K&D Group Buys Cleveland Tower for $38M

The Terminal Tower will continue to act as Forest City’s headquarters until 2018, when the office space will be converted into 293 apartments.

By Irina Vrasmas

Terminal Tower in Cleveland
Terminal Tower in Cleveland

ClevelandForest City Realty Trust Inc. has announced the sale of the 52-story Terminal Tower to an affiliate of K&D Group. The 597,000-square-foot office building sold for $38.5 million.

Located at 50 Public Square in downtown Cleveland, Terminal Tower has been Forest City’s headquarters since 1997 and will continue as such until the middle of 2018. As the largest tenant, Forest City occupies roughly 250,000 square feet on the building’s lower floors, space which K&D intends to convert into 293 apartments. According to The Plain Dealer, the company will compete for a large state tax credit aimed at restoration and renovation of historic buildings.

Terminal Tower has been the tallest building outside of NYC until 1964 and is part of Cleveland’s Tower City Center, a mixed-use center comprising three high-rise office buildings and a retail shopping center. The building has undergone a four-year, interior and exterior renovation project completed in 2010, which restored its façade and observation deck and added computerized, energy-efficient systems.

Terminal Tower office workers have quick access to restaurants, retail stores, a fitness center and two full service banks, Key Bank and PNC Bank. Nearly 80 percent of Cleveland’s public bus lines end in front of Tower City, which is directly linked through regional rail lines to Cleveland Hopkins International Airport, the lakefront, as well as the eastern and western suburbs.

Image courtesy of user EurekaLott via Wikimedia Commons