Cleveland Athletic Club May Exercise Chapter 11 Option
When the Cleveland Athletic Club constructed it's downtown facility, a century ago, it set what some historians have called an international precedent, by negotiating a "sky rights lease" --- building into the sky, on top of an existing building. Today, the Club is looking for a new financial negotiation. CAC President Harry McDonald is due to speak to his membership at a meeting Wednesday, laying out a Chapter 11 scenario. Levin College real estate expert, Robert Simons says the old Club is one of ten in the downtown area. That competition, along with maintenance costs, have hurt the facility. A projected increase in "empty nesters" relocating downtown after the kids have grown-up, might give the Club new customers, but there are other factors.
Robert Simons: There's plenty of demand for "empty nester" housing downtown. The market would probably be good for that, but there's some issues there. One issue is that empty nesters are a little bit risk averse. And they can't sell their houses, right now. That's a problem.
Simons says the residential market downtown is growing, but it will probably take a decade before some real economic impact is seen.