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MIDDLE MARKET HIGHLIGHT, OCTOBER 2005
AKRON
Karen Stone, CCIM
During the past 10 years, Akron has successfully made a transition from an industrial- and manufacturing-based economy to one that is focused on clusters of proprietary processes, such as the production of polymers and other advanced materials. “These industries have taken off in our city because of the influence of technology,” says Rick Rebadow, senior vice president of the Greater Akron Chamber. “The real estate market has been evolving to make creative, adaptive reuse of buildings that used to house the rubber industry.”
As part of this process, Akron has refurbished more space than other comparably sized cities. For example, a former BF Goodrich industrial facility located downtown was redeveloped into a research and development/office use. Known as the AES Facility, the 560,000-square-foot, seven-story building now houses Advanced Elastomer Systems (AES), NBMA and several other service-sector tenants. Tell Investments of Akron refurbished the building at a cost of approximately $22 million. An additional $5 million was spent on environmental remediation. Completed last December, approximately 50,000 square feet of the building are still available.
Also downtown, along Lock 3 of the Ohio-Erie Canal, an 8-acre strip of land is being turned into a unique recreation and service area. Developments in the area include the new 8,500-seat Canal Park Stadium that is home to the AA minor league baseball franchise of the Cleveland Indians, and the renovation of the Old Mill complex into 350,000 square feet of retail, entertainment and office space.
There are exciting options on the way for people who want to live downtown. In the fourth quarter of this year, construction will start on the Northside Lofts, a component of the Northside Arts and Entertainment District. Located at North Main and Howard Street, the Northside Loft development will bring more than 180 new residential units to downtown and is designed to attract a variety of residents — from active adults to empty nesters. Construction of Phase I, which will include 86 condominium units, is expected to be completed by the end of 2006. The project also will include 21,000 square feet of retail/commercial space for sale or lease and an on-site business center.
The power of partnership is changing the face and personality of a 40-block area surrounding the downtown campus of The University of Akron. The University is partnering with the city of Akron, Summa Health System, the Akron Metropolitan Housing Authority, the Greater Akron Chamber, Akron Public Schools, the University Park Development Corporation and the Akron Beacon Journal to create living, retail, study and recreation spaces. “Our goal is to provide an exciting and diverse urban living choice that is pedestrian-oriented, safe and sustainable,” says Ken Stapleton, director of the University Park Alliance.
Seed money for the project is coming from a 5-year, $2.5 million grant from the Knight Foundation. The University has invested $300 million in the redevelopment of its campus during the last 5 years, and Summa Health System's investment in their campus should reach nearly $100 million by the end of 2006. It is anticipated that the first major private UPA development to break ground will be Spicer Village, a multi-phase residential development that will take 3 to 5 years to complete. Aimed at middle- and upper-income households, Phase I will include 25 to 30 town homes. Cleveland-based RDL Architects is designing the Phase I structures, and the developer is Akron-based ASW Properties. When completed, Spicer Village will include approximately 110 residential units, including a mixed-use component of residential above retail. The project's cost is approximately $40 million.
Rebadow believes that Akron presents a competitive opportunity for investors. “With our community-oriented vision, strong partnerships, and a cluster-based approach to economic development, Akron is well-positioned to take advantage of future investment opportunities,” he says.
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