below ready to demo as the next tenant is moving in. When we started delivering residential
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Congratulations to Cleveland Construction on the successful completion of the Residences at 55 Public Square Project
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Proud to be part of the project team at The Residences at 55 Public Square
REMADE FOR RESIDENTIAL Previously occupied by commercial office tenants, floors two through 15 have been redeveloped into a high-end apartment complex. The Residences at 55 incorporates 202 multi-family units, ranging from 1,050-square-foot, onebedroom suites up to a 2,400-square-foot, three-bedroom penthouse.
floors, we were moving people into a floor every 15 days,” says Price IV.
Residential features
Walking through Residences at 55, the blend of architectural and historical preservation and modern
birthday parties, or used as a getaway to work remotely if desired. The rooftop deck has lounge seating and fire pits for a fun, casual atmosphere.
Next to the community room is a fitness center with exercise equipment, locker rooms with showers, and a DO Summers dry cleaning pickup locker and drop-off bin.
In a sign of changing consumer habits, a dedicated package room is also on the second floor. The mailroom on the first floor simply can’t fully accommodate all the online shopping that residents and commercial tenants now do, so the dedicated package room was created. Providers bring the packages up themselves and place the boxes in numbered shelves for tenants to pick up at their leisure. Having this package room also eased the burden that property managers have been shouldering simply trying to keep up with the deliveries.
The second floor additionally includes a dedicated pet-wash station for the large number of dogs that residents have.
Of the 202 new residential units, 186 are a mix of one- and two-bedroom suites arranged on floors two through
13. Floors 14 and 15 accommodate 16 penthouses suites, which are available in two- and three-bedroom configurations and feature sweeping views of the entire city and Lake Erie.
“This building is so beautiful,” says Price IV. “The windows go 360 degrees all the way around. Why not throw some huge penthouses on floors 14 and 15? It was at a huge cost to us to build out a whole new floor for First National Bank [to accommodate the penthouses], but we went for everything.”
Every apartment is all-electric and features its own full-size washer and
dryer. One-bedroom units are roughly 1,050 square feet and two-bedroom units are approximately 1,200 square feet. A three-bedroom penthouse is around 2,400 square feet. The residences all have luxury vinyl tiles in the main spaces of the apartments and carpeting in bedrooms. Bathrooms feature ceramic tile showers, flooring and walls.
A clever design feature that the residences include is shelving on the structural columns to make them functional. All units feature gourmet kitchens with stainless steel appliances,
HOT SPOT The newly opened Fahrenheit restaurant covers approximately 10,000 square feet on its main level, with an 850-square-foot outdoor patio and 2,850 square feet on the second floor, which includes a rooftop deck.
nine-foot ceilings, quartz countertops and modern gray finish cabinetry with soft close, plus an abundance of natural light.
Raising the heat at Fahrenheit
Also key to the redevelopment of 55 Public Square? Fahrenheit Cleveland, the highly anticipated, newly relocated Rocco Whalen restaurant situated at street level.
“As soon as we were acquiring the building and closed on it, we immediately started talking to Chef Rocco,” says Driggs, of K&D Group.
Whalen and the Price family, the owners of K&D Group, have had a close relationship for years. Whalen even catered the wedding rehearsal dinner for Doug Price IV in the Greenbrier, or Van Sweringen, Suite at the Terminal Tower. Over the years, it became a forgone conclusion that, when the time was right, Whalen and K&D Group would formally link up on the development of restaurant space. The acquisition of 55 Public Square and the John Q restaurant property was the perfect opportunity for both parties.
Whalen was passionate about renovating the existing space for Fahrenheit and had a vision. He says he knew right away that he wanted to work with designers like Vocon and Berardi + Partners.
Fahrenheit covers approximately 10,000 square feet on its main level, with an 850-squarefoot outdoor patio and 2,850 square feet on the second floor, which includes a rooftop deck.
“Everybody is a VIP here,” says Whalen. “We have two floors of magnitude. We have the first rooftop that’s ever been put on Public Square in Cleveland. This is more than just a restaurant. This is an entertainment venue with different aspects.”
wasn’t workable. New concrete flooring was put in place.
The original façade of John Q’s had virtually no windows. A compromise to satisfy historic preservation, build-
preservation, the west side of Fahrenheit contains all original brick.
“It’s not just drywall and paint. Mechanical systems, plumbing, technology, HVAC – everything is from scratch,” says Berardi.
“Everybody is a VIP here. We have two floors of magnitude. We have the first rooftop that’s ever been put on Public Square in Cleveland. This is more than just a restaurant. This is an entertainment venue with different aspects.”
Chef Rocco Whalen Fahrenheit
Whalen and K&D Group had every intention of preserving the original tile flooring that was installed in John Q’s, but after a decade of neglect, it simply
ing codes and the desired design of Fahrenheit was to put in windows along both Frankfort Avenue and West 3rd Street. New sidewalks were also installed all along Fahrenheit and 55 Public Square. In another nod to historic
Despite there being more than 10 air-conditioning units in the ceiling, there are no access panels, and the result is a clean, sleek look.
There was no existing fire protection in the restaurant. All new sprinkler lines had to be run from the residential portion to the restaurant and a completely new system was installed. Another key aspect was incorporating the fire protection system and sprinkler heads to blend into the architectural design of the restaurant. Five Star Mechanical, a subcontractor for the Fahrenheit restaurant construction, worked on the plumbing, HVAC and fire protection.
“We were able to minimize the coordination for the project as a whole, which allowed for easy communication and continuity during the process,” says Jim Clark, head of operations for Five Star Mechanical.
Adding the rooftop deck to the restaurant necessitated structural reinforcement. “All of these columns in the restaurant are steel beams, and we needed to brace the entire ceiling all the way
through to support the roof deck on top. It was a huge undertaking,” says Price IV.
Restaurant design
“We took a lot of design cues from the city, from Chef Rocco, from his family, from his family’s history and from the name Fahrenheit,” says Nick Faehnle, associate design director for Vocon.
One of the first thing guests may notice is that the massive kitchen is on full dis-
play to practically the entire restaurant. “Transparency is important,” Whalen says. “We’re on display every night.”
Allowing guests to really immerse themselves in the dining experience, there is also a chef’s table with limited seating. Here, Whalen can stop by, interact with the guests and explain the menu offerings. Diners will even get to see Whalen’s mother’s original meat slicer in a nearby corner that is still in use.
“It’s a ballet,” says Juliane Workley, project director for Vocon. “The design was meant to be unique: elegant but comfortable. You can sit at your table and feel like you’re in your own little space, but still see the dance. The food is the star. The space provides the stage for the food.”
“We wanted people to see the experience of how they’re working by letting people know how things are run and how it becomes part of the energy of the space,” says Faehnle.
For instance, in full view of the restaurant and next to the chef’s table on one side is a prep station for seafood and meat, while on the other side is an espresso machine and a carved-out space that gives servers access to the main bar to grab drinks prepared by bartenders for guests.
There are a variety of seating arrangements possible in the main dining room. Tables can be pushed together or moved as needed. A large center table in the dining room serves as storage and for displaying pastries or a Mother’s Day brunch buffet. A glass-encased wine cellar display near the main bar and staircase houses thousands of bottles of carefully sourced wine.
Clevelanders who frequented John Q’s will not mistake Fahrenheit’s modern look for the famous steakhouse, but there are touches of its history sprinkled throughout. Most notably, the original bar installed in John Q’s has been com-
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PLACE SETTING In addition to the main dining room, Fahrenheit includes a chef’s table with limited seating (top), a richly designed bar area (middle) and a private dining room suitable for hosting special events (bottom).
pletely renovated and is in the new private dining room in Fahrenheit. The private dining area features gray carpet, black tables and chairs and photographic portraits of smoke.
Fiery inspiration
Throughout the first floor of Fahrenheit, the name itself became the primary design inspiration. The imagery, custom-designed fixtures and other elements all relate to fire, smoke or cooking, as “Fahrenheit” might suggest.
Separating the kitchen area from the main dining room is a nearly 20-footwide custom-made chandelier with dozens of crystals hanging from the ceiling with LED lights that create a fire-like aesthetic. Another nod to fire
and smoke is the pervasive use of Shou Sugi Ban on much of the wood in the restaurant. Shou Sugi Ban is a Japanese wood-burning technique that is both decorative and functional, as it can aid in weathering and waterproofing.
A sitting area just off the main dining area features a bright red neon sign that reads, “Smokeshow.” Smokeshow is a double entendre of sorts, alluding to smoked meats that the restaurant may serve to customers and is also a reference to the slang use of the word (loosely characterized as “a very physically attractive individual”). The sign has become a favorite spot for social media influencers to take selfies and post the images to their social media accounts.
A functional, yet decorative, design feature on the first floor of the restaurant is black and white Italian
“It’s a ballet.... You can sit at your table and feel like you’re in your own little space, but still see the dance. The food is the star. The space provides the stage for the food.”
Juliane Workley VoconPhotos by David Joseph
HVAC EQUIPMENT
@ 55 PUBLIC SQUARE
RISING FOR THE OCCASION The second floor and adjoining rooftop deck can be used for private events or for a more relaxed restaurant experience.
porcelain flooring. Fahrenheit makes extensive use of service carts during dining and the hard porcelain flooring makes it easier to maneuver the carts.
“Architecturally, this building was significant for its history. It was also one of the first inverted T concrete decks,” says Faehnle. “We couldn’t expose that with all the fire suppression, so we decided to take a different spin on it. It’s all about helping to highlight the food.”
After a fire comes rebirth, which is the design inspiration for the second floor and rooftop deck of Fahrenheit. On the staircase leading up to the second floor, a waterfall pattern on the Italian porcelain was maintained the entire way up and down the stairs.
Chef Whalen’s mother’s name is Rose, so rose flower-themed displays are prevalent on the second floor. A modernist-art deco style was used in the design of the second-floor restrooms. The second floor and rooftop deck can be used for
private events or for a more relaxed restaurant experience.
Continuing momentum
Whalen says he’s proud to be part of an overall, ongoing effort to rejuvenate Public Square as a showpiece of downtown Cleveland. “People say, ‘he has his hands full,’” Whalen notes. “I do.
I want it all. This building and the vision that Doug Sr. and K&D Group has for these kinds of properties and opportunities don’t come along very often. I’ve seen it all. The ones that pick and choose their moves are the best ones. We don’t look at this $80 million project as a scratch on the surface. That’s what the magnitude of this project is. It’s a legacy project.”
Skin in the Game
New Apex Dermatology & Skin Surgery Center built for growth in Mayfield Heights
By Christopher Johnston | Photos by Mark WattIn mid-July, Apex Dermatology opened its sparkling new, 19,500-square-foot freestanding corporate headquarters, medical facility and aesthetic clinic in Mayfield Heights. Total cost of the on-budget, on-time project, including full build-out of the clinical suites, offices and equipment, was approximately $8.2 million.
The new building stands as the 14th location for Apex. The dermatology practice started in Concord in 2011, after Jorge Garcia-Zuazaga, MD, FAAD, FACMS, founder and president, earned his MBA from the Weatherhead School of Business at Case Western Reserve University while serving as director of Mohs Surgery and aesthetic dermatology at University Hospitals (Westlake and Strongsville Medical Centers). Previously, he was a decorated flight surgeon with the U.S. Armed Forces.
“We were concerned about having that much south-facing glass, so we were playing around with different window configurations to break it up,” says Jim
“The punched hole openings in the front wood screen wall... spell ‘skin’ in Morse code. [Apex Dermatology’s Jorge Garcia-Zuazaga] is very proud of his time in the military, so we wanted a fun way to invoke his military service with the dots and dashes.”
As Apex’s bellwether Dermatology & Skin Surgery Center, it’s rather fitting that the front of the new building, facing south, displays the Morse code symbols spelling the word “skin,” created through strategically placed punched hole openings.
Jim Wallis PerspectusWallis, AIA, principal of Cleveland-based architectural firm Perspectus, noting the window placement helps to alleviate the thermal challenge of all-day sunshine and
heat gain. “The punched hole openings in the front wood screen wall of the building create a lighted pattern, day and night, and spell ‘skin’ in Morse code. As a veteran, Dr. Garcia is very proud of his time in the military, so we wanted a fun way to invoke his military service with the dots and dashes.”
An early pivot
In 2019, the plan developed by the project team, including Perspectus and Infinity Construction, was for the medical building to be two stories tall and house Apex as the main tenant with leasable spaces for other medical tenants to serve as a multi-specialty referral center, according to Dr. Garcia. Then the COVID-19 pandemic shut everything down, and everybody else pulled out of the project. He purchased the land,
CONTAINER SALES LLC
which is located across the street from Apex’s previous 3,000-square-foot leased office space, and decided to instead build a one-story facility to provide more greatly needed room for his fast-growing practice.
“I started doing more of an internal analysis of what I wanted to accomplish,” he says. “I wanted to be able to sleep well at night, especially after COVID proved you can’t rely on people’s ability to pay their rent, so we just had to scale down the project and pursue what we have now – a corporate headquarters and clinical building where we can have 100% occupancy.”
Dr. Garcia’s plan is to add other providers over the next several years. “We built it for growth,” he says.
Complementing the corner
The design of the building intentionally responds to its location at the corner of Cedar Road and Landerbrook Drive.
“The overall massing of the building is an overlap of two rotated forms that respect the street grid, adjacent buildings, and angle the main entrance canopy towards the prominent site corner and office park entrance,” Wallis explains. “The rotated forms are expressed in different materials, one masonry and the other in wood and metal.”
The different heights of the two forms also create taller public spaces, signage opportunities, mechanical screen walls along the roofline, and a mezzanine storage area, he notes.
Apex’s first location to be built on a vacant lot from the ground-up contains 18,000 square feet on the main level with five distinct sections: the corporate offices and training center; clinical space for the dermatology practice; pathology laboratory space; a research center with a 1,500-square-foot mezzanine for records storage; and an aesthetic clinic.
“What’s unique about the building is that the five separate entities operate somewhat independently,” Wallis says. “So, the patient side that faces Cedar Road has all of the clinical space, while the rear corner is the corporate offices and training center with a separate entrance. The research and pathology office is next to the clinical spaces and has a separate entrance for the laboratory because they have unusual hours and may be working all night. The building is segmented so people can enter or exit in different ways.”
The training center in the corporate headquarters section was originally designated for offices, but including the educational area allows Apex to train its staff in one of its own spaces for the first time.
Patients are welcomed into the building with a spacious, comfortable lobby that has plush seating with plenty of space so patients are not crammed together in a small waiting area.
“The goal from the beginning was to create something more hospitalityforward or spa-like,” Wallis explains. “The entrance lobby gives you a differ-
“The goal from the beginning was to create something more hospitalityforward or spa-like... There is a lot natural light, a very open, airy space with ample wood tones inside and outside.”
Jim Wallis Perspectusent feel from a typical waiting room. There is a lot natural light, a very open, airy space with ample wood tones inside and outside.”
Abundant windows fill the building with light and expansive views of trees and greenery. The light and airy ambiance is richly enhanced by stunning
landscape photographs by local artist Dave Chew throughout the building.
“Our team’s design inspiration was in response to Dr. Garcia’s vision to incorporate natural daylight in the large public and private spaces in the building and integrate warm wood tones to pair with a clinical aesthetic to create a calming environment that reinforces a focus on well-being,” Wallis says.
Efficient clinical spaces
The clinical portion of the building contains 18 rooms (12 exam rooms and six procedure rooms), including the Mohs area where skin cancer surgeries are performed. There are six more rooms in the aesthetics section of the Apex complex.
Dermatology operates as a high-volume business, with each provider seeing 40 to 50 patients a day. There is also a ratio of three medical assistants per provider for a total of 40 staff members. Apex currently has four providers in the building, with 30 providers practice-wide.
Dr. Garcia expects to add another provider next year on the other side of
The building meets a variety of programming needs with space for clinical services (top), a corporate office/training center (middle) and staff areas (bottom), as well as a pathology lab and research institute.
the available clinical space and more in the next few years.
“We were trying to design these pods of exam rooms and procedure rooms to create an efficient work area for each provider,” Wallis says. “We’re always looking at evidence-based design and trying to design efficient clinical spaces.”
“In our old office, we were all crammed into one big room,” Dr. Garcia says. “But we have the medical spaces and the surgical spaces so that everyone can work separately, and it will be more efficient.”
Perspectus designed pods to keep everything close together where needed. Each is a mirror image with
three exam rooms where providers can see patients and a smaller space in the middle that serves as a lab to test skin biopsies. There is also a “dirty” or utility lab where disposable material can be collected and which includes an autoclave to sterilize medical instruments. Each pod contains one larger room where providers can perform surgical procedures. Patients enter from the lobby area and can go right or left in a circular flow.
“Jim [Wallis] and I have been working together on this design concept for years,” Dr. Garcia says. “We’ve developed a good model on the dermatology side, proving why it’s better to be efficient rather than, for example, having a biopsy and having to walk all the way across the building to drop it off at a lab.”
“This was our chance to execute our wish list in the way we wanted to because it was ground up and because we had learned from all of our other locations.”
Ruth Barnum Apex Dermatology
NEW LOOK While Apex Dermatology operates more than a dozen facilities throughout Northeast Ohio, the Mayfield Heights location is the first to include an aesthetic clinic. The new space has its own dedicated waiting area (top) and consultation/treatment rooms (bottom).
“This was our chance to execute our wish list in the way we wanted to because it was ground up and because we had learned from all of our other locations,” says Ruth Barnum, vice president of marketing for Apex.
Introducing an aesthetics spa
High on that wish list was the inclusion of Apex’s first aesthetic clinic, which has a separate entrance to distinguish it from the clinical area. It also has an entrance off of the lobby into the clinical area for patients who use both. Six rooms are utilized for consultations, as well as laser, injection or body sculpting procedures.
“That space was important to us because we wanted to have a cool aesthetic space for our clients,” Dr. Garcia says. “Now you can come in and you don’t have to be a patient, but it’s connected so it’s efficient, and it allows us to have all of the different devices that we use for laser procedures and so on.”
Wallis and Garcia consulted a couple of spa experts to help define the aesthetics space. They gained several recommendations that they applied during the design phase. For example, they added a consultation room and made the treatment rooms distinctive for the different treatments, including a larger room for body sculpting with lasers where an individual needs to lie down and smaller rooms for facial treatments.
“We can use the rooms all of the time, so if you have someone come in for laser servicing, we can put them in the laser room, or someone for a Botox injection in the injection room,” Dr. Garcia says. “You can do them in any room, but its more efficient to have them divided and have everything available there.”
The aesthetic clinic boasts colorful, high-end design, including an eye-catching sculptural wall and a dazzling abstract painting by local artists Josette Galiano and Megan Dardis, respectively, as well a range of retail skincare products on display.
“Even though a lot of our patients come in from the dermatology clinic, there are people who are not patients who come in, so we kept that in mind,” Dr. Garcia says.
Having the separate aesthetics area solved a different challenge that Apex has at its other locations, according to Barnum. “You should expect to have a different experience if you’re here to have skin cancer surgery versus a spa day,” she explains. “This building allowed us for the first time to make people feel comfortable for the reason they are coming in with the look and feel of each space.”
In addition to an enhanced patient experience, the new state-of-the-art medical facility also provides a positive experience for staff. Instead of just a small room with a table, the break room
is larger and has a lounge area with a patio outside. There are also lockers in the hallway, and a copy machine for staff and patients.
“We wanted to make this our flagship operation,” says Dr. Garcia. “We do a lot of regional activities here – training, meetings and strategy sessions – so now it has more of a corporate look. If the staff want to take a lunch break, they can enjoy a nice space.”
Overcoming challenges
In 2019, while considering the original concept of a large, two-story building with multiple tenants, Dr. Garcia went through a series of zoning ordinances to acquire the 2.5-acre property. By the time the project was ready to move forward in 2021, however, the practice had grown so sig-
nificantly that Dr. Garcia decided to hire an owner’s representative, Brian Smith, who had recently retired from his job as director of construction/strategic project development for the Cleveland Clinic.
“Apex is a great business model, because if you call the number here, you are directly connected, unlike a large hospital system where they have to filter you through 26 specialties and your geographic region,” Smith observes. “Apex is here, it’s a greatlooking building, great location, and it brings in the blend of aesthetics that the larger institutions struggle with because they focus on the larger procedures. Jorge saw that dermatology is about access, education and long-term skin care that everyone needs.”
Site work started in April 2022 and took about 12 months to complete construction so that Apex Dermatology & Skin Surgery Center could open in July 2023 as initially scheduled in September 2021.
Originally residential land that had been cleared for cluster homes similar to those that now stand across the street, the site had some utilities available. However, they were not sized for a medical build-
with obtaining materials and had to order some items far in advance to have them when they needed them.
On the mechanical/electrical side, the facility features the ability to control the building’s HVAC systems for the different pods functioning as clinical, laboratory and corporate spaces because they may be operating at different hours of the day. The building is also equipped with an emergency backup generator that handles specific sections of the building.
ing of the size and scope that Dr. Garcia intended for Apex’s new headquarters.
Jeff Young, senior project manager for Infinity Construction, explains that, as many other construction projects during the past few years have experienced, they encountered serious challenges
“We wanted to make sure that we had the critical areas covered, whether that be research, the lab or specific areas within the project that could function if there was ever a power interruption, even for a short period of time,” Wallis explains.
He adds that finishes within the building are all sustainable materials, including flooring, ceilings, lighting and low VOC paints. There are also two chargers for electric vehicles in the rear parking lot near the corporate entrance as a convenience for staff or patients.
“We had to work through variations and challenges along the way through the design and construction,” Wallis says. “So it was nice to have Infinity Construction and Brian Smith, the owner’s rep, and Perspectus all working together to make those decisions before we were able to start construction and keep the project on budget and on time through the early work. We have a history of working together on various projects over the years, so it turned out to be a great collaborative team.”
“We wanted to make this our flagship operation. We do a lot of regional activities here – training, meetings and strategy sessions – so now it has more of a corporate look.”
Jorge Garcia-Zuazaga Apex Dermatology
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AIA Cleveland Hosts 7th Annual SandFest at Edgewater Beach
The Cleveland chapter of American Institute of Architects (AIA Cleveland) recently held its annual family-friendly SandFest event at Edgewater Beach in Cleveland. The seventh annual summer festival featured a sand castle construction competition and sand volleyball tournament between several teams comprised of Northeast Ohiobased architects and designers, while participants and guests enjoyed refreshments from visiting food trucks.
Among six teams in the sandcastle competition, this year’s top prize went to GPD Group for its entry “Under the CLE,” while Vocon was recognized as runner’s-up and People’s Choice winner for its entry “Seacrets of the UnXplored.” The winning 2023 AIA Cleveland Sandfest volleyball team was Vocon, among 16 teams overall.
Nearly $8,000 was raised to benefit the ACE Mentor Program Scholarship Fund, which provides education and scholarships for students pursuing degrees in architecture, construction and engineering.
Cleveland Names Economic Development Director
Mayor Justin M. Bibb announced recently that Tom McNair will be the new director of economic development for the City of Cleveland, starting on September 25. He will assume the role from Interim Director Terri
Hamilton-Brown, who has been leading the city’s economic development team since June.
McNair will continue implementation of initiatives funded by the American Rescue Plan Act (ARPA), including the Site Readiness for Good Jobs Fund, revitalizing the southeast side and minority
contractor business assistance. He will also focus on supporting the city’s efforts to revamp economic development incentives, foster growth among small businesses, expand trade sector jobs and lead efforts around equitable neighborhood development initiatives.
McNair most recently served as the executive direc-
tor of Ohio City Incorporated (OCI), the community development corporation serving Cleveland’s historic Ohio City neighborhood. Previously, McNair served as OCI’s director of economic development and planning.
Cleveland Construction Promotes Bracken to Project Executive
Cleveland Construction recently announced that it has elevated Meghan Bracken to the role of project executive.
Since joining the company in 1998, Bracken has developed a diverse portfolio of construction experience in Downtown Cleveland. Recent achievements include overseeing the historic adaptive reuse of 55 Public Square (see full story, pg. 13), including the new Residences at 55 residential development, and leading the design/build contract for the new Fahrenheit restaurant. Her previous undertakings include Kimpton Schofield Hotel, 75 Public Square Residences, AC Hotel Pinecrest and a renovation at Salvation Army Adult Rehabilitation Center on Euclid Avenue. In her new position,
vision and management skills within the company’s Cleveland operations.
Architectural Design, has been selected as the new chair of the Urban Land Institute (ULI) of Cleveland.
As chair, Beegan will work closely with the past chair and incoming governance chair of ULI Cleveland, Cathryn Greenwald, partner at Thompson Hine LLP, to facilitate a smooth transition. He will also be working with the council’s management committee and ULI staff to determine priorities and set out a member-driven program for their two-year term.
ULI Cleveland focuses on delivering member value and mission-oriented work throughout Northeast Ohio, with an overarching goal of positioning ULI as the lead-
ing real estate organization that attracts and retains top industry leaders.
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represented public and private REITS, large and small private investment groups and national lenders.
AIA Cleveland Announces Design Awards Call for Entries
Millichap recently announced the promotions of Jonathon McClellan and Kyle Baskin to executive managing director, the highest designation a Marcus & Millichap investment professional can attain.
The distinction recognizes McClellan and Baskin’s
performances in the field of investment property sales and marketing of manufactured housing communities (MHC) nationwide. Over the last 15 years, they have brokered 651 MHC transactions located in 39 states, valued at $7 billion. They have successfully
The Cleveland chapter of American Association of Architects (AIA Cleveland) recently announced it is accepting submissions for its upcoming 2023 Design Awards. This year’s awards event will take place at Public Auditorium (500 Lakeside Ave. E, Cleveland) on Friday, November 3, featuring 2023 AIA Gold Medal Recipient Carol Ross Barney, FAIA, HASLA (Carol Ross Barney Architects) as keynote speaker and jury chair.
The awards program recognizes excellence in design by inviting local firms to submit their best work to be reviewed by nationally renowned juries. The deadline for submissions is Monday, October 2 at 5 p.m. For details, www.aiacleveland.com/designawards.
Hahn Loeser Assists NE Ohio Financial Group’s Acquisition
Hahn Loeser recently announced the successful acquisition of its client, Cirrus Wealth Management LLC, by Sequoia Financial Group LLC. Both are SEC-registered wealth management firms based in Northeast Ohio. Hahn Loeser’s team included lead attorney John Paul Lucci,
Litigation Practice Co-Chair
Rob Remington, attorney James P. Oliver and paralegal Gretchen M. Nine-Bunnell.Sequoia holds nearly $16 billion in assets and continues to grow with the addition of approximately $387 million in assets from Cirrus. As part of the transition, 12 employees from Cirrus will be joining Sequoia’s team, while Cirrus founder/president Joe Heider will be assuming a new role as a strategic advisor.
IFF Opens Cleveland Office
Chicago-based IFF, one of the largest nonprofit community development financial institutions (CDFIs) in the Midwest, recently announced it is opening a Cleveland office, boosting its presence in Ohio. Community and economic development professional Meg Slifcak has been hired by IFF as director of real estate solutions for Ohio.
“Our goal is to help nonprofits – such as those in early childhood education, affordable housing, health care,
GSNEO Breaks Ground on STEM Center of Excellence
Girl Scouts of North East Ohio (GSNEO) recently celebrated a groundbreaking for its new STEM Center of Excellence, which is being built at the council’s 350-acre Camp Ledgewood in Peninsula, bordering Cuyahoga Valley National Park. The project aims to boost science, technology, engineering and math (STEM) confidence and education among scouts; currently, only 28% of employees in STEM fields are women.
Expected to open in fall 2024, the project includes an 8,000-square-foot building, which will house a wet lab, a tech space, podcast booth, observatory, weather station and workshop space with tools needed for prototyping and invention. Outside, the project will include immersive experiences, including a meadow with honeybee exhibit, an outdoor pavilion with bat houses, rain garden and an outdoor classroom.
Elected officials spoke at the event, along with GSNEO’s CEO Jane Christyson and other council stakeholders. Representatives from Kent State University’s College of Aeronautics and Engineering (CAE) participated as well, showcasing cutting-edge drones and advanced technologies. A highlight was CAE’s robotic dog, YIMO, which delivered the ceremonial groundbreaking shovel. Attendees were also treated to a unique aerial view of the STEM Center’s location as a drone soared overhead, outlining the upcoming building’s footprint.
The project team includes SoL/Harris Day as architect and Regency Construction Services, Inc. as construction manager at risk.
community development, arts and culture – expand their work by providing loans and real estate consulting services that are deeply needed but not offered by others,” Slifcak says.
The new Cleveland office is located in the Caxton
Building at 812 Huron Rd. East, Suite 490 in Cleveland. While the office is new, IFF has been working in the region for some time. Since 2014, IFF has closed 30 loans providing nearly $20 million to Cleveland-area organi-
zations. Statewide, IFF has provided nearly $70 million in more than 90 loans to Ohio nonprofits.
IFF’s Cleveland office will be opening with a staff of four with plans to add employees soon. Slifcak
News about people, products, places & plans has extensive experience in community development and affordable housing.
R.L. Hill Promotes Byrd to VP of Construction
R.L. Hill Management recently announced that Marcellus Byrd has been promoted to vice president of construction. Byrd started his career with the Gilbane Building Company 21 years ago, and since entering the industry he has learned to manage a variety of projects, spanning multiple sectors. These include mixed-use buildings, healthcare facilities, federal buildings, sporting complexes, hospitality locations and K-12/higher education projects. He also
has experience working on libraries, theaters and civic/ cultural centers.
“Marcellus’s experience is invaluable, but more than that is his integrity,” says Ralphael Hill, owner of R.L. Hill Management. “His conscientiousness toward
both the client and our key sub-contractors is key to our company’s continued growth & future success.”
SoL Harris/Day Welcomes Architectural Designer
Recently, SoL Harris/Day Architecture announced that Alexis Hunter has joined its design team as an architectural designer. Hunter has a Bachelor of Science in Architecture and Master of Architecture, both from Kent State University.
Hunter’s studies have allowed her to gain experience in the higher education, large commercial, co-living and recreational markets. Based in North Canton, SoL Harris/Day is an architecture
and design firm specializing in education, corporate and recreational building.
At Risk
One of the most popular things in our office is a large white board. It is primarily used to post announcements and track progress on critical projects. But one day, someone wrote a question, specifically “what is your dream vacation?” From that simple question, a star was born.
Each morning, everyone looks forward to the question of the day. Recently, the question “what is your fav board game?” generated the usual scores of answers but one caught my eye. The game of Risk. As a kid, I would spend hours playing this game with friends – drinking way too much RC Cola and eating way too many Doritos in the process. I thought back on the various strategies (I loved loading up in Ural and Siberia) and the friends with whom I could (and could not) strike an alliance. But ultimately, it all came down to a roll of the dice – red if attacking and white if defending.
This month, we are going to discuss another way to roll the dice, not in the world of board games but in the world of commercial real estate investment. So, if you’re feeling lucky, read on.
When considering the acquisition of a real estate investment, investors
will usually develop a scenario that they think will unfold during their ownership period. This scenario, often called a proforma or projection, is based on various assumptions, include items such as rental rate projections, vacancy assumptions, anticipated expense growth and a future disposition price, amongst a myriad of other items. These assumptions are used in building a performance measure, which can be as simple as a gross rent multiplier or as complicated as a leveraged internal rate of return (IRR). But regardless of the measure, the projection is based on forward-looking variables that may or may not reflect what actually will happen.
There are a few ways to acknowledge and compensate for this underlying risk. One is to develop multiple scenarios. Rather than just base the performance
What I C @ PVC
BANKING ON IT Last month, news broke that Fifth Third Center, the 500,000-square-foot Class A office tower in Cleveland’s CBD, is slated to be auctioned in late September. The process, known as a Uniform Commercial Code foreclosure, is being initiated by the lender and underscores the ongoing woes of the office sector. –AP
measure on one scenario, an investor can use multiple scenarios. The most common approach is to develop three. The first is considered the most likely scenario and all of the variables reflect what the investor believes will occur.
For example, an investor is evaluating a multi-tenant industrial property, and, over the next five years, they believe that net operating income (NOI) will be flat. The projection
on various assumptions... which are used in build a performance measure.
they build, and resulting IRR calcu lated, uses this assumption to establish NOIs in the future. The second sce nario is considered the worst case and all of the variables reflect the most pessimistic reasonable outcome. This scenario forms the floor. Using the same example above, the inves tor believes that, if things go worse than anticipated, NOI will actually fall at an annual rate of 2%. The model is adjusted to reflect this and a worst-case IRR is developed. The third scenario is considered the best case and all of the variables reflect the most optimistic reasonable outcome. This scenario forms the ceiling. Again, going back to our example, the inves tor believes that, if things go better than expected, NOI will increase at a 4% annual rate. The model is rerun
When considering the acquisition of a real estate investment, investors will usually develop a scenario that they think will unfold during their ownership period. This scenario, often called a proforma or projection, is based
a third time, using an NOI growth rate of 4%, to calculate the best-case IRR. This approach is very effective in compensating for risk, as it not only illustrates the anticipated performance associated with the most likely scenario but also forms a floor if things go worse than expected and a ceiling if things go better than expected.
Using multiple scenarios is good, but if you really want to dig into risk-adjusted returns, Monte Carlo simulations up the ante. Before we get into how it can be used, let’s talk about what it actually does. And the fact that it shares the same name as a famous casino should be your first clue. Just like a famed roulette wheel, a Monte Carlo simulation will run an analysis literally thousands of times. When spinning a roulette wheel, where the ball lands on any individual spin will be a unique event. But the greater the number of spins, the greater the probability of a uniform outcome occurring. The more times the wheel is spun, the closer we get to a 46.37% probability that the ball will land on red. With a roulette wheel, the odds are known in advance but with a real estate investment, there is much less certainty when it comes to future events.
There are a variety of ways that an investor can utilize a Monte Carlo simulation to address risk and one way incorporates multiple scenarios to form the basis of the simulation. In the example above, each of the scenarios for NOI growth had a 33.3% probability of occurring. While we could weight each of these scenarios by applying a more specific probability, introducing Monte Carlo is the equivalent of spinning the wheel a thousand times. The three scenarios form what is known as a triangular distribution – worst case is the
low end, most likely case is the middle and best case is the high end. Each of the three scenarios result in a specific associated IRR but, as the expected NOI growth rate is adjusted between the established limits, the IRR will change. A Monte Carlo simulation will run this calculation a thousand times by randomly choosing a NOI growth rate and then calculating the associated IRR. The more the proverbial wheel is spun, the more well-developed the range of returns becomes.
Figure 1 illustrates an example of this process while Figure 2 illustrates a summary of the resulting range of returns. There are many other ways to use a Monte Carlo simulation, as the analysis can incorporate multiple variables. And if you think you’ll need a degree in computer programming,
think again. Software such as Crystal Ball and @Risk make the simulation calculations a snap.
Most of the marathon games of Risk from my childhood never had a definitive end. Rather, it became obvious that one player controlled too much territory and had too large of an army and, one by one, the other players would drift way. A Monte Carlo simulation is similar; rather than provide a definitive answer, it relies on statistics to illustrate a likely winner. And no pop and chips are needed!
Alec Pacella, CCIM, president at NAI Pleasant Valley, can be reached by phone at 216-4550925 or by email at apacella@naipvc.com. You can connect with him at www.linkedin.com/in/ alecpacellaccim or subscribe to his youtube channel; What I C at PVC.
5 Steps to Improve Energy Efficiency
Exploring ways companies can better control energy consumption, conservation
By Christina O’Keeffe Ohio Air Quality Development AuthorityEnergy Awareness Month, which takes place every October, is just around the corner, but energy consumption and conservation is something that should be top-of-mind every month of the year. Being energy savvy and addressing sustainable and efficient energy solutions benefits everybody and everything, from property owners to the environment.
Below are five effective cost-saving improvements you can make to improve energy efficiency on your property.
1. LED lighting
Using LED lights is a simple and practical way to save energy. The “light-emitting diode,” better known as LED lighting, uses at least 75% less energy than incandescent lighting, providing immediate savings in energy costs. In addition, LED lights last 30 times longer than incandescent lighting, and up to five times longer than compact fluorescent lights.
Smart lighting control technology can further help users reduce energy costs and can be part of a whole-building network of sensors managing lighting, heating, ventilation and air conditioning (HVAC). This technology allows rooms that are not used as often, such as hallways and meeting rooms, to have programmed lighting schedules or motion sensors so that lights are on only when they’re needed.
2. Insulation
Insulating your building is about making your property as airtight as possible. There are many types of insulation, from blankets (batts and rolls) to sprayed foam, structured insulated panels and more. With proper insulation, including the sealing of windows and outdoor openings, you can help regulate the temperature inside the building and reduce the amount of air that escapes to the outdoors. Lessening
the amount of heat flow from the building in turn decreases the cost of heating and cooling.
3. Updated HVAC systems
Updated HVAC systems offer many economic and health benefits to a building. They play a key role in the costs of heating and cooling a building, and they also provide the proper ventilation needed to maintain good indoor air quality and prevent the buildup of moisture. While it can be a big project to undertake to retrofit a new HVAC system, the payoffs it can provide are tremendous. With new smart technology that is available, a building owner can better regulate the system throughout the entire building to maximize efficiency.
An updated HVAC system and regular maintenance can have a considerable impact on your energy bill, and even
your water bill. Studies show that HVAC systems utilizing water cooled air conditioning can account for up to 48% of a building’s water consumption. An optimized and efficiently running system should reduce both the energy costs and water usage.
4. ENERGY STAR or other certified equipment
Purchasing energy-certified equipment may be costly, but by outfitting your building with energy conserving measures, you are positioning your business to save money while reducing greenhouse gas emissions into the environment.
The use of ENERGY STAR rated equipment can achieve 20% energy savings from traditional equipment. For example, in a recent building renovation financed by the Ohio Air Quality Development Authority (OAQDA),
the building owner is achieving an energy savings up to 25% by replacing the lighting, HVAC system and roof with energy certified equipment and materials. An additional perk to this investment is that the improvement measures have lifetime ratings of at least 20 years. The investments made today will lower energy costs for years to come.
5. Onsite clean generation
Once you maximize the energy efficiency potential of your building, then exploring onsite renewable energy, like solar power, can be more cost-effective. The popularity of solar energy has significantly increased over the last several years, thanks in part to rapidly declining costs and federal incentives like the Solar Investment Tax Credit. OAQDA is seeing many building projects with renovation plans that include rooftop solar electric systems. Further, business owners are realizing the return on the investment. For example, Brad Kitchen of Alterra Real Estate Advisors recently said that in less than a year, he has already seen significant value from the solar installation at their Orion office building in Columbus, a project supported by OAQDA.
For many companies, making energy efficiency upgrades allows them to put their values into practice. Businesses will use less energy, requiring fewer resources. This impact not only supports the health and longevity of the building, but also provides a healthier environment for employees, customers and other building occupants.
Christina O’Keeffe is executive director with Ohio Air Quality Development Authority and can be reached at Laura.Klein@aqda.state.oh.us.
The Ohio Air Quality Development Authority (OAQDA) is a non-regulatory government that works to position Ohio as a leader in harmonizing a strong economy and a healthy environment. Since its creation in 1970, OAQDA has worked to improve air quality by supporting businesses, creating jobs and improving communities while enhancing the health and safety of all Ohioans.
Project Profile: Cedar Point Causeway Wetlands Breakwater City of Sandusky project showcases sustainable design practices for coastal resiliency
By Mark Cencer KS Associates, Inc.An innovative project that is demonstrating the importance of sustainable design practices in marine environments is the City of Sandusky Cedar Point Causeway Wetlands Breakwater.
The project is the first fully constructed component of the Sandusky Bay Initiative (SBI), a multiyear program led by the Ohio Department of Natural Resources (ODNR) aimed at improving the quality of Sandusky Bay and Lake Erie.
The 3,300-linear-foot-long breakwater is located in Sandusky Bay, along the western shoreline of the Cedar Point Causeway. The causeway is a narrow 1.5mile stretch of land that provides one of only two roadways leading into Cedar Point Amusement Park.
At first glance, the breakwater appears to be a simple rocky structure. Take a closer look, and you will discover that the breakwater is a dynamic structure that is serving several purposes: the cell is actively working to restore aquatic habitat in Sandusky Bay, is solving a dredge material disposal dilemma for the U. S. Army Corps of Engineers (USACE), and
is being used an example of how to implement coastal resiliency practices in Lake Erie and throughout the Great Lakes.
Restoring water quality, economic vitality of Sandusky Bay
Sandusky Bay encompasses approximately 64 square miles of open water in the western Lake Erie basin. The bay receives direct runoff from nearly one million acres of land through the Sandusky River and several tributaries. Historically, Sandusky Bay has supported some of the most significant coastal wetland systems in the Great Lakes. Over time, the bay has been impacted by the
effects of human development, shoreline armoring and harmful algal blooms that have degraded water quality and wetland habitats.
In 2017, the City of Sandusky and ODNR selected a design team to evaluate sites to beneficially reuse dredge material to create coastal wetlands. The initial design team was led by Foth Infrastructure and Environment LLC.
KS Associates, Inc. (KS), an Elyriabased coastal engineering firm, was on the team to provide coastal engineering and dredge management planning. After identifying the Cedar Point Causeway location for a pilot project, KS Associates
DREDGING OPERATIONS The breakwater has the capacity to contain more than 280,000 cubic yards of dredge material – the equivalent of two years’ worth of dredging. Over time, the material is settling and developing into a nature-based shoreline with wetlands.
was selected to lead the final design, permitting, bidding and construction phases of the breakwater.
Beneficial re-use of dredge material
The USACE annually dredges approximately 140,000 cubic yards of material from the Sandusky Harbor Federal Navigation Channel. Dredging helps to maintain safe navigable water depths for commercial ships. Prior to 2020, this dredged material was placed in the open waters of Lake Erie. In 2015, the Ohio legislature passed Senate Bill 1, banning the practice of open-lake disposal after July 1, 2020.
Recognizing the need to maintain the harbor, the City of Sandusky partnered with ODNR to develop plans to beneficially reuse dredge material to enhance the health of the bay.
The Cedar Point Causeway Wetland Breakwater was designed to contain up to 280,000 cubic yards — or two years’ worth — of dredge material within a nature-based shoreline. The breakwater effectively contains dredge material and protects it from Lake Erie wave energy, while promoting the development of a coastal wetland to restore fish and wildlife habitat.
Value of nature-based shorelines
The installation of nature-based or “living” shorelines is becoming increasingly important for our region’s ecosystem. Unlike hard structures, such
as steel sheet pile bulkheads and concrete seawalls that impede the growth of plants and animals, nature-based shorelines restore natural structure and function to Lake Erie’s coastal areas.
The Cedar Point Causeway Wetlands Breakwater was designed to serve as a nature-based shoreline. KS Associates coastal engineers designed the breakwater using various sizes of armor stone (six to 18 inches), each strategically placed during construction.
The placement of stone helps the breakwater withstand typical wave energy and dredge material placement operations. During severe storm conditions, certain sizes of stone settle at the base of the structure, as intended. Gradually, the crest of the structure is flattening, creating a gentler slope of stone. Research has shown that stone, along with changes in bathymetry and drop-offs, is an ideal aquatic habitat for fish and marine life.
Also, as vegetation grows down the slope, the structure will naturalize, resulting in a nature-based shoreline.
The results
In October and November 2022, the USACE completed the first year of placing 140,000 cubic yards of material dredged from the federal navigation channel into the breakwater. In one year, wetlands have begun to form. ODNR surveys have shown a noticeable increase in fish populations adjacent to the breakwater since its construction. The second year of dredging operations will commence in October 2023.
KS Associates is currently working with the City of Sandusky and ODNR to identify a site for a second SBI project. Lessons learned from the Cedar Point Causeway Breakwater project will be applied to this second site and several other projects to restore coastal habitat and resiliency in Lake Erie.
Mark Cencer, P.E., director of Coastal Engineering Services at KS Associates, Inc., can be reached at 419.239.5935 or by e-mail at cencerm@ksassociates.com. You can connect with him on LinkedIn at https://www.linkedin.com/in/ mark-cencer-ksassociates.
Mitigating Bird Strikes Specialized glass enhancement deters bird collisions at Tri-C Westshore Campus
By Tracy Teuscher, APR, OCVN | Photos courtesy of SuntrolWindows allow us to enjoy the beauty and natural light of the outdoors, yet The Audubon Society estimates that about one billion birds are killed each year due to collisions with glass, making glass collision the second leading cause of bird deaths each year.
With two-thirds of North American bird species at risk of extinction (Audubon Society, 2019), bird deterrent technology like Feather Friendly is getting attention.
When professionally applied to glass exteriors, Feather Friendly markers break up surface reflections to help birds avoid glass collision death. The small markers are unobtrusive to the human eye so they don’t detract from architectural design and building aesthetics.
Suntrol, a Northeast Ohio-based window film company that offers ecofriendly glass-enhancing solutions and an authorized Feather Friendly provider, partners with building owners and managers to make bird conservation a reality.
“Buildings inadvertently pose a threat to birds who mistake glass for habitat,
open sky or fly-through zones,” says John Hansen, Suntrol’s owner. “We provide solutions to address this issue.”
Suntrol recently installed Feather Friendly at the Westshore Campus of Cuyahoga Community College (Tri-C). Tri-C’s Westshore Campus was built next to a wetland that also serves as an outdoor laboratory. Birds mistook the reflection of the tree canopy in the windows as habitat and collision deaths were alarming.
Erica Stevenson, Ph.D., associate professor of biology at Westshore Campus, has been monitoring collision deaths. During the year before Feather Friendly installation, Stevenson documented more than 100 collision deaths and injuries.
“When I started at Westshore, the issue of bird strikes was one of the first things brought to my attention,”
says Scott Latiolais, Ed.D., president of Westshore Campus. “Everyone wanted to find a solution.”
And, find one they did.
“Since Suntrol installed Feather Friendly near the wetland, the birdcollision deaths in the treated areas have been eliminated,” Stevenson says. “This is exciting and significant.”
“I have witnessed a remarkable transformation in the variety of bird species this year, and I think this can be attributed to the installation of bird-strike mitigation,” adds Maria Perez, Westshore Campus student and member of the Environmental Club.
According to the Ohio Department of Natural Resources, there are currently 10 Ohio bird species listed as endangered, six listed as threatened, 21 listed as spe-
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cies of concern and 43 listed as species of special interest.
In addition, Ohio is part of what the American Bird Conservancy (2022) calls a North American avian migration flyway, named the Mississippi Flyway. Many of the birds that travel the flyway overwinter in Central and South America, then travel along the Gulf of Mexico and eventually follow the Mississippi, Missouri or Ohio rivers northward in the spring, returning southward in the fall. The upper portions of the flyway include much of the Great Lakes region.
“We have the opportunity to be conservation leaders in Ohio,” Hansen says. “Now we know the environmental dangers that buildings pose. And we can do something about it.”
Tracy Teuscher, APR, OCVN, is an accredited communicator and certified ecotherapist and naturalist. She is president of The Buzz Maker (www. thebuzzmaker.com) and the founder of Save Ohio Bees (www.saveohiobees.org). Established in 1975 and located in Cleveland, Suntrol provides glass-enhancing solutions, including solar control, custom design, privacy, sustainability, bird-strike mitigation and security, for residential and commercial clientele. For more information, visit www.suntrol.com.
The small Feather Friendly window markers utilized at Tri-C Westshore Campus are used to deter bird strikes, yet are unobtrusive to the human eye so they don’t detract from architectural design and building aesthetics.
Project Profile: Oberlin College’s Sustainable Infrastructure Program
Multi-faceted energy conservation effort earns Green Building Challenge recognition
By Cynthia Cicigoi Cleveland 2030 DistrictThe Cleveland 2030 District collaborates with USGBC Ohio’s Northeast leadership team to host an annual Green Building Challenge. They name winners in the categories of energy conservation, water management, reduced transportation emissions and creating a healthy building. This year’s winner in the energy category was Oberlin College and Conservatory for its Sustainable Infrastructure Program.
In 2006, Oberlin College made a commitment to its student body and to the Oberlin community that it would be carbon neutral by 2025. The Sustainable Infrastructure Program is a four-year project that replaces one of the school’s largest producers of carbon with geothermal energy for heating and cooling campus buildings. By upgrading the deteriorating century-old steam driven system, they not only contribute to their decarbonization goals but also become more efficient. The project will double the number of residence hall rooms and buildings that have air conditioning, improving overall comfort for students and faculty.
In 2021, the college secured $80 million in Climate-Certified Green Bonds to fund the project. Certification by the Climate Bonds Initiative means the project’s environmental benefits have been verified to align with the Paris Climate Agreement goals. This is the third Climate Certified Bond offering in the world.
The project has three main components. Oberlin will install approximately 850 geothermal wells, each over 600 feet in depth. Electric water source heat pumps will be powered by renewable energy, supplied by Oberlin Municipal Light and Power System. In the winter, these heat pumps will extract heat from the wells for heating and, conversely, reject heat back to the wells for cooling in the summer.
The second component is to replace approximately nine miles of dated and deteriorating steam and chilled water pipes with new pipes. Lastly, Oberlin will retrofit about 60 campus buildings to accept the new geothermal system,
allowing some to be air conditioned for the first time.
A project of this magnitude offered an opportunity to also expand fiber networks and upgrade mechanical and electrical systems as well as fire protection capabilities at a reduced cost. This portion of the project is a pivotal component in becoming carbon neutral by 2025.
The efforts will make Oberlin a leader among the colleges and universities that signed a nationwide Carbon Commitment in 2006, but this certainly isn’t the college’s first project to address its carbon footprint. Other high-impact projects include the ongoing monitoring
and efficient use of power and heating, a transitional project that converted coalfired heating to natural gas, and the Adam Joseph Lewis Center for Environmental Studies, which was one of the first buildings to achieve Net Zero Energy Use, verified by New Buildings Institute. Completed in January of 2001, the building actually produces 30% more energy than it uses. It includes a vast 4,800-square-foot photovoltaic solarpower array, which was the largest in Ohio at the time it was completed.
There are a number of benefits that will come from the geothermal project. Environmentally, it will reduce the
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Cuthbert- - Lakes Heating & Air Conditioning Inc.college’s water use by five million gallons per year. It will also reduce the amount of water discharged to the sewer system by more than four million gallons per year, and will improve campus energy efficiency by over 30%. The new system eliminates the disruption of service that occurred with the old steam heating system. The reliability of the geothermal system, with
its more precise controls, will provide a more comfortable environment for those who will occupy these buildings. It also provides an educational benefit, as the project will be used as a laboratory for research and coursework in environmental studies, geology, psychology and economics, among others. The project team has ensured Oberlin students have been an integral part of
the planning, in addition to internship opportunities made available to them.
The project has been a true collaboration between the college project team, City of Oberlin leaders and community stakeholders. The coordination with the city and city council has helped the project run smoothly and minimize disruptions to the community. It is estimated that Oberlin College is responsible for approximately 25% of the city’s carbon emissions. By undertaking this project, the college will not only be closer to achieving its own goals but will help the city achieve its goal to be carbon neutral by 2050.
The project is currently in its third year. In the first two years, 83% of waste – including wood, metal, concrete, cardboard and shingles – has been recycled. The new pipes have been installed and any necessary renovation of mechanical systems has been complete to more than half of the buildings. In 2023, the bore drilling began through summer months to minimize the disruption to the school year. The installation of the heat recovery chiller will take place in the fall. The project is set to be commissioned once complete in late 2024.
Financial Wins for Greener Buildings
How the math works out for everyone through C-PACE
By Tricia Baker PACE EquityDesigning, developing and upgrading sustainable real estate is increasingly common, and for good reason. Energy-efficient systems and green building designs reduce operating costs, attract top tenants and provide positive reinforcement for the environmental efforts connected with ESG goals.
State and local building codes are also moving toward increasingly higher efficiency requirements, fueled by the goal of reducing U.S. carbon emissions. Greener buildings are a business priority, not a luxury, as tenants, employees and local municipalities see environmentally friendly construction as a requirement rather than an option.
In the pursuit to meet evolving building codes and maximize the benefits of green building, financing energy-efficient equipment and materials may be viewed as a challenge to some developers. However, available incentives and green financing options can make energy efficient building an easy choice that satisfies developers, building owners, investors and other stakeholders.
Significant energy usage can be traced to building systems manufactured decades ago under different building standards, which has produced a high
ings. Future-oriented developers and property owners are seeking long-term financing options that equip their buildings with energy-saving features and reap the positive impact of building greener.
Identifying the right opportunities
As legislation requires decreased energy use and reduced carbon emissions, building owners are challenged to
cient alternatives, and the impact on the building sector is expected to be significant and noticeable in the coming years. For commercial buildings, the expanded tax credits in the IRA make investments in high-performance, sustainable buildings even more cost-effective.
Commercial property assessed clean energy (C-PACE) is an increasingly popular, innovative financing solution, enabling capital funding based on energy-efficient building improvements and using property tax assessments secured by the property as a means of paying back the capital. Currently, 38 states have passed PACE legislation, including Ohio, and Morgan Stanley predicts the industry will continue to grow at a 40% CAGR through 2025 as more states offer this financing option.
identify creative solutions that can be implemented today for a greener future. Fortunately, opportunities to renovate and build green are expanding rapidly. The Inflation Reduction Act presents a suite of financial incentives to encourage
A student housing tower project in Painesville recently integrated an innovative PACE financing option into their capital stack, which provided a lower cost of capital and returned carbon emission savings of 3,024 metric tons. Developers pursued CIRRUS Low Carbon verification, a unique status introduced by PACE Equity that offers lower rates for greener buildings. The Painesville Tower Student Housing project is one of many nationally that have received a substantially reduced financing rate when a low-carbon design specification is met. Accessing a lower rate, especially in the current climate of market and rate volatility, yields significant financial gain, and the property’s reduced carbon footprint is also an important factor in promoting the property to potential student residents.
Many property owners, developers and engineers are now shifting their thinking from solely energy efficiency to include evaluating and implementing
Estimates by the EPA indicate that 30% of commercial and industrial energy is wasted, demonstrating the enormous potential to reduce energy consumption in existing and new commercial buildings.
options that produce energy on-site from renewable energy systems. A building with sources of renewable energy can diminish its reliance on utility energy and reduce energy costs, along with increasing net operating income and asset values. Solar power and energy storage have the potential to push a building to generate even higher returns, and everyone at the table can agree that saving energy is good business.
Mathematically, the formula for building greener is both promising and astonishingly simple. New constructions or renovations that leverage PACE funding and adopt the CIRRUS Low Carbon design specification secure rate reductions for meeting building efficiency requirements. Property owners come out ahead due to the building’s reduced energy consumption, increased property
value and better occupancy rates, plus the benefits of any utility rebates and available tax incentives. Factor in the ability to capture ESG benefits and
enhance a building’s operational resilience, and it’s clear that when the math works out, rate reductions and building greener are big wins for the future.
Tricia Baker is senior vice president of strategy and impact at PACE Equity, where she pursues her passion for the environment through her leadership of the CIRRUS Low Carbon program that incentivizes developers and building owners to build green as they earn reduced rates for PACE Equity funding. She also manages marketing and strategy.
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LEGAL PERSPECTIVES
Navigating property laws & regulations
‘Greening’ Your Contracts
Sustainable, or green, construction practices and the trend toward green buildings are here to stay, driven not only by federal, state and local legislation, tax credits and incentives, but also by consumer, corporate and shareholder demand. If they haven’t already, owners, architects, developers and construction companies will be required to make use of new technologies, new materials and new practices to keep pace with increasing demand for green construction – and to reap the economic and reputational benefits of green construction.
It is estimated that residential and commercial buildings account for approximately 40% of U.S. carbon dioxide emissions, and that figure does not include other building-related emissions, such as those from the manufacture, transport and assembly of building materials such as wood, concrete and steel.
practices and green buildings, and to discourage or penalize environmentally inefficient practices and features.
JEFFREY A. YEAGERSimply put, climate change strategies must and will continue to involve finding ways to reward green construction
A variety of incentives are already in place to encourage green construction, such as tax credits and carbon offsets. Who receives the benefits of these types of incentives is a matter that often can – and will – be subject to contract negotiation. Similarly, certain types of risks that are common to all construction contracts may be
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increased when certain standards are required, or when new materials or practices are being used.
Risk and reward travel together. It is critical, therefore, when dealing with all these new and continually evolving issues, to make sure you carefully consider and negotiate your construction contracts to ensure that the risks and benefits of green construction are properly allocated amongst the parties.
Who gets the incentives?
At the federal level, billions of dollars in incentives are being made available to encourage and reward projects and buildings that meet recognized green building standards. For example, the Inflation Reduction Act of 2022 created new tax incentives for energy efficiency and clean energy investments for both residential and commercial buildings. It also made available tens of billions of dollars in grants, rebates and various forms of financing.
Other programs allow the purchase of carbon credits or offsets to permit companies to exceed otherwise applicable caps on carbon dioxide emissions. And the incentives to go green do not stop with the federal programs. An array of incentives are being offered at state and local levels. Additionally, the positive publicity that comes with meeting green building standards continues to increase.
This wide array of incentives and benefits raises the issue of who gets to claim them, particularly where, as in the case of carbon offsets, the benefits can be bought and sold, or otherwise allocated by contract. Carefully considering who should get the benefit of a subsidy, offset or other benefit is both a matter that requires an understanding of the applicable law and regulations, and should, where more than one party to a transaction might claim a right to the benefit, be clearly spelled out during the contracting process.
Be mindful of the supply chain
One lesson learned from the COVID19 pandemic, the invasion of Ukraine and ongoing instability in the United
States’ relationship with China is that allocating the risk of cost and availability of building materials is of paramount concern. This point is particularly relevant for green construction, where domestic production may not presently be able to meet the supply demands.
Solar panels are a prime example. China controls more than 80% of the
solar panel supply chain, and while there is much discussion about increasing production in the U.S., current domestic production simply cannot keep up with demand. This can result in limited supply, and at times, gridlock, like those experienced recently in connection with the implementation of the Uyghur Forced Labor Protection Act (UFLPA),
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banning the importation of goods made with forced labor.
The problems that supply chain issues can cause are well known and cannot be ignored when entering into construction contracts. Who bears the risk of delays, unforeseen circumstances and price escalation must be carefully negotiated with an understanding of the particular materials and technologies that must be used to complete a project. Failing to plan is planning to fail when it comes to supply chain instability.
Defining the scope and reach of certifications and warranties
Supply chain concerns may be further complicated if a contract requires a building to meet certain certification standards. Examples of common certification standards applicable to construction projects and building products include Energy Star certification (appliances), FSC Certification (lumber), GreenGuard Certification (building products and indoor fixtures) and GreenSeal Certification (building products and materials). Procuring building materials that meet specified certification requirements, and ensuring that a structure is designed to satisfy certification standards, requires careful coordination and planning amongst all parties to a construction project.
Additionally, all parties to a construction contract need to carefully review the warranties being offered, or demanded, before signing a contract. For green construction, that may include defining – and understanding – the scope of the warranties for new and emerging technologies. It is critical to define the consequences of breaching a warranty, what actions will void a warranty, which party has the right to enforce the warranty, and the consequences if a warrantee attempts to self-repair.
These are just a few examples of issues to consider when entering into contracts for green construction. The key point is that when implementing new technologies, new practices and new standards, it is important to carefully review your
contracts and make sure that the terms of your standard forms account for the risks and rewards of green construction.
Good contracting practices do not stop with good forms, however, so it is also important that those who are responsible for negotiating and implementing your contracts are trained and
understand how to use and when to revise those forms to meet the particular needs and demands of each project.
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Issues in the real estate industry
Innovations in Concrete
Over the years, we have seen a surge in demand for sustainable energy or net-zero carbon emissions. The drive to reduce the level of greenhouse gas emissions that impact the atmosphere has increased. Global urbanization has resulted in an increase in the demand for new infrastructure and buildings, with concrete being the second most consumed material behind water.
Despite cement’s relatively low carbon dioxide emissions, it is responsible for 8% of human-made carbon dioxide emissions due to its abundance in use as a traditional building material. Because of this, cement producers are striving to significantly reduce the carbon emissions output while also satisfying the growing demands of the global market.
Reducing emissions with concrete
In the future, we will be able to permanently mitigate heat-trapping emissions by capturing, utilizing and storing CO2 across multiple manufacturing phases and components of concrete. Shortened down to CCUS, the diverse set of technologies
being developed opens up the possibility of commercializing an innovative climate solution that is similar to the innovation breakthroughs that were brought about by electric vehicles in the automobile industry. Here are three ways this is being done and how they work.
Carbon-capturing
In its simplest form, concrete is made through a mixture of cement, water and granular material known as aggregates. Portland cement is the most commonly used cement base, which is primarily made of limestones and is heated to extremely high temperatures, releasing tons of CO2. Blue Planet, a California-
based company with a mission to reduce carbon emissions, has developed a new method of concrete production by pulling CO2 from the air to create synthetic limestone and replace traditionally mined limestones in cement. Every ton of synthetic limestone absorbs 440kg of CO2, permanently embedding it. This method can actually improve the tensile strength of concrete while also being a scalable solution to reducing CO2 emissions.
Utilization
CO2 can be utilized to help speed up the curing process. By injecting CO2 into fresh concrete, we can trap it while also adding to the compressive strength of the finished concrete. This results in 60% less emissions and we can see use cases of it happening. For example, LinkedIn will build a new building in California using concrete cured with this method, aiming to reduce the company’s carbon footprint by 75% by 2030.
Storing
Concrete storage works similar to curing in that CO2 is injected into concrete but is instead used to reduce concrete demand by increasing its strength and quality. For example, a company named CarbonCure recycles CO2 back into fresh concrete, where it undergoes a mineralization process and becomes permanently embedded. This will increase the compressive strength, meaning less cement is required to achieve a certain strength threshold. Pouring less concrete means more money saved and reduced carbon emissions by increasing quality instead of quantity.
Innovations in concrete and cementbased products are changing design concepts and construction industries. With a proactive evolution spanning over 2,000 years, concrete’s ongoing transformation heralds exciting prospects for the years ahead.
Akil Hameed (FASS Management & Real Estate Svc.) is 2023 president of Akron Cleveland Association of Realtors (ACAR). Article reprinted with permission from NAR’s REALTOR Magazine.
LEED CERTIFICATION SERVICES FOR CONSTRUCTION PROJECTS
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For your projects that are pursuing LEED certification, EA Group has the experience and capabilities to assist your project team in successfully obtaining the required credits. Whether the project is new construction, core and shell, or a renovation to an existing building, we can provide environmental consulting, sampling and analysis services to support the sustainable design goals. We are proud to have provided environmental assessment, documentation of remediation, air quality plans and air quality testing on well over 60 LEED registered projects at various k-12 schools, universities, healthcare facilities and commercial projects.
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Commercial real estate happenings
Embracing Wellness in Architecture
In a world facing unprecedented challenges, the spaces we inhabit are transforming to better safeguard our health and wellbeing. As organizations and individuals strive to navigate this new reality, the concept of healthy buildings has emerged as an evolution in the way we design buildings. Often referred to as “WELL Buildings,” based on the most popular rating system for buildings designed in consideration of wellness principles, these buildings represent more than just structures; they embody a philosophy that places human well-being at the heart of design.
The key to understanding the significance of WELL Buildings lies in recognizing the profound connection between our surroundings and our wellbeing. The spaces we inhabit influence our mood, productivity and overall quality of life. Integrating wellness-centric design principles acknowledges this connection and transforms architecture into a conduit for better living.
What is WELL? Created through years of rigorous research and develop-
ment, working with leading physicians, scientists and industry professionals, the WELL Building Standard is a performance-based certification system that marries best practices in design and construction with evidence-based scientific research.
The WELL differentiator is performance verification: a data-driven, on-site, third-party assessment of the project to ensure compliance with the standard. Unlike other programs, WELL
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requires recertification every three years. Projects are required to pursue a certain subset of features or strategies within the 10 WELL concepts, including Air, Water, Thermal Comfort, Light, Movement, Nourishment, Sound, Mind, Community and Materials. Projects earn points toward their WELL Certification goal with every optimization feature they achieve. Upon achievement, projects receive a plaque indicative of one of four levels of certification based on the total number of points earned.
The wellness imperative
A WELL Building isn’t merely about architectural aesthetics; it’s about designing spaces that nurture and empower the people within them to thrive. The
pandemic challenged all of us to think differently about how we live and work, and that means thinking differently about the buildings we inhabit.
In 2020, for example, Desmone put these practices to use by completing the WELL certification for its own offices at Two Doughboy Square in Pittsburgh, making it the first WELL Certified Gold building in Western Pennsylvania. The space accomplished 66 WELL features, which include all 41 Preconditions (mandatory requirements) and 25 Optimizations (optional pathways for certification). The most notable aspects contribute directly to improving the physical, mental and spiritual wellness of the occupants.
Two Doughboy Square was an early adopter of building design practices that incorporate a scientific under standing of health and wellness. A few
The spaces we inhabit influence our mood, productivity and overall quality of life. Integrating wellness-centric design principles acknowledges this connection and transforms architecture into a conduit for better living.
of the WELL Building Standard design innovations include:
• High quality air filtration system with strict monitoring of air particulates.
• Cleaning protocols that meet rigorous standards for frequency and thoroughness, and cleaning equipment that follows detailed specifications to reduce fomites.
• Advanced lighting controls and abundant access to natural light.
• Easy-to-clean cooling systems that reduce microbe and bacteria growth.
• Incorporation of biophilic principles in design
A call to action
The journey toward WELL Buildings isn’t just about constructing structures. It’s about shaping environments that reflect our changing needs and priorities. WELL Certification stands as a testament to the power of architectural innovation in promoting health, connection and vitality. As we navigate a post-pandemic world, wellness in design guides us towards a brighter, healthier and more resilient future. These principles not only enhance the physical attributes of buildings but allow the people who inhabit them to thrive.
CONSTRUCTION PROGRESS REPORT
Updated info on important projects in the region, provided courtesy of ConstructionWire (www.constructionwire.com)
LOFTS ON PEARL
Project: #3301053
PROJECT TYPE/SIZE: Multifamily (26 units), Retail/ Athletic Facilities (25,536 sq-ft)
CONSTRUCTION TYPE: Renovation
ESTIMATED VALUE: $1-$5 million
SECTOR: Private
LOCATION: 3804 Pearl Rd. Cleveland, OH 44109
DETAILS: Plans call for the conversion of the vacant Brooklyn Masonic Temple into a three-story, 25,536-square-foot mixed-use building with 26 market-rate apartments, a 938-square-foot retail space, a 930-square-foot retail space, and a fitness center. The apartments will range in size from a 413-square-foot studio unit to a 948-square-foot twobedroom unit.
Estimated Schedule (as of 8/1/2023)
STAGE: Construction
CONSTRUCTION START: 10/2022
CONSTRUCTION END: Q4/2023
BID DUE DATE: N/A
DEVELOPER, OWNER: Almico Properties
Contact: Kosta Almiroudi, President
11829 Detroit Ave.
Lakewood, OH 44107
P: 216-226-7673
F: 216-226-4200
ARCHITECT: Brandt Architecture
19440 Riverwood Ave. Rocky River, OH 44116
P: 440-865-1824
Project: #3395346
HARTER BANK BUILDING REHABILITATION
PROJECT TYPE/SIZE: Multifamily (30 units), Retail (< 10,000 sq-ft)
CONSTRUCTION TYPE: Renovation
ESTIMATED VALUE: $7.5 million
SECTOR: Private
LOCATION: 126 Central Plaza N. Canton, OH 44702
DETAILS: Plans call for the rehabilitation of the Harter Bank Building. The building will be converted to contain a food and small business market and 30 market-rate apartments on the upper floors.
Estimated Schedule (as of 8/17/2023)
STAGE: Planning
CONSTRUCTION END: N/A
BID DUE DATE: N/A
DEVELOPER: City of Canton
P.O. Box 24218 Canton, OH 44701
P: 330-438-4307
Project: #3395340
LYNETTE GARDENS SENIOR APARTMENT HOMES
PROJECT TYPE/SIZE: Multifamily (65 units)
CONSTRUCTION TYPE: New
ESTIMATED VALUE: $16 million
SECTOR: Private
LOCATION: 1552 Ansel Rd. Cleveland, OH 44106
DETAILS: Plans call for the demolition of the existing apartment building to create a senior apartment housing with 52 affordable units and 13 market-rate units.
Estimated Schedule (as of 8/17/2023)
STAGE: Planning
CONSTRUCTION END: N/A
BID DUE DATE: N/A
DEVELOPER: Famicos Foundation
Contact: Khalid Hawthorne, Senior Acquisition & Development Manager
KHawthorne@famicos.org
1325 Ansel Rd. Cleveland, OH 44106
P: 216-791-6476
F: 216-791-6485
GC: Marous Brothers Construction
36933 Vine St. Willoughby, OH 44094
P: 440-951-3904
F: 440-942-7884
DEVELOPER, OWNER: Vesta Corporation
175 Powder Forest Dr. Weatogue, CT 06089
P: 860-325-1700
Project: #3395348
VARIETY STORY BUILDING AND THEATRE RESTORATION
PROJECT TYPE/SIZE: Multifamily (12 units), Office (< 10,000 sq-ft), Cultural (< 10,000 sq-ft), Retail/Restaurants (< 10,000 sq-ft)
CONSTRUCTION TYPE: Renovation
ESTIMATED VALUE: $11.9 million
SECTOR: Private
LOCATION: 11825 Lorain Ave. Cleveland, OH 44111
DETAILS: Plans call for the renovation of an existing historic building into its productive use with a theater and performing arts venue, retail, restaurant, office and 12 apartments on the second floor.
Estimated Schedule (as of 8/1/2023)
STAGE: Planning
CONSTRUCTION END: N/A
BID DUE DATE: N/A
DEVELOPER: MCM Company Inc.
Contact: Braedon Kava, Project Manager braedon@mcmcompanyinc.com
2425 West 11th St. Cleveland, OH 44113-1220
P: 216-302-3500
F: 216-589-9253
Project: #3395341
PARK SYNAGOGUE REDEVELOPMENT
PROJECT TYPE/SIZE: Multifamily (304 units), Social (< 10,000 sq-ft)
CONSTRUCTION TYPE: New, Renovation
ESTIMATED VALUE: $143 million
SECTOR: Private LOCATION: 3300 Mayfield Rd. Cleveland Heights, OH 44118
DETAILS: Plans call for the construction of 304 residential units on vacant land at Park Synagogue and the conversion of the classroom wing of the Mendelsohn Building into a 26-unit residential wing with arts, wellness and preschool spaces.
Estimated Schedule (as of 8/17/2023)
STAGE: Planning
CONSTRUCTION END: N/A
BID DUE DATE: N/A
OWNER: The Park Synagogue
27500 Shaker Blvd.
Pepper Pike, OH 44124
P: 216-371-2244
DEVELOPER: Sustainable Community Associates
Contact: Josh Rosen, Principal josh@sustainableca.com
2306 W. 17th St., Ste. 6 Cleveland, OH 44113
P: 216-571-6226
CITY CLUB APARTMENTS
Project: #3132167
PROJECT TYPE/SIZE: Multifamily (304 units), Cultural/Athletic Facilities (< 10,000 sq-ft), Retail/Restaurants (10,000-24,999 sq-ft)
CONSTRUCTION TYPE: New
ESTIMATED VALUE: $27 million
SECTOR: Private LOCATION: 720 Euclid Ave. Cleveland, OH 44114
DETAILS: Plans call for the construction of a 23-story mixed-use building with 304 apartments, restaurants, a coffee shop, indoor and outdoor theaters, game areas and fitness rooms. This is a concept to introduce apartment hotel experiential living.
Estimated Schedule (as of 7/19/2023)
STAGE: Construction
CONSTRUCTION START: 12/2021
CONSTRUCTION END: Q4/2023
BID DUE DATE: N/A
DEVELOPER, OWNER: City Club Apartments
1 North State St., Ste. 1523 Chicago, IL 60602
P: 312-918-8122
ARCHITECT: Vocon Design Inc.
Contact: Michael Christoff, Director michael.christoff@vocon.com
3142 Prospect Ave. E.
P: 216-588-0800
F: 216-588-0801
Cleveland, OH 44115
CM: Cleveland Construction, Inc.
Contact: Jeff Campbell, Project Manager jcampbell@clevelandconstruction.com
8620 Tyler Blvd. Mentor, OH 44060
P: 440-255-8000
BID DUE DATE: N/A
DEVELOPER, OWNER: Vesta Corporation
Contact: Nicole Dorn, Managing Director
ndorn@vestacorp.com
245 Hopmeadow St. Weatogue, CT 06089
P: 860-408-5400
GC: Marous Brothers Construction
Contact: Philip Migas, Project Manager
36933 Vine St. Willoughby, OH 44094
P: 440-951-3904
WOODHILL STATION PHASE I
Project: #3231379
PROJECT TYPE/SIZE: Multifamily (120 units)
CONSTRUCTION TYPE: New
ESTIMATED VALUE: $13 million
SECTOR: Private LOCATION: 9511 Buckeye Rd. Cleveland, OH 44104
DETAILS: Plans call for a wood-framed 5A construction consists of a 120-unit apartment building.
Estimated Schedule (as of 7/12/2023)
STAGE: Construction
CONSTRUCTION START: 7/2022
CONSTRUCTION END: Q4/2023
BID DUE DATE: N/A
DEVELOPER: The Community Builders Inc. 736 Oak St. Columbus, OH 43205
P: 380-235-7050
ARCHITECT: City Architecture Inc.
Contact: Phillip Migas, Project Manager
pmigas@cityarch.com
12205 Larchmere Blvd. Cleveland, OH 44120
P: 216-881-2444
GC: Marous Brothers Construction
Contact: Marjorie Sutton, Project
Coordinator
36933 Vine St. Willoughby, OH 44094
P: 440-951-3904
OWNER: Cuyahoga Metropolitan Housing Authority (CMHA)
8120 Kinsman Rd. Cleveland, OH 44104
Purchasing Department
P: 216-348-5000
Construction project reports are provided with permission through ConstructionWire, courtesy of BuildCentral (www.buildcentral.com). BuildCentral specializes in planned construction project leads and location analytics for CRE, hotel, multi-family/single-family, medical, mining & energy, and retail construction spaces. Properties Magazine makes no warranty of any kind for this information, express or implied, and is not responsible for any omissions or inaccuracies. To notify Properties of any reporting errors, we encourage you to email cpr@propertiesmag.com.
How Bad is t H at Leak?
Project: #3160243
THE LONGFELLOW SENIOR APARTMENTS
PROJECT TYPE/SIZE: Multifamily (93 units)
CONSTRUCTION TYPE: Renovation
ESTIMATED VALUE: $5-$25 million
SECTOR: Private
LOCATION: 650 E. 140th St. Cleveland, OH 44110
DETAILS: Renovation and conversion of the vacant Longfellow Elementary School into 93 affordable apartments for seniors aged 62 and up.
Estimated Schedule (as of 8/21/2023)
STAGE: Completed (past 6 months)
CONSTRUCTION START: 6/2022
CONSTRUCTION END: 6/2023
INFORMATION: 55 Public Square Cleveland, OH 44113 833.409.1316
55PublicSq@KandD.com
All suites are new construction with:
• Keyless access control entrance feature
• 9’ ceilings and expansive windows throughout
• Energy-saving LED lighting
• Full size washer and dryer
• Individually controlled high-efficiency heating and AC with smart thermostat
• Roller shades on all windows (blackout roller shades in bedrooms)
• Highest speed wireless fiber internet available Downtown (ready for connection)
• Views of Cleveland and Public Square, the Cuyahoga River, or Lake Erie
Gourmet Kitchens & Spacious Living Areas
• Large dine-in kitchens with stainless steel appliances, quartz countertops, modern gray finish soft close cabinets, flat cooktop, dishwasher, and built-in microwave
• Beverage center (select suites)
• Built-in electric fireplace in the living room (most suites)
• Beautiful hard surface flooring
Bedrooms and Bathrooms
• Ample closet space with custom closet organizers
• Carpet in the bedrooms
• Ceramic tile floor and quartz countertops in the bathrooms
24/7 Fitness Center on the 2 nd Floor
• 1600sf newly designed space with fob access, free to both residents and tenants
• Cardio machines, free weights and stretching areas
• Men’s and women’s locker rooms
Community Lounge on the 2 nd Floor
• Hip lounge atmosphere with bar area, community tables, fireplace, multiple large screen TVs, and outdoor patio
Additional Amenities
• Attached Fahrenheit Restaurant - NOW OPEN!
• Convenience market with café located in the lobby
• Package room, bike storage, and pet washing facility on-site
• Wi-Fi access in all common areas
• Attached garage parking available
• Desirable location near Public Square, the Gateway District, the Northcoast Harbor District, Warehouse District, and the Playhouse Square Theater District
• RTA stop on West 3rd Street outside the building
• Online rental payment and maintenance requests
• Preferred Employer Program and Military Discount
• Cats and dogs allowed (fees and restrictions apply, call for details)