Construction to begin on transformative adaptive reuse in early 2026

Pennrose and MidTown Cleveland today announced the closing of the financial gap on the Warner & Swasey redevelopment in Cleveland’s MidTown neighborhood. The development team is racing towards closing, scheduled for December 15, which will mark a triumphant moment and critical milestone in the long-awaited redevelopment of the former manufacturing site. Construction is set to begin in January 2026.

The comprehensive Warner & Swasey rehabilitation will transform the 194,000-square-foot former manufacturing facility into a vibrant mixed-use, mixed-income community. Once complete, the initiative will preserve the five-story historic landmark, which has sat vacant since 1985, and deliver 112 rental apartments in the first phase and approximately 28 units and 22,000 square feet of commercial space in the second phase.

“The herculean effort and widespread community support that went into getting the Warner & Swasey redevelopment across the finish line is representative of how much this iconic landmark means to the Cleveland community,” said Geoff Milz, director of development at Pennrose. “This project is a testament to how creative solutions can preserve community assets AND deliver meaningful housing opportunities.”

“This long-awaited milestone has been decades in the making, and it belongs to everyone who helped keep the spirit of this building alive: the former employees and families who preserved its stories, the civic leaders who championed its future, and the many partners who pushed alongside us to make this day possible,” said Ashley Shaw, executive director at MidTown Cleveland. “Reviving Warner & Swasey with much-needed affordable housing not only preserves a cherished piece of Cleveland’s history – it brings a landmark back to life and reactivates a vital gateway in our neighborhood. This is a proud and deeply meaningful moment for our community.”

Plans for the community feature studio, one-, and two-bedroom apartments designed to serve individuals, seniors, at families at a wide range of incomes, including affordable housing units available at 30% to 60% of Area Median Income (AMI) in the first phase and units available for higher income households as part of Phase 2.

The project will be developed in two phases: phase I will deliver two 56-unit condominiums, one for seniors and one for families; phase II will add 28 housing units with integrated commercial space. The development team plans to preserve and incorporate the building’s unique architectural features into amenity spaces, including a second-floor rooftop terrace and outdoor gathering spaces.

“Through this multi-million-dollar investment from my administration, we will support the redevelopment and preservation of this 115-year-old building, advancing our shared commitment to provide affordable housing for Clevelanders,” said Mayor Bibb. “Today’s announcement is a powerful demonstration of how the Cleveland Era is coming to life – creating new opportunities that strengthen our neighborhoods while honoring our heritage.”

In October 2025, Pennrose acquired the building at 5701 Carnegie Avenue from the City of Cleveland. The development team, working collaboratively since 2017, has successfully lined up 24 capital sources to bring the $64 million project to fruition.

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. State and Federal Historic Tax Credits were awarded to the project syndicated by Clocktower Tax Credits. The Ohio Department of Development awarded the project a State Brownfield Remediation Grant and a local match was provided by Cuyahoga County. Cuyahoga County also awarded the project an Emergency Rental Assistance grant, an award of County HOME dollars, ARPA, and Casino Funds. The City provided an Economic Development Loan, HOME funds, VESTA funds, and other resources to make the project possible. The Federal Home Loan Bank of Cincinnati provided funds through their Affordable Housing Program and Cuyahoga County Metropolitan Housing Authority (CMHA) provided Project-Based Vouchers to ensure that some units remain deeply affordable. Capital lease financing was provided by The Cleveland-Cuyahoga County Port Authority. Finally, the Cleveland Foundation provided much-needed philanthropic investment.

“This project is a true example of public-private partnership, with stakeholders from around the country, state, and region stepping up and working together,” added Geoff Milz. “I can’t thank our financial partners, community advocates, and supporters enough for their continued dedication. Today begins a new chapter for the Warner & Swasey building, one marked by quality, inclusive housing designed with and for the Cleveland community.”

The initiative represents a significant investment in high-quality, inclusive housing and neighborhood revitalization along Carnegie Avenue in Cleveland’s MidTown neighborhood. Warner & Swasey, located at a major thoroughfare connecting Downtown Cleveland and University Circle, is positioned to serve as a gateway to the growing Innovation District and a catalyst for continued investment in the MidTown neighborhood, which has experienced significant growth in recent years.