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Cleveland Downtown Now a Hot Residential Neighborhood

CLEVELAND—The CBD and nearby harbor area are getting thousands of new luxury apartments.

By Brian J. Rogal | brianjrogal | | Updated on August 30, 2016

 

cle-standard (2) The Standard Building was constructed in the 1920s, and is now class B office space, but will soon provide luxury apartments.
CLEVELAND—The transformation of downtown Cleveland into a residential neighborhood has taken another step forward. BGL Real Estate Advisors LLC has just completed an $81 million development financing for Weston, Inc. The capital structure will support the company’s historical conversion of downtown’s Standard Building into market rate luxury apartments and first floor retail. It’s a good time to put money into the city’s CBD. As reported in GlobeSt.com, Cumberland Development and Trammell Crow are currently reviving the nearby waterfront by building about 1,000 new residential units, along with new office space and retail. And in the years leading up to this massive harbor project, the downtown saw the completion of the 422,000-square-foot Global Center for Health Innovation , several major hotels, and over 1,000 apartments.      The $81.0 million financing for Weston consisted of: senior construction debt; subordinated bridge debt; municipal city and state agency debt; federal and state historic tax credit equity, and Weston Inc. GP equity. Financial institutions including the Huntington National Bank , Fifth Third Bank , First Commonwealth Bank , Peoples Bank , and Cleveland Development Advisors , as well as multiple city and state agencies including the Ohio Water Development Authority , and Ohio Development Services Agency were represented in the transaction. Piper Jaffray , Port of Cleveland , RSM US LLP , and Stonehenge Capital were involved with the capital lease and historic tax credit equity structuring and syndication.   The Standard Building, currently used as class B office space, was originally built for Standard Bank in the 1920s.   “We are excited about this opportunity, and the role BGL has played has enabled Weston to get this project off the ground,” says TJ Asher , chairman of the board of Cleveland-based Weston Inc. “The addition of apartments to Cleveland’s critical mass is important for the development of the city, and this transaction has allowed us to successfully contribute to it.”

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