Orange Village, Ohio — The developers behind Pinecrest in suburban Cleveland have obtained a $171.5 million loan to refinance the 750,000-square-foot mixed-use project.
Square Mile Capital Management LLC provided the loan to a joint venture between Cleveland-based Fairmount Properties and the DiGeronimo Cos., which opened Pinecrest in spring 2018.
Situated on 58 acres in Orange Village, Ohio, Pinecrest features 400,000 square feet of retail and restaurant space that houses Whole Foods Market, REI, Silverspot Cinema, Pinstripes, West Elm, Williams Sonoma, Pottery Barn, Vineyard Vines and Orangetheory Fitness, as well as chef-driven restaurants.
About 160,000 square feet of creative office space sits atop the ground-level shops and restaurants. Pinecrest also features 87 high-end apartment residences and a one-acre park, as well as a 145-room AC Hotel by Marriott that wasn’t included in the financing.
Trey Morsbach and Jim Curtin of HFF’s Dallas office led the debt placement team to arrange the floating-rate loan, which will be used to refinance a $142 million construction loan that HFF arranged for the developers in spring 2017. HFF also assisted the developer in securing joint venture equity for the project in June 2016.
“This refinancing reflects the viability and strength of our asset,” says Eric Louttit, chief investment officer of Fairmount Properties. “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.”
Fairmount Properties was founded in 1998 and has projects underway on college campuses and city centers in the Midwest, Mid-Atlantic and Northeast. The majority of the firm’s developments are public-private partnerships.
Based in Independence, Ohio, the DiGeronimo Cos. employs more than 1,100 people across nine different companies. The firm has active or recent projects in 42 states that span mixed-use, retail, industrial and student housing uses.
— John Nelson