CLEVELAND — Medical Mutual’s longtime headquarters – a Downtown office complex hollowed out by the pandemic and shifting work habits – is set to become a hotel, apartments and retail.
Local hospitality company Spark GHC and Cleveland Construction announced early Tuesday that they’re set to buy the 400,000-square-foot office property. Medical Mutual has already moved out. The insurer put the historic Rose Building up for sale last year.
Now the buyers are planning a mixed-use project with a price tag of more than $100 million. In a news release, they didn’t say how much they’re paying for the property, which is located at the high-profile corner of East Ninth Street and Prospect Avenue.
“This joint venture marks a pivotal moment in Cleveland’s ongoing evolution. … We are poised to create a destination that not only honors the city’s heritage but also propels it into a new era of growth and prosperity,” Bhavin Patel, a co-founder and principal at Spark GHC, said in a news release.
The redevelopment project will include a boutique hotel, apartments and what the buyers described as “a unique ground-floor retail experience.” The partners didn't say how many hotel rooms and apartments the building will hold – or when they will open.
It’s also unclear when the sale will take place.
“Together, we will create a landmark destination that enhances the quality of life for residents and visitors alike,” James Small, the owner of Cleveland Construction, said in the news release.
Medical Mutual occupied the Rose Building from 1947 to 2023. The company owned the 10-story building and its six-story annex for much of that time.
And in the years leading up to the pandemic, the insurer appeared to be recommitting to the property, with renovations planned. At the time, the company had more than 1,000 employees Downtown.
But by late 2022, many of those headquarters employees were still working remotely.
Medical Mutual decided to move to Brooklyn, instead, where the company already had satellite offices at the former American Greetings Corp. campus off Tiedeman Road.
“The Rose Building holds a special place in the history of Medical Mutual,” Steve Glass, the president and CEO, said in the news release. “It’s important to us that it’s being used to invigorate the area and contribute to the vibrancy of Cleveland’s downtown. That’s why passing the baton to Spark GHC and Cleveland Construction feels right.”
The CBRE real estate brokerage marketed the property for sale. In the news release, Jamie Dunford and Kevin Yates of CBRE described the pending sale as a creative deal - one that came together despite a tough economic environment.
