BGL Real Estate Advisors LLC is pleased to announce the successful completion of development financing for The Snavely Group. The multi-faceted capital structure will support the adaptive reuse conversion of the former historic Forest City Savings and Loan building and the state of the art, ground-up development of a high-end market rate apartment complex in Cleveland, Ohio.
The $60.0 million financing consisted of: (i) senior construction debt, (ii) subordinated bridge debt, (iii) municipal city and state agency debt (iv) Federal and New Markets Tax Credit Equity, and (v) sponsor equity. Financial institutions including First Merchants Bank, Citizens Bank, First National Bank, Enterprise Community Loan Fund, and Cleveland Development Advisors, as well as multiple city and state agencies including the City of Cleveland, Village Capital, and Cuyahoga County were represented in the transaction. Capital One, Cleveland Finance Fund, and Cleveland Development Advisors were involved with the New Markets Tax Credit Equity structuring and syndication.
The condominium-ized structure of the transaction allows for the following development at the intersection of West 25th Street and Detroit Avenue in the Ohio City District of Cleveland. The residential “condo” will be a state of the art, ground-up development that will feature: i) 194 Class-A, market-rate apartment units with premier amenities, ii) 250 enclosed and secured parking spaces (180 spaces will be underground), iii) 2nd floor pool and amenity deck, iv) 1,750 square foot fitness center, v) 1,900 square foot community room, and vi) 1,500 square foot boutique grocery and convenient store. The commercial “condo” is an adaptive reuse conversion of the former historic Forest City Savings and Loan building that will feature: i) 38 affordable multi-family units, ii) 36 surface parking spaces, iii) 12,600 square feet of office space for The Beauty Shoppe, iv) 7,000 square feet of restaurant space, v) 19,000 square foot charter school called The Music Settlement, and vi) another 11,000 square feet of additional office/retail commercial space on the east end of the complex.
Peter L. Snavely Jr. commented, “BGL’s strong industry relationships and real time market knowledge were instrumental in achieving the financial closing. In today’s ever changing financial climate BGL’s ability to navigate obstacles and foresee future problems defines their ability to add value to the real estate development process. Their hard working team of professionals delivered.”