Construction pension fund to invest in Larchmere apartment project – Crain’s Cleveland Business

Posted: April 26, 2020 at 4:41 am

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The $23 million apartment building proposed for Cleveland's Larchmere neighborhood has landed a commitment from the building union pension fund-backed ERECT Funds for a $5.6 million investment.

David Wondolowski, executive secretary of the Cleveland Building & Construction Trades Council, shared a copy of an email with Crain's Cleveland Business saying the funds adviser had secured board approvals on Tuesday, April 21, after nine months underwriting the project.

In a phone interview Friday, April 24, Wondolowski said he is excited the fund was able to help the project's developer close a gap in the capital stack for the project.

"It's another example of the building trades coming through for the developer of the project and the community," Wondolowski said. A provision for receiving the funds is that the recipient agree to 100% union construction of the site.

Larchmere developer First Interstate Properties of Lyndhurst used the same source to help fund One University Circle, a high-rise apartment building on Euclid Avenue that First Interstate and homebuilder Sam Petros opened last year.

The 88-unit property is designed to produce rentals for the general workforce, a different market than One University's upscale rentals. The Larchmere building is proposed for 12201 Larchmere Ave., near the landmark Larchmere Boulevard commercial district.

A First Interstate affiliate in late March acquired the 1.5-acre site for the project, including the 1960s-era building that will be demolished, for $950,000.

The ERECT funding approval means the project is nearing a closing of construction funding. However, no mortgage documents were filed by April 21, according to Cuyahoga County online real estate records.

Mitchell Schneider, First Interstate president, did not return a phone call and email about the project by 1 p.m. on Friday.

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Construction pension fund to invest in Larchmere apartment project - Crain's Cleveland Business

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April 26th, 2020 at 4:41 am

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