Kassouf Development has secured financing from a consortium for the redevelopment of Erieview Tower & Galleria in Cleveland, Ohio, US.
The development capital is provided by Huntington National Bank, Midland States Bank, PPG, TurnDev, Cleveland-Cuyahoga County Port Authority, Peachtree PACE, and the Ohio Brownfield Remediation Program.
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Brown Gibbons Lang & Company’s (BGL) real estate advisers team provided exclusive financial advisory services to Kassouf Development while KJK acted as the lead counsel to the developer.
The redevelopment will turn Erieview Tower into a mixed-use destination featuring luxury residences and a hotel under the W brand by Marriott.
Construction is planned in phases, with the residential segment starting immediately, the hotel later this year, and completion slated for late 2026.
The redevelopment will introduce 227 luxury residential apartment units branded by Marriott’s W, offering residents a living experience akin to the ‘high-end’ services provided by Marriott’s W hotels.
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By GlobalDataThe residential component will feature access to concierge, housekeeping, and other hospitality services.
In addition to the residential apartments, the project will include a new hospitality offering of 210 luxury hotel rooms under the W Hotels flag, marking the brand’s debut in Ohio.
The hotel will have a rooftop bar, a fine dining restaurant, a spa, a fitness centre, and a 15,000ft² ballroom, among other amenities.
The dual-branded W Residences + W Hotels project, with a total cost exceeding $218m, represents a ‘unique and limited concept’ by Marriott, with only eight similar locations across the US.
This redevelopment is expected to revitalise the Erieview Tower and Galleria, listed on the National Register of Historic Places, turning it into a prime entertainment hub for Cleveland.
Since acquiring Erieview Tower in 2018, the Kassouf family has been securing capital for the repositioning of the asset through various programmes, including the Ohio Historic Preservation Tax Credit Program and the Ohio Senate Bill 225, which doubled the State Historic Tax Credit.
Erieview Developer CEO James Kassouf said: “The BGL team has demonstrated their expertise and creativity in structuring the financing for this phase of the Erieview Tower and Galleria redevelopment project. As early as 1908, when my grandfather rented a news and fruit stand at the corner of East 9th Street and St. Clair Avenue, 117 years later, my family is redeveloping the entire block.
“We have been committed to Cleveland, and we’re proud to see that commitment continue with the revitalisation of this important historic district.”
BGL and Kohrman Jackson Krantz (KJK) have represented the developer, coordinating with a comprehensive team of professionals, including TurnDev, who is providing development services and debt financing for the project.
