Downtown Cleveland Continues Its Transformation
The city center has become one of the region's hottest residential markets.
CLEVELAND—Downtown Cleveland has seen a lot of residential development in the past few years, and it about to get a lot more. In a deal led by KeyBanc Capital Markets Inc., the corporate and investment banking arm of Cleveland-based KeyCorp, Cleveland-Cuyahoga County Port Authority expects to issue approximately $80 million in bonds for Playhouse Square, the largest performing arts center in the country outside of New York, located in the heart of downtown Cleveland.
About $50 million of the tax-exempt bonds will finance a portion of the construction of The Lumen, a 34-story residence tower and associated parking garage, which will include about 318 apartments, 530 parking spaces and 22,000 square feet of resident amenities. The other $30 million will refinance existing debt tied to Playhouse Square’s other real estate and to prepay a portion of a loan to finance renovations to the Idea Center building, located on Euclid Ave.
“The Lumen lights the way toward the bright future of Playhouse Square,” says Art Falco, chief executive officer and president of Playhouse Square. “If you think about it, we’ve come full circle from the days when the theaters almost became parking lots. Now we are turning what is already a parking lot into something much more beneficial for our neighborhood and for downtown Cleveland, which is really what Playhouse Square’s not-for-profit mission is about: driving economic vitality in the region. This financing will further help bring together and connect the more than one million guests we welcome annually for more than 1,000 events.”
Playhouse Square bills itself as the “world’s largest theater restoration project” and the country’s largest performing arts center outside of New York. Since 1970, it has expanded core operations while creating other income-generating ventures in area development.
“It was an honor to work with the Port Authority and Playhouse Square on this deal, especially because of Playhouse Square’s mission to develop the theater district of downtown Cleveland,” says Tim Kelly, director at KeyBanc Capital Markets. “This unique financing—featuring both new money and refinancing—gives Playhouse Square flexibility as it continues to enhance theaters and complimentary commercial, residential and retail properties in the area.”