ErieView Development has closed financing for the $218 million redevelopment of Cleveland’s Erieview Tower, advancing plans to transform the 40-story downtown landmark into a mixed-use property featuring Ohio’s first W Hotel, rental residences, Class A office space and a major food and beverage program.
The redevelopment will convert the approximately 700,000-square-foot tower at East Ninth Street and St. Clair Avenue into a 210-key W Cleveland hotel and 215 W Apartments, with the hotel and residences expected to open around late 2027.
The W Apartments are expected to become the first W-branded residences developed exclusively as rental apartments rather than for-sale residences.
The project will also include Class A office space, a 38th-floor signature restaurant and bar, a 15,000-square-foot ballroom, spa, fitness center, lobby lounge and a subterranean parking garage with more than 450 spaces.
Completed in 1964, Erieview Tower was designed by Harrison & Abramovitz and rises 529 feet across 40 stories. The building remains Cleveland’s fifth-tallest and is listed on the National Register of Historic Places.
The 215 W Apartments will occupy floors 17 through 28 and comprise approximately 179,565 square feet, with units ranging from studios to two-bedroom apartments.
Residents are expected to receive access to hotel services including 24-hour concierge, door and porter service, in-residence dining, the spa, fitness center and event spaces, as well as elevated Marriott Bonvoy status through Marriott’s Onvia owner recognition platform.
The office component will extend from the 29th through 38th floors and is designed to provide tenants with access to hotel amenities, including dining, concierge services, event facilities, the fitness center and spa.
Office space will be delivered turnkey and can be built to tenant specifications without capital cost to tenants. ErieView Development expects to name a leasing team during the fourth quarter.
A signature restaurant and bar planned for the 38th floor will sit approximately 500 feet above East Ninth Street, making them the highest restaurant and bar in Ohio.
Both will be open to the public.
The project’s capital structure includes $93.4 million of C-PACE financing from Nuveen Green Capital, representing the largest C-PACE transaction completed in Ohio.
The financing will support energy, water and building-envelope improvements, including VRF mechanical systems, curtain wall work and elevator modernization.
ERIEBANK, a division of CNB Bank, is providing $20 million of senior financing.
Foss & Company invested through Ohio historic and Transformational Mixed-Use Development tax credits, while Consortium Structured Investments invested in federal historic tax credits.
Midland States Bank is providing federal historic tax-credit bridge financing, and Cuyahoga County provided a loan supporting the hotel.
Additional financing includes Ohio Brownfield Remediation Program funds, City of Cleveland tax abatements and tax increment financing, and Cleveland-Cuyahoga County Port Authority incentives.
BGL Real Estate Advisors served as exclusive financial adviser to ErieView Development, KJK served as lead counsel and TurnDev is serving as project manager.
The redevelopment is expected to support more than 600 jobs across all phases and generate more than $125 million in projected revenue for the City of Cleveland over 30 years, including property, income and parking taxes.
W Cleveland’s hotel rooms, apartments and 38th-floor restaurant and bar are expected to open around late 2027, while the Class A office floors will be delivered according to tenant schedules through 2028.
KEY QUOTES:
“Erieview has always been part of a bigger vision for downtown, and this project brings that vision to life. We are delivering a destination unlike anything Cleveland has seen, with an unprecedented level of amenities, a new standard of hospitality and a 38th-floor restaurant led by a celebrity chef whose name will speak for itself. This is a transformational investment in the heart of the city, and we believe its impact will extend well beyond Erieview, bringing new energy, activity and momentum to the entire district. Cleveland is ready for a project at this level, and we’re proud to be the ones delivering it..”
Elias Kassouf, ErieView Development
“It was a pleasure to partner with ErieView Development to capitalize this notable historic conversion project in downtown Cleveland with $93.4 million in C-PACE financing, which also marks the largest C-PACE-financed transaction in the state of Ohio. By maximizing C-PACE’s accretive, long-term, non-recourse financing at the highest allowable amount within the inventive capital structure, which also included historic tax credits as well as senior debt from ERIEBANK, the sponsor will be positioned to avoid a future refinancing event while ensuring the asset’s long-term success. This project underscores how C-PACE is increasingly being used by forward-thinking sponsors, like ErieView Development, to finance large-scale developments in Ohio and across the U.S.”
Chris Ellis, Senior Director of Originations at Nuveen Green Capital
“This was a highly meaningful financing for BGL, not only because of the scale and complexity of the transaction, but because of what it represents for Cleveland. BGL’s founder, the late Mike Gibbons, was a strong advocate for high-quality multifamily housing across the Midwest, and Northeast Ohio is exactly the kind of market where that vision continues to resonate. Cleveland’s momentum, combined with the strength of the Erieview redevelopment, helped make it an ideal setting for Marriott to introduce Ohio’s first W hotel and the first W Residences offered for rent anywhere in the world.”
Anthony Delfre, Managing Director at BGL
“A redevelopment of this scale requires extraordinary coordination across financing, public and private partners, development, design and construction. Reaching this closing is the culmination of years of work by an exceptional team and an important milestone in bringing the next chapter of Erieview Tower to life. KJK is proud to have served as lead counsel to ErieView Development and to stand alongside the Kassouf family, TurnDev and the entire project team as this transformative investment in downtown Cleveland moves forward.”
Jon Pinney, Managing Partner at KJK
