Legislation prepared for a planning meeting shows 340 apartments on 8 acres at Chagrin Boulevard and South Green Road. The project would replace dilapidated office buildings.
View full sizeOn Jan. 26, Beachwood's planning and zoning commission will get its first glimpse of legislation meant to clean up the city's zoning in the Commerce Park area and enable an apartment development at Chagrin Boulevard and South Green Road.BEACHWOOD, Ohio -- High-end apartments might replace aging office buildings on a key corner in Beachwood.
Munsell Realty Advisors and The NRP Group LLC sparked rumors about a residential project in September, when they paid $4.1 million for the Commerce Park I, II and III office buildings, southeast of Chagrin Boulevard and South Green Road.
Now Beachwood could rezone that corner, creating a multifamily residential district in place of a tired business park. The city's planning and zoning commission will see the rezoning request Jan. 26.
Deferring to the public process, Beachwood Mayor Merle Gorden said nothing about the potential project.
But Gorden has long hoped for more residential development in the southern part of the suburb. And reviving the Commerce Park area, a prime corridor struggling with obsolete buildings, is a priority for the city - one stressed by economic development consultants who crafted a plan for Beachwood last year.
"Am I in favor of a residential component in that district? The answer is yes," Gorden said.
The NRP Group, based in Garfield Heights, is known locally for affordable housing and apartments for the elderly. But the developer is tackling high-end projects in Texas and Florida. The company would not elaborate on its plans in Beachwood.
"It is a bit premature to discuss details," J. David Heller, a principal with NRP, wrote in an email. "Number of units, sizes and pricing will be determined soon. I can tell you that the property will be consistent with what we are building in our luxury, high-end Dallas, Austin, San Antonio and [Fort] Lauderdale product, and the rents will be among the highest in the eastern suburbs of Cleveland."
Legislation prepared for the planning meeting sheds some light on NRP and Munsell's concept. A site plan attached to one document includes 340 apartments on 8 acres. The plan, dated Oct. 27, shows four-story buildings and a park.
"I'm excited to see what they've proposed, what actually happens there," said Michael Barron, vice president of investments with Marcus & Millichap Real Estate Investment Services in Independence. With demolition of the office buildings and the cost of new construction, he added, "the rents are going to have to be very high to make it work. And I think the market can support it."
Beachwood boasts the highest occupancy and rental rates in the Cleveland area. Apartments in the suburb were 96.3 percent full during the fourth quarter, according to Marcus & Millichap. The average monthly rent was $1,086, after accounting for any sweeteners - like a free month - offered by landlords.
Office tenants are leaving the old Commerce Park buildings, at 23210-23230 Chagrin Blvd. David Bruening, a principal with Stamford Properties, said new space will be a welcome change from the dilapidated offices at Commerce Park III. His real estate company plans to move into a nearby building this month.
"I hope, for the city's sake, it is high-end housing, because I live in the city of Beachwood myself," Bruening said. "I'm going to watch what happens here, because I want to see something good happen in this community that befits a corner like this."
Munsell and NRP bought the Commerce Park buildings after the previous owner handed off the keys to a lender. Munsell also owns the newer Commerce Park IV and V buildings, to the south, and smaller office buildings just east on Chagrin.