What we know about the sale of the former FedEx building being greenlighted
When FedEx Custom Critical moved to Richfield Village last year, it left a 262,000-square-foot building in the heart of the Green District in need of an anchor tenant or tenants.
The issue will get some new attention after the Boettler Road property is sold 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 the largest — in the city. The city estimates the square footage at 259,000 square feet. The buyer registers it for 262,000.
Great potential for jobs and income tax revenue
This size of office/industrial structure can house a lot of employees, generating a lot of income tax revenue for the city.
New Mayor Rocco Yeargin noted the city is not hurting financially in his State of the City address on Jan. 25, with 2023 income tax revenue at $29,326,515, slightly higher than 2022.
However, using the entire FedEx building would give a major boost to city coffers.
Isn’t the commercial real estate sector a mess?
As work patterns change after the pandemic, the use of office space has been greatly affected. Last year, the vacancy rate for office space in the United States was Close to an all-time highIt rose to 19.2%, according to Moody’s Analytics.
That may have played a role in 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 a prime location for a lot of truck operations. But major development on Butler and Massillon Roads and increased traffic flow made it less attractive for this purpose.
more: The latest stretch of road in the Massillon Road Project is on track to complete Thanksgiving
What is Green Ambassador Midwest?
The company involved in the purchase of the FedEx building has a mailing address that traces back to a UPS store in Wisconsin.
But the face behind the purchase is J. Scott Shell.
according to Crane Cleveland BusinessSchell, a commercial real estate developer and educator, founded and leads Green Ambassador Midwest.
Who is J. Scott Shell?
He is a commercial real estate investor and educator, according to the Business Academy website.
He has purchased more than $600 million in commercial real estate and manages more than 6 million square feet of real estate across the country.
Scheel has also invested in independent films through his company Burning River Productions, and has conducted seminars on commercial real estate investing.
What are the new owner’s plans for the former FedEx building?
The plan to build the FedEx building is still in the works, according to an official with Willoughby Hills-based Commercial Academy, Scheel’s commercial real estate firm.
City Communications Director Valerie Wolford said Yergin and other Green Party officials met with Schell recently.
She said company officials indicated that there was great potential for the structure, even in a challenging 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,” she said.
The meeting set a good tone for the future, Yergin said in an email.
He said: “We are excited about the potential and particularly pleased to hear from the buyer that they are committed to developing a long-term plan for the building. I am very optimistic about the future of the property.”
Leave Alan Ashworth a message at 330-996-3859 or email him at firstname.lastname@example.org. Follow him on Twitter at @newsalanbeaconj.
This article originally appeared in the Akron Beacon: Green Ambassador Midwest has purchased the former FedEx Custom Critical building