Downtown developer adds Chase building to holdings

By David Skolnick

The mayor calls Frangos the ‘Donald Trump of the Mahoning Valley.’

YOUNGSTOWN — Despite a sluggish economy, Louis A. Frangos said he strongly believes the city’s downtown is on the cusp of a major turnaround.

That’s why the real estate developer purchased another major downtown property, the Chase Bank Building at 6 W. Federal St., for $775,000.

Frangos’ companies, particularly USA Parking Systems, already own or co-own 10 downtown buildings — including Realty Towers, the Plaza Parking Deck, the Stambaugh Building and the First National Bank Tower — and several parking lots.

Frangos, of Cleveland, is one of the major nonpublic owners of property in the city’s downtown.

“With the purchase of this latest property, the Chase Bank Building, we continue to demonstrate and express our confidence in the future and redevelopment of not only downtown Youngstown but also to the entire [Mahoning] Valley,” he said. The 135,298-square-foot building, constructed in 1925, is 40.6 percent occupied. Its anchor tenant is JPMorgan Chase Bank, which occupies 25,064 square feet.

“It’s a great, great building,” Frangos said. “I’m excited about the acquisition. It’s an exceptionally good deal.”

The deal closed Friday, he said.

BREOF (Brookfield Real Estate Opportunity Fund) Bank Midwest LLC of Toronto, Canada, bought the building Oct. 16, 2006, from Union National Bank of Youngstown for $1,743,490 as part of the company’s purchase of 5.3 million square feet of JPMorgan Chase properties in the Midwest for $460 million.

BREOF sold the Youngstown building to Frangos, absorbing a loss of close to $1 million.

Chase purchased Bank One in July 2004 and changed the name of the West Federal Street bank and building to Chase in March 2006.

BREOF is also interested in selling the Chase Bank location it owns on East Market Street in Warren, Frangos said.

Frangos wants to lease vacant space at the Chase Bank Building in Youngstown to businesses.

“The plan is to bring more people to downtown Youngstown,” he said.

Chase has a lease at the property through 2021.

Mayor Jay Williams called Frangos “an important player in developing the Mahoning Valley,” particularly downtown Youngstown.

“He may be becoming the Donald Trump of the Mahoning Valley,” said Williams, adding that he means it as a compliment.

“We’ve had a strong relationship, and we expect that to continue,” Williams said.

Frangos will start work at Realty Towers, 47 Central Federal St., shortly to convert the vacant office tower into about 25 condominiums or apartments for young professionals who want to live downtown.

The project should take 10 to 12 months to compete.

He also plans to convert the empty Wick Building at 34 W. Federal St., and Erie Terminal at 112 W. Commerce St. into housing.

Frangos recently received about $10.5 million in federal and state grants for the three improvement projects. The three projects’ overall cost is about $25 million.

skolnick@vindy.com