Pennrose Properties Breaks Ground on Warner & Swasey Mixed-Use Redevelopment in Cleveland's MidTown Neighborhood
CLEVELAND — Pennrose Properties Properties and MidTown Cleveland have officially broken ground on the redevelopment of the Warner & Swasey building, launching construction on an adaptive reuse of the historic former manufacturing facility at 5701 Carnegie Avenue in Cleveland's MidTown neighborhood. The project will transform the 194,000-square-foot, five-story structure — vacant since 1985 — into a mixed-income residential and commercial development, the firms announced June 2.
The groundbreaking marks a milestone for the MidTown submarket, which sits between Downtown Cleveland and University Circle and serves as a connector within the region's broader innovation corridor. The project drew on 24 separate capital sources to move forward.
Project Scope and Phasing
The project will be developed in two phases. Phase I will deliver 112 rental apartments within the existing historic structure, organized as two 56-unit components — one designated for seniors and one for families. Phase II will add approximately 28 additional residential units alongside roughly 22,000 square feet of commercial space, bringing the total residential count to approximately 140 units.
Affordable units will serve households earning between 30% and 60% of Area Median Income (AMI). Project-Based Vouchers from the Cuyahoga County Metropolitan Housing Authority (CMHA) will support deeply affordable units within the development. The development team plans to preserve the building's industrial architectural character, incorporating historic features into amenity spaces that include a second-floor rooftop terrace and outdoor gathering areas.
"Many Clevelanders have a deep, personal connection to this building, this site, and this neighborhood. That shared history made the case for redevelopment incredibly compelling, and it's what kept our team motivated through years of complex work to get here," said Geoff Milz, regional vice president, Midwest, at Pennrose. "Our team did a herculean job bringing together the financing and partnerships needed to make this project a reality. Today, we begin honoring that legacy by creating quality, inclusive housing that will make Warner & Swasey an active part of this community once again."
"This groundbreaking represents nearly a decade of collaboration and a belief in the future of MidTown," said Ashley Shaw, Executive Director of MidTown Cleveland. "Warner & Swasey has long stood as a symbol of this neighborhood's industrial legacy. Today, we are not only preserving an important historic landmark, but creating new opportunities for residents, families, and businesses to thrive in the heart of Cleveland."
Financing: A 24-Source Capital Stack
The Ohio Housing Finance Agency (OHFA) awarded the project Low-Income Housing Tax Credits (LIHTC), which were syndicated by Hunt Capital Partners. Huntington National Bank provided construction and permanent debt financing alongside Cedar Rapids Bank & Trust. Federal and State Historic Tax Credits were syndicated by Clocktower Tax Credits.
On the public funding side, the Ohio Department of Development awarded a State Brownfield Remediation Grant, with a local match provided by Cuyahoga County. Cuyahoga County also contributed Emergency Rental Assistance funds, HOME dollars, ARPA allocations, and Casino Funds. The City of Cleveland provided an Economic Development Loan, HOME funds, VESTA funds, and additional local resources. The Federal Home Loan Bank of Cincinnati contributed through its Affordable Housing Program, and capital lease financing was provided by the Cleveland-Cuyahoga County Port Authority. The Cleveland Foundation provided philanthropic investment.
Speakers and Stakeholders
The groundbreaking ceremony drew a broad coalition of public and private stakeholders. Speakers included Geoff Milz, regional vice president at Pennrose; Ashley Shaw, executive director of MidTown Cleveland; Mayor Justin Bibb of the City of Cleveland; Chris Ronayne, county executive of Cuyahoga County; Councilman Richard Starr of Cleveland's Ward 5; Cody R. Price, PhD, 9% Housing Tax Credit Section Chief at the Ohio Housing Finance Agency; Jeff Epstein, president and CEO of The Port of Cleveland; Heather Pierce, vice president of investor relations at Hunt Capital Partners; Jay Turakhia, Northeast Ohio regional president at Huntington National Bank; and Charlie Adams, president of Pennrose.
Pennrose is headquartered in Philadelphia with a regional office in Cincinnati. The firm recently celebrated the grand opening of Sankofa Village Phase IV in Cleveland's Central neighborhood, completing a 236-unit development in partnership with the City of Cleveland and Cuyahoga Metropolitan Housing Authority.
Construction is now underway at 5701 Carnegie Avenue. Completion timelines for the two phases were not disclosed in the announcement.
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