Downtown Cleveland Redevelopment Receives $40M Loan
- Oct 15, 2018
Downtown Cleveland’s former John Hartness Brown complex will undergo a historic renovation, thanks to a $37.9 million financing secured by Berkadia. The mixed-use project entitled The Euclid Grand is set to feature 239 apartment units, 196 parking spaces and 21,000 square feet of retail.
The three-year construction loan featuring three-years interest-only and a limited recourse guarantee, along with a 375-basis point spread over LIBOR, will serve the borrower, Alto Partners. According to Cleveland.com, Alto Partners acquired the complex in 2017 for $9.1 million.
Located at 1001 Euclid Ave. just east of the intersection of East 9th Street and Euclid Avenue, The Euclid Grand provides walkable access to all of the amenities of downtown Cleveland. Dining, retail and entertainment venues, as well as the regional transportation network, are all within close proximity of the asset.
Director Daniel Geuther of Berkadia’s Cleveland office secured the loan through Union Labor Life Insurance Company. Berkadia recently arranged a $38.8 million acquisition loan for Deerwood Village, a 328-unit garden-style community in Florida.
“This transaction was a culmination of a multi-year process to revitalize a key property in downtown Cleveland. (…) It was a complex transaction involving historic tax credits, foreign investors/sponsors and six different sources of funds. ULLICO was an outstanding financing partner that fully understood the key issues at hand and worked diligently to lead the financing parties to a close,” Geuther said, in a prepared statement.
Rendering courtesy of Berkadia