Cleveland | March 8, 2018 – BGL Real Estate Advisors (BGLREA) is pleased to announce the closing of a Department of Veterans Affairs occupied 84,650 square foot office, 122-bed domiciliary, a 115,462 square foot administrative building and a 19,321 square foot tier 3 data center, a 2,080-unit structured parking facility, and one acre of vacant land located in the University Circle district of Cleveland, Ohio. The Property is adjacent to and connected via skywalk directly to the Louis Stokes Veterans Affairs Medical Center. BGLREA was the exclusive sell side advisor on the sale to a CGA Real Estate Services, LLC affiliate. In order to complete the transaction, BGLREA supported the client in negotiations with multiple potential buyers and approvals that were required by the Department of Veterans Affairs, the City of Cleveland, the Port of Cleveland to approve the repayment of 2 series of bonds and transfer of a third bond series, and the existing bond holders.
CGA is a Baltimore-based company focused exclusively on structuring and providing debt and equity for assets net leased to corporate, governmental and 501(c)(3) users throughout the United States. Founded in 1989 as a subsidiary of Legg Mason, Inc., CGA’s efforts include over $18 billion in net lease debt and equity financings originated, structured and closed over the past 28 years. CGA is led by principals consistently recognized as one of the leading corporate and governmental (including Federal/GSA) real estate debt and equity sources in the country and have considerable experience in public-private development projects.
Kyle Gore of CGA said “On behalf of our institutional investors and partners, we are thrilled to have completed the acquisition of the Office, Garage and Residential complex which is a critical part of the Louis Stokes VA Cleveland Hospital campus. We are incredibly grateful to the Brown Gibbons team for ensuring a close collaborative effort by all, which proved essential in closing a complex transaction in a manner mutually benefitting buyer, seller and the U.S. Veterans Administration.”
The project will continue to have a significant impact on the City’s and regional economies, stimulating both direct and indirect economic impacts. This impact comes in the form of the office, administrative, and healthcare jobs operating in the building. The operation of the domiciliary and the parking structure also employ a significant number of Clevelanders. This project’s greatest economic and fiscal impacts are generated by the significant employment on the project site. The Veterans Administration has confirmed that 560 employees work at their office facility, with a payroll of approximately $51.6 million. The garage and domiciliary combined employ an estimated 20 people full time, with a payroll of above $500,000. This employment leads to an approximate total payroll of $52,135,576 per year at the project site. The community and indirect benefits of this project cannot be overstated and we were pleased to assist our client, the City of Cleveland, and the Department of Veterans Affairs to keep this critical asset viable for the next several decades.
BGL Real Estate Advisors LLC engaged Ryan Sommers of Project Management Consultants LLC (PMC), a wholly-owned subsidiary of Thompson Hine LLP, to develop an economic impact study as well as negotiations with the City of Cleveland and Port of Cleveland. PMC is a multi-disciplinary organization consisting of seasoned construction, design, finance and real estate professionals, including licensed architects, engineers, construction managers, financial analysts, and experienced real estate and construction lawyers.