When FedEx Custom Critical moved to Richfield Village last year, it left a 262,000-square-foot structure in the heart of the Green in need of a large tenant or tenants.
That problem will get new attention after the sale of the Boettler Road property to Green Ambassador Midwest, a company formed to acquire the massive structure.
The building, depending on who's counting, is the second largest — or tied for largest — in the city. The city puts the square footage at 259,000 square feet. The buyer lists it at 262,000.
Great potential for jobs, income from income tax
This size of an office/industrial structure can house many employees, generating a lot of income tax revenue for the city.
New Mayor Rocco Yeargin noted the city isn't hurting financially in his Jan. 25 State of the City address, with 2023 income tax revenue coming in at $29,326,515, slightly above 2022.
A fully utilized FedEx building, however, would provide a major boost to city coffers.
Isn't the commercial real estate industry in a funk?
With work patterns changing post-pandemic, the use of office space has been a big hit. Last year, the office vacancy rate in the US approached an all-time highclimbing to 19.2%, according to Moody's Analytics.
That likely played into the building's $2.4 million price tag, a fraction of its $35 million price tag in 2011.
Also a factor: The site's proximity to Interstate 77 was once a prime location for a business that moved a lot of trucks. But substantial development at Boetteler and Massillon Road and increased traffic flow have made it less attractive for that purpose.
More: Final stretch of road in Massillon Road project on track for Thanksgiving completion
What is Green Ambassador Midwest?
The company named in the purchase of the FedEx building has a mailing address that originates from a UPS store in Wisconsin.
But the person behind the purchase is J. Scott Scheel.
According Crain's Cleveland BusinessScheel, a commercial real estate developer and educator, created and leads Green Ambassador Midwest.
Who is J. Scott Scheel?
He is a commercial real estate investor and educator, according to the Commercial Academy website.
It has purchased more than $600 million in commercial real estate and manages more than 6 million square feet in properties across the country.
Scheel has also invested in independent films through his company Burning River Productions and conducts seminars on commercial real estate investing.
What plans does the new owner have for the former FedEx building?
The plan for the FedEx building is still being worked on, according to an official with Willoughby Hills-based Commercial Academy, Scheel's all-things-commercial real estate firm.
Yeargin and other Green officials recently met with Scheel, city communications manager Valerie Wolford said.
He said company officials indicated there was great potential for the structure, even in a difficult market.
“It's an attractive building in an up-and-coming city that doesn't have a lot of office space available compared to other cities,” he said.
Yeargin said in an email that the meeting set a good tone for the future.
“We are excited about the potential and particularly pleased to hear from the buyer that he is committed to developing a long-term plan for the building,” he said. “I am very optimistic about the future of the property.”
Leave a message for Alan Ashworth at 330-996-3859 or email him at aashworth@gannett.com. Follow him on Twitter at @newsalanbeaconj.
