MBS/Ozanne at Lakefront East
Request for Funding Phase IA


Phasing Plan

We will develop Charles Lake Phase IA, a 61-unit, 70,100 square foot family development located in Cleveland, OH on the old Charles Lake School Site consisting of one 4 story apartment building. It will have limited ground floor common areas to serve the overall complex, as well as a top floor outdoor amenity area. Apartments are a mix of 1-bedroom and 2-bedroom units with accessible versions of each. The unit mix is 21 market rate units and 40 units at 60% AMI.

Phase IB:
36 townhomes or 60 units, rental and single family = $9.6M

Phase II :
Demolition of Guarantee Specialties Building and adjacent structures, 5-10 home repairs, 2 new for sale single family homes, new construction of 100 mixed income units= $120M

Phase III:
Demolition of old aquarium, new waterpark and play area, lakefront museum, 120 units of housing= $140M

Sources and Uses – Phase 1A

IRR Analysis

  • 13% annual internal rate of return on a City investment of roughly $8MM to fun development costs
  • This analysis assumes an upfront land payment of $185,000 that would go to the City. It assumes 60% of cash flow goes to pay soft debt and that the City would get roughly 40% of that (equates to a 25% share of cash flow)
  • The back end of the deal (after paying off outstanding debt) is split 50/50 between the city and the owners
  • This deal will drive private investment into for-sale single family homes to 2-5 homes a year for the next 30 years
  • The value of this investment is also in the access to large federal funding sources set aside by the Department of Transportation and other federal infrastructure and housing dollars that this initial investment will make much more likely (not included in analysis – but would increase the city’s return many times over)

Economic Impact

• Increase in market rents and property values
• Proximity to lake generates increased boating, fishing from community
• Cap increase in property taxes for seniors in area
• Generate interest in Rockefeller Greenhouse
• Create market for new single family homes attract developers
• Enhance and beautify area landscape, park, paver walks, and access to neighborhood
• Phases II and Ill will transform North Glenville and Lakefront east

Community Impact

• Collaboration between MBS/Ozanne and Greenhouse
• Workforce equity in construction employment for Clevelanders
• Contracting equity for local construction companies
• Construction of new park on parcel 107- 01-001
• Lakefront and park views provide new amenities for area
• Phase Ill lakefront museum and water park will vitalize and connect the community to the lake

Environmental Impact

• Remove existing Guarantee Specialties Building
• Wintergarden, paver walkway, new sidewalks will elevate the neighborhood
• The building will be sustainably designed and built
• The project image and marketing will appeal to lovers of nature
• There will be an intentional focus on the lakefront views and connections between
the 3 phases