K&D closes purchase of East Ohio Building, setting stage for 223-unit apartment redevelopment
Michelle Jarboe McFee - Cleveland Plain Dealer - September 11, 2013
After nearly two years of negotiations and financial gymnastics, the shuttered East Ohio Building is poised for redevelopment as 223 apartments, the first of which will open by July.
The K&D Group of Willoughby bought the downtown office tower and the adjoining parking garage Wednesday, setting the table for a $65 million residential project. A major high-rise conversion in the center city, the East Ohio plan reflects a dramatic shift in the downtown real estate market, where developers are eying large, obsolete office buildings as residential plays.
The project includes federal and state tax credits for historic preservation and three layers of federal New Markets Tax Credits, which are designed to spur investment in low-income or distressed areas. Huntington National Bank provided a construction loan, while PNC Financial Services Group Inc. created equity for the project by purchasing tax credits.