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Berkadia Lines Up $19M for Cleveland-Area Retail
Berkadia has provided $19 million in financing for Royalton Collection, a retail development in Strongsville, OH. The to-be-built property at 17800 Royalton Rd. will include approximately 74,000 square feet, anchored by HomeGoods with Panera Bread and Outback Steakhouse outparcels.
Director Dan Geuther of Berkadia’s Cleveland office secured the construction financing through the CIBC Bank’s Cleveland office. The sponsor was New York-based Somera Road Inc.
The three-year interest-only loan represents 73% loan-to-cost. It carries a competitive interest rate and was closed with 50 percent of the retail space being pre-leased.
“Somera took a unique approach to this transaction by acquiring a vacant office building and successfully rezoning the land to permit retail development; thereby adding significant value to the site,” said Geuther. “This creative entry to the transaction, combined with significant pre-leasing from a high-quality tenant roster, should enable Somera to generate superior returns for its investors.”
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