Millennia Housing, a large Multi-family company located in Cleveland was looking to move its corporate office from its suburban office to the downtown Cleveland. Cleveland has experienced a urban resurgence for Millennials and others to move back downtown to live, work, and play. Frank Sinito, CEO of Millennia, asked Michael Friedman CEO of the REvision Group to help find and finance a downtown acquisition of a building that would be the home for the 200+ corporate offices. After a 1 1/2 year search, Millennia and the REvision Group negoiated with Eastdil Brokers that were brokering the Key Tower, largest office building in Cleveland, (57 stories, and largest office building between NYC and Chicago) for the REIT in Atlanta, called Columbia.
The price requested was 330 million and Millennia ended up purchasing Key Tower for 267.5 million dollars in December of 2016. the REvision Group and Millennia Housing negoitate this deal for 3 mos, and arrived at an agreement to close in Jan of 2017.
The REvision Group put together a competitive bid strategy for the debt, and Berkadia came thru with the best deal, syndicating 3 institutions Citi-Deutcha Bank and Ladder Captial for the senior and Mezz debt. The total amount was $255 million, and with the Tennant allowances and all fees, the all in capital needed to close was 330 Million dollars.
The Equity was raised with several private wealthy indivuduals, one large Real Estate hedge Fund, (Lubert Adler) and some creative hold backs and no interest loans to the sponsor. Frank Sinito.
This complex and creative capital raise helped Millennia with 70 Million dollars of Preferred and common equity, and secured the closing on Jan 30TH of the Key Tower, and the title transferred from the Altanta REIT, Columbia, to Millennia, (127 Public SQ LLC)