Cleveland’s Charter One Bank Building Changes Owners

Another Cleveland office building changed hands this month. The Charter One Bank Building, in downtown Cleveland, was sold to two out-of-state investors for an undisclosed price.

Another Cleveland office building changed hands this month. The Charter One Bank Building in downtown Cleveland was sold to two out-of-state investors for an undisclosed price.

Canadian-based SNR Group teamed up with Sassoon Equities Inc. to buy the property in a deal that closed on Dec. 8. Citizens Financial Group was the seller. The bank will continue to operate in the building, but as a tenant, not a landlord. It has leased 40 percent of the property; the remaining 60 percent is vacant.

The Charter One Bank Building, located at 1215 Superior Ave., stands five stories and features 164,000 square feet of space. According to PropertyShark, the building was constructed in 1986 and has a current market value of about $12 million.

The Plain Dealer reports that the new owners plan to renovate the newly acquired building. The project includes exterior improvements, a revamped lobby and remodeled office floors. CBRE Group Inc. has been hired to manage the building and find new tenants.

In its third-quarter market report, Marcus & Millichap said that development in downtown Cleveland and a resurgence of office construction in suburban submarkets are propelling the local office market forward this year. Investor interest in the Cleveland metro is strong, but sales activity over the past year has been limited due to the low number of  quality assets available for sale.

The real estate investment services firm also said that office sales during the year were concentrated in the Downtown and East Cleveland submarkets, as well as Summit County. Another recent downtown sale was that of the Halle Building, which K&D Management LLC purchased from Forest City Enterprises Inc. for $20 million.

With office completions down in 2014 compared to the previous two years, Marcus & Millichap expects the market to attract more and more investors as the existing buildings fill up and are listed for sale.

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