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‘A great opportunity’
YOUNGSTOWN
Lou Frangos, once one of downtown’s major property owners, has sold his 50-percent shares in two prominent buildings, a parking lot and deck, and plans to finalize the sale of another structure shortly.
In exchange for those properties and other considerations, Frangos took full ownership of three other downtown buildings from his partner — Wick Ohio One, owned by Pan Brothers Associates of New York City. The two had shared ownership of those buildings 50-50.
But Wick Ohio has until September to buy Frangos’ ownership in those three buildings, something a company official says they intend to do.
Frangos of Cleveland sold his half ownership of Realty Tower Apartments, 47 Central Federal St., the first high-end apartment building in the city’s downtown, which opened in summer 2009.
He also sold his half ownership of the Stambaugh Building at 44 E. Federal St., and the structure’s adjacent parking lot and deck.
Meanwhile, Dominic Marchionda of Poland, a property developer, is Wick Ohio One’s new partner on the two buildings and the parking facility.
“It’s a great opportunity,” Marchionda said of his new partnership. “Their vision for the buildings complement what I believe should be done.”
The Stambaugh Building is ideal for a downtown hotel, Marchionda said.
“Nothing is for certain, but quite frankly, a hotel is the best use for that property,” he said.
“Downtown needs a hotel. There’s no question and that would be the best location.”
The Frangos Group and USA Parking Systems, two of Frangos’ companies, are giving Wick Ohio One until September to buy his company’s ownership of three other downtown buildings — the First National Bank Tower at 1 Central Federal St., the Harshman Building at 101 E. Boardman St., and the former St. Vincent De Paul Society Building at 235 Wick Ave.
Marchionda said he’ll be Wick Ohio’s new partner on those three buildings.
If Wick Ohio One doesn’t purchase those three properties by September, Frangos said he’ll keep them.
Also, Frangos and Wick Ohio One are finalizing a sale of the Wick Building at 34 W. Federal St. to Marchionda, who would own the building outright and plans to turn it into an apartment complex.
Wick and Frangos have been in litigation since 2010 over financial issues.
“After a seven-year partnership, [there] has been an amicable separation of the partners,” said David Rizzuto, Pan Brothers’ director of operations and finance.
Wick and Marchionda fully intend to buy the three buildings, Rizzuto said.
The development of the vacant Stambaugh Building is “a priority” for Wick and Marchionda, Rizzuto said.
Previously, Frangos sold the Erie Terminal at 112 W. Commerce St. to Marchionda, who is turning it into an apartment complex; and the former Paramount Theatre at 138 W. Federal St. to the city of Youngstown, which is demolishing the vacant structure, except its facade, and turning it into a parking lot.
Despite the sales and potential sales, Frangos said he isn’t leaving downtown.
“We remain committed to downtown,” he said. “We have big plans.”
Frangos is keeping three downtown buildings, which his company owns outright. They are the Plaza Parking Deck and Building at 53 S. Champion St., the Chase Building at 6 Central Federal St., and a vacant building at 213 W. Boardman St., which also includes a parking lot.
Frangos said he’s invested about $2 million into the Plaza, including remodeling the building’s lobby, improving its elevators and the parking garage structure.
That building will be completely full once Eastern Gateway Community College moves in, Frangos said.
Frangos said he will also make “significant upgrades” to the Chase Building to attract new private- and public-sector tenants, or redevelop it into a mixed-use structure.
“We have ambitious plans for both buildings,” he said.