THE DECADES OLD MANTRA OF LOCATION, LOCATION, LOCATION is giving way to the new mantra of the 21st century Internet Connectivity. Imagine a location where you are connected to the 21st century and where the stress of competition is balanced with the natural calm of nature by having the historic Ohio & Erie Canal and the Stark County Park system in your backyard.
This is the best of all worlds and with the acquisition of this building you will be "connected" where “MCTV has availability for construction of synchronous fiber optic internet access. MCTV can also provide many types of voice solutions which include hosted voice systems, analog POTS telephone lines, SIP Trunks as well as PRI telephone service.”
HERE IS WHAT HAS CHANGED IN THE MARKET:
SALES COMPS: Of comparable type uses is the standard methodology used by real estate and non real estate people to represent the best indicator of value as sale comps are evidence of an arm's length transaction over a period of time. The sales comps are generated from the county records that will identify an average cost per sq. ft. for the different use types that are then used to match up as to whether a building or property is above or below the market comps. Note: The average market sale comps do not differentiate between subjective opinions such as an area with low crime vs. one with high crime or a community that is loaded with amenities vs. another community with little or no amenities. For comparison basis, buildings/properties are matched up such as office vs. office or retail vs. retail, the sold price and the total sq. ft. to arrive at the average cost per sq. ft. Note: Although the average cost per sq. ft. is the industry wide indicator that is used, it may not always match up to the dollar valuation arrived at by the county as the county records might show the property being used as an office or retail when it is vacant or used as a banquet facility when the records indicate an office or retail operation and because of the misnomer on the use type, the valuation can be higher or lower depending upon where the discrepancy is. HOWEVER: EVERYONE UNDERSTANDS THAT THE COUNTYWIDE AVERAGE COST PER SQ. FT. IS WHAT EITHER A BUYER, SELLER AND BANK WILL BE USING.
WHAT HAS CHANGED IN THE MARKET is other assets and amenties that are being seen as critical in the decision process that has yet to be assigned a valuation number by the county and therefore is excluded from the average cost per sq. ft. number. The following are the assets and amenities that are being desired and sought after and if you find a building/property that is in the average market sales comp range that also includes these other assets in addition to other opportunities, then you need to take a serious look as you will be getting a bonus or value added at no additional cost. It has become a common understanding and acceptance that waterfront property has a much higher value and yet, although the data shows commercial waterfront property as having an average increase in value of 35%, waterfront building/property is not included within the county valuation process and getting a waterfront building at no additional cost is really like buying a waterfront building at 35% less than the market averages.
NEIGHBORHOOD: The neighborhood once thought to just be incidental and separate from the acquisition of a building or property has taken on a whole new meaning. A community that is seen as evolving and growing is the type of neighborhood being in demand where INCLUSIVITY is replacing exclusivity as a selling point by incorporating in a COMMUNITY’S HISTORY and make-up as part of the character and ambiance of the building location and the opportunities that it represents.
Developers, investors, entrepreneurs and building owners are seeking flexible, MULTI-USE projects and buildings that can be used to satisfy multiple tenants and CHANGING NEIGHBORHOODS that lets owners maximize rent and seek the highest and best use reaping the benefits of doing good for the COMMUNITY creating live/work/play locations that are showing impressive growth possibilities.
The new branding and marketing image that illustrates the community's connection to nature and outdoor recreation that will carry the community into the future.
DEVELOPING NEW BUSINESS AND NICHE MARKET OPPORTUNITIES
The Convention & Visitor's Bureau of four (4) different counties are working together for the first time to attract consumers along the Ohio & Erie Canal that runs from downtown Cleveland south to New Philadelphia a distance of 110 miles that includes 58 communities. One of their areas of collective focus is the Ohio & Erie Canal because it attracts outdoor recreation that attracts the Millennials that are the target group.
As a result of this four county collaboration effort, a new canal niche market will be formed and here lies the opportunites to be in a position to dominate and control this new niche market. The subject building is located right along the Ohio & Erie Canal and is in a prime position due to it's location, zoning and size to capitalize on the opportunities related to the new market.
Description: Versatile brick building Zoned B-1 General Retail Office Districtwith the first floor and lower level having an A-1 use group (Assembly) designation allowing for greater use flexibility and occupancy density. The building has a gross area of 21,120 sq. ft. spread out over a lower level, first floor, second floor and the third floor with each floor being 5280 sq. ft.
There is a 2,000 lb. capacity freight elevator serving all floors that is up to code and with the required certifications and inspections.
Most zoning classifications are industry specific with minor variations whereas Retail is strictly Retail and Office is strictly Office, etc. Although the zoning of this building is B-1 General Retail Office District, this zoning allows great flexibility in multiple other uses such as restaurants, bar, entertainment center, antique store, medical and other health services, theatrical playhouse to hospitality opportunities such as hotel, bed and breakfast inns, tourism and event planning and more. THIS ZONING ALLOWS you the opportunity to diversify and be flexible to any changes that best represent the buildings potential and ability to remain competitive.
Included is an existing garden area that is approximately 37’ x 80’ or 2960 sq. ft. that also has the B-1 use group where the lower level opens up too creating the opportunity to combine for a beer or wine garden with outdoor dining and entertainment where this area butts up too a Conservation Buffer Zone that is part of the canal lands to increase species diversity where no vehicles are allowed for safety. Included in the price is a side yard currently being used as a rose and flower garden If you are going to be needing expansion space, this garden area could accommodate an approximate 12,000 sq. ft. building increasing the total square footage from 21,120 to approximately 33,120 sq. ft. NOTE: What makes this garden area so unique for any of the possible uses is that it has "Direct Access" to the canal waters. This amenity was granted back in 1906 when the building was built and according to the Ohio & Erie Canalway organization, this garden area may represent the only commercial development site along the entire 110 mile long Ohio & Erie Canal Corridor that cuts through four (4) different counties that has "Direct Access" to the canal. Combine this feature with the fact that of the 2.5 million people who visit the 110 mile long canal each year 52% or 1.3 million people use the canal/towpath that runs right behind the building allowing the opportunity to dominate the canal market niche.
The Warehouse on the Canal is located within the historic district of downtown Canal Fulton.
Downtown Canal Fulton is unique even for a canal community in that it has two waterways running through it in the Tuscarawas River and the Ohio & Erie Canal towpath offering boating and other recreational opportunites right into the community.
The Scenic Byway runs through downtown attracting people to visit. Marketing and promotional awareness is a key to any business and by being located at the Warehouse in downtown Canal Fulton and along the Ohio & Erie Canal, you will be part of the Scenic Byway route that is a nationally designated scenic route by the U.S. Secretary of Transportation to get people off of the freeways to connect people to the National Heritage Area. A National Scenic Byway must have one or more of six "intrinsic qualities": archaeological, cultural, historic, natural, recreational, and scenic designed to promote TOURISM and ECONOMIC DEVELOPMENT. Note: There are more than 600 Scenic Byway signs directing motorist to visit this Scenic Byway tour route.
Located about 25 minutes away is the new PRO FOOTBALL HALL OF FAME VILLAGE an $800 million project that will be completed in phases with a final completion in 2020 that when up and running it is estimated to generate for Stark County over the subsequent 25 year period about $15.3 Billion in consumer sales.
Additionally located in Canal Fulton just 1 mile from the downtown is a 500 acre resort, RV park, campground, event center with a 25 acre fishing lake. This event center is known for bringing in national acts such as Blake Shelton and a variety of other entertainment options where they draw in several hundred thousand people annually and this is one of Ohio's top outdoor camping destinations.
The building is located within the Stark County Park System that includes the Ohio & Erie Canal Canal Corridor under the management of Stark Parks that acts like the hub of a wheel where the spokes connect to more than 26 different communities where Stark Parks is celebrating it’s 50 years of history and proudly manages 14 parks, 4 lakes, and over 100 miles of hiking, biking, mountain biking and equestrian trails, totaling over 8,000 acres of land where people enjoy boating, camping (primitive), canoeing, kayaking, pontoons and paddleboarding, bird watching or birding, wildlife photography. There is 2800 acres open to hunting and there are 1200 acres of ponds, lakes and reservoirs for fishing with some of the best breeding areas for game fish.
Stark County Tourism: Data from the Visit Canton Stark County Convention & Visitor’s Bureau indicate 581,370 hotel rooms sold and consumer spending of $1.1 billion. The Warehouse participates in the tourism industry.
Conservation Buffer Zone area- Connected to the subject property is an area dedicated by Stark Parks as a Conservation Buffer Zone to help improve species diversity and the benefit of wildlife. This area along the canal has access via a graveled road as the use is identifiedin the Governor’s Deed to remain open to the public providing a non-development designation where the view of the canal will always remain.
This Conservation Buffer Zone abutts up to the garden area along the canal allowing for that area to always remain open.
Ohio Historic Preservation Tax Credit Program: The downtown Historic District is listed on theNational Register of Historic Places and qualifies for the HistoricPreservationTax Credit Program.
The Ohio Historic Preservation Tax Credit provides a state tax credit up to 25 percent of qualified rehabilitation expenditures or QREs and the Federal program provides 20% where they can be stacked for up to 45%. In general, a dollar of tax credit reduces the amount of tax owed by one dollar with a maximum $5 million in Ohio state tax credits. EX: $100,000 spent on approved QREs x 45% = $45,000 or $1 million spent on approved QREs x 45% = $450,000 in tax credits, etc.
Note: Applicants requesting historic preservation certifications by the National Park Service and those interested in the use of the credits are strongly advised to consult an accountant, tax attorney, legal counsel, or the Internal Revenue Service regarding the changes to the Internal Revenue Code related to Public Law No: 115-97.
Owner User and Investment Opportunity Gross Sq. Ft. = 21,120 sq. ft. Leaseable area as recognized by the County Auditor = 18,880 sq. ft.
RESPECTIVE COUNTY SALES COMPS IS FOR THE PERIOD 7-1-2015 TO 8-8-2018
STARK COUNTY SALES COMPS-This is the market subject building located in:
RETAIL: $230 million in volume representing almost 4 million sq. ft. with an average price per building sq. ft. of$87.31sq. ft.for the 3rd quarter 2018.
OFFICE: Over $60 million volume representing approximately 1.5 million sq, ft. with an average price per building sq. ft. of $63.70 sq. ft. for the 3rd quarter 2018.
BLENDED RATE: $75.51 SQ. FT. for the 3rd quarter 2018.
Stark County (Market): 8.45% average cap rate of office sold. 7.36% average cap rate of retail sold.
SUMMIT COUNTY SALES COMPS-Adjacent market
RETAIL: $202 million in volume representing almost 5 million sq. ft with an average price per building sq. ft. of $60.68 sq. ft. for the 3rd quarter 2018.
OFFICE: $276 million in volume representing almost 6.5 million sq. ft. with an average price per building sq. ft. of $77.15 sq. ft. for the 3rd quarter 2018.
BLENDED RATE:$68.92 for the 3rd quarter 2018.
Summit County (Adjacent Market): 9.22% average cap rate of office sold. 8.41% average cap rate of retail sold.
If the BLENDED averages of TWO DIFFERENT COUNTIES AND MARKETS were then combined for another blended average, that would then be $72.16 sq. ft. THE SALE PRICE OF THIS BUILDING WITH ALL OF THE ADDITIONAL ASSETS, AMENITIES, CANAL WATERFRONT PROPERTY AND UPSIDE POTENTIAL OPPORTUNITIES PER SQ. FT IS $60.37 SQ. FT.
Investment Opportunity: Gross Sq. Ft. = 21,120 sq. ft. Leaseable area as recognized by the County Auditor = 18,880 sq. ft.
Base rental rate averages for Stark County, Ohio According to CoStar the nation’s #1 commercial real estate research organization they lookedat the net effective leasing base rates for both office and retail spaces over the previous 3 year period within Stark County, Ohio (Market) where all deals were included regardless of size from the lowest to the highest that resulted in the averages.
Office Space: Average leasing cost for the past 3 years for office = $ 11.08 sq. ft. where the low was $5.00 sq. ft. and the high $28.00 sq. ft. The average lease deal = 2119 sq. ft. 8.45% average cap rate of office sold.
Retail Space: Average leasing cost for the past 3 years for retail= $ 10.93 sq. ft. where the low was $3.33 sq. ft. and the high $21.00 sq. ft. The average lease deal 3,942 sq. ft. 7.36% average cap rate of retail sold.
The building for classification is considered a class B due to it's condition and location as identified by CoStar and LoopNet.
Waterfront Commercial Properties: Based upon conversations with those in the real estate industry from brokerage houses to real estate research firms and the review of sale data, there is an average INCREASE IN VALUE OF 35%.
Note: THE EXISTING tables, chairs, staging area, most of the fixtures, props, furniture, walk in freezer, walk in refrigeration, kitchen equipment and cabinets CAN BE MADE AVAILABLE in part or whole in a separate agreement from the purchase price.
Potential 650 sq. ft. apartment or living area staged in the canal level of the building.
CURRENT USES: The Building is currently being used for live entertainment venues from Escape Room, Team Building, Victorian Wake-Historically Hysterical to charitable and Community events. These events can continue on with any new buyer if interested.
B-1 General Retail Office District Zoning
CHAPTER 1169 B-1 General Retail Office District
1169.01 PURPOSE. The purpose of this District is to provide for a variety of retail, service and administrative establishments which are required to serve a large trading area population. (Ord. 22-1972. Passed 8-1-72.)
1169.02 USES. Within a B-1 General Retail-Office District, no building, structure or premises shall be used, arranged to be used or designed to be used except for one or more of the following uses: (a) Permitted Uses.
(1) Department store.
(2) Off-street public parking lot.
(3) Establishments engaged in the retail trade of:
B. Book and stationery store.
C. Apparel store.
D. Florist shop.
E. Antique store.
F. Sporting goods store.
G. Jewelry store.
H. Optical goods store.
I. Furniture, home furnishing, and office equipment and office supplies store.
J. Beverages including liquor.
L. food sales including supermarket.
M. Hardware, paint, floor coverings, wallpaper, materials and objects for interior decorating, auto accessories and repair of household appliances.
N. Preparation and processing of food and drink to be retailed on premises including bakery, delicatessen, meat market, confectionery, restaurant, ice cream parlor, soda fountain.
O. Eating and drinking establishments but excluding drive-in restaurants.
(4) Establishments engaged primarily in the fields of finance, insurance and real estate:
B. Credit agency other than a bank.
C. Investment firm.
D. Insurance carrier.
E. Real estate and insurance company.
F. Investment company.
(5) Establishments engaged in providing a variety of services to individuals and business establishments, such as:
A Personal services such as barber and beauty shops, shoe repair shops, laundries and dry cleaning.
B. Business services such as advertising agency, news services, maid service and employment agencies.
C. Medical and other health services.
E. Legal services.
F. Accounting, auditing and bookkeeping services.
G. Nonprofit, professional, charitable and labor organizations.
H Dance studio and school.
I. Bowling alley.
J. Motion picture and theatrical playhouse.
K. Child and adult day care center.
L. Video rental and sales.
Note: D- Was Omitted from the Codified Ordinance.
6) Accessory buildings incidental to the principal uses which do not include any activity conducted as a business.
(7) Accessory uses clearly incidental to the uses permitted on the same premises.
(8) Travel agency, passenger-transportation agency and terminal.
(b) Conditionally Permitted Uses. The Planning Commission may issue conditional zoning certificates for uses listed herein subject to the general requirements of Chapter 1145 and to the specific requirements of Section 1145.04, referred to below:
(1) Drive-in banking facilities subject to Subsection 102.
(2) Clubs, lodges, fraternal, charitable or social agencies subject to Subsection 102, 103, 105, 110.
(3) Temporary buildings for uses incidental to construction work subject to Subsection 114. (Ord. 22-1972. Passed 8-1-72.)
(4) Veterinarian hospital or clinic. (Ord. 8-1980. Passed 4-1-80.)
(7) Bed and Breakfast Inns subject to Subsections 103 and 117. (Ord. 23-87. Passed 5-19-87.)
(8) First floor apartments subject to subsection 132. (Ord. 7-91. Passed 4-2-91.)
(9) Outdoor dining on public property subject to subsection 133. (Ord. 45-94. Passed 8-16-94.)
(10) Hotel. (Ord. 12-16. Passed 7-19-16.)
The backyard is the Ohio & Erie Canal and the County Park System known as Stark Parks
This rose and flower garden area can support an approximately 12,000 sq. ft. expansion area. This site may represent the only commercial development site with "Direct Access" to the canal available along the entire 110 mile long Ohio & Erie Canal Corridor. Connecting to this site and continuing along the canal is a County Park Conservation Zone that will always remain open to encourage species diversity. The garden area is directly connected to the lower level offering the opportunity to create a beer garden with dining and entertainment options playing off the canal.
In the photo below that is estimated to be circa 1915 shows the "Chew Honest Scrap" sign and here it is over 100 years later and you can still see the sign although faded. The Historical Preservation Society has approved of the repainting and restoring of the sign and the chewing tobacco box.
Previous Bar Operation
With all of the space, imagine the possibilities of themed parties and entertainment options that can be planned? Waiting for Santa for the 2018 Christmas on the Canal celebration.
You could even have an 18 piece orchestra playing for your event
Themed wedding ceremony
Opportunities of closing off the street in front of the building to expand events. This event was for those with special needs where over 250 people watched.
From students and young people to major corporations, our popular Team Building and Escape Room programs featuring the Fear of the Unknown theme is making an impact.
Your guest list of those invited can be endless:
Working from home:
Studies show: 30 percent of human life is spent working.
Spending more time with your family and being able to control that workplace and home life balance that is so important
The neighborhood on a warm summer night of the canal and a portion of the downtown. The subject property is about a one minute walk away. Photo by DoorPost Photography.
Check out this short clip of the downtown community
The Ohio & Erie Canal becomes a wholesome area to hangout and fish or look for frogs
If you have any questions or you are interested in seeing the building, I look forward to hearing from you.