CLEVELAND — Kassouf Development has closed on financing for the Erieview Tower & Galleria redevelopment in downtown Clevleand. The developer will convert the property into a dual-branded W Residences and W Hotels by Marriott project. Plans call for 227 residences and 210 luxury hotel rooms. Residents will have access to concierge services, housekeeping, a doorman, bellman and butler services in addition to all hospitality and experiential amenities as well as access to the connected retail Galleria. The hotel component will feature a rooftop bar, fine dining restaurant, spa, fitness center, lobby lounge, office spaces and a 15,000-square-foot ballroom. The project marks the first W Hotels offering in Ohio. The development’s price tag is more than $218 million. The dual-branded W Residences and W Hotels concept is offered by Marriott worldwide, and there are eight locations in the United States. The existing Erieview Tower & Galleria is listed on the National Register of Historic Places. Construction will be completed in phases, with residential construction commencing immediately and hotel construction beginning later this year. Completion is slated for late 2026. The Kassouf family purchased Erieview Tower in 2018 and has worked since the acquisition to secure the various capital sources needed to …
BRAHAM AND SANDSTONE, MINN. — JLL Capital Markets has brokered the sale of a two-property affordable housing portfolio totaling 84 units in rural Minnesota for an undisclosed price. Braham Meadows in Braham was built between 1978 and 1980. There are 42 units averaging 1,024 square feet each. Sandy Pines in Sandstone was built in 1979. There are 42 units across 47,400 square feet of rentable space. Both properties operate under project-based Housing Assistance Payments contracts and maintain 88 percent occupancy rates. JLL represented the seller, Gaughan Cos. The sales were part of a larger affordable housing portfolio consisting of five assets with 256 units. The locally based buyer specializes in acquisition rehabs to maintain long-term viability of apartment communities.
WEST NEW YORK, N.J. — IPA Capital Markets, a division of Marcus & Millichap, has arranged $174 million in joint venture equity and debt financing for the acquisition of 55 Riverwalk Place, a 348-unit multifamily property in West New York. Built in 2006, the community is situated adjacent to the Hudson River and directly across from Manhattan. Amenities include onsite retail, a heated swimming pool, fitness center, yoga studio, business center and grilling stations. Monthly rents at 55 Riverwalk Place start around $2,900, according to the property’s website. Marko Kazanjian, Max Herzog, Andrew Cohen and Max Hulsh of IPA arranged the financing through Bank of America on behalf of the borrower, a joint venture between a New York City-based multifamily owner/operator focused on acquiring value-add apartment assets in the Northeast and a global institutional investment manager. Both parties requested anonymity. Kazanjian says that the acquisition represents a significant value-add opportunity for the sponsor. — Kristin Harlow
LEWISVILLE, TEXAS — Locally based developer Palladium USA has broken ground on a $30 million mixed-income multifamily project in the northern Dallas suburb of Lewisville. Palladium Lewisville will total 90 units in one-, two- and three-bedroom floor plans, and amenities will include a pool, fitness center, business center, children’s play area and a clubroom with a communal kitchen. The first units are expected to be available for occupancy before the end of the year. PNC Bank provided $10.8 million in long-term debt and $13.3 million in equity as part of the financing of the project.
KNOXVILLE, TENN. — Colliers Mortgage has provided a seven-year Fannie Mae loan for the acquisition of Canyon and Knox Landing Apartments, a 193-unit multifamily community in Knoxville. The borrower and loan amount were not disclosed. Built in 1974, Canyon and Knox Landing features a mix of studio, one- and two-bedroom apartments ranging in size from 228 to 864 square feet, as well as a fitness center, laundry facilities, pet play area, picnic area, pool, tennis court and a volleyball court.
ONTARIO, CALIF. — Legacy Partners and DWS Group have started construction on Legacy Ontario, a 346-unit apartment property in Ontario. Located at 2510 S. Euclid Ave., the community will consist of eight three- and four-story buildings with tucked-under garage parking and covered carports. Additionally, the property will offer 6,000 square feet of ground-floor retail space facing Euclid Avenue. Designed by AO, Legacy Ontario will feature studio, one- and two-bedroom layouts ranging from 706 square feet to 1,293 square feet. The units will offer modern kitchens with stainless steel appliances, tiled backsplashes, large kitchen islands in select units, wood-style flooring and full-size washers/dryers, as well as patios or large decks. Community amenities will include a roof deck, clubhouse, pool/spa, fitness center, sports lounge, multiple barbecue areas and a dog run. The property is also pursuing LEED certification and will provide solar panels with battery storage and 171 electric vehicle charging stations. Completion is slated for April 2027, with Next Phase serving as the general contractor.
CHICAGO — JLL Capital Markets has originated a $113.7 million Freddie Mac loan for the refinancing of K2 Apartments, a 34-story apartment tower in Chicago’s Fulton Market district. The 496-unit property is located at 365 N. Halsted St. just west of the Chicago River. Constructed in 2013, K2 Apartments features a range of units from studios to three-bedroom layouts. Amenities include a pool, terrace lounge, movie theater room, 24-hour concierge service, a dog park and indoor basketball court. Danny Kaufman, Medina Spiodic and Rebecca Brielmaier of JLL arranged the seven-year, fixed-rate loan on behalf of the borrower, Georgetown Co.
NEW HAVEN, CONN. — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has negotiated the sale of 200 Fountain, a 158-unit apartment complex in New Haven. Built in 1963, the property offers studio, one-, two- and three-bedroom units and amenities such as a resident lounge, library, fitness center and a business center. Victor Nolletti, Eric Pentore, Wes Klockner and Ross Friedel of IPA represented the seller and procured the buyer, both of which were limited liability companies, in the transaction.
NEW YORK CITY — Marcus & Millichap has brokered the $6.7 million sale of a 20-unit multifamily building in Manhattan’s West Village. The five-story building at 77 Barrow St. was originally constructed in 1900. Joe Koicim and Peter Dodge of Marcus & Millichap represented the seller and procured the buyer, both of which were private investors that requested anonymity, in the transaction.
AUSTIN, TEXAS — Palladius Capital Management, an Austin-based investment management firm, has purchased a portfolio of nine multifamily and student housing communities. Palladius acquired the portfolio, which comprises five multifamily communities and four student housing properties, for $579 million. The names and locations of the nine properties were not released, but the communities total more than 2,500 apartments and student housing units and are located in high-growth markets and near universities with high application/enrollment growth. The seller was also not disclosed. Palladius acquired the portfolio on behalf of a recently closed, Palladius-sponsored private investment fund that raised approximately $112 million in equity, primarily via private wealth sources. “The successful deployment of this fund speaks to our team’s ability to invest throughout various macroeconomic environments,” says Marko Velazquez, senior managing director of Palladius. Palladius, through its affiliates, manages and operates approximately $950 million of real estate properties across the country. The firm was launched in July 2021 and primarily acquires value-add and core multifamily, student housing and hospitality properties. The company also originates debt investments and acquires whole loans through its privately held REIT, Palladius Income Fund. — John Nelson