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The NRP Group, an apartment developer, has deals to buy 11 acres of industrial property overlooking Lake Erie in Cleveland's Detroit Shoreway neighborhood. The site, seen from West 58th Street and Breakwater Avenue, could support 248 apartments in the first phase, followed by another wave of housing development. The project does not include the Westinghouse Building at the northern end of West 58th.

(Joshua Gunter, The Plain Dealer)

CLEVELAND, Ohio -- A national apartment developer based in Garfield Heights plans to build a 248-unit rental project in Cleveland's Detroit Shoreway neighborhood, in that area's largest housing proposal since Battery Park.

The NRP Group has secured deals to buy 11 acres of industrial property along Breakwater Avenue, overlooking the West Shoreway between West 58th and West 65th streets. Representatives from NRP presented conceptual plans for four apartment buildings and 19 townhouse-style rental homes during a city design review committee meeting Wednesday.

The project comes as downtown Cleveland and close-lying neighborhoods are seeing a rental renaissance of sorts. A trend that started with makeovers of old warehouses and office buildings has spread to include pockets of new construction -- with bullish occupancy projections and, in some cases, less subsidy than one might expect in a city where low rents often make it tough to build anything new.

If the West Side project happens, it will mark NRP's first stab at developing market-rate rentals in the city. The company has built lower-income apartments in Cleveland but has focused on other cities -- Houston; Tampa, Fla.; and, recently, Beachwood -- for its full-price and luxury products.

"That's an interesting spot," Michael Barron, who handles Northeast Ohio apartment deals for Marcus & Millichap Real Estate Investment Services, said of the Detroit Shoreway site. "I have a lot of respect for NRP and their projects. They build good stuff and they know how to market, they know how to advertise. Hopefully they're successful. I don't know what their costs are."

Aaron Pechota, a vice president of development at NRP, wouldn't discuss the potential price of the project at Wednesday's design review meeting. He also declined to comment on rental rates at the community, which would include 360 parking spaces, green space, a clubhouse area and an outdoor swimming pool.

"We don't see this coming in at the top end of the market," Pechota told the design review committee. "It's very much a luxury product, but we think it's a reasonable price point."

Apartment occupancies in Greater Cleveland hovered near 95 percent last year, with backlogs of would-be renters at some buildings in the center city. In a recent report, Marcus & Millichap predicted slightly higher vacancies this year and slower rent growth, due to factors including a soft job market.

But investors and lenders remain intrigued by downtown and some Cleveland neighborhoods, which have been bucking broader population-loss trends and attracting young professionals and childless couples who want to rent instead of buy.

The first phase of the NRP project would span 8 acres, with two sets of four-story apartment buildings and a few clusters of townhouses. Plans by Dimit Architects show that the developer would set aside the remaining 3 acres, on the eastern end of the property, for a second phase.

"For the city of Cleveland, it's a home run," said Jeff Ramsey, executive director of the Detroit Shoreway Community Development Organization, a neighborhood group. "People understand that there's just not a market for these industrial buildings. Here on the lakefront, it's one of the best sites for housing."

Representatives for Dimit Architects and the NRP Group presented this conceptual site plan for a West Side apartment project during a Cleveland city design review committee meeting on Wednesday. The plan shows 248 apartments on 8 acres of an 11-acre site.

The NRP project does not include the Westinghouse Building, an eight-story structure that looms over the Shoreway at the north end of West 58th. That building was one of several used by Westinghouse Electric Corp., a Cleveland manufacturer that made lights used at airports, along highways and at industrial facilities.

"I've had a number of people come out here," Peter Kole, who owns the building, said of interest from developers over the years. "Let's put it this way. The numbers aren't right."

Kole, whose Paramount Stamping and Welding operates out of the Westinghouse Building, did agree to sell nearby industrial property to NRP.

Like other residential projects in the city, the Breakwater development would qualify for property-tax abatement.

Cleveland Councilman Matt Zone, who represents the area, said he's had preliminary conversations with NRP about potential funding for infrastructure work on or near the site. The project would require a street extension and street widening. And the site could incorporate a stretch of the Cleveland Lakefront Bikeway, a scenic bike path.

"At this time, there's no firm commitment on what the city's going to do, other than tax abatement," Zone said.

The Detroit Shoreway group and Zone plan to host a community meeting about the Breakwater apartments at 7 p.m. on Jan. 30th, at the Our Lady of Mount Carmel School gymnasium at Detroit Avenue and West 70th Street.

Design review committee members gave a thumbs-up to the project concept on Wednesday. The Cleveland City Planning Commission could see the proposal in February.