January 9, 2017

BGL Real Estate Advisors Completes Historic Adaptive Reuse Conversion Financing for NYO Property Group and Pan-Brothers Associates

BGL Real Estate Advisors LLC (BGLREA) is pleased to announce the successful completion of development financing for NYO Property Group and Pan-Brothers Associates. The multi-faceted capital structure will support the adaptive reuse conversion of the historic Stambaugh Building in Youngstown, Ohio. This transaction represents the fourth tax credit financing for the BGLREA team in the past 12 months.

The $32.1 million financing consisted of: (i) senior construction debt, (ii) subordinated bridge debt, (iii) municipal city and state agency debt, (iv) Historic Tax Credit Equity, and (v) sponsor equity. Financial institutions including First Commonwealth Bank, Chemical Bank, Cedar Rapids Bank and Trust, as well as multiple city and state agencies including the City of Youngstown, Ohio Water Development Authority, and the Western Reserve Port Authority were represented in the transaction. The National Trust Community Investment Corporation, Novogradac & Company, Foss & Company, and East West Bank were involved with the Historic Tax Credit Equity structuring and syndication.

The Stambaugh Building conversion will transform a formerly vacant 12-story neoclassical building into a 130-room DoubleTree Hilton hotel. Originally built in 1902, the Stambaugh Building was listed on the National Register of Historic Places in 1980. The historically sensitive adaptive reuse of this Youngstown icon will deliver the city its first overnight accommodations since the Wick Pollock Inn closed. The project is located in the Federal Plaza of Central Square at the heart of Youngstown’s urban core and will be a cornerstone for continued growth and revitalization for the city.

Dominic Marchionda, CEO of NYO Property Group, commented, “The complex financing stack with six different players required solid and effective coordination. Through the persistence and dedication of BGL’s Real Estate Advisory team, this very important project for our community was brought to fruition.”

Mayor John McNally of the City of Youngstown commented, “The City of Youngstown has gone 40 years without a hotel within its borders. Fortunately for our redeveloped downtown, NYO Property Group and Brown Gibbons Lang & Company brought their strategic and financial visions together to finance a 130-bed Doubletree Hotel on Federal Street in the heart of Downtown Youngstown. Without BGL’s knowledge on how to structure this complicated financial transaction, I am not sure that this hotel project could have gotten done.”
NYO Property Group is a multifaceted real estate development group launched in 2012 in partnership with Youngstown developer Dominic Marchionda and Pan-Brothers Associates. Pan-Brothers Associates was founded in 1972 by the Pantelidis brothers and is based in New York City. The company offers full Real Estate Development, Management, and Brokerage services and has grown its investment portfolio to include retail and residential developments in New York, New Jersey, Florida, California, and Ohio.

About Brown Gibbons Lang & Company

Brown Gibbons Lang & Company is a leading independent investment bank serving the middle market. BGL specializes in mergers and acquisitions advisory services, debt and equity placements, financial restructuring advice, and valuations and fairness opinions, with global industry teams in Business Services, Consumer, Environmental & Industrial Services, Healthcare & Life Sciences, Industrials, and Real Estate. BGL has offices in Chicago and Cleveland and real estate offices in Chicago, Cleveland, Irvine, and San Antonio, in addition to Global M&A partner offices in more than 50 countries across 5 continents. BGL is able to deliver to our clients unparalleled access to strategic relationships, investors, and opportunities globally. For more information, please visit www.bglco.com.