HFF Announces $171.5M Refinancing of Mixed-Use Lifestyle Development in Suburban Cleveland

Holliday Fenoglio Fowler, L.P. (HFF) announces the $171.5 million refinancing originated by Square Mile Capital Management LLC for Pinecrest, an approximately 750,000-square-foot, mixed-use lifestyle project in the Cleveland suburb of Orange Village, Ohio.

The HFF team worked on behalf of the borrower, a partnership between Cleveland-based Fairmount Properties, the DiGeronimo Companies and an investment manager based in the Northeast, to place the floating-rate loan with Square Mile Capital. Loan proceeds will be used to refinance the existing construction debt. HFF also assisted the developer in securing joint venture equity for the project in June 2016 and construction financing in 2017.

Completed in the spring of 2018, Pinecrest comprises 400,000 square feet of high-caliber retail, including many stores, restaurants and entertainment anchors that are new to the region and exclusive to Pinecrest. The property blends the best national and emerging regional brands to bring sought-after fashion; home and specialty stores; chef-driven restaurants; and entertainment venues to northeast Ohio. The retail component is home to Whole Foods Market, REI, Silverspot Cinema, Pinstripes, West Elm, Williams Sonoma, Pottery Barn, Vineyard Vines, Orangetheory Fitness and more. The next-generation Class A office component of Pinecrest consists of two adjoining Class A office buildings totaling 160,000 square feet positioned above the retail and restaurant component. Pinecrest also features 87 high-end luxury apartments and a one-acre Central Park along with a 145-room AC Hotel by Marriott that is not included in the financing. The property is ideally situated east of Clevelands CBD at the center of Orange Villages retail trade area. The development is on 58 acres just off Interstate 271 at Harvard Road.

The HFF debt placement team representing the borrower consisted of senior managing director Trey Morsbach and managing director Jim Curtin.

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This refinancing reflects the viability and strength of our asset, said Fairmount Properties Chief Investment Officer Eric Louttit. We appreciate our relationship with HFF and Square Mile Capital and are excited by how northeast Ohio has embraced Pinecrest as a premier mixed-use destination.

About Fairmount Properties

Since 1998, Fairmount Properties has grown to be a well-respected industry leader across multiple real estate platforms from college campuses to city centers. Fairmount Properties recognizes that trust is the bedrock upon which a successful partnership is built and works hard to cultivate it within all of its business relationships. As the majority of Fairmount Properties developments are created within the context of public-private partnerships, the company recognizes the importance of transparency, thoughtful collaboration and community stewardship. Visit http://fairmountproperties.com for more information.

About DiGeronimo Companies

Founded in 1956 by the late Sam DiGeronimo and his son Don as a small excavation company in Cleveland, DiGeronimo Companies expanded into demolition, environmental remediation, construction and finally to full-scale development. The companys projects include mixed-use, retail, industrial and student housing.

The company brings its vast experience and reputation for honesty, integrity and outstanding performance to the world of development, design and management in order to ensure the best results for its partners, its subcontractors and the community. Visit https://www.digeronimocompanies.com to learn more.

About Square Mile Capital Management LLC

Square Mile Capital Management LLC is an integrated institutional real estate and investment management firm based in New York. The firms commercial real estate debt platform provides customized capital solutions for real estate owners and developers throughout the United States. Square Mile Capitals opportunistic equity platform takes a value-oriented approach to its investment activities, with an emphasis on opportunities to acquire or capitalize real estate assets or enterprises that are undervalued, complex or under-capitalized. For more information, visit www.squaremilecapital.com.

About HFF

HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.

Trey Morsbach
HFF Senior Managing Director
(214)
265-0880
[email protected]

Jim Curtin
HFF Managing Director
(214) 265-0880
[email protected]

Kimberly Steele
HFF Digital Content/Public Relations
Specialist
(713) 852-3420
[email protected]