Skyline International Acquires Historic Cleveland Mall and Hotel
January 5, 2012
Toronto-based Skyline International Development Inc. has recently entered the U.S market in acquiring the oldest indoor shopping mall in America, the Cleveland Arcade in Cleveland, Ohio.
The landmark complex dates back to 1890 and was the first large-scale, indoor shopping mall in the U.S, as well as the ninth building to be listed on the National Register of Historic Places.
The property was acquired by the Toronto-based firm at auction for $7.7 million after previous owners invested roughly $70 million in acquiring and restoring the Arcade, but then defaulted on a mortgage.
Michael Sneyd, Skyline CEO, sees this acquisition as a major milestone for the company. He noted, “It’s the right time for Skyline to expand beyond Ontario and Canada. The Arcade is the kind of mixed-use, legacy property where Skyline has expertise. It was an exceptional deal. It’s a well-known hotel and Cleveland is a relatively nearby destination for us, and a city that’s definitely on the move.”
The Atrium of the Cleveland Arcade
Company Founder and President, Gil Blutrich, further noted, “Cleveland is already filled with outstanding architecture, internationally famous chefs, top attractions like the Rock and Roll Hall of Fame and sporting facilities. With these new additions Celveland is poised to become a big regional draw for both meeting and leisure travelers.”
He also sees valuable parallels with the company’s ownership and asset management interest in Le Meridien King Edward Hotel in downtown Toronto, built in 1903, as well as the 115-year-old Deerhurst Resort in Muskoka, Ontario.
The Cleveland Arcade was originally financed by 19th century businessmen like John D. Rockefeller and modelled on Milan’s Galleria Vittorio Emanuele II. The Cleveland Arcade has two 10-storey towers, currently the home for the Hyatt Regency. The towers are linked by a five-storey, glass-roofed gallery and atrium.
President and COO of Skyline Hotels & Resorts, Kevin Toth, says of the acquisition, “Overall, historic hotels and attractions are continuing to perform very well in the current economy. The advantage is that there is more awareness in the market for notable historic properties like the Arcade. They have a name, a recognized destination, heritage and word of mouth. For Skyline International, it’s all about how we leverage each landmark’s real estate, burnish their reputation and keep renewing the public’s interest.”
Skyline aims to re-position the shopping mall aspect of the Arcade and invest in the hotel to ensure both outlets are profitable for the long-term.
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