The Finch Group
, a Florida-based developer that pioneered the luxury apartment market in University Circle with its 2007 renovation of Park Lane Villa, has broken ground on 177 units of apartments as part of the long-awaited Upper Chester project. The developer expects the project will begin leasing by June of next year, just in time for medical residents and other area professionals to snatch up the new apartments.
The Upper Chester project, which will consist of four phases and over 300 market-rate apartments, is located on Chester Avenue between E. 97th and 101st streets. Retail is being planned as part of Phase I (a coffee shop and small market concept have been discussed), but the Finch Group hasn't begun marketing yet. Efforts will begin soon as the building is now underway.
"We're bringing 177 households to the community with significant disposable income," says Mark Dodds, Principle Architect with the Finch Group. "The target market is people that are working or going to school at major institutions: Clinic, UH, Case Western Reserve University, the art museum, the orchestra."
Dodds cited a 2010 market study showing that there's demand for 700 to 800 new market-rate apartments in University Circle -- meaning that Uptown and Hazel 8, which have added nearly 300 units, have not come close to saturating the market. "There's very high demand for good quality rental housing. The more people we get to live in University Circle, the more it becomes a 24-hour neighborhood."
The building itself will feature primarily one-bedroom residences geared towards busy professionals. The finishes will be high-end, including granite countertops and stainless steel appliances. There will be a 24/7 concierge service in the building to handle various resident needs. The two-story lobby will be a social space that will give residents a chance to socialize and build community.
Dodds maintains that while Uptown is more of a college town environment geared to undergraduates, the Upper Chester project will be targeted to graduates and professionals. Fending off concerns that the project will feel isolated, Dodds says that it will be built as an open, pedestrian-friendly environment adjacent to CWRU's performing arts center at Temple Tifereth Israel. The project will also be located across the street from the Cleveland Clinic's new medical school.
Financing the project was difficult. There were no tax credits or public subsidy funds available. The developer did receive a 15-year, 100-percent tax abatement from the city. Finch is using conventional financing and equity to fund the project.
Dodds expects to get around $2 per square foot for the apartments, just under the rents that Uptown is commanding. "We're convinced this project will make money."
If all goes well, the next phase of the project could start in early 2016, setting up a completion date of mid 2017 -- just in time for a new crop of medical residents.
Source: Mark Dodds
Writer: Lee Chilcote