ACRES Capital Originates $38M Loan to Develop Mixed-Use Cincinnati Project
Mixed-Use Cincinnati ProjectNovember 4, 2019
CINCINNATI, OH (November 4, 2019) – ACRES Capital Corp. (together with its subsidiaries, “ACRES”), a leading commercial real estate middle-market lender, is pleased to announce that it has originated a $38 million loan to fund the development of 1118 Sycamore Street, a mixed-use project consisting of residential, retail and office space located in Cincinnati, Ohio’s Over-The-Rhine submarket. The loan carries a term of 30 months and is sponsored by Charles Street Investment Partners (“Charles Street”), a boutique real estate investment and development company.
“As the largest historic district in the United States, the Over-the-Rhine submarket showcases a unique backdrop for 1118 Sycamore,” said ACRES Chief Executive Officer and President Mark Fogel. “Residents and businesses alike will be able to enjoy the area’s significant restoration and development efforts that have been brought to fruition over the last decade. Charles Street’s expertise in urban multifamily development make them excellent partners for the project, which once complete will be the largest residential complex in Over-the-Rhine.”
1118 Sycamore will be constructed on a 0.93-acre lot and will comprise seven stories and 155 apartment units upon completion. The building will feature a two-level, concrete parking structure, a lobby connecting to upper-floor amenities, 12,500 square feet of retail space, and four individual-entry townhomes. The first and second floors will encompass 8,875 square feet of ground-floor retail and 3,611 square feet of open office space. The third floor will feature an outdoor courtyard with a pool, fire pit, outdoor seating, barbecues and seating areas, along with a separate outdoor-event balcony, indoor lounge, fitness facility, kitchen, pet-washing station and media center.
Jason Pollack of Charles Street stated, “Charles Street is thrilled to have the opportunity to work with ACRES, a highly discerning lender steeped in both underwriting and construction expertise. We look forward to a successful partnership in such a dynamic, historic market as Over-the-Rhine, an urban revitalization story almost unparalleled in this real estate cycle.”
The Over-the-Rhine submarket, directly adjacent to downtown Cincinnati, recently underwent a massive urban revitalization plan funded primarily by local corporations. The renewal program involved over $500 million of investments, the rehabilitation of over 130 structures, and the development of 48 new buildings. The submarket is now home to numerous dining, shopping and nightlife destinations, as well as many of Cincinnati’s cultural institutions including the Arts Academy of Cincinnati, the School of Creative and Performing Arts, and the Cincinnati Symphony Orchestra. Moreover, Over-the-Rhine is home to the renovated Findlay Market, which hosts approximately one million visitors annually, as well as a planned Major League Soccer stadium. Cincinnati is home to nine Fortune 500 companies, including Kroger, Procter & Gamble, Fifth Third Bank and Macy’s.
Global architecture, planning and design firm NBBJ led the design of 1118 Sycamore, and will oversee production designs being completed by Architecture Alliance.
About ACRES Capital
ACRES is a balance sheet lender and SEC-registered investment adviser that provides debt capital solutions for the commercial real estate industry on a nationwide platform. ACRES seeks opportunities in the $10 million to $75 million range on stabilized and transitional properties including multifamily, retail, office, hospitality, and industrial. As of June 30, 2019, ACRES has closed over $1.25 billion of transactions.