Union Pension Funds Help Finance ‘Artisan’ Project

Breaking Ground: The Artisan Circle Square Building

Members of the Cleveland Building and Construction Trades Council partake in the groundbreaking ceremony for the Artisan Building, which is partially funded by building trades pension funds.

Artisan Circle Square

An artist rendering of the new Artisan Circle Square building, being constructed under a PLA.

Area leaders officially broke ground on July 29 at the new Artisan Circle Square building in Cleveland’s University Circle neighborhood, which will be built under a Project Labor Agreement.

The PLA is a direct result of the project being partially funded by multiple building trades union pension funds, which will be managed by National Real Estate Advisors.

Cleveland-based Midwest Development Partners, along with National Real Estate Advisors and the acquisition and development firm White Oak Realty Partners, partnered together for the $75 million project.

“Cleveland, specifically the University Circle neighborhood, is a burgeoning, dynamic market that we are thrilled to be a part of,” said Jeffrey Kanne, President and CEO of National, in a prepared statement. “With excellent partners in place in White Oak and Midwest, we seek to generate good returns, create good jobs and deliver a high quality, luxury living option for this community.”

The 23-story, 298-unit luxury high-rise apartment complex will include a mix of studio, 1-bedroom, 2-bedroom and 3-bedroom spaces, along with covered parking and retail space.

According to a news release, the project will include a number of outdoor amenities such as fire pits, grilling stations, a dog run and resort-style rooftop pool deck.

For affiliated members of the Cleveland Building Trades, the Artisan is one of the many apartment projects over the last five years to come to Cleveland.

“I believe people want to live close to where they work,” said Cleveland Building and Construction Trades Council Executive Secretary Dave Wondolowski. “Cleveland is a great place to live and work.”

IBEW Local 38 Business Manager Dennis Meaney believes the apartment boom is a combination of factors.

“Some of it is the limited supply of houses on the market. Some of it is the location of these new apartments, such as the Artisan project. People who work at places such as the Cleveland Clinic or University Hospitals want to be close to work,” he said. “Some people do not want the responsibility of owning a house and do not want to own a car. They can easily get around to all of the amenities at University Circle and downtown from these new apartments.”

The apartment building boom has kept many skilled union tradesmen and tradeswomen from the Cleveland area working.

According to Wondolowski, the Artisan project has a two-year construction timeline and will create an estimated 400 jobs – all for members of the building trades.

For affiliated members of the Cleveland Building Trades, including Local 38, pension-funded projects provide additional pride.

“Our members take pride in knowing that they are helping transformational projects being built (in the area) by both working on them, and helping to finance them,” Meaney said. “We not only get a return on our investment to our pension funds, but also in turn are creating more pension dollars going into the fund for the hours being worked on the project, which in turn are building our pension funds higher.”

The Artisan project is yet another opportunity for building trades pension funds to invest in the community, create jobs for building trades members and to make money for their pension funds. Essentially, it is a self-perpetuating cycle of investment, where the fund benefits.

“When we use our pensions to fund projects like these, it is an investment in the community and an investment in ourselves. The community grows and union workers on these projects will receive good wages and benefits,” Meaney said. “This gives the workers buying power in their communities and enables them to purchase goods and services in their neighborhoods. They will also be paying local taxes that help their communities stay strong.

“This does not happen when non-union employers come to town and illegally classify their employees as independent contractors and 1099 them, or pay them under the table,” he added.

Located in the University Circle area, the new high-rise will become a new landmark amidst other notable iconic buildings and institutions.

“Perhaps the most exciting part of this development is the fact that we are situated amongst some of Cleveland’s most notable institutions,” said Christopher Lynch, Principal and Co-Founder of White Oak Realty Partners, in a prepared statement. “The neighborhood includes the campuses of the Cleveland Clinic, Case Western Reserve University, University Hospitals, Rockefeller Park, Cleveland Botanical Gardens, Cleveland Museum of Art and the Cleveland Institute of Art, to name a few.”

The Artisan is part of a larger initiative to revitalize the area between Chester Avenue to the north, Stokes Boulevard to the east and Euclid Avenue to the South.

The overall plan includes The Artisan and larger retail and office space development. Eventually, the Cleveland Public Library’s MLK Jr. Branch will move from Stokes to Euclid, putting more residential units, the Library Lofts, on top.