The 227 apartments prepared at the Tower at Erieview will bear the W name — the initial rentals to fly that substantial-conclude hospitality flag.
The reduced floors of the 40-tale downtown Cleveland place of work tower already are slated to come to be a W hotel, less than a offer introduced last fall by Marriott Worldwide Inc. and customers of the Kassouf spouse and children, the building’s house owners.
Now that lofty repositioning will extend to the residing spaces upstairs, wherever tenants will have obtain to in-place eating, cleansing, laundry providers and other features. Associates for Marriott and the Kassoufs confirmed this week that the get-togethers have inked a licensing offer, marking the hospitality giant’s entrée into the condominium current market.
“W Residences Cleveland is the initially branded residential rental for the model and inside Marriott’s portfolio of branded residences,” a Marriott spokeswoman wrote in an e mail.
The existing W Residences are for-sale merchandise — luxury condos and holiday homes with fractional possession constructions. Throughout its steady of manufacturers, Marriott had near to 190 such projects open up or beneath progress globally, as of early this 12 months.
“Marriott’s branded residential small business soared in 2021 as evolving life style modifications have sparked escalating curiosity in on-need amenities and companies from manufacturers persons admire and trust,” the corporation wrote in a January update on current market tendencies and improvement exercise.
At the Tower at Erieview, Marriott will provide style guidance for the flats and training for a third-social gathering leasing and administration business hired by the Kassoufs.
“In phrases of city genuine estate, Cleveland does not have anything that compares to the considerate structure and inspiring energy of the W Apartments,” mentioned James Kassouf, the head of the household ownership team, in a penned assertion. “Our vision of leisure residing and lifestyle in the Erieview Tower has gone to a new level with this settlement.”
The tower surely won’t be the first downtown redevelopment undertaking to combine housing and a hotel. On East Ninth Road, residences perch higher than each the Metropolitan at the 9 and the Schofield Resort. But the W is a luxurious brand name, a notch up on the hospitality foods chain.
The 210-place lodge will be the to start with W in Ohio and will include a complete-support spa, a gymnasium and a 15,000-sq.-foot ballroom and event center.
“This venture will provide as a signature component of the Erieview tower, supplying both visitors and tenants an legendary luxurious working experience,” reported Dana Jacobsohn, chief development officer for U.S. luxurious brand names and international combined-use assignments at Marriott, in a written assertion.
Anthony Delfre, an investment decision banker assembling financing for the $93.4 million tower overhaul, would not provide specific rental prices for the flats. He reported that pricing will be similar to what tenants are shelling out at other significant-rise downtown initiatives, these kinds of as the Lumen at Playhouse Square and the Beacon at Euclid Avenue and East Sixth Road.
Marriott and the Kassoufs believe that the W branding will command a premium in excess of time, but “we really don’t intend to do anything at all that would be out of the current market,” reported Delfre, a principal and managing director with Brown Gibbons Lang & Co.
Building on the residences is scheduled to get started early this 12 months. The first units could open up in early 2023.
The reimagined tower also will contain a cafe, in the onetime Prime of the City place on the 38th floor additional parking, in the basement and 300,000 sq. feet of places of work, like a co-doing work facility managed by an unknown countrywide operator.
The Kassoufs, like many property proprietors across the condition, are awaiting information about the inaugural round of tax credits from Ohio’s Transformational Combined-Use Progress Software.
In Oct, the Ohio Section of Enhancement acquired applications for additional than $417 million in awards — in a contest wherever there is $100 million up for grabs this calendar year.
The condition has not established a timetable for an announcement. The awards must be reviewed by the Ohio Tax Credit score Authority, a 5-member system that meets on the very last Monday of every thirty day period.
The Tower at Erieview staff is seeking nearly $9.4 million in tax credits.
A copy of the application, received by way of a community documents request, demonstrates that the redevelopment of the tower is expected to wrap up in March 2024.
Renovations at the glassy Galleria, a two-tale retail creating that is mostly vacant, could start in 2023. The Kassoufs visualize turning the onetime mall into a “lifestyle middle,” with an emphasis on retail, food and amusement, in accordance to the tax-credit score application.
The overall two-period project could be a $136 million investment decision, the document claims.
The Kassoufs bought the complex, which also incorporates a 420-as well as-place garage, in 2018.
The 1960s workplace tower, at East 12th Road and St. Clair Avenue, attained a listing on the Nationwide Sign up of Historic Sites in 2017.