K&D Group Acquires Hanna Building Annex
- Jan 17, 2012
The PlayhouseSquare Foundation has struck a deal to sell the Hanna Building Annex on East 14th Street for an undisclosed price to K&D Group of Willoughby. K&D plans to acquire the downtown property on April 1. Northeast Ohio’s largest privately held owner of apartments plans to convert the office property into 102 apartments.
The Hanna Building Annex is an eight-story office building constructed in 1920. It is part of an office complex acquired by PlayhouseSquare in 1999. The building was added to the National Register of Historic Places in 1978 and is home to the 297-seat 14th Street Theatre, formerly known as the Hanna Theatre.
The new housing would come at a time when there is little residential vacancy downtown. And K&D is no stranger to apartment development in downtown Cleveland. It created the Stonebridge Apartment complex and transformed a historic retail-and-office complex at 668 Euclid Ave. into an apartment building with a waiting list; it has the same plan for the 120,000-square-foot Hanna Building Annex. The redevelopment won’t affect the Hanna Theatre.
K&D will turn the second through eighth floors of the building into apartments ranging from 600 to 1,200 square feet. Unit rents are expected to range between $725 and $1,500 a month. The ground-floor retail space will be leased back to PlayhouseSquare. Right now, the annex is about 70 percent occupied. PlayhouseSquare is offering those tenants space in the neighboring Hanna Building. Apartment construction could start in June. The project is expected to be finished by mid-2013.
K&D is Northeast Ohio’s largest privately owned management and development firm. It currently owns and manages 38 apartment and condominium communities, consisting of nearly 12,000 suites throughout Greater Cleveland, and includes high-, moderate- and lower-income properties. In recent years, the company has expanded its portfolio to include seniors housing.