Difficult office market hurt skyscraper’s value

According to a well-placed source, Downtown Cleveland’s third-tallest skyscraper is under a purchase agreement from a New York City-based buyer.

The 45-story Huntington Building, also known as 200 Public Square, has seen its share of challenges since the pandemic and the rise of remote working nearly four years ago as other office properties have.

That is one reason why the building has reportedly sold for a vastly discounted rate.

The source, who spoke on the condition of anonymity, said that the agreed-upon sale price for the 1.26-million-square-foot tower was approximately $65 million, or just $52 per square foot.

For comparison, the source said the last time the 38-year-old skyscraper and its six-story atrium fronting Public Square sold more than five years ago, it fetched a price of $187 million. However, the tower is appraised by Cuyahoga County at $136,692,100 for tax purposes and is due to pay $4.88 million in property taxes this year.

Depending on the new property tax value, the sale of 200 Public Square could result in the loss of at least $2.3 million in tax revenues divided among the Cleveland Metropolitan Schools, Cleveland Metroparks and local libraries.

Another reason for the reduced price is that the sale transaction apparently doesn’t include the tower’s attached, 757-space parking garage which has a property tax value of $10.1 million. Title to the garage will reportedly remain with a joint venture that has owned both the tower and garage since 2018.

That joint venture, G&I IX 200 Public Square LLC, was led by New York City-based DRA Advisors.

(In the heart of downtown Cleveland, the 45-story Huntington Building.-Adam Greene)

Ref: Downtown Cleveland skyscraper sells cheap (neo-trans)