Cleveland Office Tower Changes Hands

CLEVELAND—After 13 years of ownership, affiliates of Harbor Group International have sold its nearly 1.3-million-square-foot 200 Public Square office tower here.

The Norfolk-VA-based firm acquired the property in 2005 for $141.25 million. The company in a press announcement of the transaction did not divulge financial terms or the buyer of the 1,273,518-square-foot downtown office property. Crain’s Cleveland Business reported the sale price was $187 million and the new ownership as a joint venture that includes DRA Advisors and Cleveland real estate developer and owner Scott Wolstein.

The 45-story office tower that was built in 1985 includes a 757-space parking garage, several restaurants, a fitness center, a conference facility, and an eight-story atrium. The property boasts a tenant roster that includes Huntington National Bank, Benesch, and New York Life. The property is currently 87% occupied.

“With 200 Public Square, HGI demonstrated its ability to own and manage a large commercial asset in a key downtown location through multiple market cycles,” states T. Richard Litton, Jr., president of HGI.  “During its ownership, HGI signed 1.8 million square feet of new leases and lease renewals.”

Litton adds that HGI was pleased with the performance of the property and adds, “our team took a sizable asset and repositioned it as a trophy property, enabling us to maintain stable occupancy and operations through 13 years of ownership.”

Harbor Group International controls a portfolio of worldwide assets valued at $7.8 billion. The firm, which has offices in New York, Baltimore, Los Angeles and Tel Aviv, has real estate holdings that include 5 million square feet of commercial properties and 30,000 apartment units.