In Shaker Heights, Ohio, RMS Investment Corporation is looking to close a $97.2 million deal as a financial package for the 1st stage of constructing the Van Aken District Project. In the suburban East Side downtown, they want to create movement in the center through construction of a number of buildings.
Today, December 8, the board directors of the Cleveland Cuyahoga County Port Authority documented the necessary papers to provide funds. For that, the construction of apartment buildings, offices, shopping centers with parking will be paid in full and ready to start building.
The funding was the final step RMS needed to close of all heavy deals. After two years of talks, assembly is imminent. Although they await the decision, which will last until the 1st quarter of 2017 by the Ohio Water Development Authority program for a small state loan (small compared to $97.2 million) of $2 million, as previously said, assembly is very much imminent.
The Cleveland Cuyahoga County Port Authority will then provide $60 million in taxable bonds, to which PNC Bank will buy those that are connected to the apartment building. The building will be approximately 30,000 sq. ft. of first floor retail with 80+ parking places subsurface. It will also house 102 units.
More offices and retail stores will cover about 60,000 sq. ft. that includes dining options such as a food hall. Furthermore, another parking garage is involved for those offices and retail stores.
As foreign investors are calling constantly to buy bonds connected to all situated buildings, Cleveland International Fund and Civitas Capital Group in Dallas, Texas are working together to arrange overseas deals for loans through a federal program that ensures them a place to live in the U.S. only if they lend a hand in creating jobs.
There will be minority and woman owned businesses in the project. Almost 85% of labor will be union workers from Marous Brothers Construction and Turner Construction Company.
Funding distributed will for construction will come from what is generated from bonds (about $52 million), $20.4 million from RMS in cash and land value, $4.3 million from Cuyahoga as a loan, a $6.2 million grant from Shaker Heights, and state grants summing to about $800,000.
An $11.5 million investment from RMS comes separately to modernize the close Shaker Plaza and move retailers there from the Van Aken Center as it is being demolished.
In the summer of 2018, RMS Investment Corp. hopes to the aforementioned buildings will be opened for business with new, massive revenue incoming.