Cuyahoga County details plan to secure 225000-square-foot headquarters and …

View full sizeCuyahoga County will shake up the real estate market Monday, seeking new headquarters space in downtown Cleveland and listing 13 properties for sale. The largest property being listed for sale is the Ameritrust Complex, above, which the county bought in 2005 with the intention of moving its then-larger headquarters across downtown Cleveland.CLEVELAND, Ohio — Cuyahoga County will shake up the real estate market Monday, seeking new headquarters space in downtown Cleveland and listing 13 properties — including 1.4 million square feet in or near the central business district — for sale.

The county’s long-awaited request for proposals, a document soliciting bids from property owners and developers, heralds deals that might reshape parts of downtown Cleveland and revive vacant or little-used buildings with apartments, new offices, hotels or restaurants. And it marks a change in strategy for a government entity that historically sold real estate based solely on price —  without considering factors such as economic development,  environmental issues, community impact or long-term tax generation.

Requiring 225,000 square feet of downtown office space, the county is one of the largest potential users to hit the market in years. The headquarters deal would involve more than 700 people, moving from the county’s administration building, an auto title building on Superior Avenue and a handful of leased spaces downtown and on the west bank of the Flats.

For its new headquarters, the county is open to leasing or buying, in an existing building or at new construction, a representative of the CBRE Group Inc. real estate brokerage said during a Cuyahoga County Council committee meeting today. The brokerage, with help from the Chartwell Group and consulting firm Ariel Ventures, is representing the county in its consolidation and sale efforts.

“We fully expect that there will be at least one new building that gets proposed and at least one existing building that gets proposed,” Ryan Jeffers of CBRE said during the committee meeting.

CBRE plans to release the request for proposals and launch a nationwide marketing campaign Monday. Responses are due Sept. 14, and the brokerage firm plans to hold open houses and bidder events starting in late July or early August.

On the lease side, Cuyahoga County is seeking a 20-year deal with several extension options. Whether it rents or buys, the county is focused on the central business district, the area bounded by Lake Erie to the north, East 18th Street to the east, Carnegie Avenue to the south and the Cuyahoga River to the west.

Though new construction proposals are likely to pop up, real estate experts think the county ultimately will lean toward leased space in an existing building.

Data from CoStar Group, a commercial real estate information provider, pinpoints several properties with at least 225,000 square feet of empty space, including the former Huntington Building at East Ninth Street and Euclid Avenue, the Tower at Erieview and the May Co. building just off Public Square. But other landlords are likely to shift tenants or offer creative proposals to snag a stable government lease that could anchor a multi-tenant building or fill a smaller property.

The headquarters space is just one piece of a three part request for proposals. The county also is seeking 200,000 square feet of storage space, within five miles of downtown Cleveland. And CBRE will market 13 properties, comprising 1.6 million square feet.

Though the document outlines specific space needs and how the county will evaluate bids, the request for proposals leaves room for creativity. Landlords can pursue the headquarters or storage deals independently. Investors can go after one building or several.

And developers could propose a multi-part deal, offering the county office space and bidding on multiple assets.

The properties being listed for sale include land, vacant and occupied office buildings, a former neighborhood center and maintenance facilities. The largest, at 831,000 square feet, is the Ameritrust Complex, which the county bought in 2005 with the intention of moving its then-larger headquarters across downtown Cleveland.

The empty complex, which developers have considered for apartments, hotels and offices, includes a former office tower, a historic rotunda, the Swetland Building at 1010 Euclid Ave., the linked P and H office buildings and parking.

The other buildings for sale are:

  • The Administration Building, a 148,245-square-foot structure on 1.9 acres next to the new convention center and medical mart. Though a buyer could reuse the building, real estate experts view the property as a development site, with potential for new construction including parking or a hotel.

  • Courthouse Square, an 89,787-square-foot office building at 310 W. Lakeside Ave.

  • The Hamilton Garage, an office building and vehicle maintenance facility at 1801 St. Clair Ave.

  • The Marion Building, a 100,000-square-foot office building at 1276 West Third St.

  • The Superior Auto Title building, a small office and retail building at 1261 Superior Ave.

  • The Whitlatch Building, an unused office building at 1910 Carnegie Ave.

  • The former Juvenile Court Complex, a 166,750-square-foot complex at Cedar Avenue and East 22nd Street.

  • The County Archives, a pair of connected, historic mansions on Franklin Boulevard in Cleveland’s Ohio City neighborhood.

  • The Brentwood property, 2.5 acres at 8544 Usher Road in Olmsted Township.

  • The Fitch Road Yard, a maintenance facility on 5 acres at 7924 Fitch Road in Olmsted Township.

  • A former neighborhood center in Cleveland’s Glenville neighborhood, at 12212 St. Clair Ave.

  • A former MetroHealth facility on 6.6 acres at 2500 East 79th St. in Cleveland.

On Twitter: @mjarboe

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