CLEVELAND, OH - BGL Real Estate Advisors announced the successful completion of development financing for Weston Inc. The multi-faceted capital structure will support the historical conversion of the Standard Building in downtown Cleveland, Ohio.
The $81.0 million financing 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 was originally built for Standard Bank in the 1920s. It is being converted from its present use as Class B office space into market rate luxury apartments and first floor retail. Weston is a commercial real estate company with offices in Cleveland, Ohio and Louisville, Kentucky.
"We are excited about this opportunity, and the role BGL has played has enabled Weston to get this project off the ground. 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," said TJ Asher, Chairman of the Board for Weston Inc.
Weston plans to fill the office space with 287 apartments. The company might maintain the second through fifth floors as offices, which would reduce the number of apartments to roughly 240.