The city of Cleveland Heights recently upped the level of tax abatement that is offered on some of the new construction developments that are located within the city. The new tax abatement level is 100% over seven years. Previously, the tax abatement level was 50% over 10 years.
Tax abatement in Cleveland Heights is available on such projects as the Boulevard Townhomes and the Courtyards of Severance, among others.
A study on the impact of tax abatement in the city of Cleveland by the Levin College of Urban Affairs at Cleveland State University found a strong correlation between tax abatement and sales of new housing. Sixty percent of the owners of current abated homes in Cleveland said they would not have puchased them if they had not received tax abatement, according to the study. Additionally, for every $1 in abated taxes, a total of $1.50 in new property taxes was generated for the city.
For over a decade, Cleveland Heights has worked to attract new construction housing to the city, adopting a strategy that offering more housing choices, bringing in new residents, and growing the city's tax base is vital to the city's success. With the recent housing slowdown, the ciy sought to raise the level of tax abatement to stay competitive with other cities, and to entice buyers to buy a new home here.
For more information on the city of Cleveland Heights, visit www.clevelandheights.com.
Wednesday, September 17, 2008
Ohio City: Blues, Brews and a Neighborhood's Remarkable Comeback
Ohio City has come a long way from the days when the first urban pioneers were renovating rambling Victorians on Jay Avenue, and the Conway brothers of Great Lakes Brewing Company were delivering hand-bottled six packs of beer in their cars.
Today, the neighborhood has seen housing revitalization, the redevelopment of West 25th Street and the West Side Market, the addition of a dozen or more new restaurants and bars, and the creation of a new lakefront park at Whiskey Island.
Recent articles in the Plain Dealer and Northern Ohio Live profiled the Great Lakes Brewing Company on the eve of its 20th anniversary, as well as the more recent addition of Bar Cento to the neighborhood's restaurant mix. Dee Perry of WCPN's "Around Noon" held a show focusing on "Grassroots Gastronomy" or the link between restaurants and a neighborhood's revitalization. Ohio City was also named one of the nation's Top 10 Cottage Communities by Cottage Living Magazine in 2007. The community's varied housing stock, which includes grand Victorians as well as rehabbed worker's cottages, was cited in the Cottage Living piece.
This weekend, Ohio City will celebrate its success, as well as Cleveland's rich blues history, with the First Annual Ohio City Blues and Brews Fest at Whiskey Island. For $10, visitors can hear six of the most prominent local blues acts, including the Whiskey Island Brew Crew, Colin Dussault Blues Project, Robert Lockwood All Stars, the KingBees, Moko Bovo and Kristine Jackson. The event runs from 4 pm until 12:30 am and takes place at Whiskey Island.
For more information or to buy tickets, please visit www.ohiocity.com.
Today, the neighborhood has seen housing revitalization, the redevelopment of West 25th Street and the West Side Market, the addition of a dozen or more new restaurants and bars, and the creation of a new lakefront park at Whiskey Island.
Recent articles in the Plain Dealer and Northern Ohio Live profiled the Great Lakes Brewing Company on the eve of its 20th anniversary, as well as the more recent addition of Bar Cento to the neighborhood's restaurant mix. Dee Perry of WCPN's "Around Noon" held a show focusing on "Grassroots Gastronomy" or the link between restaurants and a neighborhood's revitalization. Ohio City was also named one of the nation's Top 10 Cottage Communities by Cottage Living Magazine in 2007. The community's varied housing stock, which includes grand Victorians as well as rehabbed worker's cottages, was cited in the Cottage Living piece.
This weekend, Ohio City will celebrate its success, as well as Cleveland's rich blues history, with the First Annual Ohio City Blues and Brews Fest at Whiskey Island. For $10, visitors can hear six of the most prominent local blues acts, including the Whiskey Island Brew Crew, Colin Dussault Blues Project, Robert Lockwood All Stars, the KingBees, Moko Bovo and Kristine Jackson. The event runs from 4 pm until 12:30 am and takes place at Whiskey Island.
For more information or to buy tickets, please visit www.ohiocity.com.
Thursday, September 11, 2008
Circle 118: The Bold New Face of University Circle
University Circle is home to 20+ artistic and cultural venues, over 100 restaurants and dining options, one of the most idyllic urban parks in the state (Wade Oval), and it is visited by over 2.5 million people per year.
Sounds like a great place to live, right? Yet if you would like to buy a new home within the University Circle district, your options are comparatively few. While University Circle is surrounded by attractive, historic neighborhoods, there has been relatively little for-sale housing built within the Circle itself.
Until now.
WXZ Development recently announced plans to break ground on Circle 118, a new community of 17 townhomes, in the Fall of 2008. Located at the corner of Euclid Avenue and East 118th Street in University Circle, Circle 118 will serve as the first new community in University Circle in several years.
“University Circle is one of Northeast Ohio’s greatest success stories – the home of some of the greatest museums and cultural institutions in the world, and a place that is the second largest employment center in the city of Cleveland,” commented Keith Brown, President of Progressive Urban Real Estate, the marketing firm that represents Circle 118. “This project adds to University Circle’s strengths: it will help to satisfy pent-up demand for new housing in one of the most desirable neighborhoods in Cleveland.”
“Circle 118 is the bold new face of University Circle,” added Brown. The development is located within walking distance of all of University Circle’s amenities – including the Cleveland Museum of Art, Severance Hall, Case Western Reserve University, the Botanical Garden, and the Cleveland Museum of Natural History.
Circle 118 is a collection of 17 elegant, modern townhouses. Exterior features include red brick accentuated with bright blue and red panels that are constructed from recycled materials. The townhomes’ glass-filled corners will offer residents a view of bustling Euclid Avenue as well as the newly completed Euclid Corridor project. Residents will also enjoy three levels of outdoor space: a landscaped interior courtyard; a deck above the courtyard; and a third floor roof deck that functions as an outdoor living room.
Interior features of Circle 118 include a two car garage, first floor bonus room (facilitating a live-work lifestyle), an open great room and kitchen allowing maximum flexibility of space, and a bedroom level with either two bedrooms or two bedrooms and a den, depending upon the floor plan. Standard features include bamboo flooring, ceramic tile, energy-efficient windows, high-efficiency mechanical systems, and Energy Star appliances.
Pre-construction pricing starts in the low $300,000’s and every unit owner benefits from 15 year tax abatement. Key Bank is offering a reduced rate mortgage product that will save owners 1.5% interest on a 30-year loan.
Incentives are also available for University Circle employees through the Greater Circle Living Initiative. Full time employees at many UC institutions are eligible to receive up to $15,000 in forgivable loans through this innovative program.
For more information about exciting happenings in University Circle and the Greater Circle Living Initiative, check out www.universitycircle.org.
Sounds like a great place to live, right? Yet if you would like to buy a new home within the University Circle district, your options are comparatively few. While University Circle is surrounded by attractive, historic neighborhoods, there has been relatively little for-sale housing built within the Circle itself.
Until now.
WXZ Development recently announced plans to break ground on Circle 118, a new community of 17 townhomes, in the Fall of 2008. Located at the corner of Euclid Avenue and East 118th Street in University Circle, Circle 118 will serve as the first new community in University Circle in several years.
“University Circle is one of Northeast Ohio’s greatest success stories – the home of some of the greatest museums and cultural institutions in the world, and a place that is the second largest employment center in the city of Cleveland,” commented Keith Brown, President of Progressive Urban Real Estate, the marketing firm that represents Circle 118. “This project adds to University Circle’s strengths: it will help to satisfy pent-up demand for new housing in one of the most desirable neighborhoods in Cleveland.”
“Circle 118 is the bold new face of University Circle,” added Brown. The development is located within walking distance of all of University Circle’s amenities – including the Cleveland Museum of Art, Severance Hall, Case Western Reserve University, the Botanical Garden, and the Cleveland Museum of Natural History.
Circle 118 is a collection of 17 elegant, modern townhouses. Exterior features include red brick accentuated with bright blue and red panels that are constructed from recycled materials. The townhomes’ glass-filled corners will offer residents a view of bustling Euclid Avenue as well as the newly completed Euclid Corridor project. Residents will also enjoy three levels of outdoor space: a landscaped interior courtyard; a deck above the courtyard; and a third floor roof deck that functions as an outdoor living room.
Interior features of Circle 118 include a two car garage, first floor bonus room (facilitating a live-work lifestyle), an open great room and kitchen allowing maximum flexibility of space, and a bedroom level with either two bedrooms or two bedrooms and a den, depending upon the floor plan. Standard features include bamboo flooring, ceramic tile, energy-efficient windows, high-efficiency mechanical systems, and Energy Star appliances.
Pre-construction pricing starts in the low $300,000’s and every unit owner benefits from 15 year tax abatement. Key Bank is offering a reduced rate mortgage product that will save owners 1.5% interest on a 30-year loan.
Incentives are also available for University Circle employees through the Greater Circle Living Initiative. Full time employees at many UC institutions are eligible to receive up to $15,000 in forgivable loans through this innovative program.
For more information about exciting happenings in University Circle and the Greater Circle Living Initiative, check out www.universitycircle.org.
What Do Fannie and Freddie Mean to You?
You may just be getting to know this housing market duo, but the chances are good that you’ll be getting to know them a great deal better. Their names have been in the news a lot lately. Over the weekend, U.S. Treasury Secretary Henry Paulsen announced that the government had placed both entities into a conservatorship.
Together, Fannie Mae and Freddie Mac own or guarantee roughly half of the $12 trillion in outstanding mortgage debt. National Public Radio quantified Fannie and Freddie by stating that they have more economic impact on the global economy than the United Kingdom.
How will the takeover impact consumers? The news instilled confidence into investors, which lifted stock markets. As a result of the conservatorship, the government now explicitly guarantees the obligations of Fannie and Freddie securities. This has increased demand for mortgage securities, helping the housing market overall.
What remains uncertain is where Fannie and Freddie will go from here. The takeover may help to facilitate new deals on old loans (affecting homeowners who are now in trouble with their mortgages) and new rules on new loans (affecting homebuyers thinking of purchasing a home).
The most immediate change is that mortgage rates are likely to go down. Last week rates were down .15% on average; this week, they are down .35%. That’s a substantial change that makes it cheaper and easier for homebuyers to purchase a home.
Together, Fannie Mae and Freddie Mac own or guarantee roughly half of the $12 trillion in outstanding mortgage debt. National Public Radio quantified Fannie and Freddie by stating that they have more economic impact on the global economy than the United Kingdom.
How will the takeover impact consumers? The news instilled confidence into investors, which lifted stock markets. As a result of the conservatorship, the government now explicitly guarantees the obligations of Fannie and Freddie securities. This has increased demand for mortgage securities, helping the housing market overall.
What remains uncertain is where Fannie and Freddie will go from here. The takeover may help to facilitate new deals on old loans (affecting homeowners who are now in trouble with their mortgages) and new rules on new loans (affecting homebuyers thinking of purchasing a home).
The most immediate change is that mortgage rates are likely to go down. Last week rates were down .15% on average; this week, they are down .35%. That’s a substantial change that makes it cheaper and easier for homebuyers to purchase a home.
Monday, September 8, 2008
Downtown Cleveland Alliance Launches New, Innovative Website
Recently, the Downtown Cleveland Alliance launched a new design for its website. This new design includes an interactive parking map, podcast tours of downtown, video testimonials of residents, and a downtown blog. The DCA website seems laudable because it takes advantage of new technologies that present downtown Cleveland in a new way, and also because it helps visitors to navigate downtown neighborhoods. The new website also shows a non-profit using creative marketing techniques to overcome downtown's image challenge. In doing so, DCA joins the ranks of cities and non-profit community development groups around the country marketing city living in the face of some negative perceptions ("Selling Cities Despite Bad Images," New York Times, 8/22/08). For more info, visit the DCA website at www.downtownclevelandalliance.com.
Friday, September 5, 2008
David Sharkey of PURE Featured on WCPN/90.3 Ideastream
David Sharkey, Vice President of Progressive Urban Real Estate, was one of the panelists featured on Dan Moulthrop's 9 a.m. news program on WPCN/90.3 Ideastream this past Wednesday, Sept. 3rd.
Sharkey is a former Tremont resident who now lives in the St. Clair Superior neighborhood with his wife and two sons. PURE's focus on marketing and selling homes as well as an urban lifestyle in Cleveland have helped to transform Tremont from a neighborhood that suffered from arson and blight in the mid 1980's, to one of Cleveland's success stories today.
To listen to a podcast of the show, visit the WCPN archives at www.wcpn.org.
For more information about Tremont, visit the website of the local community development corporation, Tremont West Development Corporation at www.tremontwest.org.
Sharkey is a former Tremont resident who now lives in the St. Clair Superior neighborhood with his wife and two sons. PURE's focus on marketing and selling homes as well as an urban lifestyle in Cleveland have helped to transform Tremont from a neighborhood that suffered from arson and blight in the mid 1980's, to one of Cleveland's success stories today.
To listen to a podcast of the show, visit the WCPN archives at www.wcpn.org.
For more information about Tremont, visit the website of the local community development corporation, Tremont West Development Corporation at www.tremontwest.org.
Investing in Cleveland: Does It Make Sense?
One of the untold stories of the housing market meltdown and foreclosure crisis is the opportunity that it presents to responsible investors to purchase and rehab homes in the city.
This was one of the messages conveyed at a forum hosted by Cleveland Action to Support Housing (CASH) on investing in Cleveland real estate. The event was held this past Thursday, Sept. 4th at West 65th and Detroit Ave., in the heart of the Gordon Square Arts District of the Detroit Shoreway neighborhood.
Douglas Moltz, loan officer with Shorebank Cleveland, described the opportunities and challenges of investing in our current, urban real estate market. On the one hand, he told the audience of 30+ nonprofit and development professionals, there has never been a better time to buy. If you are an investor, you can scoop up a foreclosure or a short sale for a below-appraised value.
One particular investor, Moltz said, recently purchased a home in the Collinwood neighborhood of Cleveland, rehabbed it, and rented it at a profitable level. Once the work was completed, the owner was at a less than 50% loan-to-value ratio. This means that while the property would have appraised for over $80,000, the owner only had spent about $40,000, resulting in a kind of “instant equity”.
On the other hand, Moltz related, investors must be both savvy and selective to be successful and avoid the pitfalls that led to the current housing crisis. They must choose marketable neighborhoods in which to invest; identify properties that fit within their budget and scope of work; complete the type of workmanship and finishes which buyers and renters demand; and obtain the necessary financing to complete the project while keeping funds in reserve.
Additionally, if investors intend to resell the rehabbed property, they must examine recent sale comps, factor in the decline in value across the market, and anticipate the fact that many homebuyers today expect to get a deal. They have to examine the pricing of other homes on the market so as not to be undercut by the competition. And they should be prepared to wait longer for the property to sell in many cases.
David Sharkey, Vice President of Progressive Urban Real Estate Inc. (PURE), addressed the fact that rehabbers in today's market must have a "back up plan" that includes lowering the price or renting the home until the market improves and the seller finds a buyer. He stressed that homes continue to sell in many neighborhoods in Cleveland, despite the market downturn.
Marcia Nolan, Executive Director of CASH Cleveland, stated that her organization has formed a partnership with Shorebank and other lenders in Cleveland to offer special, low interest rates to owner-occupants and investors. Currently, the rate is 3.6%, approximately three points or more below a conventional rate (even for an owner-occupant). Taking advantage of this program saves investors and homeowners thousands of dollars in interest, and allows owners to build up equity more quickly. CASH provides technical assistance with identifying the scope of work on a property, and monitoring construction quality.
For more information about special programs for investors and owner-occupants that are rehabbing homes in Cleveland, visit www.cashcleveland.org.
To search for homes in Cleveland and other urban neighborhoods across Northeast Ohio, visit www.progressiveurban.com and go to the search page.
This was one of the messages conveyed at a forum hosted by Cleveland Action to Support Housing (CASH) on investing in Cleveland real estate. The event was held this past Thursday, Sept. 4th at West 65th and Detroit Ave., in the heart of the Gordon Square Arts District of the Detroit Shoreway neighborhood.
Douglas Moltz, loan officer with Shorebank Cleveland, described the opportunities and challenges of investing in our current, urban real estate market. On the one hand, he told the audience of 30+ nonprofit and development professionals, there has never been a better time to buy. If you are an investor, you can scoop up a foreclosure or a short sale for a below-appraised value.
One particular investor, Moltz said, recently purchased a home in the Collinwood neighborhood of Cleveland, rehabbed it, and rented it at a profitable level. Once the work was completed, the owner was at a less than 50% loan-to-value ratio. This means that while the property would have appraised for over $80,000, the owner only had spent about $40,000, resulting in a kind of “instant equity”.
On the other hand, Moltz related, investors must be both savvy and selective to be successful and avoid the pitfalls that led to the current housing crisis. They must choose marketable neighborhoods in which to invest; identify properties that fit within their budget and scope of work; complete the type of workmanship and finishes which buyers and renters demand; and obtain the necessary financing to complete the project while keeping funds in reserve.
Additionally, if investors intend to resell the rehabbed property, they must examine recent sale comps, factor in the decline in value across the market, and anticipate the fact that many homebuyers today expect to get a deal. They have to examine the pricing of other homes on the market so as not to be undercut by the competition. And they should be prepared to wait longer for the property to sell in many cases.
David Sharkey, Vice President of Progressive Urban Real Estate Inc. (PURE), addressed the fact that rehabbers in today's market must have a "back up plan" that includes lowering the price or renting the home until the market improves and the seller finds a buyer. He stressed that homes continue to sell in many neighborhoods in Cleveland, despite the market downturn.
Marcia Nolan, Executive Director of CASH Cleveland, stated that her organization has formed a partnership with Shorebank and other lenders in Cleveland to offer special, low interest rates to owner-occupants and investors. Currently, the rate is 3.6%, approximately three points or more below a conventional rate (even for an owner-occupant). Taking advantage of this program saves investors and homeowners thousands of dollars in interest, and allows owners to build up equity more quickly. CASH provides technical assistance with identifying the scope of work on a property, and monitoring construction quality.
For more information about special programs for investors and owner-occupants that are rehabbing homes in Cleveland, visit www.cashcleveland.org.
To search for homes in Cleveland and other urban neighborhoods across Northeast Ohio, visit www.progressiveurban.com and go to the search page.
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