Sammys Flats.jpg

The former Sammy's building in the Flats could be redeveloped for offices, a restaurant, retail, housing or even a small hotel, after being sold to a local investor. The property landed in foreclosure and receivership after Sammy's, a well-known catering and events business, abruptly closed in August 2013.

(Michelle Jarboe McFee, The Plain Dealer)

CLEVELAND, Ohio -- A piece of Cleveland hospitality history changed hands late last year, in a deal that could bring new tenants -- and, perhaps, more new construction -- to the Flats.

Best known as Sammy's in the Flats, the empty building at 1400 W. 10th St. now belongs to a group led by Cleveland-area investor Joel Scheer. Real estate records show that the buyers paid $1.6 million for the property, which was in foreclosure and controlled by a court-appointed receiver.

Scheer, who has dabbled in industrial and multifamily development, isn't sure what he'll do with the three-story brick structure. But he couldn't resist the location, which overlooks the Cuyahoga River and the future site of Canal Basin Park, an expansive waterfront green space set for completion in mid-2019.

"I went in there ... and it was on a summer day, and you can see guys kayaking," Scheer said of the Sammy's building. "And you go up on the roof and you can see the lake. You can see all the bridges and everything that's going on with [the Flats East Bank] project. And as you look back toward the city, you can see Public Square. I just fell in love with the views."

The Sammy's complex hit the market last year, in the fallout from the abrupt 2013 closure of a notable Cleveland catering and events business. Sammy's in the Flats opened in 1980 as a restaurant, a pioneer in downtown's fine-dining scene. The restaurant closed in April 2000, as owners Denise Fugo and Ralph DiOrio shifted their focus to catering and events.

The West 10th Street building, constructed in the late 1800s and early 1900s, started its life as a picture frame factory. Sammy's, a pioneering downtown restaurant, opened there in 1980 and operated for 20 years.

When Sammy's shut down in August 2013, the company had exclusive catering relationships at 10 locations and had re-entered the restaurant business with a dining spot in downtown's Playhouse Square district.

Court records show that Huntington Bank initiated foreclosure proceedings on the company's Flats complex, its center of operations, the following month.

Fugo could not be reached for comment this week. Steve Skutch, the Toledo-based receiver who handled the sale of Sammy's property including the real estate, did not return a phone call.

Originally a picture frame factory, the Sammy's complex was built in stages in the late 1800s and early 1900s, according to research from Sandvick Architects of Cleveland. The building is part of the Warehouse District historic district, making it eligible for preservation-focused financing tools including federal and state tax credits.

"We think it's a great opportunity," said Tom Yablonsky, executive director of the Historic Warehouse District Development Corp., which helped Sammy's evaluate preservation and development options for the property years ago. "It's a good housing or mixed-use site or restaurant site. ... Even when Sammy's did their assessment of the project, they proposed that they could flank the building with new construction."

Scheer has not decided whether he will seek preservation incentives. He expects to maintain most, if not all, of the existing complex and could pursue new construction on the surrounding land. Working with Dimit Architects, the developer is looking at renovations including patio or deck additions facing the river.

Offices are the most likely use for the 31,000-square-foot building, but other ideas include a boutique hotel, apartments or even some retail, said Rico Pietro of Cushman & Wakefield/Cresco Real Estate. Cresco marketed the Sammy's property for sale and is handling leasing for the new owners.

"It's a very prominent building, and I'm sure we're going to attempt to do something very sensitive to the area," Scheer said.

"I never had a site that was so special," he added, explaining his willingness to take on a project without a firm plan or a committed tenant. "You don't get a second chance to buy something like that."