A not-for-profit affiliate of Cleveland State University sold Heritage Hall to Houston-based Asset Plus Companies, Inc., the largest privately-owned student-housing company in the nation, for $4.5 million, according to Newmark Grubb Knight Frank (NGKF), which represented the seller, Euclid Avenue Development Corp, in the transaction. The new owner plans to convert the 140-dorm facility and YMCA into modern, private student housing.
Built in 1912, the 152,390-square-foot property is located at 2200 Prospect Avenue in the city’s downtown campus district. The nine-story building sits on three acres, includes 175 parking spaces and has been the longtime home of the Downtown Cleveland YMCA, which plans to relocate across town in March 2016. Euclid Avenue Development, which finances and operates student housing and parking facilities on behalf of the university, bought the property in 2009 to eliminate a troubled loan.
“With its experienced student housing track record and solid reputation, Asset Plus emerged as the buyer that could fulfill our client’s vision of transforming the property into an attractive, academic residence that will support the university population,” said NGKF Managing Director Richard Sheehan, who represented the seller and secured the buyer along with Vice Chairman Terry Coyne and Analyst Michael Plaspohl in the firm’s Cleveland office.
Asset Plus, which has a portfolio of over 120 student housing properties in 30 states, has renamed Heritage Hall as The Domain at Cleveland and plans to revamp the property with a premier clubhouse featuring group fitness classes, a computer lab with dedicated study rooms and a resident lounge with free coffee, according to the property’s new website. The studio, 1-bedroom and 2-bedroom units will be renovated with new appliances, cabinets and countertops in the kitchenettes, upgraded bathrooms and new A/C and heating systems. The company is leasing apartments for the fall 2015 academic year.
“The deal comes as public universities increasingly are turning to private developers and owners to operate student housing, so they can free up their balance sheets and focus on academic expansion goals,” observed Ryan Lang, a senior managing director with ARA, A Newmark Company and head of its Student Housing group. “In this instance, Asset Plus is filling the university’s need to provide more quality housing options for the students.”
In addition to Heritage Hall, Clayco Realty Group recently received approvals to replace the Jewish Federation of Cleveland at East 18th Street and Euclid Avenue into an 11-story, 535-bed furnished student-housing apartment complex.
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