K&D Group Buys Another Cleveland Landmark
- Apr 06, 2015
Another downtown Cleveland office building recently changed hands. But in spite of the office-to-residential-conversion trend currently present in the Cleveland area, this one won’t be redeveloped into apartments.
Crain’s Cleveland reports that the K&D Group, an apartment owner and developer based in Willoughby, has expanded its portfolio with the acquisition of the 21-story Keith Building. K&D purchased the property for $5.2 million from a partnership led by Bill West in a transaction that closed on March 24. K&D also purchased the land lease, giving it control of both the property and the land beneath it. The company now owns almost 1 million square feet of office and retail space in Cleveland’s downtown.
The Keith Building opened in 1922. At that time, it was the tallest building in the city. The property is located at 1621 Euclid Ave., and offers about 270,000 square feet of space. According to PropertyShark, the building’s current market value is $8.1 million.
Last year, K&D purchased two other office buildings in Cleveland’s downtown, the Halle Building and the Leader Building, with plans to turn them into apartments. But in order to do so, it has to first find new space for their tenants. That’s where the Keith Building comes in: It will be receiving as office tenants those currently situated in the Halle and Leader properties.
The Keith Building currently has about 60,000 square feet of available space. Doug Price, CEO of K&D, told Crain’s Cleveland that he believes he will be able to fill this space with the tenants from the two other office properties. K&D is also offering space in empty offices and a former school at its Reserve Square mixed-use complex. Rents at Keith and Reserve Square range between $12 and $14 per square foot.
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