Starks building owner Hudson Holdings lands major loan for $300M Cleveland redevelopment
The owner of the Starks and Republic buildings in downtown Louisville has received a bridge loan for a major office redevelopment in downtown Cleveland. Crain's Cleveland Business reported that an affiliate of Delray Beach, Fla.-based Hudson Holdings LLC secured a $34 million bridge loan from New York City-based Gamma Real Estate, a lender and real estate owner-operator.
The loan terms give Hudson Holdings up to a year to finalize construction financing for the redevelopment of the 22-story Union Trust building in downtown Cleveland. Crain's reports that the redevelopment could include 200 hotel rooms, 550 luxury apartments, 72 "micro-apartments" and more than 600,000 square feet of mixed-use space.
MLK Real Estate Capital, A New York City-based real estate banking and advisory firm, represented Hudson Holdings in the deal, according to the report. This loan replaces a previous bridge loan received by a Hudson Holdings affiliate from New York-based Acres Capital LLC to assist with the purchase of the building, according to the report.
Andrew "Avi" Greenbaum, a principal with Hudson Holdings, told Crain's that the Acres loan was expiring and that his firm plans to close on the construction financing within the next six months. Hudson Holdings has announced several major Midwest redevelopments that together would total hundreds of millions of dollars.
In Louisville, the company has announced a roughly $120 million redevelopment of the 14-story Starks Building and a $25 million conversion of the 11-story Republic building from office space to a hotel. The company has run into some hiccups on those projects, facing lawsuits and a series of liens from contractors, subcontractors and architects that are claiming withheld payments for work done on the two projects.
Steve Michael, the other principal for Hudson Holdings, recently told me that the company may scrap a planned hotel that would have had more than 200 rooms at Starks in order to do 300 or more apartments. Retail, restaurant and banquet space also is planned. Michael told me he hopes to close on new construction financing for the Starks building projects in the next three to four months. If that happens, he said, construction could resume on the Starks project a few months later.