Investment group buys Erie's Renaissance Centre with plans to enhance downtown landmark

Ed Palattella, Erie Times-News
Updated ·5 min read

Erie's tallest building has a new owner with plans to take it to new heights.

The 198-foot Renaissance Centre at 10th and State streets — a 14-story downtown Erie landmark that was built in 1928, known for generations as the G. Daniel Baldwin Building and originally called the Erie Trust Co. Building — has been sold to a California-based investment group for $2 million.

The company, 1001 State OZ Operator LLC, purchased the property from Renaissance Centre Ltd., owned by Erie developer Tom Kennedy, according to the deed recorded on Friday at the Erie County Courthouse. The new buyer got a $1.5 million mortgage on the property from ErieBank, according to a mortgage also recorded on Friday.

Background on deal: This 198-foot Erie landmark could be changing hands. What is the plan for the building?

The OZ in the new owner's name refers to federal Opportunity Zones, which have been taking place in Erie and which the new owner plans to use. Opportunity Zones allow investors to receive significant tax benefits when they invest capital gains in designated low-income census tracts that have been designated as Opportunity Zones.

As the new owner, 1001 State OZ Operator intends to make an Opportunity Zones investment in the Renaissance Centre, said Chuck Peters, spokesman for the new owner. He is also the managing partner of Altair Real Estate Services, which managed the Renaissance Centre under Kennedy and will continue to do so under 1001 State OZ Operator.

The Renaissance Centre at 1001 State Street in downtown Erie. When it opened in 1928, the 14-story office building was called the Erie Trust Building, later renamed the G. Daniel Baldwin Building and now the Renaissance Center. It is still Erie's tallest building.
The Renaissance Centre at 1001 State Street in downtown Erie. When it opened in 1928, the 14-story office building was called the Erie Trust Building, later renamed the G. Daniel Baldwin Building and now the Renaissance Center. It is still Erie's tallest building.

Peters described the California-based buyer as an institutional investor that is funded with private Opportunity Zone capital and that created the Erie-based 1001 State OZ Operator to invest in opportunity zones within Erie.

"The new ownership group is committed to preserving and enhancing the historic structure," Peters said in a statement. "Renaissance is an incredibly important part of downtown's urban fabric and Altair is thrilled to be part of this project."

Peters said the new ownership group is led by an individual who attended the University of Pennsylvania and became familiar with Erie through friends. Peters said the leader of the group was attracted to the many development projects in downtown Erie.

Peters cited the expansion of Erie Insurance Group and the Erie Downtown Development Corp.'s remaking of the area around Perry Square, six blocks north of the Renaissance Centre, which is at 1001 State St.

"He is excited about what is going on," Peters said.

Peters said plans for the building are not yet final, but that the group behind 1001 State OZ Operator has indicated that they are considering additional mixed use for the property that will include office, retail and either multi-family or hospitality space.

Local investment: Opportunity Zone promise becomes reality in Erie

"Renaissance Centre, like many office buildings, is exploring how they may add additional uses," Peters said. "We are still very early in the planning process and will be keeping occupants informed as plans progress."

The Renaissance Centre's occupancy rate is 66%, Peters said. The tenants include government offices, lawyers and merchants.

New owner plans to work with existing tenants of Renaissance Centre

Most tenants have active leases in the building, Peters said. He said Altair will be meeting with the tenants to gauge their needs going forward.

The Erie architectural firm of Weber Murphy Fox has been engaged to begin preliminary drawings for potential upgrades and uses of the Renaissance Centre.

Peters praised the purchase of the building as another example of the willingness to invest in downtown Erie. He mentioned the projects of the EDDC, Erie Insurance board Chairman Tom Hagen and properties of developers Rick Griffith, Pete Zaphiris and the late Steve McGarvey.

“This acquisition shows that the hard work of private developers ... is paying off," Peters said. "They are not alone in seeing the value of our community and the potential for success that exists in our real estate market.

The lobby of the Renaissance Centre, 1001 State Street in downtown Erie. When it opened in 1928, the 14-story office building was called the Erie Trust Building, later renamed the G. Daniel Baldwin Building and now the Renaissance Centre. It is still Erie's tallest building.
The lobby of the Renaissance Centre, 1001 State Street in downtown Erie. When it opened in 1928, the 14-story office building was called the Erie Trust Building, later renamed the G. Daniel Baldwin Building and now the Renaissance Centre. It is still Erie's tallest building.

"In Altair's work across the country, we have seen the importance of a solid mix of local, regional and national developers to make downtowns thrive. I’d be remiss if I didn’t mention downtown development pioneers like the McGarveys and Tom Kennedy, whose many projects buoyed the areas not being focused on by our strong institutions."

Former owner Tom Kennedy says he's 'excited' for new owner

Kennedy had owned the Renaissance Centre for 27 years. He now primarily lives on Hilton Head Island in South Carolina. He said in November that he had reached a deal to sell the Renaissance Centre and that the deed transfer would become final after a due-diligence period.

Kennedy bought the Renaissance Center for $315,000 at auction in August 1996, when it was known as the G. Daniel Baldwin Building, after another Erie developer. The building was called the Erie Trust Co. Building when it opened 95 years ago. It cost $2 million to build — coincidentally, the same amount as the new sale price, though $2 million in 1928 is the equivalent of $35.5 million today.

Kennedy renamed the building the Renaissance Centre. He also launched a $2.2 million restoration effort.

With a view of Erie behind him, real estate developer Tom Kennedy is shown, on Oct. 28, 2014, on the roof of the 14-story Renaissance Centre in Erie. He has sold the building for $2 million.
With a view of Erie behind him, real estate developer Tom Kennedy is shown, on Oct. 28, 2014, on the roof of the 14-story Renaissance Centre in Erie. He has sold the building for $2 million.

Kennedy has shifted his attention to developing hotels over the past several years, leading to his interest in selling the Renaissance Centre. In addition to other mixed-use properties that Kennedy owns in Erie and Crawford counties, he has built five Cobblestone Hotels and manages a portfolio of more than 60 hotels as CEO of Erie-based Diamond Hospitality Services.

Downtown landmark: The high points and history of the Renaissance Centre, Erie's tallest building

"It's hard for me to believe that I have been a steward of Renaissance Centre for over 25 amazing years before passing the reigns to new owners this week, and I'm excited for them and what it means for downtown Erie," Kennedy said in a statement.

"My sincere thanks to all who supported me during my ownership of the building. I look forward to the wonderful future that lies ahead for Renaissance Centre and Erie."

Contact Ed Palattella at epalattella@timesnews.com. Follow him on Twitter @ETNpalattella.

This article originally appeared on Erie Times-News: Downtown Erie's Renaissance Centre is sold to investment group