The owners of Pinecrest, a 750,000-square-foot, mixed-use development in the Cleveland suburb of Orange Village, Ohio, have refinanced the 58-acre development with a floating-rate loan provided by Square Mile Capital Management LLC. The loan will be used to replace the existing construction debt and fully stabilize the asset.
Pinecrest’s ownership includes Fairmount Properties, DiGeronimo Cos. and an unidentified Northeast-based investment manager. The sponsors were represented by Trey Morsbach and Jim Curtin of HFF, who had also assisted the developers with securing joint venture equity for the project in June 2016 and $142 million in construction financing in May 2017.
“Pinecrest is a one-of-a-kind asset in a strong submarket, and it offers a diverse and exciting retail tenant roster,” Matthew Drummond, Square Mile Capital managing director, said in a prepared statement. “Sponsors Fairmount Properties and DiGeronimo Companies have created a true live/work/play complex. Both companies have a track record of success in Cleveland and have strong reputations in that metropolitan area. We’re confident that their market expertise – particularly Fairmount’s excellent tenant relationships – will continue to make Pinecrest a success.”
Completed in the spring of 2018, Pinecrest is located on Harvard Road, just off Interstate 271, east of Cleveland’s CBD at the center of Orange Village’s retail trade area. The project has about 400,000 square feet of retail with tenants including Whole Foods Market, REI, Silverspot Cinema, Pinstripes, West Elm, Williams Sonoma, Pottery Barn, Vineyard Vines and Orangetheory Fitness. The property also has 160,000 square feet of office space in two adjoining Class A buildings, 87 luxury rental units and a one-acre park. A four-story, 145-key AC Hotel by Marriott is also located at Pinecrest.
Square Mile Deals
Square Mile Capital, a New York City-based institutional real estate and investment management firm, has been busy with numerous deals this month, including several in the multifamily sector. The firm originated a $185 million loan for a joint venture between Laconia Development and Vanke Holdings USA to develop the SPIRE Condominiums, a 352-unit residential building under construction in Seattle.
In New York City, Square Mile Capital originated a $131.5 million loan for The Moinian Group to convert a 31-story office building at 17 Battery Place in Lower Manhattan into a residential property. When the conversion is complete, the property will be re-branded 2 Washington Street and feature 345 residential units with more than nine floors of high-end amenities, including a rooftop pool, a music study and co-working space.