Brown Gibbons Lang & Company (BGL) is pleased to announce the financial closing of the for-rent phase at Residences at Valor Acres, the first component of a larger mixed-use development at Valor Acres in Brecksville, Ohio. BGL’s Real Estate Advisors team served as the exclusive financial advisor to the DiGeronimo Companies in the transaction. Huntington Bank will finance the 157-apartment unit building and 11 for-rent townhomes in Brecksville, Ohio.
Located conveniently off I-77 in the heart of Northeast Ohio, Valor Acres provides new opportunities for the preeminent mixed-use development between Cleveland and Akron. In October of 2020, The Sherwin-Williams Co. purchased a portion of the land at Valor Acres for development of its new research and development center, bringing hundreds of high-paying jobs and an immediate need for new housing in the area. The new R&D center will consist of multiple buildings, parking areas, and green space, and will initially employ approximately 800-900 workers. Additional employment opportunities are expected as Sherwin Williams continues to grow. The R&D center is the catalyst to attract increased office, residential, hospitality, and retail investment in the area. Valor Acres sits in a prime location, within a 30-minute drive to the majority of Northeast Ohio, including to the region’s two major airports, Akron-Canton Airport and Cleveland Hopkins International Airport. In addition to the Residences of Valor Acres, the master plan for Valor Acres includes 650,000 square-feet of new offices, a 130-room luxury hotel, and 150,000 square feet of retail and entertainment space.
The development financing consisted of: (i) senior construction debt with Huntington Bank, (ii) Tax Increment Financing, and (iii) sponsor equity.
“We are very happy to announce the closing of the first phase of residential development at Valor Acres,” remarked Kevin DiGeronimo, a principal at DiGeronimo Companies. “This phase is another major step towards a project that is catalytic to the region and will bring a multitude of new development and jobs to the area. BGL has been a terrific partner, showing both great expertise and creativity in structuring the financing for this initial phase. We are fortunate to have them on our team.”
DiGeronimo Companies is a leading developer, capital provider, and construction management firm headquartered in Independence, Ohio. DiGeronimo is a full-scope developer with projects in retail, industrial, student housing, and mixed-use developments, whose development capabilities evolved from their roots in site work; this expanded into demolition, environmental remediation, construction, and ultimately to full-scale development. The company’s vertical integration of development capabilities has enabled it to self-perform most of the construction work, which in turn has enabled unparalleled speed in bringing projects to market, and added control over project costs and timing.
BGL’s Real Estate Advisors Group offers comprehensive real estate investment banking services tailored to the middle market. It provides client-focused solutions with an emphasis on real estate advisory, debt, preferred and private equity placement, financial restructuring, recapitalizations, sale-leasebacks, structured finance, and asset acquisitions and dispositions across all asset classes. The team assists real estate owners and developers looking to form alliances and joint ventures with single-source capital providers to gain local and institutional access for all capital needs.