PlayhouseSquare's latest string of successes may be a tough act to follow, but a Cleveland real estate developer is willing to try. A newly-consummated deal to convert a prominent office building into 102 apartments will fuel the growth of this arts-rich neighborhood, which in recent years has also welcomed two major theater renovations and new restaurants.

K&D Group, the largest privately-held owner of apartments in Northeast Ohio, has inked a deal with the nonprofit PlayhouseSquare to buy the Hanna Building Annex, which is located at the corner of Prospect Avenue and E. 14th Street. The developer plans to convert it into 1- and 2-bedroom, 600 to 1,200-square-foot apartments that will lease from $725 to $1,500 per month.

PlayhouseSquare plans to relocate existing tenants into the Hanna Building next door. The deal includes leasing back ground-level retail space to PlayhouseSquare. The nonprofit development corporation hopes to fill the space with much-needed amenities such as a dry cleaner, wine shop, small market or pharmacy -- in short, the kinds of services that serve a residential neighborhood.

Art Falco, CEO of PlayhouseSquare, says the project is critical to the future of the neighborhood. “This will allow us to continue to brand PlayhouseSquare as not only an entertainment area but also a residential neighborhood," he says.

Source: Art Falco
Writer: Lee Chilcote