Square Mile Capital Management announced the $171.5 million refinancing of Pinecrest, a 750,000 s/f mixed-use lifestyle project in the Cleveland suburb of Orange Village, Ohio.
The floating-rate loan will be used to replace the existing construction debt and fully stabilize the asset.
Square Mile Capital Managing Director Matthew Drummond said, “Pinecrest is a one-of-a-kind asset in a strong submarket, and it offers a diverse and exciting retail tenant roster.
“Sponsors Fairmount Properties and the 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. We were very pleased to have the opportunity to form this partnership with them.”
Pinecrest is located east of Cleveland’s CBD at the center of Orange Village’s retail trade area. It sits on 58 acres, just off Interstate 271 at Harvard Road.
Completed in the spring of 2018, the property features 400,000 s/f of retail, with tenants that include Whole Foods Market, REI, Silverspot Cinema, Pinstripes, West Elm, Williams Sonoma, Pottery Barn, Vineyard Vines, Orangetheory Fitness and more.
The property’s office component consists of two adjoining Class A buildings totaling 160,000 s/f. Pinecrest also features 87 high-end luxury apartments and a one-acre park.
Ownership consists of a partnership that includes Fairmount, DiGeronimo, and an investment manager based elsewhere in the Northeast.
The sponsors were represented by Trey Morsbach and Jim Curtin of Holliday Fenoglio Fowler (HFF). HFF also had assisted the developer in securing joint venture equity for the project in June 2016 and construction financing in 2017.
“This refinancing reflects the viability and strength of our asset,” said Fairmount Properties CIO 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.”