CLEVELAND — Cleveland's historic Rose Building, site of the former headquarters of Medical Mutual, is set to be transformed into a new mixed-use development.
On Tuesday, hospitality developer Spark GHC announced that it is partnering with Cleveland Construction on "Project Scarlet," a plan to invest more than $100 million to transform the 400,000-square-foot space into a boutique hotel, apartments and retail.
"This joint venture marks a pivotal moment in Cleveland's ongoing evolution," said Bhavin Patel, co-founder and principal of Spark GHC, in a release. "By leveraging our collective expertise and resources, we are poised to create a destination that not only honors the city's heritage but also propels it into a new era of growth and prosperity."
In its release, Spark GHC says "Project Scarlet" with Cleveland Construction will turn the Rose Building "into a sophisticated boutique hotel with modern multifamily apartments, along with a unique ground-floor retail experience."
"This transformative mixed-use project not only breathes new life into a historic structure but also addresses the evolving needs of the Cleveland community for contemporary living spaces and upscale hospitality offerings," the release added.
The Rose Building was built in 1902 at the corner of East 9th Street and Prospect Avenue. The Cleveland landmark served as the headquarters of Medical Mutual of Ohio for 75 years. In November of 2022, Medical Mutual announced that it would be relocating its entire staff to Brooklyn to consolidate its operations. In 2019, the company agreed to rent 345,000 square feet of space at what used to be American Greetings' headquarters in Brooklyn, just off of Tiedeman Road.
In early 2023, Medical Mutual put the Rose Building up for sale with real estate brokerage firm CBRE. Tuesday's release did not specify terms of the purchase.
"The Rose Building holds a special place in the history of Medical Mutual. It's important to us that it's being used to invigorate the area and contribute to the vibrancy of Cleveland's downtown," said Steve Glass, Medical Mutual president and CEO. "That's why passing the baton to Spark GHC and Cleveland Construction feels right."