CLEVELAND – October 9, 2018 – Berkadia today announced the $37.9 million financing of The Euclid Grand, a mixed-use historic redevelopment in downtown Cleveland that will feature 239 apartment units, 196 parking spaces and 21,000 square feet of retail. Director Daniel Geuther of the Cleveland office secured the loan through Union Labor Life Insurance Company (ULLICO) on behalf of the borrower, Maryland-based Alto Partners. The deal closed on September 27.
The three-year construction loan features three-years interest-only and a limited recourse guarantee, along with a 375-basis point spread over LIBOR.
“This transaction was a culmination of a multi-year process to revitalize a key property in downtown Cleveland,” said Geuther. “We’re honored to have worked on behalf of the Alto team to secure the senior loan from ULLICO. This was a complex transaction involving historic tax credits, foreign investors/sponsors and six different sources of funds. ULLICO was an outstanding financing partner that fully understood the key issues at hand and worked diligently to lead the financing parties to a close.”
“Dan and Berkadia played a critical role in bringing our project to fruition,” said Michael Sabracos, CEO of Alto Partners, US. “We had a very challenging structure of public and private financing on a property that was key to the completion of the historic gateway of downtown Cleveland. Dan’s team recognized and maneuvered through the many hurdles and road blocks that needed to be overcome to get us to a successful closing. In my book, they are the true rock stars in Cleveland.”
Located at 1001 Euclid Ave., The Euclid Grand will afford residents walkable access to all of the amenities of downtown Cleveland and close proximity to the regional transportation network.