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Author Topic: Cleveland: Downtown: Medical Mutual HQ  (Read 1005 times)

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Offline surfohio

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #60 on: August 04, 2017, 11:04:49 AM »
However there is information that MM is looking at a number of alternatives including existing buildings downtown and in the suburbs. One of the sites mentioned was American Greetings' vacated headquarters in Brooklyn. And yes, consolidation of MM's Northeast Ohio offices is still on the table.

BTW, the American Greetings offices are too small to accommodate MM's HQ but could accommodate the consolidated suburban offices, if MM keeps its HQ at Rose or has to move the 380,000 sf to another downtown site.

AG's former buildings are in bad shape. Not to mention the location is very depressing and adjacent to a b.s. speed trap courtesy of Lindale. If my company was looking to relocate there, I'd start looking for another job.


Offline KJP

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #61 on: August 04, 2017, 11:09:58 AM »
The new owners of the old AG HQ are looking at a tear-down/build-new option for that site, which they envision to be more for industrial uses.
http://www.cleveland.com/business/index.ssf/2014/07/american_greetings_sells_brook.html

The warehouse sector in NE Ohio is booming, and not just Amazon distribution centers. Look at all of the warehouse/light-industrial development in Mentor, Glen Willow, etc.  I suspect Lichter/Semarjian are aiming for a piece of that action.
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Offline YABO713

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #62 on: August 04, 2017, 11:29:59 AM »
However there is information that MM is looking at a number of alternatives including existing buildings downtown and in the suburbs. One of the sites mentioned was American Greetings' vacated headquarters in Brooklyn. And yes, consolidation of MM's Northeast Ohio offices is still on the table.

BTW, the American Greetings offices are too small to accommodate MM's HQ but could accommodate the consolidated suburban offices, if MM keeps its HQ at Rose or has to move the 380,000 sf to another downtown site.

AG's former buildings are in bad shape. Not to mention the location is very depressing and adjacent to a b.s. speed trap courtesy of Lindale. If my company was looking to relocate there, I'd start looking for another job.

Linndale's speed trap no longer exists in the traditional sense thanks to the state Supreme Court

Offline KJP

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #63 on: August 04, 2017, 11:36:58 AM »
Linndale's speed trap no longer exists in the traditional sense thanks to the state Supreme Court

I think he was referring to Memphis Road. Anyway....
"Give me control of a nation's money supply, and I care not who writes the laws." -- Mayer Amschel Rothschild, founder of the European banking dynasty.

Offline originaljbw

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #64 on: August 04, 2017, 11:38:37 AM »
^I think he's talking about speed trap camera on 117th.

Offline Mendo

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #65 on: August 04, 2017, 11:59:07 AM »
New article from Michelle Jarboe, just posted:

http://realestate.cleveland.com/realestate-news/2017/08/medical_mutual_cfo_rose_buildi.html

Quote
Medical Mutual CFO: Rose Building in downtown Cleveland is 'first preference' for HQ (photos)
CLEVELAND, Ohio - Court actions this week put Medical Mutual of Ohio one step closer to buying its downtown Cleveland headquarters building - a deal that would keep the insurer's central offices in the center city.

Medical Mutual recently offered to pay $37.9 million for the Rose Building and annex, the historic office complex where the company is the sole tenant. The property is at the center of a foreclosure case working its way through Cuyahoga County Common Pleas Court. A court-appointed receiver, charged with preserving the building's value during litigation, is seeking a judge's sign-off on the sale.

A hearing on the matter is scheduled for Aug. 14.
<snip>

Offline KJP

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #66 on: August 04, 2017, 12:03:10 PM »
So back to MM. I'm also told that MM will likely be forced to move out of its existing office building in Toledo -- which also is owned by BentleyForbes. MM has had it with BentleyForbes.
"Give me control of a nation's money supply, and I care not who writes the laws." -- Mayer Amschel Rothschild, founder of the European banking dynasty.

Offline KJP

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #67 on: August 04, 2017, 12:14:26 PM »
New article from Michelle Jarboe, just posted:

http://realestate.cleveland.com/realestate-news/2017/08/medical_mutual_cfo_rose_buildi.html

Quote
Medical Mutual CFO: Rose Building in downtown Cleveland is 'first preference' for HQ (photos)
CLEVELAND, Ohio - Court actions this week put Medical Mutual of Ohio one step closer to buying its downtown Cleveland headquarters building - a deal that would keep the insurer's central offices in the center city.

Medical Mutual recently offered to pay $37.9 million for the Rose Building and annex, the historic office complex where the company is the sole tenant. The property is at the center of a foreclosure case working its way through Cuyahoga County Common Pleas Court. A court-appointed receiver, charged with preserving the building's value during litigation, is seeking a judge's sign-off on the sale.

A hearing on the matter is scheduled for Aug. 14.
<snip>

Pretty tough to beat that deal. Wonder where the suburban offices will go?
"Give me control of a nation's money supply, and I care not who writes the laws." -- Mayer Amschel Rothschild, founder of the European banking dynasty.

Offline Mendo

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #68 on: August 04, 2017, 12:25:33 PM »
Good question. There is no lack of class B office space with attached parking. Hopefully they are interested in bringing them all downtown.

It's funny how these real estate deals work. If the Rose building were actually empty, it would sit around for a year or two before getting auctioned off for half the amount MM offered. MM being the motivated buyer is stuck paying a premium to avoid having to move.

Offline smith

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #69 on: August 04, 2017, 12:55:20 PM »
Well even if a LL turnkeys space, it is very costly to move (setting aside likely increase to rental rate).  I typically see around $10/sf to move, but with economies of scale, it'd probably be less, guessing $4-$5.  Plus, if they wanted, they could probably do another sale leaseback on a 20 year term and sell the thing for around $120-$140/sf.   

Offline KJP

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #70 on: August 04, 2017, 01:55:53 PM »
Good question. There is no lack of class B office space with attached parking. Hopefully they are interested in bringing them all downtown.

It's funny how these real estate deals work. If the Rose building were actually empty, it would sit around for a year or two before getting auctioned off for half the amount MM offered. MM being the motivated buyer is stuck paying a premium to avoid having to move.

Still, for them, a new building would be much more expensive even if they leased it vs buying the Rose Building. And then there's the moving expenses. While there is a lot of Class B space downtown, much of it is zombie space that's really not on the market because it's due for conversion, nor is it in contiguous blocks of space large enough to accommodate MM.
"Give me control of a nation's money supply, and I care not who writes the laws." -- Mayer Amschel Rothschild, founder of the European banking dynasty.

Offline Matches

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #71 on: August 15, 2017, 12:26:06 PM »
Medical Mutual's deal to buy downtown Cleveland headquarters building is moving forward

CLEVELAND, Ohio -- Medical Mutual of Ohio got the green light this week to buy its longtime headquarters building, in a $37.9 million transaction that will keep a major employer in downtown Cleveland and avert a foreclosure.

http://realestate.cleveland.com/realestate-news/2017/08/medical_mutuals_deal_to_buy_it.html

Offline YABO713

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #72 on: August 15, 2017, 12:53:16 PM »
Welp, the tower was a pipe dream anyways lol

Offline TPH2

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #73 on: August 15, 2017, 12:58:15 PM »
^ On the positive side, at least they're not moving out to the subrurbs

Offline audidave

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #74 on: August 15, 2017, 01:00:01 PM »
^Yes in immediate future. However, if things get clear with healthcare and it makes sense to proceed with a new building then maybe in 2-5 years.  I don't think they want to remain in the location they are at.  I believe it would make sense to consolidate what they can in more modern offices. 

Offline KJP

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #75 on: August 15, 2017, 03:25:29 PM »
I agree. MM was facing some uncertainties with its HQ. Buying it resolves those uncertainties. But I don't think it makes their operations more efficient. A consolidated office complex that's in a modern building with open floors can achieve that for them. And perhaps they're already moving employees around...

I happened recently to go by their data center in Beachwood during regular business hours and there were only three cars in the parking lot. While this operation had only about 20 employees, unless most people walked, biked or bussed to work that day, I'd say that MM has moved people out of that site.
« Last Edit: August 15, 2017, 03:29:05 PM by KJP »
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Offline audidave

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #76 on: August 15, 2017, 03:48:48 PM »
^I guess that would only be computer operations staff. Nowadays that can be pretty slim as tape jockeys aren't needed and many things can be done remotely.
   I know i knew people that worked at that location as consultants. I assumed that when i heard someone worked in programming they were there. Now i wonder if they weren't over in Strongsville area or maybe Independence?  Its a big operation, somewhere.  Those are people that are typically brought into a consolidated HQ. I'm not aware that there is much software development happening downtown. But all i know is from what i heard 10-15 years ago.

Offline KJP

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #77 on: September 08, 2017, 04:10:29 PM »
Sources are telling me that yes, Medical Mutual will stay in the Rose Building downtown. Other NE Ohio offices will be consolidated into the former American Greetings HQ in Brooklyn.

Maybe someday these two facilities will be further consolidated into a single building, perhaps downtown. But if does happen, it won't be for many years.
"Give me control of a nation's money supply, and I care not who writes the laws." -- Mayer Amschel Rothschild, founder of the European banking dynasty.

Offline surfohio

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #78 on: September 08, 2017, 04:15:46 PM »
Sources are telling me that yes, Medical Mutual will stay in the Rose Building downtown. Other NE Ohio offices will be consolidated into the former American Greetings HQ in Brooklyn.

I sincerely hope they fixed the sopping wet drop ceiling that continually rained musty debris down on the AG artists. 

Offline tastybunns

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #79 on: September 09, 2017, 12:57:22 AM »
Medical Mutual signed a lease agreement to move some offices to Brooklyn as they have introduced legislation to provide economic incentives for their tenantship. The new location of these offices will be located at the former American Greetings headquarters in Brooklyn.

http://www.cleveland.com/brooklyn/index.ssf/2017/09/brooklyn_to_introduce_legislat.html

Offline freethink

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #80 on: September 09, 2017, 09:15:42 AM »
Here is Crains take on it.

Medical Mutual spokeswoman Tiffini Bloniarz confirmed the company has signed a letter of intent to pursue a long-term lease option at 1 American Road.
"We selected that facility since it is centrally located and offers Medical Mutual the space necessary to accommodate our needs at a reasonable cost," Bloniarz said. She would not speak to how the company plans to handle its downtown staff but added, "We expect no significant impact to the city of Cleveland."
The target of Medical Mutual's attention is likely to be a four-story office building that formerly housed executive offices of the greetings card maker in Brooklyn. The offices are attached to much larger single-floor space on the 1.5 million square feet of the property that is being converted to a multitenant commerce park.


http://www.crainscleveland.com/article/20170908/news/134921/medical-mutual-ohio-weighs-move-some-workers-brooklyn

(btw if you have trouble getting past Crains firewall, open up the article in the "incognito tab" .  It always works in Chrome not sure of others).

Offline BCCLE1

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #81 on: September 09, 2017, 10:14:53 AM »
Re: MM potential move.

In reading the articles concerning the possible MM move, what I do no see is any mention of the 450-500 employees currently based in the Toledo area. Anyone have any insight into whether, or not, MM will be moving those jobs to the CLE area?

Offline PoshSteve

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #82 on: September 09, 2017, 11:42:21 AM »
Good news. When I first saw the headline pop up on my Crain's email, I was afraid it was going to be offices relocating from downtown. Glad to see it won't be taking from downtown at all. This is good news for Brooklyn and good news for the region, even if Toledo doesn't consolidate here. These are jobs moving from the sprawling outer suburbs to an established inner ring suburb that has better transportation links to the rest of the region.

Offline KJP

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #83 on: September 21, 2017, 08:46:13 AM »
Boo. I wanted more. Maybe when the feds stop screwing around with health insurance, the market will settle down enough for MM to make long-term plans....

September 21, 2017 8:31 am
Medical Mutual closes $37 million deal for its HQ
By STAN BULLARD       

Medical Mutual of Ohio became the owner of the Rose Building complex in downtown Cleveland after paying $37 million to buy it from a lender foreclosing on the health insurer's landlord, an affiliate of Bentley Forbes Group.

Cuyahoga County land records filed on Monday, Sept. 18, show Medical Mutual paid $10.3 million for the property, but separate court filings say it paid a total of $37 million for the 10-story, 381,000-square-foot building to cover the property purchase and other claims associated with the foreclosure.

Cuyahoga County Judge Cassandra Collier-Williams on Aug. 29 authorized the sale by court-appointed receiver Donald Green, according to online Common Pleas Court records. The judge's order found that BFG Holdings 2000 LLC had defaulted on a $47 million loan it used to buy the property from Medical Mutual in 2000. The landlord owes a total of $60 million on the loan, including interest, legal and other fees.

MORE:
http://www.crainscleveland.com/article/20170921/NEWS/170929982/medical-mutual-closes-37-million-deal-for-its-hq?utm
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Offline Dougal

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #84 on: September 21, 2017, 12:44:31 PM »
Boo. I wanted more. Maybe when the feds stop screwing around with health insurance, the market will settle down enough for MM to make long-term plans....

Disappointing, but reasonable. A single payer scheme will blow away the whole company, unless they can become some kind of payment center.
There's nothing wrong with optimism, as long as you don't get your hopes up.

Offline YABO713

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #85 on: September 21, 2017, 12:50:22 PM »
Boo. I wanted more. Maybe when the feds stop screwing around with health insurance, the market will settle down enough for MM to make long-term plans....

Disappointing, but reasonable. A single payer scheme will blow away the whole company, unless they can become some kind of payment center.

But Bernie Sanders said single payer will work and the rich will pay for it?

Offline musky

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Re: Cleveland: Downtown: Medical Mutual HQ
« Reply #86 on: September 21, 2017, 01:06:38 PM »
The PD version


Medical Mutual buys downtown Cleveland HQ; suburban office deal in Brooklyn seems likely

 Medical Mutual of Ohio bought its downtown headquarters building this week, putting an end to speculation about whether the insurer's corporate base and more than 1,000 jobs will stay put in central business district.

And with incentive legislation working its way through Brooklyn's City Council, it appears that Medical Mutual will consolidate its suburban operations at the former American Greetings Corp. headquarters complex in 2020. The insurer, with roughly 700 suburban employees, has signed a non-binding letter of intent to lease upwards of 300,000 square feet in Brooklyn.

Medical Mutual has been reluctant to discuss its overall strategy for moving workers around and managing a series of leases that expire in three years. But public records depict a partial win for downtown Cleveland - keeping a major employer, but failing to lure the suburban operations into the city - and potential relief for Brooklyn, which is trying to fill the void American Greetings left by moving to Westlake last year.

http://realestate.cleveland.com/realestate-news/2017/09/medical_mutual_buys_downtown_c.html
« Last Edit: September 21, 2017, 01:06:54 PM by musky »