Northeast Ohio Properties, February 2026

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EDITOR-IN-CHIEF

Mark Watt mwatt@propertiesmag.com 216.251.2655

OFFICE MANAGER

Lisa Larissey llarissey@propertiesmag.com 440.429.6153

CONTRIBUTING WRITERS

Doug Bardwell, Scott Esterly, Dan Holland, Christopher Johnston, Alec Pacella

MEDIA CONSULTANTS

Matt Lehnert mlehnert@propertiesmag.com 216.251.6753

Larry Overbey loverbey@propertiesmag.com 216.251.6649

OWNER

Real Estate Publishing Corporation Jeff Johnson, CEO jeff.johnson@rejournals.com

Cover photo: Skyline 776 Apartments, by VillaPic Photography

FEATURES

8 State Investment Aids Preservation Activity

Round 35 historic tax credits support 33 projects, including 13 in Northeast Ohio 14 Elevated Experience

Skyline 776 delivers bold design, community-focused living in downtown Cleveland

38 Designing for Dignity

Hitchcock Center for Women completes next phase of care + housing

48 Special Section: Legal Services + Risk Management

48 When Contractors Inadvertently Accept Design Risks: A look at how ‘helping’ the design can create unintended liability

52 Cyber Insurance – Lessons Learned: Managing tech threats in an era of ransomware & payment fraud

55 Sale-Leasebacks Under Scrutiny: A look at a growing flashpoint between taxpayers + school districts

56 Managing Legal Risk when Implementing AI: Examining the promise + pitfalls of artificial intelligence in real estate + construction

by Jason Smalcer

DEPARTMENTS

WEDNESDAY, MAY 13, 2026 3:15-7:00 PM

PROPERTIES PEOPLE

Highlighting notable industry events

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ACE Mentor Program of Greater Akron-Canton recently held its annual bowling fundraiser at Clutch Lanes & Sports Center in Cuyahoga Falls, selling out all 24 lanes and raising over $22,000. ACE provides a wide range of career opportunities in architecture, construction and engineering to high school students.

For registration information or sponsorship inquiries, contact NAIOP Northern Ohio at 440-899-0010 or email naiop@wherryassoc.com www.naiopnorthernohio.com

1 Mitch Kraly, Shane Weiford, Brandon Ward, Matt Wiesen, Zack Novak and Vincent Raczkowski (Welty) 2 Aaron Rodebaugh, Leo Sferra, Brandon Marzley, Steve Heckman, Chris Bader and Russell Gayheart (GPD Group)

3 Justin Fye, Bobby Johnston, Stephen Weimer and Ian Jones (AVID Architects)

4 Joe Laikorosec (The K Company), Tim Winkler (The K Company), Lesia Mural (C&S Companies), Tom Corcoran (C&S Companies) and Zenon Mural (Turner)

Cleveland Restoration Society (CRS) recently hosted its annual benefit at the historic Ballroom at Park Lane in Cleveland’s University Circle. The event featured guided architectural tours of two sacred landmarks – University Circle United Methodist Church and the Pentecostal Church of Christ – followed by a speakeasy-themed reception with live jazz, food and drinks, raffle prizes and a year-in-review video.

1 Dione Alexander (CRS) and Rev. Lisa Goods (Shiloh Baptist Church)

2 Matt Katz (Cornerstone Design and Renovation), Stephen Sokany (Carter), Jonathan Lalewicz (Oriana House, Inc.) and Trac Papish (Associated Design)

3 Peggy Sexton and Shannon Stokes (CRS)

4 Kathleen Crowther (CRS) and W. Daniel Bickerstaff III (Ubiquitous Design Ltd.)

5 Anne Doten and Linda Barbero (CRS)

6 CRS Immediate Past Chair Scott Holbrook (Baker & Hostetler LLP) and Sharon Holbrook

State Investment Aids Preservation Activity

Round 35 historic tax credits support 33 projects, including 13 in Northeast Ohio

Story & photos provided by Ohio Department of Development

In December 2025, the Ohio Department of Development announced state support for 33 projects that will preserve 45 historic buildings across Ohio. As part of the Ohio Historic Preservation Tax Credit Program, more than $75 million in tax credits will be awarded statewide, leveraging an estimated $681 million in private investment.

The highly competitive program provides financial incentives for the private redevelopment of historic buildings that are vacant or underutilized. Applications are accepted twice annually, and tax credits are issued only after construction is complete and all program requirements are met. The program is administered in partnership with the Ohio History Connection’s State Historic Preservation Office.

Among the Round 35 awards, 13 projects are located in Northeast Ohio, representing a wide range of adaptive reuse efforts, from schools and churches to commercial blocks and industrial facilities, as well as Cleveland’s historic West Side Market. (An asterisk denotes a project that has received tax credits in a previous round and reapplied for additional support.)

Case Building

1450-1458 W. 25th St., Cleveland

Total Project Costs: $6,829,407*

Total Tax Credit: $960,000

Located within the West 25th Street–Detroit Avenue National Register Historic District, the Case Building has served a variety of commercial uses over time, from showrooms and rug sellers to utility companies and an auto parts distributor. The rehabilitation will adapt the building for law office use while retaining historic windows and introducing a compatible

new storefront that respects the building’s architectural character.

Cleveland Milling Company

1645, 1646-1656 Merwin Ave., Cleveland

Total Project Costs: $61,595,107

Total Tax Credit: $5,000,000

Situated along the Cuyahoga River in the Flats, this former flour mill complex includes a milling building, warehouse and grain elevators. Vacant for years, the site will be redeveloped into a mixed-use project with hotel accommodations and commercial space, complementing ongoing riverfront revitalization efforts by private developers and Cleveland Metroparks.

Holiday Inn

3614 Euclid Ave., Cleveland

Total Project Costs: $33,050,360

Total Tax Credit: $3,300,000

Constructed in 1965 in the International Style, the former Holiday Inn is located in Cleveland’s Midtown

Historic District and has operated as a hotel since its opening. The project will convert the building into 198 residential units with dedicated amenity spaces, along with upgrades to mechanical systems and new elevators to improve accessibility and functionality.

Lakewood Baptist Church

14321 Detroit Ave., Lakewood

Total Project Costs: $6,173,289

Total Tax Credit: $1,502,141

Built in 1917 and expanded throughout the 1960s, the former Lakewood

Baptist Church in Lakewood will be rehabilitated into a daycare and early childhood learning center. Existing spaces will be adapted for classrooms and recreation, while original stained glass and woodwork will be preserved alongside upgrades to safety and HVAC systems.

McKinley School

3349 W. 125th St., Cleveland

Total Project Costs: $18,261,445

Total Tax Credit: $1,820,000

The 1921 McKinley School in Cleveland’s Westown-Jefferson Neighborhood will continue serving area students as the home of the Global Ambassadors Language Academy, a K-6 language immersion charter school. Renovations will address water damage and reconfigure interior spaces to accommodate a new cafeteria.

Miller Building

1281 W. 9th St., Cleveland

Total Project Costs: $1,300,000

Total Tax Credit: $312,500

brick and stone masonry. The renovation will retain its existing bar and restaurant at street level, while the long-vacant upper three floors will be converted into five apartments.

New England Building

629 Euclid Ave., Cleveland

Total Project Costs: $41,477,350

Total Tax Credit: $3,250,000

Built in 1896, the New England Building in downtown Cleveland has

continued hotel use under new management, with upgrades to the lobby and restoration of historic storefronts.

Renkert Building

306 Market Ave. N., Canton

Total Project Costs: $53,312,143

Total Tax Credit: $5,000,000

Constructed in 1914 as Canton’s first skyscraper, the Renkert Building originally housed a department store and offices, but has been vacant since

restaurant, restoring the building’s role as a downtown anchor.

Built in 1868, this Italianate commercial building in Ohio City will be rehabilitated with five residential units above ground-floor commercial space. The project also includes construction of

State Chemical Manufacturing

Co./Superior St. Baptist Church

2435-2441, 2445-2451 Superior Ave., Cleveland

This project combines two vacant, early 20th-century buildings in Cleveland’s

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Superior Avenue Historic District. The neighboring structures were connected in the 1940s as the church moved out and the chemical company next door incorporated the building into its operations. Following rehabilitation, the buildings will house restaurant, event, gallery and office spaces.

Wadsworth Central School

151 Main St., Wadsworth

Total Project Costs: $10,996,250

Total Tax Credit: $1,098,000

Opened in 1908, this former school served as Wadsworth’s high school and later its intermediate school. After the school relocated, the building has housed a variety of tenants. The project will preserve the auditorium and community spaces for events, while former classroom spaces will be adapted for commercial use.

West Side Market

1979 W. 25th St., Cleveland

Total Project Costs: $71,338,365

Total Tax Credit: $5,000,000

Built in 1912, Cleveland’s iconic public market features a large vaulted market hall, a clock tower and adjacent exterior market stall arcade. Renovation plans will enhance infrastructure, accessibility

and building systems while activating underutilized spaces. New event spaces, a courtyard and food hall will be added.

Young Women’s Christian Association – Akron

146 S. High St., Akron

Total Project Costs: $45,506,060*

Total Tax Credit: $5,000,000

Built by the YWCA in Akron, this facility originally included a large auditorium, chapel, gym, swimming pool and lounge, plus club spaces for young women. After its sale in 1982, the building was converted into office space and later vacated. The rehabilitation will transform it into 114 apartments, repurposing original amenity spaces for residential use.

Beyond Northeast Ohio, Round 35 awards include projects in Central, Northwest and Southwest Ohio. Notable projects include the rehabilitation of the Second Presbyterian Church in Columbus into a performance and event venue; the Marysville Light & Water Company Plant, slated for mixed-use redevelopment, in Union County; and multiple historic commercial buildings in Cincinnati’s Over-the-Rhine neighborhood as part of the Reid Flats initiative.

Elevated Experience

Skyline 776 delivers bold design, community-focused living in downtown

Cleveland

By Doug Bardwell | Photos by Doug Bardwell + VillaPic Photography

Skyline 776, a $96 million project at 776 Euclid Ave. in downtown Cleveland, is among the area’s most recent high-rise apartment developments. This newly constructed 23-story building features a hotel-inspired interior design and offers a comprehensive range of unique amenities for its residents.

With a total building size of 253,000 square feet, the 304 studio, one-, twoand three-bedroom apartments and penthouse units all feature full-height, exterior glass walls with operable windows, overlooking the city. Many of the suites have outdoor balconies and/ or projected window units.

Evolution on Euclid

The project was initially started by City Club Apartments and later taken over by Trowbridge Ventures, the project’s equity investor, a Detroit-based, family-owned firm led by Stanley B. Dickson, Jr., alongside his son, Daniel Dickson. Trowbridge Ventures is no

stranger to Cleveland, recently participating in Skyline on Stokes (see full story, Northeast Ohio Properties, January 2026 at www.propertiesmag.com).

In 2018, even before the property was acquired, Vocon began conversations with the previous developer.

“Our firm got involved at the very beginning, which is typical for how we support development work,” says Michael Christoff, senior associate and studio director at Vocon. “Early on, the goal is to align the project around two core questions: what is the true opportunity of the site – from the perspective of the developer, the community and the current land-

owner – and what is the realistic yield the site can support?

“We explored a range of scenarios to test how much program could fit within the physical constraints of the site, including the right mix of retail, public space, residential units and building amenities. That early effort created a clear, data-backed basis for the development team’s financial modeling and a smooth transition into early engagement with the construction team to test the financial model against current construction pricing.”

Cleveland Construction began reviewing the project in 2020 and, after a brief delay, broke ground in 2021, according to Project Manager Spencer Lanning.

TEXTURED TOUCHPOINTS Bold finishes and graphic surfaces transform typically utilitarian spaces into visually exciting experiences at Skyline 776, from the front desk (top) and adjacent mailroom (middle) to a nearby meeting room (bottom)

One of the most distinctive features of the building is the mosaic of 1/8”thick colored metal panels, which serve as a rain screen on the exterior.

“Early in the project, one of the development team’s first observations was that Cleveland’s skyline – while rich in character, history and detail –lacked color,” explains Christoff. “They challenged us to explore architectural solutions that introduced richer color, texture and a sense of movement to the façade, creating an energy that matched the vibrant experience they envisioned for tenants. In addition to the color and texture expressed throughout the elevations, we integrated graphic panels into the top two penthouse levels to create a bold and memorable crown for the building.”

According to Daniel Dickson, “Trowbridge Ventures was meant to be

“Skyline

776 was always conceived as a boutique hospitality experience rather than a traditional residential interior, so we leaned into bolder, more expressive materials early in the process to set that tone.”

Daniel Dickson Trowbridge Ventures

a passive partner in the deal. However, the situation changed, and in June 2024, we assumed full ownership and responsibility for development, construction management and day-to-day operations from the previous developer. The underlying vision for the property remained largely unchanged. Our role was to step in, refine it and execute it at a higher level of detail, which helped bring out the hotel-style experience seen today.”

Turning obstacles into innovations

“The original goal was to deliver something truly differentiated for

Downtown Cleveland – a luxury building with personality, strong design and amenities that would stand out in the market,”

Daniel Dickson explains. “Skyline 776 was always conceived as a boutique hospitality experience rather than a traditional residential interior, so we leaned into bolder, more expressive materials early in the process to set that tone. We want to create an environment that feels memorable, layered and elevated.”

The team designed a wide range of amenities – from the gym, sauna and café to co-working and study spaces, the rooftop pool and even dog-focused services – so the building can function almost like a small, self-contained neighborhood. The goal was convenience, community and flexibility, especially for people who live, work and socialize on different schedules.

The site was originally a parking lot, so before construction could start on the high-rise, the buildings on either side needed to be stabilized.

A robust earth-retention system was installed to prevent lateral movement of the foundations of the adjoining buildings as construction progressed. Mike

Grady, superintendent for Cleveland Construction, explains that the team drilled piles to depths of 135 to 150 feet on 10-foot centers.

“We couldn’t dig it down more than five feet at a time before we had to lag

it,” Grady explains. “That process continued until we reached the bottom of the excavation.”

A 2,700-cubic-yard concrete floating mat served as the building’s foundation and was poured in 2022.

CONGRATULATIONS TO THE SKYLINE 776 TEAM ON COMPLETING THIS TRANSFORMATIONAL

PROJECT.

STRONG RELATIONSHIPS INSPIRE GREAT WORK.

“Working between those other buildings, our clearances were razor-thin,” Grady says.

The balance of the building is all vertical post-tension concrete construction, which began in October 2022. Cleveland Construction was able to work two floors at a time, using a 60-40 split. While concrete was being poured on one side of the floor, framing was being done on the other side. It took about one week to complete each floor, until they reached the roof.

“On a project with luxury apartments, structure isn’t just an engineering decision,” Christoff says. “It directly affects the resident experience and even the architecture. A post-tensioned concrete system creates quieter, more solid floors with less vibration, which supports the level of comfort people expect in a highend building. It also allows a thinner and more efficient floor assembly, which helps control overall building height and reduces façade surface area so you can achieve the same design intent with less exterior skin, while still delivering the proportions, ceiling heights and presence the building needs on the skyline.”

Christoff explains that, “in addition to exploring how color could differentiate the building, we devoted significant study to the top of the tower, where the concrete swoop caps the richly textured metal panel and glass façades.”

The cast-in-place swooped roof is among the building’s most

EVERYDAY EXTRAS A multilevel theater for movie nights (top), a modern fitness room (middle) and Phoenix Coffee (bottom) provide residents entertainment, wellness and convenience under one roof.

elements. With openings that let light pour through and the tip of the roof projecting skyward, it was anything but standard construction.

For precise measurements on every floor, especially for the swoop framing out in mid-air, construction prisms were mounted on AT&T’s building, the Huntington Building, the AMG Building and 668 Euclid. Laser beams then enabled the prisms to precisely position key points for the framing team.

After pouring the 23rd floor, scaffolding was set up to frame the swoop. It took probably six weeks to prepare.

“Once it was framed, we poured it full of concrete just like any other structure,” says Grady, “but up there, it took five times longer.”

The building was topped out on August 17, 2023.

Navigating the corridor

Cleveland Construction’s other challenge was working on such a small site, in the middle of the city’s busiest area, with no laydown space for deliveries. Fortunately, they were able to set up a maintenance of traffic (MOT) zone out front, taking up one lane of the street for their tower crane and delivery trucks.

With hundreds of 1/8” aluminum panels to be installed on the exterior of the building, swing stages were set up to handle all the work, which led to another challenge for the contractors: weather. According to Lanning, the weather had a major impact on their schedule, with wind, rain and snow affecting their progress.

It was all logistics, as they scheduled just-in-time deliveries throughout the project. Besides the tower crane, the only other vertical delivery method was dual buck hoists on the southwest corner of the building. However, only 30-foot box trucks could pull into that area.

A warehouse approximately five blocks away was rented to stage material deliveries, especially critical rebar storage.

Respecting residents

The suites in the southwest corner weren’t completed until the final material deliveries were made on the buck

hoists. Then, starting at the bottom of the building, Cleveland Construction completed those suites in phases: three through nine, 10 through 16, and finally 17 through 22.

A covered, scaffolded sidewalk area along Euclid Avenue and over all outside entrances protected pedestrian traffic and early building residents while the exterior of the building was completed. The final scaffolding came down in July 2025.

“We had an elaborate canopy system around all the public entrances to the building while we were performing the exterior metal panel scope of work overhead,” says Lanning. “We had to work with the city to develop a plan they signed off on to allow both normal

coming and going as well as emergency egress if needed.”

“When the scaffolding finally came down, it was like the sun had just come out, and people started flowing in to see the building,” recalls Ashley Hakaim, operations manager for Village Green. “People just looked past the scaffolding and didn’t realize it was already open.”

At the rear of the building, a suspended, 50-foot-long skybridge connects the second floor of the apartments to an enclosed parking garage facing Prospect Avenue, operated by ABM.

“Our first residential turnover was in March of 2024,” states Lanning, “and we turned over all the remaining residential spaces in phases. That was another

challenge, as it is with any phased occupancy project. Coordination with the building’s operations team is extremely important just to ensure that you’re doing everything you can to have a minimal negative impact on the building, its tenants and their operations.”

With the turnover in ownership that year, Village Green took over leasing of the property on August 1, 2024.

Hakaim started at the property in June 2025 and says that leasing has gone amazingly well so far.

“There was a lot of holiday traffic, and we don’t really hit the main leasing season until about mid-March,” she says. “However, it was great to be busy in the winter, as people wanted to come see the cool new kid on the block.”

From street to sky: a walkthrough

The main entrance, reception area, mailroom and leasing office are located in the northwest corner of the first floor. The splash of color as you enter will certainly be an eye-opener. While many lobbies are merely to get you from here to the elevators, Skyline 776 invites you to linger, grab a coffee and maybe work or think about your day.

Multiple co-working spaces are available throughout this project. “Those are all used pretty well,” says Hakaim. “We’ve

CASTLE HVAC

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LOFTED LUXURY Apartments (top) begin on the third floor and continue to the 22nd floor. All incorporate a combination of LVT wood-style flooring and plush carpeting (middle), along with granite counters in bathrooms and kitchens (bottom)

got a large conference room on our second-floor amenity space, where we also have worktables on the balcony. A lot of people also work up on the 23rd floor in our Sky Club. We also have a firstfloor conference room, and of course, the lobby. Now that Phoenix Coffee is open for business, you’ll see more people working with their coffee down in the lobby.”

After 17 years on East Ninth Street, Phoenix relocated this year to Skyline 776. Coffee is served from 7 a.m. to 5 p.m. every day.

With the RTA HealthLine running right in front of the building, you’ll find many medical students and law students studying for the bar, working day and night in the co-working spaces.

In the northeast corner of the building, with space on the lower level and the first floor, pet owners have the advantage of Dogtopia, a retail tenant offering a wealth of services, from daycare to spa to overnights. Hakaim says it reminds her of childcare with the doggy valet line as cars line up to drop off their dogs in the morning.

Daniel Dickson explains that the previous developer had the vision and held early discussions with pet-focused commercial tenants, looking for just this type of operation.

Ownership is still seeking the right tenant or tenants for the retail space in the building’s northwestern corner. There are about 8,400 square feet of retail space remaining to be leased across three floors, offering flexibility for a variety of commercial tenants, including food and beverage concepts. They are being intentionally selective as they evaluate opportunities, prioritizing tenants that will create long-term value for residents and the broader downtown community.

The second floor houses the 650-square-foot fitness center, complete with a wall of barbells, kettlebells and yoga balls. Free weights, lifting machines and a large punching bag occupy the south end of the room. A full range of cardio equipment includes bikes, spinners, treadmills, ellipticals and more, all of which offer views of East Ninth Street

and Euclid Avenue from the building’s northeast corner.

An adjoining 500-square-foot multipurpose room is available for classes and private exercise, complete with a ballet barre and a full-height mirror wall. A private wellness room shares the southern wall and opens to both the multipurpose room and a small hallway leading to a glowing red, infrared sauna.

An 18-seat, multilevel theater is located in the center of the building, off the balcony overlooking the first floor. Movie nights are frequent, and the room can be used by residents for private viewing parties.

Apartments begin on the third floor and continue to the 22nd floor.

Residents can choose from 108 studio units – both furnished and unfurnished, of which 70% are already leased. The balance of the building has roughly equal numbers of one-, two- and threebedroom units, with overall occupancy currently at 63%.

There are 22 unique apartment floor plans available, with high-gloss white European-style cabinetry, stainless steel appliances and in-suite washer and dryers.

Mobile, multifunctional granite islands offer great versatility in all kitchens. Granite tops are also used for all kitchen and bathroom cabinetry.

Exposed concrete ceilings are typically nine feet high on the building’s

lower floors, balancing a loft-like appearance with high-end contemporary finishes. Luxury vinyl wood-style floors in living areas pair with plush carpeting in the bedrooms.

For air distribution, rectangular standard ductwork is used wherever it’s concealed, but exposed areas of the suites utilize spiral ductwork.

Partitions between suites are metal studs, with insulation and resilient channel behind the drywall for sound attenuation.

Key fobs enable all doors, elevators and amenity areas. Digital thermostats provide controllable comfort, and 1GB fiber optic cables provide Internet connectivity.

by VillaPic Photography

On the upper floors, future residents can also select from one-, two- and three-bedroom penthouse units with 10- to 12-foot ceilings and upgraded finishes. Views from the top of Skyline 776 are amazing.

“With the sun and the free firework shows all summer, there’s a special entertainment factor for the suites on the south side of the building,” Hakaim says.

Cleveland’s ultimate Sky Club

“Our rooftop pool opened July 7, 2025, and that was a very exciting day for us,” recalls Hakaim. “We typically do about four resident events per month. We’ve done Signature Saturdays with themed

cocktails. For a while, we were doing Spa Tuesdays on every second Tuesday of the month, with complimentary 15-minute

“For all the tours I’ve given to prospective residents, I’d say the tiles, the colors and the textures really are what everyone raves about.”

Ashley

shoulder, neck and back massages. We’ve also done Browns tailgate parties.”

“It was great to see the rooftop so actively used by residents last summer,

and we expect it to be an even more popular gathering spot this year,” Daniel Dickson says. “Rooftop pools aren’t common in the Midwest, so it really stands out as a defining amenity and adds an element of fun.”

The 23rd floor offers a wealth of amenities, besides the amazing 360-degree view of the downtown area. On the west end of the floor, completely open to the sun, is the pool deck, with a three-anda-half-foot-deep swimming pool and a smaller three-foot-deep hydrotherapy pool. Three cabana units provide shade and ceiling fans for cooling at the south end of the pool. Colorful, orange-patterned lounge units line the east and west sides of the pool, while water jets arch gracefully into the center of the pool for a relaxing sound effect.

An oval planter with a tree sits on the outside deck, directly below the large oval cutout on the swooped roof. Other patio furniture, tables, chairs and lounges line the deck facing north. At the east end, there’s a Zen garden with artificial grass for yoga mats and an exterior large-screen TV for self-directed workout sessions.

Inside the Sky Club on the 23rd floor, a long galley-style commercial kitchen is set up for catering events with large granite tops and bar seating. Multiple other

by

ROOFTOP REALM The Sky Club incorporates roll-up glass doors (top) that offer access to a rooftop pool deck (middle) and outdoor lounge areas (bottom), providing a resort-like destination above downtown Cleveland.

types of lounges and banquette seating are available in the large, enclosed room with north and south views. On both north and south walls, 14-foot and 20-foot-wide glass roll-up overhead doors open to allow cross-ventilation during the warmer months.

“For all the tours I’ve given to prospective residents,” explains Hakaim, “I’d say the tiles, the colors and the textures really are what everyone raves about.”

“You don’t realize you’re in Cleveland, you think you’re in Miami,” adds Grady.

“The majority of the tile in the common areas was all imported from Italy, from a company called Bisazza,” continues Lanning. “BKV Group of Minneapolis worked it into the interior design for floors one, two and 23.”

Reflections on success

“One of my favorite things was when we would come across an issue, we’d just get everybody together and come up with a solution and keep the job going,” recalls Grady. “This was a great team of people to work with.”

“As a Cleveland-based company,” adds Lanning, “we’re extremely thankful and fortunate to be involved in potentially one of the last high-rises to be built from the ground up in the interior of downtown Cleveland, unless someone knocks down an existing building. So, it’s a very cool project for us, and we’re thankful to have been able to do it.”

Hakaim recalls the excitement when the coffee shop finally opened in the lobby. “Now that they are open, it feels very complete, very homey,” she says. “It’s our own community now.”

“Like many large projects, we faced challenges around schedules and changing conditions as the project progressed,” Daniel Dickson concludes, “but we had strong partners in Vocon and Cleveland Construction to navigate those challenges. Overall, we remain optimistic about the Cleveland market and downtown community, and we’re proud to be part of it.”

FINANCIAL STRATEGIES

Smart use of fiscal planning & action

The Song Remains the Same

Life is funny sometimes, especially when considering the concept of time. There are instances where five minutes seems like five years but also instances where five years seems like five minutes. I realized this when having a conversation recently with several people about the numerous properties that have fallen into the receivership/special servicing quagmire as a result of issues with associated CMBS loans. But as the discussion unfolded, I was greeted with blank stares and realized that the great financial crises that some of us lived through didn’t happen a couple years ago but rather many years ago.

This month, I’m going to revisit the basic structure of a CMBS loan, including the good, the bad and the ugly. So, if you need a refresher on this interesting and dynamic sector, read on.

CMBS is an acronym for a commercial mortgage-backed security. At its heart, any mortgage can be considered an investment and a CMBS loan is no different. This sector was created by a financial whiz kid by the name of Ethan Penner way back in the early 1990s. During those times, the mortgage market was still feeling the effects of being rocked by the savings and loan crises that began a few years prior, and liquidity was very tight. Penner, through his company Capital Company of America-turnedNomura Capital, saw an opportunity to help fill this void of liquidity with a unique approach. A traditional mortgage

is provided by an investor, usually a bank but also can be a pension fund, a life insurance company, even a cash-strong individual. In exchange for providing a loan, the investor (the lender) receives regular repayments from the borrower. They also generally have a collateralized interest in the underlying real estate so in the event the borrower defaults, the investor is afforded a path of protection.

A CMBS loan has several similarities but also some key differences. The biggest difference is the basic structure. A traditional loan usually has one borrower, one property and one investor. But a CMBS loan is part of a much larger CMBS issuance, which has many borrowers, many properties and many investors. The key is a process called “securitization,” which was developed by Penner.

Here is a simplistic example of how this process works. Jim is buying a shopping center in Cleveland, Mary is buying an office building in Columbus and Frank is buying an industrial building in Cincinnati. Instead of each getting a separate loan for their specific property, each is getting a CMBS loan, which groups all three of these properties into one big pool, called an issuance. And instead of having one primary investor that provides the money for these three loans, it is sold off to individual bond holders through the securitization process. Suppose Jim needs a $5 million loan, Mary needs a $15 million loan and Frank needs a $10 million loan to buy their individual properties. Penner steps in, takes that $30 million pool to the public debt market and slices it into bands, called “tranches,” which are securities that are differentiated by risk and reward.

These securities operate just like a bond, with a pay rate based on the associated credit of that specific security over a defined period of time. The highest rated tranche, the “AAA” securities, have the lowest yield but also have the lowest risk. More on that risk thing in a minute but let’s assume $2 million of these securities are sold in the public markets with a pay rate of 3.5%. The next highest tranche, the “AA” securities, have a little higher yield as they have a little more risk and let’s assume another $3 million of these are sold at a pay rate of 3.75%.

The overall $30 million securitization issues continue to be divided up in this manner, with each tranche having slightly higher risk accompanied with slightly higher yield; “A” securities, then “BBB,” then “BBB-,” then “BB,” then “B” and finally “Unrated,” which say tops out at 10%.

Once the $30 million of total securities are sold, that is the money used to fund the $30 million of debt needed by Jim, Mary and Frank. Finally, let’s assume their individual loans have an associated interest rate of 6.5%.

Frank, Mary and Jim start to make their loan repayments each month. These repayments do not go back to pay the individual mortgages but rather to fund all of the yields for the individual associated security tranches. And here is where the risk steps in. The first in

What I C @ PVC

PARKING IT A parking deck in Cleveland’s CBD was sold at the end of last year for $7 million. Known as the Huntington Garage, the 1,110car, four-floor structure is situated between Ohio Savings Plaza and 1111 Chester Ave. and across the street from the Centennial, formerly known as the Huntington Building. The seller, Palatine Capital Partners, paid $16 million for the property in 2015. –AP

line to get paid are, you guessed it, the holders of the AAA securities. The next in line are the AA securities, followed

Last

by A, BBB, BBB-, etc. And the last in line are the BB, B and finally Unrated securities. You may be thinking “where is the risk?” So long as Frank, Mary and Jim make their scheduled payments, life is good. But suppose that Jim loses his anchor tenant due to bankruptcy. The corresponding loss in rent causes him to not have enough income to pay the mortgage and his loan becomes delinquent. Frank and Mary are still making their loan payment so the securities at the front of the line, the AAA, AA, A, etc., will be safe. But by the time we get to the securities near the end, the BB, B and Unrated, the money runs out.

The losses associated with Jim’s delinquency are recognized the exact opposite of the payments; losses are first charged to the lowest rated securities, the Unrated, then the next lowest, the B securities, etc.

And things get even more sticky if Jim’s delinquency turns into a default on his $5 million loan. A CMBS loan carries no personal recourse back to the borrower. Since there is not one lender holding Jim’s mortgage but rather a series of bondholders owning various securities across the entire CMBS issuance, a receiver and special servicer will step in. The receiver is responsible for maintaining the condition and operations of the

asset while the special servicer manages and resolves distressed or defaulted loans within a CMBS issuance. My example is simplistic. An actual CMBS issuance will include 75, 100, even 150 individual properties and total hundreds of millions of dollars.

Last year, total CMBS volume topped $125 billion, which is the highest since 2006. Those of us who were around back then, especially in the years that followed, well remember what the commercial real estate sector was like when things went south. The industry learned a lot of tough lessons and there have been numerous safeguards subsequently instituted.

But here we are again.

I recently saw an article about Ethan Penner, who is running for governor of California under an independent platform. Maybe he’s heard this song before too.

Alec Pacella, CCIM, president at NAI Pleasant Valley, can be reached by phone at 216-455-0925 or by email at apacella@ naipvc.com. You can connect with him at www. linkedin.com/in/alecpacellaccim or subscribe to his youtube channel; What I C at PVC.

Commercial real estate happenings

Modernize or Miss Out: Real Estate’s AI-Driven Future

Artificial intelligence isn’t coming to real estate. It’s already here. From asset management to investor engagement, AI is actively reshaping how firms operate. But while the potential is vast, its power depends on having the right digital foundation. In a market defined by uncertainty and rising expectations, real estate firms must act now to modernize or risk falling behind.

With deal flow stagnant and heightened investor scrutiny, firms are turning inward to optimize operations. They are leveraging technology to automate manual processes, reduce overhead, deliver faster and more accurate reporting, gain realtime insights into asset and portfolio performance and strengthen cybersecurity and compliance.

Manual workarounds and fragmented systems slow teams down and introduce risk. Without a unified technology strategy, firms face delayed decisions, increased labor costs, compliance gaps and eroded investor confidence. In contrast, firms that embrace digital transformation are already seeing returns, including improved data accuracy, faster business

decisions and readiness to adopt emerging technologies like AI.

Setting a digital foundation

Digital optimization drives efficiency today and sets the stage for tomorrow’s innovation. As AI rapidly reshapes the real estate landscape, firms that have modernized their systems are better positioned to leverage emerging tools like predictive analytics, generative AI and intelligent automation.

Successful AI implementation requires a comprehensive approach. To unlock AI’s full potential, real estate firms need a strategic digital foundation rooted in clean, connected and well-governed data and supported by systems that can scale and adapt. Building a unified foundation

entails integrating platforms, automating workflows and enabling real-time visibility across operations.

Strategic priorities that will help drive AI readiness include:

• Aligning technology investments with long-term business goals

• Automating compliance and reporting to reduce risk and manual effort

• Deploying real-time dashboards for data-driven decisions

• Optimizing enterprise resource planning systems to maintain data integrity

• Outsourcing high-impact functions to focus internal resources on innovation

Strategies for operational efficiency

Over the past decade, many institutional organizations within the real estate industry have established offshore operations to take advantage of the discounted labor costs. The fractional costs have been methodically built into investment proformas. The risks of imposed tariffs on outsourced labor are prompting real estate firms to reduce their reliance on offshore and explore technology solutions that support local job creation.

Others across the industry have established affiliate structures to service only intercompany operations. These structures enable the centralization and standardization of services provided to a portfolio of real estate companies – a strategy that creates a single, shared platform for corporate services, increasing efficiency and promoting continuous innovation.

AI is already transforming how real estate firms underwrite deals, manage assets and engage investors. But despite AI’s advanced capabilities, the technology doesn’t operate in complete isolation or function effectively without a strong digital foundation.

By taking steps now to streamline operations, integrate platforms and clean up data, firms can unlock immediate value and efficiently plan for the future.

Tammy Greber is managing director, tax and Matt Riccio is national real estate consulting leader with RSM US LLP (www.rsmus.com). For information on NAIOP Northern Ohio, visit www.naiopnorthernohio.com.

us at

Don’t be afraid of the environmental emergencies that may be lurking around the corner at your site.

EA Group has been providing hazardous materials assessment and management services to the construction and real estate industry for over 40 years. We can evaluate your site, prepare abatement plans and monitor the remediation work. Put our team to work early to avoid environmental emergencies that can cause costly delays and unexpected liabilities. We offer:

• Pre-Construction Hazardous Materials Surveys

• Abatement Design and Management

• Air Monitoring and Exposure Assessment

• Mold Assessment and Remediation Management

EA Group can take the fear out of unforeseen conditions that cause costly delays and keep your project running smoothly.

ACAR CORNER

Issues in the real estate industry

What to Do When Your 1031 Exchange Falls Through

Afailed exchange doesn’t mean financial disaster. A 1031 exchange, named after Section 1031 of the Internal Revenue Code, allows real estate investors to swap one investment property for another while deferring capital gains taxes. Of course, the magic of exchanges is the ability to use real estate investment the way some people use tax-deferred retirement accounts, such as 401(k)s and traditional IRAs. With the ability to roll proceeds from a property sale into new property investments, clients build wealth and avoid paying capital gains taxes on sales gains until their final sale.

However, sometimes a 1031 exchange transaction will fail. An estimated 8%-10% of 1031 exchanges fail to complete. The most common reasons include:

• Missing the IRS’s 45-day deadline for identifying a replacement property

• Failing to close on the replacement property within the 180-day limit

• Inability to find suitable like-kind replacement property

• Replacement property value falls short of the relinquished property

When that happens, the real estate investor may face a sizable tax bill. But

a failed exchange doesn’t have to mean financial disaster. There are strategic ways to minimize the damage, particularly through tax straddling and the installment method.

The tax straddling strategy

When you sell property within 180 days of the end of the year, the like-kind exchange is not required to be completed before the end of the year. This means the exchange will carry over from one tax year to the next and is often referred to as a “tax straddle.”

A qualified intermediary (QI) holds the proceeds from the sale during the period before the replace-

COMMERCIAL FACILITY SERVICES

ment property is purchased. In the case of a tax straddle, the proceeds from the sale would not be released from the QI to the taxpayer until the subsequent year.

This timing difference can be a game changer for your tax liability.

The installment method

If the taxpayer fails to complete their Section 1031 exchange, the installment method can allow them to defer paying capital gain taxes from the sale of an investment property. Under the installment method, gains from a sale are recognized in the year cash is received by a taxpayer.

This one-year deferral can provide significant tax planning opportunities and breathing room to manage the impact.

The installment method is only available to taxpayers who make a bona fide attempt to complete the like-kind exchange. It is not available when there is no intention of purchasing replacement property. Without proper documentation, the IRS may disallow the installment method treatment.

Keep detailed records of the exchange attempt, including communications with real estate professionals; property identification documents; inspection reports and due diligence materials; and an explanation of why the exchange failed.

When you can still save it

Not every exchange failure is permanent. Depending on your situation, you might be able to salvage the transaction:

Partial 1031 Exchange: A partial likekind exchange requires investors to pay capital gains taxes on the boot but allows them to defer the tax liabilities of the portion used to purchase the replacement property.

Multiple replacement properties: Purchasing multiple replacement properties can help ensure there are no proceeds left over after the transaction is complete.

Tax straddle windows

There are two ideal windows of opportunity for selling a property with the

intention of completing a 1031 exchange. One is the period from November 17 through December 31 (the last 45 days of the tax year). If the sale of your

relinquished property closes during this window and you fail to properly identify replacement properties by Day 45, you won’t take receipt of funds until after the first of the year.

Tax straddling is also possible for sales that close between July 5 and November 16. In these cases, if you are able to identify replacement properties, yet unable to complete your acquisition, Day 181 will fall after the first of the year.

Remember: a failed 1031 exchange isn’t the end of the world. With proper strategy and professional guidance, real estate investors can still minimize their tax liability and position themselves for future success.

Jeannet Wright (Berkshire Hathaway HomeServices Professional Realty) is 2026 president of the Akron Cleveland Association of Realtors (ACAR). This article was reprinted with permission from www.nar.realtor. For more information, visit www.akronclevelandrealtors.com.

McMahon Masonry Restoration

Cleveland Chemical Pest Control

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ACAR Installs 2026 Officers & Board of Directors

At its annual inaugural event in early January, the Akron Cleveland Association of Realtors (ACAR) installed its new 2026 officers and board of directors. Newly elected members will serve on the board of directors for terms beginning in 2026. Directors hold their positions for three-year terms.

Newly installed officers include President Jeannet Wright (Berkshire Hathaway HomeServices Professional Realty), President-Elect Amanda Pohlman (Keller Williams Living), Treasurer Melissa Mentzer-Henninge (Howard Hanna) and Immediate Past President Drew Gaebelein (Keller Williams Living).

ACAR members who will be serving on the board in 2026 include Deborah Bishop (Howard Hanna), Alex Cruz (Berkshire Hathaway HomeServices Professional Realty), Michelle E. Davis (Dream Team Realty, Inc.), Anthony Geraci (Century 21 HomeStar), Felicia Hengle (Coldwell Banker Schmidt Realty), Karen Jindra (Farmers National Bank), Cindy Kelly (RE/ MAX Crossroads Properties), Kady Overton (Howard Hanna), Steve Spinelli (Keller Williams Chervenic Realty), Rick Tannenbaum (Keller Williams Living), Keisha Wagner (Keller Williams Living) and Seth Young (Century 21 Premiere Properties).

SMDK Celebrates 25 Years, Names New Co-Presidents

Singerman, Mills, Desberg & Kauntz Co., L.P.A., a Northeast Ohio real estate, business and litigation boutique law firm, is marking

its 25th anniversary while announcing a leadership transition intended to support the firm’s continued growth. As of January 1, 2026, Ronald J. Teplitzky has concluded his six-year term as president and has returned his full focus to

client work. During his tenure, the firm continued to expand its practice and deliver legal services across its core markets.

The firm’s principals have elected Christopher O’Connell and Evan S. Hirsch to serve as co-presi-

dents, a structure intended to leverage their complementary skill sets and longstanding collaboration. In their new roles, O’Connell and Hirsch will jointly oversee strategic direction, operations and client service initiatives, while continuing their active legal practices. Paul J. Singerman will remain chairman, providing continuity and strategic guidance as the firm enters its next chapter.

Founded in 2001, Singerman Mills has built a regional reputation advising clients on complex real

estate, business and litigation matters

Fortney & Weygandt Welcomes Two New Hires

Fortney & Weygandt recently announced the addition of two profession-

als to its leadership team, strengthening the firm’s business development and marketing capabilities.

William Green has joined the Cleveland-based general contractor as business development manager. He brings more than 18 years of experience in business development and product marketing across the manufacturing and engineered products sectors. In his role, Green will focus on expanding national account relationships, supporting preconstruction and estimating efforts, and cultivating long-term partnerships with owners and developers. He holds a degree in mechanical engineering from Cleveland State University.

Rachel Dupuis has been named marketing manager, bringing more than a decade of experience within the A/E/C industry. She will lead the firm’s marketing and branding initiatives, including proposal development, digital content and strategic mes-

saging in support of business development efforts.

Dave Potts Named Partner at +Detail

Cleveland-based architecture and interior design firm +Detail announced that Dave

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Potts, AIA, ACHA, LEED

AP has joined the firm’s leadership team as a partner, joining Jen Minotas, IIDA, and Grace Jones, AIA, as the practice advances its next phase of growth.

Potts has been a key contributor to +Detail’s

work, with experience across healthcare, education and community-focused projects. The expanded leadership team supports the firm’s broader strategic plan, which includes intentional growth, continued advancement of its healthcare design practice, research-driven work and expansion into new geographic markets where the firm already maintains an active project presence.

Frantz Ward Promotes Five Attorneys to Partner

Frantz Ward recently announced that five attorneys have been promoted to partner, effective January 1, 2026, reflecting the firm’s continued growth across construction,

real estate, litigation and labor and employment practices.

Andrew M. Hanna focuses on construction law, representing owners, contractors, design professionals and sureties throughout the project lifecycle, with additional experience in real

estate and community association matters.

Bradley N. Ouambo concentrates on construction law and related litigation, guiding clients through contract review and complex disputes across construction, transportation and real estate sectors.

Jonathan M. Scandling represents management in labor and employment matters, including discrimination, wage and hour claims, collective bargaining and public-sector labor issues.

Mia L. Garcia advises clients in the cannabis and hemp industries on regulatory compliance, licensing, zoning and transactions, representing operators in both medical and adult-use markets.

Meghan C. Lewallen brings more than a decade of litigation experience in state and federal courts, representing businesses nationwide in general commercial, transportation, real estate brokerage defense and employment disputes.

Cleveland Attorneys Elevated to Hahn Loeser Partnership

Hahn Loeser & Parks LLP has promoted Rachel E. Kolecky and Katie L. Steiner to the firm’s partnership, effective January 1, 2026. Both attorneys are based in the Cleveland office and bring

extensive experience serving clients in Northeast Ohio’s construction, real estate and nonprofit sectors.

Kolecky specializes in trucking and transportation law, advising national clients on contracts, negligence and Carmack Amendment issues. Her civil litigation background includes personal injury cases and jury trials, as well as prior experience as a municipal court assistant prosecutor.

Steiner is a member of the Nonprofit & Art Law group, representing museums, foun-

News about people, products, places & plans

dations, trusts and private collectors on corporate governance, acquisitions, lending, endowments and complex art-related legal matters, including cultural-property claims and loan agreements. She also supports Hahn Loeser’s Restructuring, Bankruptcy and Insolvency practice.

With approximately 150 attorneys across eight offices, Hahn Loeser advises developers, construction companies, healthcare facilities and other businesses on complex projects, financing

and regulatory matters. The firm’s Cleveland office continues to serve as a hub for legal expertise in real estate development and construction throughout Northeast Ohio, supporting both local projects and regional investment initiatives.

Call Opens for Green Building Challenge Entries

The Cleveland 2030 District, in partnership with the Northeast Ohio Chapter of the U.S. Green Building Council (USGBC), has opened submissions for its annual Green Building Challenge, inviting Northeast Ohio’s architects, developers, building owners and project teams to enter exemplary construction and renovation projects that demonstrate leadership in sustainability.

All retrofit, renovation and new construction projects completed in Northeast Ohio between January 2023 and December 2025

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can be submitted. Entrants may compete in multiple categories — including Energy Conservation, Water Management, Transportation Emissions Reduction and Healthy Buildings — and projects entered in more than one category may be considered for overall honors.

The deadline for submissions is February 20. Winners will be recognized at an event on Thursday, May 14, 2026.

Recent Green Building Challenge winners have included high-performance projects such as the Cleveland Museum of Natural History, which has been celebrated for energy-efficient design.

This annual initiative highlights the region’s growing commitment to sustainable, high-performance buildings and reinforces Northeast Ohio’s role in advancing green building practices in the built environment.

SBM Engineer Erica Knotts Earns PE License

Scheeser Buckley Mayfield (SBM) recently announced that mechanical engineer Erica Knotts has earned her Professional Engineer (PE) license in Ohio. Knotts has been with the Akron-based multidisciplinary consulting engineering firm for three years and previously

completed multiple co-op rotations with SBM while earning her degree from The University of Akron. During her tenure, Knotts has contributed to projects for a range of institutional and industrial clients,

including Bowling Green State University, the Ohio Department of Rehabilitation and Correction’s Dayton Correctional Institution, Aurora Flight Sciences, King’s Daughters Medical Center in the U.K., Kent State University and the Cleveland Clinic.

In addition to her project work, she has taken on a leadership role within the firm, overseeing the recruiting, training and assignment of SBM’s co-op students.

Smarter Air Starts Up Here

• Smart controls

• Application-driven design

• Inverter-driven efficiency

• Quality construction

ACP On Site keeps your systems efficient, reliable, and ready when it matters most, because consistent performance isn’t a luxury, it’s a need.

Start up & Commissioning Services include:

• Equipment Testing to verify proper operation

• Performance Verification against design intent

• System Optimization for long-term efficiency

Start-up & Commissioning

Bringing new HVAC equipment online and verifying proper operation per manufacturer specifications.

Maintenance Team Training

Teaching in-house staff how to inspect, clean, and maintain equipment for optimal performance.

Adjustments & Calibrations

Fine-tuning equipment settings, sensors, or control systems to ensure accurate and reliable operation across all components.

Issue Troubleshooting

Diagnosing irregular fan speeds, airflow imbalances, or equipment alarms on-site.

Designing for Dignity

Hitchcock Center for Women completes next phase of care + housing

By Scott Esterly | Photos by Scott Esterly & Jason Smalcer

For more than four decades, Hitchcock Center for Women has operated from its longtime home on Ansel Road in Cleveland’s Glenville neighborhood, providing women-only substance use disorder treatment. Last autumn marked a major turning point for the organization, as it opened a new purpose-built facility which expands that mission and transforms the site into a more comprehensive treatment and housing campus.

Located adjacent to Hitchcock’s existing building, the new 75,607-squarefoot, four-story structure adds modern residential treatment space and longterm affordable housing, allowing the organization to separate programs that once shared tight quarters while increasing capacity and improving care. Together, the existing facility and new addition function as a unified campus, supporting women through multiple stages of recovery.

While the new building presents as a single structure, it accommodates two distinct but complementary functions. One portion houses Hitchcock’s 32,703-squarefoot, 24-hour residential treatment program, designed specifically for women in recovery. The other contains Hitchcock Gardens, a 42,904-square-foot residential component offering 53 units of stable, long-term living options that

operate independently from Hitchcock’s treatment services.

Background + context

The Hitchcock Center for Women was founded in 1978 by Jayne Mazzarella,

operated continuously from its Ansel Road location, the former 1920s-era St. Mary Seminary building that initially fit Hitchcock’s mission and scale.

“We’re in a 100-year-old building next door, and the deferred maintenance issues, and just the age of the building, is a constant struggle to keep up with it,” says Brian Merlini, the CFO and co-interim CEO for Hitchcock Center for Women.

“Our design and construction team was inspired by Hitchcock’s values of empathy, personalized support, compassion and respect and was dedicated to creating a facility which embodies those values.”

Chip Marous Marous Brothers Construction

who recognized a need for a strictly women-only program to treat alcoholism at a time when few such services existed. Since then, the organization

Hitchcock is licensed for 30 residential treatment beds, a capacity that had long served the organization well. Space constraints eventually limited adaptability however, while shared areas and outdated layouts made it harder to deliver care in ways that aligned with evolving best practices.

“We had been talking about putting up a building for the last seven, eight years,” Merlini explains. “Maybe eight

by Jason Smalcer

THE HITCHCOCK CENTER FOR WOMEN

OUR FUTURE IS BUILDING

Marous Brothers Construction was honored to serve as Design-Builder for the Hitchcock Center for Women.

CREATING A CAMPUS The existing 1920s-era former seminary (bottom left) and the newly

together as a unified campus, supporting women through multiple stages of recovery

years ago, the Finch Group, the developer, reached out with an idea to put up a new building. The stars didn’t align, and for whatever reason, it didn’t come to fruition.”

As those early efforts stalled, pressures inside the existing facility continued to mount. Regulatory expectations were changing, particularly around the separation of residential treatment and recovery housing. Functions that had once been more flexible now required clearer physical and operational boundaries. The question then shifted from whether Hitchcock should build something new to whether it could afford not to.

“The timing has been very fortuitous for us,” says Merlini.

Project funding + sources

“You can’t put a building up without the funding,” says Merlini, noting that the project depended on aligning multiple public, private and philanthropic sources, each with its own requirements.

Although the building reads as a single facility from the street, the residential treatment center and affordable housing components operate under entirely different funding and regulatory frameworks. To make that possible, the project team divided the site into three distinct parcels, which allowed

each component to pursue its proper financing path.

On the residential treatment side, Cuyahoga County contributed $3.79 million, while the City of Cleveland provided $3.5 million. Additional philanthropic funding included $2.5 million from the Cleveland Clinic Foundation and $125,000 from the Higley Fund of the Cleveland Foundation, collectively supporting the clinical portion of the project, which is regulated and operated as a 24-hour residential treatment facility.

The affordable housing component – Hitchcock Gardens – followed a separate financing track. Merlini notes that

by Jason

bond financing arranged through the Ohio Housing Finance Agency, in conjunction with Fifth Third Bank, was instrumental, along with a significant portion of Low-Income Housing Tax Credit equity.

“A lot of political weight was behind this building,” says Merlini, underscoring the importance of local backing in navigating approvals and sustaining momentum.

Team + timeline

“They wanted this to be a designbuild from the beginning,” says Jared Freeman, general manager of the Design-Build Group at Marous Brothers Construction. Marous was engaged in July 2022 and brought on early to lead the design-build process, which allowed the team to develop drawings and budgets in parallel rather than sequentially.

The Marous project team also included Arne Goldman, director of business development; Carter Edman, director of design; Rusty Lytle, director of preconstruction; Dave Roberts, director of construction; Chad Steffens, director of field operations; Chuck Tackett, project architect; Jeff Michels, project manager; Mike Kolenz, scheduler; and Bill Wolff, superintendent. Together, the team coordinated design, construction and field execution across the project’s dual program requirements.

BALANCED LIVING

The facility’s housing component includes private rooms with practical furnishings (top, middle) and access to a fitness room (bottom), supporting dignity, stability and wellness.

Construction formally began on April 29, 2024, with vertical construction starting in June. The overall build-out spanned approximately 14 months, with substantial completion and the certificate of occupancy received on September 29, 2025. Occupancy of the affordable housing portion of the building began at the end of October 2025, while the residential treatment center followed shortly thereafter in December.

The construction process

“The biggest challenge of this project is that it is actually two buildings – the supportive housing and residential treatment areas are two

“The biggest challenge of this project is that it is actually two buildings.... So, on one site, we have two different funding stacks and two different schedules, all tracked separately while being built simultaneously.”

Jared Freeman Marous Brothers Construction

independent structures on two parcels, separated by a fire wall,” says Freeman. “So, on one site, we have two different funding stacks and two different schedules, all tracked separately while being built simultaneously.”

Before construction could begin, the site itself demanded careful preparation. The parcel had long functioned as open space, accumulating remnants of prior uses over time.

“This was originally a field with an old greenhouse on it,” says Merlini. “There was a little playhouse, a swing set and a racquetball court that hadn’t been used in years.”

Underground stormwater detention was placed beneath the parking lot, a solution shaped in part by fire access requirements and limited site area.

“Once they put the detention in, you couldn’t have construction traffic on top of it until the parking lot was paved,” says Michels.

Construction began on the affordable housing portion first, using the firewall as a clear dividing line between the two buildings. Panelized wood framing was selected for the superstructure, allowing crews to move quickly through vertical construction while maintaining consistency across both components.

The foundation design varied significantly across the footprint. The clinical side of the building required a deeper foundation due to the inclusion of an elevator core, along with associated structural steel elements. The variation across the two sides of the building added complexity

to early phases of work and required close coordination between trades as construction progressed.

Material selections were driven by durability, constructability and longterm maintenance considerations appropriate for a 24-hour facility. The building combines concrete and

structural steel with wood framing, CMU and brick masonry, aluminum composite exterior panels and a TPO roofing system.

Life-safety coordination led to some of the most visible refinements during construction. Working closely with the fire department, the project team

by Jason Smalcer

revisited access to the central courtyard, ultimately adjusting the design to replace solid masonry walls with fencing and controlled gates. This solution maintained security and openness while meeting code requirements, underscoring how ongoing collaboration with life-safety officials helped strengthen the project even as construction was underway.

The build was not without disruption. A union work stoppage paused progress for approximately three weeks, and procurement delays for some electrical gear required schedule adjustments. Throughout the process, Hitchcock remained fully operational within its existing facility next door. This added another layer of coordination, including temporary relocation of gates and security infrastructure, to ensure uninterrupted services and controlled access.

Final design

The new expansion at Hitchcock Center for Women is a contemporary structure with a long L-shaped footprint. Variations in exterior color and material temper its scale and avoid a monolithic appearance.

The exterior blends warm wood-tone panels with light gray and beige clad-

ding, anchored by a dark vertical core that contains stairwells and circulation. Consistent window spacing reinforces a residential feel rather than an institutional one.

Black metal fencing defines the site while keeping the building visually connected to the surrounding neighbor-

“The plan interior-wise was to be very modular. It’s bright, it’s sunny and conducive to therapy. There’s art everywhere you look.”

Brian Merlini Hitchcock Center for Women

hood and nearby green space. Mature trees and landscaped setbacks soften the edges and help the project fit naturally into the streetscape.

A covered entry canopy and generous ground-floor windows signal daily activity and accessibility on the clinical side. Benches and picnic tables set along paved walkways create shared outdoor space that supports resident interaction. The same materials used on the street side carry through to the courtyard, giving the develop-

ment a consistent, unified look. The Hitchcock Gardens units are accessed through an entrance in the rear of the property where the freshly paved parking lot in located.

The architecture emphasizes durability, comfort and dignity, aligning the physical investment with Hitchcock’s mission and underscoring the project’s role as a long-term asset for the organization and the surrounding community.

Security was carefully integrated without making the facility feel closed off. “It’s still secure, but it’s visually more open,” says Michels.

Inside, flexibility and light guided planning decisions.

“The plan interior-wise was to be very modular,” says Merlini. “It’s bright, it’s sunny and conducive to therapy. There’s art everywhere you look.”

Tour of the building

Entry into the clinical side of the building is carefully structured around privacy and safety. Visitors arrive through a secure entrance into a main reception area, which serves as the first point of contact between residents and Hitchcock staff. General information is exchanged here, while a separate intake suite located just off the lobby allows for

CARE CONNECTIONS From the intake suite (top) that begins the treatment journey to community rooms (bottom) that encourage interaction, interior spaces reflect Hitchcock’s continuum of care.

more confidential conversations and assessments. From intake, residents move directly into the interior treatment areas.

The main lobby also includes a dedicated visitation room, providing a controlled space for residents to meet with family members and outside support services. On the first floor, clinical and operational functions are supported by staff offices, a kitchen and dining room and an on-site Cleveland Clinic childcare center, a critical amenity for mothers in treatment.

Residential floors above represent a major shift from Hitchcock’s existing facility. Private rooms with en-suite bathrooms replace shared accommodations, alongside group therapy rooms, laundry facilities and shared lounge spaces. Hitchcock remains one of the few programs in the region that allows children up to age 12 to stay on-site with their mothers.

Hitchcock Gardens operates through its own entrance and lobby, accessed from the parking lot in the rear of the property. The lobby includes a property manager’s office, mailroom and seating. Residents have access to laundry facilities, bike storage, a fitness room and two community rooms, one of which includes a larger gathering space with a full kitchen. All 53 affordable housing units are currently occupied, many by women who previously completed treatment at the Hitchcock Center, underscoring the project’s long-term continuum of care and stability.

Looking ahead

Already being addressed is the existing 100-year-old building’s deferred maintenance. Hitchcock is replacing a failing water meter and vault, repairing a broken steam line beneath the floor slab and finishing a secondary boiler installation to ensure redundant heat for women and children living on-site.

Hitchcock has also recently completed a bathroom remodel for the recovery housing side and is planning

a new kitchen facility. With residential treatment, therapy and staff now shifted into the new building, Merlini says the older building’s day-to-day load will drop significantly, creating an opportunity to appropriately upgrade the historic structure rather than simply keep it operational.

Early returns

“Marous Brothers Construction is thrilled to be able to support the Hitchcock Center for Women in the vital mission to assist women on their paths to recovery and wellness,” says Chip Marous, CEO/president. “Our design and construction team was inspired by Hitchcock’s values of empathy, personalized support, com-

passion and respect and was dedicated to creating a facility which embodies those values. This will be a place of hope, togetherness and safety for many years to come.”

“We’ve had a great team between the developer, the Finch Group and Marous Brothers Construction,” says Merlini.

“Everybody was pulling in the same direction,” adds Edman.

Taken together, the Ansel Road expansion represents a long-term investment in stability, dignity and recovery, delivering modern facilities that strengthen Hitchcock’s ability to serve women and families well into the future.

“It didn’t take long for us to get into a routine over here,” says Merlini. “As far as our clientele, they absolutely love it.”

by Jason Smalcer

by Scott Esterly

Legal Services + Risk Management

When Contractors Inadvertently Accept Design Risks

A look at how ‘helping’ the design can create unintended liability

By Jordan D. Weeks Frantz Ward LLP

We’ve all been there. You’re reviewing the design documents, but you find an ambiguity. Maybe a detail calls for a steel beam, but it doesn’t include load values or types of connectors. The project has a deadline, steel beams have lead times and you don’t want to rock the boat with the owner, the architect or any of the other parties on the project. So you decide to resolve the ambiguity yourself and order steel beams you think fit the bill.

Maybe you finish the project on time. But in doing so, you may have inadvertently performed design work, and you have undertaken significant risks. This type of scenario occurs daily, and members of the construction industry must understand the liability assumed when a contractor inadvertently performs what could be considered design work.

General obligations regarding design

In general, a contractor does not have design responsibility. A contractor must perform the work in accordance with the design documents, which are typically prepared by another party. AIA A201-2017 § 1.2.1 obligates a contractor to perform only to the extent consistent with (and reasonably inferable from) the design documents.

Typically, if an owner provides the contractor design documents, the owner impliedly warrants that the details in the design documents are full and accurate, free from defects and sufficient for the timely completion of the project. For government contracts, this is known as the Spearin doctrine. For private projects, the contract will usually describe the owner’s obligations for design. AIA A201-2017 § 2.3.2 requires the owner to retain an architect. The architect is considered the owner’s agent, so a contractor’s claim for deficient design will typically be made against the owner.

Many contracts require the architect to approve design changes and submittals. For instance, AIA A201-2017 § 4.2.7 requires the architect to review and

Jordan D. Weeks

approve contractor submittals, which include shop drawings. As a result, the architect incurs some risk of a design failure if it approves the contractor’s

If a contractor elects to fill in the ambiguities of a design document or makes changes to the design, the contractor risks significant, likely uninsured, liability.

shop drawings. Note, however, that the contractor is not relieved of liability for errors and omissions just because the architect approves a shop drawing (AIA A201-2017 § 3.12.8).

Design risks for contractors

If a contractor elects to fill in the ambiguities of a design document or makes

changes to the design, the contractor risks significant, likely uninsured, liability.

Rejection of work

In some instances, an owner or architect can reject the contractor’s work if it deviates from the design documents. AIA § 4.2.6 enables the architect to reject work that does not conform to the contract documents, which include the plans and specifications. As such, if the contractor’s interpretation of the ambiguity does not meet the intent of the design, then the architect could reject the work.

Assumption of liability

A contractor can also assume liability for negligent design. Typically an architect is responsible if the design fails, along with the delays or damages that follow. But if the contractor modifies the design, then they may incur the risk of a faulty design. If the owner finds that the modifications to the design are deficient, then the contractor may need to rectify them.

Insurance gaps

The design team typically has their own professional liability insurance coverage, which will insure the designer against claims resulting from the designer’s negligence, errors and omissions. A contractor typically obtains a general liability insurance policy, which insures the contractor against claims for property damage or bodily injury. A contractor’s general liability policy, however, rarely covers claims against the contractor for negligent design (absent a specific endorsement or separate professional liability policy). So the contractor likely will not be insured for any

Where Concrete Meets PRECISION

SIGNAGE SOLUTIONS

errors in their changes to the work that could be deemed changes in design.

Reducing the risk of design

Contractors should avoid accepting responsibility for design to the extent that they can, including but not limited to:

• Providing contractual notices of any design discrepancies or ambiguities as soon as the issue arises,

• Submitting a request for information if a design document is inconsistent, incomplete or otherwise ambiguous,

• Obtaining approval, in writing, from the design team before implementing

A contractor’s general liability policy... rarely covers claims against the contractor for negligent design (absent a specific endorsement or separate professional liability policy).

any substitutions or interpretations of any ambiguities,

• Consulting with their insurance broker before implementing the solution to verify whether the work would be insured, and

• If the owner or design team directs the contractor to perform different work, obtaining this instruction in writing and in accordance with the contract’s process.

Design ambiguities are a common source of disputes among contractors, owners and designers. If you have questions, make sure to communicate with experienced counsel who understand the unique demands and risks of the construction industry.

Jordan D. Weeks is experienced in litigating construction matters from pleadings through trial and has secured favorable rulings on summary judgment and at trial in several complex cases. He prepares cases for trial, drafts pleadings in

tion and strategically reviews contracts. For more information,

www.frantzward.com.

Roger

Legal Services + Risk Management

Cyber Insurance – Lessons Learned Managing tech threats in an era of ransomware & payment fraud

By Chris Black AssuredPartners, a Gallagher Company

Large-scale data breaches and cyber hacks make the news quite often these days. A quick internet search of the term “data breach” is sure to bring up many different news articles from various sources, about different organizations. Most of these stories on major news outlets tend to be about Fortune 500 companies or large governmental agencies.

However, it is a common misconception that only huge corporations have exposure to cyber risk. In fact, companies ranging anywhere from under $1 million in annual sales, to $100 million and above, have all become targets for internet thieves.

The insurance industry invented a product to indemnify insureds from financial loss due to data breaches. Most sources say this product – known today as cyber insurance – was invented in 1997, making it a relatively new product in insurance.

Outlined below are three types of cyber insurance claims which are commonly seen for small and mid-size companies. (Note, insurance companies vary on what terms they use in their policies to describe the scenarios listed below. Policyholders should check with their insurance provider to ensure these scenarios are covered.)

Ransomware

Ransomware occurs when a company’s computer servers are hacked, and the hackers encrypt (digitally lock) all data, thus preventing employees from accessing anything on their computer system. Users encounter a screen with a message demanding a ransom payment – often in the form of Bitcoin – in order for their data to be unencrypted. Oftentimes a threat is included that all data will be released or sold on the “dark web” if the ransom is not paid. It is not uncommon for ransom demands to be in the $500,000 range.

The FBI has partnered with the European Cybercrime Centre to identify ransomware criminals and help companies prevent becoming a victim.

They’ve named one such criminal group Akira and have identified their methods in hacking and encrypting data. In a report from April 2024, the FBI noted Akira had claimed over $42

It

is a common misconception that only huge corporations have exposure to cyber risk.

million in ransomware payments, from over 250 different organizations.

To pay or not to pay: The decision whether to pay a ransom or not should be carefully thought-out with consultation from your cyber insurance provider, attorney and IT security provider, as either scenario could have significant consequences.

Social engineering fraud

Social engineering fraud is the act of impersonating another to fraudulently induce someone to transfer funds to an

incorrect bank account. For example, an employee in the accounts payable department receives an email from a vendor informing them the vendor’s banking information has changed, and providing new ACH and routing numbers for payments. The employee requests a signed ACH change form, as well as a voided check, and receives both items back promptly. The employee relies on the email communications as it all appears legitimate, and authorizes the transfer of funds. The fraud is discovered later when the real vendor calls and requests payment.

Reverse social engineering

Reverse social engineering occurs when a company’s customer or vendor is defrauded with funds transfer instructions. Example: the email account of a company’s chief financial officer is hacked. The hacker sends an email to a customer, pretending to be the CFO, instructing that customer to change the company’s ACH information for future payments. Later, an employee at the company contacts their customer requesting payment for an overdue invoice, and the customer states they’ve already paid the amount requested. The customer denies responsibility as they had no way of knowing the company’s CFO had been hacked.

There are ways a company can reduce its cyber risk. A few recommended best practices are listed below. Sources include Travelers Insurance Company (one of the world’s leading cyber insurance providers), the United States FBI and the author’s

How Bad is t H at Leak?

own experience working through cyber insurance claims.

• Partner with an IT network security provider to help implement network security systems and processes.

• Implement multifactor authentication (MFA). This requires users to verify their identity when logging onto systems using a secondary mode of verification (e.g., a ping on the user’s cell phone). The Cybersecurity and Infrastructure Security Agency has estimated the use of MFA makes systems 99% less likely to be hacked.

• Back up computer system data regularly. Backups can include both cloud-based offsite backups, as well as physical external hard drive backups.

• Require call-back procedures for payment changes. Employees should never rely solely on an email when transferring funds via ACH or wire, without calling the person who apparently sent the email, for verification.

• Keep all operating systems, software and firmware up to date. Timely patching and updating is recommended as one of the most efficient and cost-effective steps an organization can take to minimize its exposure to cybersecurity threats.

• Cyber insurance is widely available and should be considered. Insurance options can vary greatly in both price and coverage provided. Therefore, terms should be carefully reviewed with an insurance professional.

Cyber threats have become commonplace in business, and experience has shown no company is too small to be a target for a cybercriminal. Company owners and managers should consult with their respective advisors to assess their exposure level and implement best practices to prevent system breaches and cyber loss.

Chris Black, CIC is vice president with AssuredPartners, a Gallagher Company (www. assuredpartners.com). He can be reached by phone at 440.488.1748 (mobile) or email at chris.black@assuredpartners.com.

Sale-Leasebacks Under Scrutiny

A look at a growing flashpoint between taxpayers +

school districts

By Robert “Kip” Danzinger, Esq. & Elizabeth A. Taylor, Esq. Sleggs, Danzinger & Gill Co., LPA

Every six years, Ohio counties are required to reassess real property values for tax purposes. In the interim three years, the counties update those values based primarily on market data. Importantly, property taxes are calculated based on these values (the higher the value, the higher the taxes).

While there is a presumption that the county values are correct and lawful, Ohio law provides a process by which property owners may challenge the value assigned to their property.

Pursuant to this process, a property owner can file a complaint with the county board of revision. The board of revision (comprised of representatives from the fiscal office or auditor’s office, the treasurer’s office and the commissioner’s office) conducts a hearing where the property owner must present evidence that supports a lower value than the one established by the county. Such evidence may include an appraisal report, evidence of a recent arm’s-length sale or construction costs for a new property. The board of revision then issues a decision in which it either maintains or modifies the county’s value. If dissatisfied with the decision, the property owner may appeal to the Ohio State Board of Tax Appeals or the court of common pleas.

What makes Ohio unique, however, is that public school districts – whose budgets rely heavily on property tax revenue – are also permitted to take part in this process. School districts may respond to a property owner’s complaint by filing a counter-complaint and, in certain situations, they can even initiate their own complaints seeking higher valuations and increased taxes. Not surprisingly, valuation disputes often turn into headto-head battles: taxpayers argue for lower values/lower taxes, while school districts push for higher values/higher taxes.

At the center of many of these disputes is a property’s recent sale price. Ohio law generally treats a recent arm’s-length sale as the best indicator of a property’s true

value. If a taxpayer purchases a property for $4 million but the county assesses it at $7 million, the case for a reduction is clear. On the flip side, when a property sells for more than its assessed value, school districts often see an opportunity to seek an increase in value.

In 2022, the Ohio General Assembly stepped in with House Bill 126, reshaping – and narrowing – the role school districts play in valuation complaints. Under the new law, school districts may seek increases only when a property has been sold recently in an arm’s length transaction. The statute also imposes several guardrails: the sale must have occurred before January 1 of the tax year at issue, the requested increase must exceed the auditor’s value by at least 10%, and it must meet a minimum dollar threshold ($567,000 for tax year 2025).

Since H.B. 126 took effect, one issue has moved quickly to the forefront: whether sale-leaseback transactions qualify as arm’s-length sales. In a sale-leaseback, the buyer and seller simultaneously negotiate the purchase of a property and a lease that allows the seller to remain in possession as a tenant after the sale closes. These transactions are often driven by

financing considerations rather than pure market forces.

The Ohio Board of Tax Appeals (BTA) recently issued a decision in which it held that sale-leaseback transactions are not arm’s-length sales and therefore cannot support a school district’s complaint seeking an increase in valuation (APG Parma, LLC v. Cuyahoga Cty. Bd. of Revision, BTA No. 2024-1414 [June 23, 2025]).

Although the Ohio Supreme Court has long recognized that sale-leasebacks are not arm’s length, school districts were still able to rely on them to file complaints – forcing property owners into lengthy and costly defenses. In light of the BTA’s recent decision, it appears that this could be changing. Under the BTA’s ruling, once a property owner shows that a transaction was a saleleaseback, the school district’s complaint fails to meet the statutory requirements for jurisdiction and must be dismissed. Dismissal of the complaint based on jurisdiction permits the property owner to avoid protracted litigation. And because H.B. 126 also eliminates a school district’s right to appeal to the BTA, a board of revision’s dismissal is final.

While the APG Parma decision has not been reviewed by an appellate court, it could reflect a meaningful shift in how sale-leasebacks are utilized for assessment purposes. For property owners, this is welcome news.

Robert “Kip” Danzinger, Esq. is a property tax attorney and partner at Sleggs, Danzinger & Gill Co., LPA (www.sdglegal.net), while Elizabeth A. Taylor, Esq. is a property tax attorney and associate. For more information, visit Sleggs, Danzinger & Gill Co., LPA online at www.sdglegal.net.

Legal Services + Risk Management

Managing Legal Risk when Implementing AI Examining the promise + pitfalls of artificial intelligence in real estate + construction

By Gregory A. Thompson & Sera M. Martin Hahn Loeser & Parks LLP

One can hardly turn on the television today without being inundated by artificial intelligence (AI), whether in the form of commercials during the big game, as the lead segment on the news, or through advertisements on your favorite podcast, or elsewhere. AI is all around us, and yet, its practical uses in everyday life – and in the real estate development and construction world – are still in flux.

While some developers and contractors have already implemented AI into their operations, others continue to sit on the sidelines, waiting and watching to see how things play out before jumping in.

Potential uses for AI in real estate development + construction

The potential uses for AI in real estate development and construction are almost as endless as one’s imagination. For instance, AI can be used to assist with or double-check project designs, project administration, schedule revisions, inspections, or to summarize meeting notes from toolbox talks or other meetings. Using AI to assist with designs can relieve architects or engineers from mundane tasks. It can be used to create initial designs and drafts of drawings, and can even be used to cross-check the cost of materials, the source of materials, the impact of any taxes or tariffs, the constructability of a design or a given design’s energy efficiency.

AI may also be helpful in streamlining legal disputes. While AI cannot replace an advocate in the courtroom or render legal decisions and judgments, other uses are readily apparent. For example, AI could be used to analyze and summarize the voluminous documentation that is generated on a construction project every day (and it seems that the volume of documentation is ever-increasing) or to review and identify a handful of key, operative documents out of a sea of thousands (if not tens of thousands). By employ-

ing AI in this way, legal disputes could become more cost-efficient and quicker to resolve.

Risks associated with AI

But these benefits are not without risk. As it stands, the most appreciable risks with implementing AI in real estate development and construction are the risks that are more generally associated with implementing AI in any business. Those risks include hallucinations (i.e., AI is wrong or makes a mistake), training deficiencies (most AI models need to be trained – what happens if those tasked with training the model are mistaken or wrong?) and the potential for user error or user abuse. Regardless of how a hallucination or error occurs, the end result is the same: a mistake has been made that is in need of correction. But who should shoulder the blame for a mistake made by AI? The user? The AI vendor? Someone else?

Issues with assigning blame can be particularly troublesome because software like AI often comes with what is referred to as a “clickwrap agreement.” That is, the purchaser or user of the AI software must first “click through” a set of terms and conditions, noting acceptance of the terms and conditions (by clicking an “I accept” button), before the software can be used. Such clickwrap agreements are generally enforceable, meaning that the terms and conditions contained therein are also enforceable. One common term included in clickwrap agreements is a limitation of liability (also known as a damages cap). Oftentimes, these

limitations of liability set forth a very low amount of damages that can be recovered from the AI vendor, such as a pre-set dollar figure or the cost of the software (which of course can vary). So, what happens if AI hallucinates and is responsible for a six-figure design bust, but the clickwrap agreement limits the AI vendor’s liability to, say, $10,000? Further complicating the issue, what if the project owner required the design team or contractor to use the AI that caused error? Who should be responsible for the delta between the clickwrap agreement’s limit of liability and the actual costs incurred to correct the error?

Mitigating risk through clear contractual provisions

It is essential that real estate development and construction contracts account for the emergence of AI. Key

It is essential that real estate development and construction contracts account for the emergence of AI. Key issues to consider include who will shoulder the cost for an AI hallucination or what role, if any, might AI play in assisting with dispute resolution.

issues to consider include who will shoulder the cost for an AI hallucination or what role, if any, might AI play in assisting with dispute resolution. If a project owner requires that AI be used to assist with the design, then it stands to reason that the project owner should be responsible for any costs incurred to remedy the AI error.

Alternatively, the contract could provide that if a project participant decides to employ AI, then it is solely responsible for any costs incurred to correct an AI error. Or, for dispute resolution, will the parties agree to using a certain AI platform to assist with the review of

voluminous project records in an effort to keep costs down? If yes, then such an agreement should be memorialized in the parties’ contract. When drafting such provisions, it is important to remember that clarity is king.

Identifying these issues upfront and determining how they will be addressed will allow all parties to go into the project

with “eyes wide open.” That is, each party knows the allocation of risk for a given scenario, thereby enabling them to better plan against, or mitigate, that risk.

Gregory A. Thompson is a partner and Sera M. Martin is an associate in Hahn Loeser & Parks LLP’s Construction Practice. For more information, visit www.hahnlaw.com.

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CONSTRUCTION PROGRESS REPORT

Updated info on important projects in the region, provided courtesy of ConstructionWire (www.constructionwire.com)

Project: #3712378

TRUMBULL FAMILY YMCA BUILDING

CONVERSION

PROJECT TYPE/SIZE: Multifamily (110 units), Athletic Facilities (< 10,000 sq-ft), Parking Structures

CONSTRUCTION TYPE: New, Renovation

ESTIMATED VALUE: $40 million

SECTOR: Private

LOCATION: 210 High St. NW Warren, OH 44481

DETAILS: Plans call for the demolition of a building and construction of four-story residential building with 84 apartments and addition of 26 units in the original building. There will be a total of 110 apartment units consisting of studio, one- and two-bedrooms. Athletic facilities will undergo restoration to become resident amenities, such as the gym, pool and basketball court. Plans also include underground parking.

Estimated Schedule (as of 12/17/2025)

STAGE: Starts in 4-12 months

CONSTRUCTION START: 7/2026

CONSTRUCTION END: 1/2027

OWNER: Trumbull Family Fitness

Contact: Richard Thompson, President 210 High St., Northwest Warren, OH 44481

P: 330-394-1565

DEVELOPER: Smythe Property Advisors LLC

Contact: Christopher Smythe, President csmythe@smytheprop.com

1801 E. Ninth St., Ste. 1600 Cleveland, OH 44114

P: 216-241-0200

DEVELOPER: City of Warren

391 Mahoning Ave. Northwest Warren, OH 44483

P: 330-841-2601

GC: DeSalvo Construction Company

Contact: Jim Bayer, Preconstruction Manager jbayer@dccgc.com

1491 W. Liberty St. Hubbard, OH 44425

P: 330-759-8145

ARCHITECT: Meld Architects, Inc.

Contact: Mike Wellman, Principal mike@meldarchitects.com

2026 Murray Hill Rd., 6 Cleveland, OH 44106

P: 216-373-2902

SANDUSKY RECREATION CENTER

Project: #3856120

PROJECT TYPE/SIZE: Athletic Facilities/Social (38,000 sq-ft)

CONSTRUCTION TYPE: New ESTIMATED VALUE: $10.38 million

SECTOR: Private, Public

LOCATION: 1706 Hayes Ave. Sandusky, OH 44870

DETAILS: Plans call for the construction of 38,000-square-foot recreation center, including two full-size basketball courts,

four volleyball courts, indoor walking/ running track, fitness & strength area, multipurpose activity rooms, meeting/ program spaces, locker rooms & concessions, and parking, lighting, sidewalks, plus an outdoor water feature.

Estimated Schedule (as of 12/16/2025)

STAGE: Starts in 1-3 months

CONSTRUCTION START: 2/2026

CONSTRUCTION END: 5/2027

GC: Janotta & Herner Inc.

309 Monroe St. Monroeville, OH 44847

P: 419-465-4611

ARCHITECT: Perspectus Architecture 1300 E. 9th St., Ste. 910 Cleveland, OH 44114 P: 216-752-1800

OWNER: The City of Sandusky 222 Meigs St. Sandusky, OH 44870 F: 419-627-5825

THE CARRIAGE CO. MIXED-USE

Project: #3299797

PROJECT TYPE/SIZE: Multifamily (139 units), Retail/ Restaurants (10,000-24,999 sq-ft)

CONSTRUCTION TYPE: Renovation, Backfill

ESTIMATED VALUE: $63 million

SECTOR: Private

LOCATION: 2168 W. 25th St. Cleveland, OH 44113

DETAILS: Plans call for the renovation of the Voss Industries Plant into a mixed-use building. The 237,136-square-foot complex will include 139 apartments, 24,000 square feet of rentable commercial office and co-working space, 25,000 square feet of general retail and restaurant space, and 50,000 square feet of anchor food/ beverage, pickleball and indoor minigolf use. Specifically, some of the retail uses may include a 12,369-square-foot “market,” a 4,800-square-foot food hall, an outdoor beer garden, a 7,000-squarefoot basement speakeasy reminiscent of 1920s-’30s Prohibition-era Cleveland, and a 6,000-square-foot Makers Space. Most of the apartments will range from 526 to 1,114 square feet.

Estimated Schedule (as of 1/12/2026)

STAGE: Starts in 1-3 months

CONSTRUCTION START: 3/2026

CONSTRUCTION END: 12/2026

BID DUE DATE: N/A

DEVELOPER, OWNER: MRN Ltd.

Contact: Joseph Del Re, COO joseph.delre@att.net

2015 E. 4th St., Ste. 220

Cleveland, OH 44115

P: 216-589-1111

ARCHITECT: SA Group, LLC

Contact: Lawrence Divita, Partner/ Architect

1322 Old River Rd. Cleveland, OH 44113

P: 216-406-4139

Project: #3784655

KENT STATE UNIVERSITY - DEWEESE SECOND FLOOR RENOVATION FOR CAPS

PROJECT TYPE/SIZE: Universities/Colleges (< 10,000 sq-ft), Medical

CONSTRUCTION TYPE: Renovation

ESTIMATED VALUE: $3 million

SECTOR: Public

LOCATION: 1500 Eastway Dr. Kent, OH 44242

DETAILS: Plans call for the renovation of the second floor of the Kent State University DeWeese Health Center to create a space for Counseling and Psychological Services (CAPS). Work includes fit-out and finishes work, relocation of furniture from Van Campen, floor abatement, reworking central core to create a new CAPS reception area, and mechanical systems between first and second floors

Estimated Schedule (as of 12/9/2025)

STAGE: Planning

CONSTRUCTION END: N/A

BID DUE DATE: N/A

OWNER: Kent State University

Contact: Jeff Bittenbender, Project Manager II, Landscape Architect jbittenb@kent.edu

615 Loop Rd., Ste. 101 Kent, OH 44242

Facilities Planning and Operations P: 330-672-3880

ARCHITECT: Perspectus Architecture 1300 E. 9th St., Ste. 910

Cleveland, OH 44114

P: 216-752-1800

WATERWOOD CONDOS

Project: #3857743

PROJECT TYPE/SIZE: Multifamily (70 units)

CONSTRUCTION TYPE: New

ESTIMATED VALUE: $18 million

SECTOR: Private

LOCATION: 5605 W. Lake Rd. Vermilion, OH 44089

DETAILS: Plans call for the construction of 70 condominium units as part of a larger development. The units will be across two six-story buildings, each with five levels of residential space and one level for 35 parking spaces. The condominium units will start at $650,000.

Estimated Schedule (as of 12/18/2025)

STAGE: Early Construction

CONSTRUCTION START: 12/2025

CONSTRUCTION END: Q3/2026

BID DUE DATE: N/A

ARCHITECT: AODK, Inc. 14394 Detroit Ave. Lakewood, OH 44107

P: 216-771-1920

DEVELOPER, OWNER: DiGeronimo Companies 5720 Independence Dr., Ste. 400 Brecksville, OH 44141

P: 216-446-3500

GC: Independence Construction, LLC 6400 E. Schaaf Rd. Independence, OH 44131

P: 216-446-3700

AL IHSAN SCHOOL EXPANSION

Project: #3856147

PROJECT TYPE/SIZE: Office/Schools (K-12)

(25,000-49,999 sq-ft), Athletic Facilities (25,000-49,999 sq-ft)

CONSTRUCTION TYPE: Addition/Expansion

ESTIMATED VALUE: $5-$25 million

Ending

Hunger, One CAN at a Time

SECTOR: Private

LOCATION: 4600 Rocky River Dr. Cleveland, OH 44135

DETAILS: Plans call for the 12,000-square-foot expansion of Al Ihsan School, including the addition of nine classrooms, two science labs and administrative space. Work is also expected to include a second school addition of three stories, as well as an athletic field, pickleball courts, pool and community park.

Estimated Schedule (as of 12/16/2025)

STAGE: Planning

CONSTRUCTION END: N/A

BID DUE DATE: N/A

DEVELOPER, OWNER: Al Alomary Mosque 4600 Rocky River Dr. Cleveland, OH 44135

P: 216-676-9177

ARCHITECT: Larsen Architects Inc.

Contact: James Ptacek, Architect jptacek@larsenarchitects.com 12506 Edgewater Dr., Ste. 10 Lakewood, OH 44107 P: 216-221-2350

Project: #3856202

METROHEALTH MAIN CAMPUS MEDICAL CENTER ED & BEHAVIORAL HEALTH UNIT EXPANSION

PROJECT TYPE/SIZE: Medical

CONSTRUCTION TYPE: Renovation

ESTIMATED VALUE: $9 million

SECTOR: Private

LOCATION: 2500 MetroHealth Dr. Cleveland, OH 44109

DETAILS: Plans call for the renovation of a 50,820-square-foot space in the emergency department to include finishes and lighting improvement. A 5,550-square-foot former administrative space within the ED will be converted into a behavioral health unit.

Approximately 1 in 7 people in the Cleveland-Akron region are food insecure. Donate to help our fight to end hunger!

March 7, 2026

Akron Art Museum

canstruction@onyxcreative.com

Estimated Schedule (as of 12/15/2025)

STAGE: Starts in 1-3 months

CONSTRUCTION START: 2/2026

CONSTRUCTION END: Q2/2028

BID DUE DATE: N/A

ARCHITECT: Ubiquitous Design Ltd.

3443 Lee Rd. Shaker Heights, OH 44120

P: 216-752-4444

OWNER: The MetroHealth System Contact: Jim Bicak

Senior VP for Facilities, Construction and Campus Transformation jbicak@metrohealth.org

2500 MetroHealth Dr., Ste. SG-100 Cleveland, OH 44109

Department of Planning, Design and Construction

P: 216-778-5340

Project: #3862205

CLEVELAND METROPOLITAN CITY SCHOOLS SEG 9

PROJECT TYPE/SIZE: Schools (K-12) (198,000 sq-ft)

CONSTRUCTION TYPE: New

ESTIMATED VALUE: $81.7 million

SECTOR: Public

LOCATION: 650 E. 113th St. Cleveland, OH 44114

DETAILS: Plans call for the construction of a 198,000-square-foot school building. This will include abatement and demolition of eight buildings. The new high school will be built on the Glenville High School site/property.

Estimated Schedule (as of 1/13/2026)

STAGE: Starts in 12+ months

CONSTRUCTION START: 7/2028

CONSTRUCTION END: 7/2030

ARCHITECT: ThenDesign (TDA Architecture) 4135 Erie St. Willoughby, OH 44094

P: 440-269-2266

OWNER: Cleveland Metropolitan School District

Contact: Karen Little, Project Manager

1111 Superior Ave. Cleveland, OH 44114

P: 216-838-0000

Project: #3828840

CLEVELAND REHABILITATION HOSPITAL

PROJECT TYPE/SIZE: Medical

CONSTRUCTION TYPE: New

ESTIMATED VALUE: $20 million

SECTOR: Private

LOCATION: NEC of Lombardo Center and Rockside Rd. Seven Hills, OH 44131

DETAILS: Plans call for the construction of Cleveland Rehabilitation Hospital.

Estimated Schedule (as of 12/18/2025)

STAGE: Groundbreaking

CONSTRUCTION START: 1/2026

CONSTRUCTION END: Q1/2027

BID DUE DATE: N/A

GC: Parkway Construction and Architecture

Contact: Scott Lambert, Project Coordinator

slambert@pkwycon.com

1000 Civic Circle Lewisville, TX 75067

P: 469-322-3747

TENANT: Nobis Rehabilitation Partners

450 Century Pkwy., Ste. 320 Allen, TX 75013

P: 469-640-6500

DEVELOPER: Cross Development

9461 Kenwood Rd. Cincinnati, OH 45242

P: 513-532-2068

Project: #3792848

OHIO DEPARTMENT OF YOUTH SERVICES PRISON

PROJECT TYPE/SIZE: Prisons/Jails/Detention (50,000-99,999 sq-ft), Prisons/Jails/ Detention (79,000 sq-ft)

CONSTRUCTION TYPE: New, Renovation

ESTIMATED VALUE: $25-$100 million

SECTOR: Public

LOCATION: 17500 Rockside Rd.

Bedford, OH 44146

DETAILS: Plans call for renovations and the conversion of a 79,000-square-foot office building into a juvenile detention facility. Two 36-bed facilities will also be constructed.

Estimated Schedule (as of 1/14/2026)

STAGE: Starts in 1-3 months

CONSTRUCTION START: 3/2026

CONSTRUCTION END: Q2/2027

OWNER: State of Ohio

1050 Freeway Dr. N. Columbus, OH 43229

Ohio Department of Rehabilitation & Correction

P: 614-752-1159

CM: Gilbane, Inc.

7 Jackson Walkway Floor 4 Providence, RI 02903

P: 401-456-5800

HAMPTON INN BY HILTON

Project: #3858173

PROJECT TYPE/SIZE: Hotels (199 rooms)

CONSTRUCTION TYPE: New

ESTIMATED VALUE: $8 million

SECTOR: Private LOCATION: 33040 Just Imagine Dr. Avon, OH 44011

DETAILS: Plans call for the construction of a 66,500-square-foot Hampton Inn by Hilton hotel with 199 rooms.

Estimated Schedule (as of 12/19/2025)

STAGE: Starts in 1-3 months

CONSTRUCTION START: 4/2026

CONSTRUCTION END: 12/2026

BID DUE DATE: N/A

DEVELOPER, OWNER: Emerald Hospitality Associates, Inc. 2001 Crocker Rd., Ste. 300

Westlake, OH 44145

Corporate Headquarters P: 440-239-9848

Project: #3856177

THE VILLAS AT BAKERS RIDGE PHASE 2

PROJECT TYPE/SIZE: Multifamily (43 units)

CONSTRUCTION TYPE: New

ESTIMATED VALUE: $11 million

SECTOR: Private

LOCATION: Experience Way & Strawberry Ln. Strongsville, OH 44149

DETAILS: Plans call for the construction of 43 attached rental single-story villas over 11 buildings as part of a larger mixed residential development. Eighty percent of the residences will be designated for individuals aged 55 and older. Floor plans will range from 1,191 to 1,383 square feet.

Estimated Schedule (as of 12/16/2025)

STAGE: Planning

CONSTRUCTION END: N/A

BID DUE DATE: N/A

DEVELOPER, OWNER: Pride One Construction 2211 Medina Rd 100 Medina, OH 44256 P: 330-239-6100

Project: #3649028

1541 SOUTH WATER STREET ASSISTED LIVING FACILITY

PROJECT TYPE/SIZE: Multifamily (72 units), Medical

CONSTRUCTION TYPE: New

ESTIMATED VALUE: $14 million

SECTOR: Private LOCATION: 1541 S. Water St. Kent, OH 44240

DETAILS: Plans call for the construction of a 72-bed assisted living facility as part of a larger residential development.

Estimated Schedule (as of 12/17/2025)

STAGE: Planning

CONSTRUCTION END: N/A

BID DUE DATE: N/A

DEVELOPER, OWNER: Portage Health Network LLC

2251 Front St., Ste. 105 Cuyahoga Falls, OH 44221

ARCHITECT: SA Group, LLC

Contact: Todd Hutchinson, Architect thutchinson@sagroupllc.com 1322 Old River Rd. Cleveland, OH 44113 P: 216-570-7799

Project: #3862128

MILLS ROAD WAREHOUSE & OFFICE DEVELOPMENT

PROJECT TYPE/SIZE: Office/Mfg./Industrial/ Warehouse (53,900 sq-ft)

CONSTRUCTION TYPE: New

ESTIMATED VALUE: $5-$25 million

SECTOR: Private LOCATION: Avon, OH 44011

NEC of Mills Rd. and Jaycox Rd.

DETAILS: Plans call for the construction of two warehouse and office buildings totaling 53,900 square feet.

Estimated Schedule (as of 1/12/2026)

STAGE: Planning

CONSTRUCTION END: N/A

BID DUE DATE: N/A

ENGINEER: Civil Design Group 36225 Detroit Rd., Unit 475 Avon, OH 44011 P: 440-799-7291

OWNER: Millennium Holdings LLC 120 S. Wright St. Delavan, WI 53115

Project: #3745353 CLEVELAND STATE UNIVERSITY - FENN TOWER RENOVATIONS

PROJECT TYPE/SIZE: Multifamily (151-250 units), Universities/Colleges (100,000-249,999 sq-ft)

CONSTRUCTION TYPE: Renovation

ESTIMATED VALUE: $18 million

SECTOR: Public

LOCATION: 1983 E. 24th St. Cleveland, OH 44115

DETAILS: Plans call for the renovation of Cleveland State University’s Fenn Tower. Work includes critical structural, masonry and interior upgrades, exterior masonry, structural steel reinforcements and interior dormitory upgrades on all residential floors.

Estimated Schedule (as of 1/6/2026)

STAGE: Construction

CONSTRUCTION START: 8/2025

CONSTRUCTION END: 7/2026

OWNER: Cleveland State University

Contact: Michelle Westerman, PM e.cranford@csuohio.edu

2121 Euclid Ave. Cleveland, OH 44115

P: 216-687-5157

CM: The Ruhlin Company

6931 Ridge Rd. Wadsworth, OH 44281

P: 330-239-2800

ARCHITECT: Perspectus Architecture

1300 E. 9th St., Ste. 910 Cleveland, OH 44114

P: 216-752-1800

Construction project reports are provided with permission through ConstructionWire, courtesy of BuildCentral (www.buildcentral.com).

BuildCentral specializes in planned construction project leads and location analytics for CRE, hotel, multi-family/single-family, medical, mining & energy, and retail construction spaces. Properties Magazine makes no warranty of any kind for this information, express or implied, and is not responsible for any omissions or inaccuracies. To notify Properties of any reporting errors, we encourage you to email cpr@propertiesmag.com. 2026

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