55 Public Square

A planned sale of the 55 Public Square office tower in downtown Cleveland has fallen through.

(Marvin Fong/The Plain Dealer)

CLEVELAND, Ohio -- The K&D Group has walked away from a planned purchase of 55 Public Square, a half-empty office building in the heart of downtown Cleveland.

Doug Price, K&D's chief executive officer, confirmed Monday that the deal is off.

"We did decide to pass on it last week," he said of the 22-story tower, which K&D had hoped to renovate and fill with a mix of offices and apartments. "It is just not workable for us. I really can't get into details."

Chaim Schochet of Optima Ventures, the Florida-based owner of the property, could not immediately be reached for comment. Optima bought 55 Public Square in 2008, paying $34 million for a complex that includes a seven-story garage and the former John Q's Steakhouse space.

The Plain Dealer reported on the potential sale to K&D, one of downtown's largest landlords, in May. At the time, Price talked about installing 150 apartments on the tower's lower floors and consolidating office tenants upstairs. He'd hoped to start renovating the garage late this year.

"We're all disappointed," he said Monday. "It could have been a great project. It's just not something we're willing to take on at this point."