Cleveland Developers Can’t Get Enough Apartments
- Jul 29, 2015
By Adrian Maties, Associate Editor
In a report released earlier this year, Marcus & Millichap revealed that a thriving rental demand and a renewed focus on development in downtown Cleveland will headline activity this year, especially as the region gets ready for the 2016 Republican National Convention. The real estate services firm also said that, after adding the most supply in a decade, developers will continue in force. And that’s exactly what a development team led by Chris Smythe and Rick Foran is doing on West 25th Street.
According to Crain’s Cleveland, the long-planned West 25th Street Lofts project finally broke ground this week, after the team led by Smyth and Foran closed on $15 million in funding on July 22. At a cost of $27 million, the development calls for the conversion of a one-time brewery in Ohio City into 83 lofts, including one-, two-, and three-bedroom units. In an interview for Crain’s Cleveland, Chris Smythe said that the lofts will go for market rates.
The developers did not reveal when they expect to finish the project. West 25th Street Lofts is financed with the help of Ohio historic preservation credits and a U.S. Department of Housing and Urban Development 221 loan. The latter is a 40-year, nonrecourse FHA-insured loan with an interest rate of 3.9 percent. It covers both construction and permanent funding.
Rendering courtesy of City Architecture