East 4th Street & Prospect at Gateway
Cushman & Wakefield | CRESCO Real Estate acted as both the acquisition and disposition broker for the assembly of twelve (12) parcels at E. 4th Street and Prospect Avenue and the balance of the Seller’s parking portfolio in Cleveland (located at West 9th and St. Clair Avenue). The total acquisition of assets for vertical development was $26 million dollars.
The project includes 150,000 SF of national restaurants and retail, 500 apartment units in an ambitious 54 story tower, horizontal hospitality component, 200,000/SF of best in market office space and 1,500 parking spaces.
The total estimated project is targeted at a whopping $400 million dollars.
The $26 million dollar price tag equated to a 3% cap on net operating income, well below the threshold of parking investors. In addition to the price, the seller required a due diligence period of six (6) weeks. With little to no ground up development in the last four (4) decades in Cleveland, the pool of speculative buyers was non-existent.
CRESCO Real Estate introduced the opportunity to the developer, JDEK/Stark Enterprises. On the heels of just completing the “9,” our firm framed a unique opportunity ripe for a visionary developer. We found our buyer/developer in Bob Stark. Bob, coined the “Developer Poet,” found an opportunity for “place making” in the heart of Cleveland’s Entertainment District.” His vision is simply to put Cleveland back on the map with a backbone of beauty and ingenuity at his nuCLEus Development.
CRESCO Real Estate organized a face to face meeting between Stark and the Seller in Los Angeles. This meeting was a bold strategy to bond the two parties and create a foundation for a transaction.
After aligning the bulk of the properties, CRESCO Real Estate was able to quickly assemble two contiguous properties that were not on the market. We accomplished this at market values rather than at a premium routinely paid for off-market transactions.
CRESCO Real Estate’s role representing both parties was essential to completing the transaction. Our strategic assembly approach allowed for a consolidation of an entire block without punitive cost for outlying properties to “square the site.” The estimated project cost is $400 million dollars.
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