Playhouse Real Estate Lands $50M for Cleveland Luxury Community
KeyBank structured the Freddie Mac loan that pays off existing debt.
Playhouse Real Estate Services has obtained a $50 million fixed-rate loan for the refinancing of The Lumen, a 318-unit luxury community in downtown Cleveland. KeyBank Real Estate Capital secured the non-recourse financing through Freddie Mac. The note carries a five-year interest-only period.
Proceeds will go toward paying off existing debt. According to Yardi Matrix information, the owner took out a $55 million construction loan back in 2018, also from KeyBank.
READ ALSO: The Ups and Downs of the Multifamily Capital Markets
The Lumen marks downtown Cleveland’s largest project to have been completed in 40 years. The 34-story property came online in 2020 and includes 22,000 square feet of amenities, such as a fireplace lounge, fitness center and pet grooming spa, as well as an outdoor terrace with heated pool and concierge services, among others. The community incorporates one- and two-bedroom apartments and penthouse suites, ranging from 571 to 1,932 square feet.
Located at 1600 Euclid Ave., The Lumen provides easy access to local transit including the Euclid Avenue Healthline and the free Trolley, as well as interstates 71, 77 and 90. The area’s major employers, such as Cleveland Clinic, University Hospitals Main Campus, Cleveland Medical Center and Metro Health, are all within a 7-mile radius.
The property is also within walking distance of the Playhouse Square performing arts center, Heinen’s grocery store, sport complex Progressive Field, the Rocket Mortgage FieldHouse arena, as well as various other dining, retail and entertainment destinations.
KeyBank Senior Vice President Anthony Tavrell and Vice President Rob Garrison structured the financing. According to a recent MBA ranking, the firm was one of the top 10 mortgage originators in 2022.