PHSF also received millions of dollars in donations for recent capital campaigns to limit increases in its debt burden.Įven so, it has taken significant debt to build The Lumen. The project received significant public sector support including $50 million in tax-free bonds from the Port of Cleveland, a $4 million grant from the State of Ohio’s Capital Budget, a $10 million loan from Cuyahoga County, 30-year tax increment financing and a $1 million loan from the City of Cleveland. The Lumen was built for $138 million and sources are saying that PHSF will sell it on the market through their broker CBRE. Leasing success with The Lumen is prompting the Playhouse Square Foundation to pursue a follow-on residential project (Ian Meadows/UrbanOhio). Looking west along Euclid Avenue, from Cleveland State University’s campus into Playhouse Square, The Lumen dominates the skyline from this vantage point on the east side of downtown Cleveland. None are as new, were built as apartments or offer the contemporary luxury as The Lumen. And there’s the 43-story, 417-foot-tall Landmark Place apartments in Hamilton, ONT built as apartments 48 years ago. Another one nearby is the 475-foot-tall, 96-year-old Book Tower in Detroit but is a mixed-use building. The closest residential tower that’s taller is the 410-foot-tall, 30-story The Residences at the Alcoa Building in Pittsburgh that was converted from offices. It is not only the tallest residential building in Cleveland, it’s the tallest in Ohio. And it will be able to sell The Lumen for less money than another for-profit developer, such as Greystar, could build a comparable tower.īut it should be noted that there is no tower within 140 miles of Cleveland that can compare to the 396-foot-tall Lumen. NEOtrans sources acknowledge that, but also are aware of what conversations are being had at PHSF regarding The Lumen and a desire for a follow-on project.īecause PHSF is tax-exempt and doesn’t seek a financial return on its investments, it was able to build The Lumen for less money per square foot than other recent or pending high-rise apartment towers in Cleveland. She said the foundation has not made any other decisions about the future of The Lumen or an encore development to The Lumen. “Depending on that valuation, we may decide to pursue long-term financing, sell or do nothing.” “With The Lumen now 90 percent leased, we have engaged a brokerage firm to explore a valuation of the building,” said Cindi Szymanski, director of brand marketing and communications at PHSF. Now, those sources are saying that PHSF will sell The Lumen to free up finances at the nonprofit organization to pursue that second building. But they may not have to look far.īefore the pandemic, PHSF sources said they would pursue a second large apartment building if leasing at The Lumen met or exceeded expectations. Greystar was so impressed with The Lumen’s lease-up that, according to sources close to PHSF, they went looking for sites downtown to develop their own high-rise residential building. Greystar manages The Lumen which was developed by Hines of Houston. So were the folks at Greystar Real Estate Partners, a large, national real estate firm based in South Carolina that develops and manages multifamily properties. PHSF officials were and are understandably impressed. Through floor-to-ceiling windows, this view looks west along Euclid Avenue from one of the model units. With less than two weeks to go before the nation was shut down in response to the pandemic, tours by potential tenants of The Lumen had just started while the building was still under construction.
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