Investment Bank Outlines $32.1M Financing for Stambaugh Project
YOUNGSTOWN, Ohio — BGL Real Estate Advisors LLC announced this week that it has completed $32.1 million of development financing for NYO Property Group and Pan-Brothers Associates to support the conversion of the Stambaugh Building into a hotel.
The transaction represents the fourth tax credit financing in the past 12 months for the real estate division of Brown Gibbons Lang & Co., said the Cleveland office of the investment banking firm.
According to a news release from BGL, the $32.1 million financing package consisted of: senior construction debt, subordinated bridge debt, municipal city and state agency debt, historic tax credit equity and sponsor equity. Participating financial institutions and partners include First Commonwealth Bank, Chemical Bank, Cedar Rapids Bank and Trust, along with the city of Youngstown, the Ohio Water Development Authority and the Western Reserve Port Authority. The National Trust Community Investment Corp., Novogradac & Co., Foss & Co., and East West Bank were involved with the historic tax credit equity structuring and syndication, BGL reported.
The Stambaugh Building conversion will transform a vacant 12-story neoclassical building, built in 1902, into a 130-room DoubleTree Hilton hotel. Interior work began a few months ago on the project.
“The complex financing stack with six different players required solid and effective coordination,” said Dominic Marchionda, CEO of Youngstown-based NYO Property Group, in a statement. “Through the persistence and dedication of BGL’s Real Estate Advisory team, this very important project for our community was brought to fruition.”
Added Mayor John McNally, also in a prepared statement, “Without BGL’s knowledge on how to structure this complicated financial transaction, I am not sure that this hotel project could have gotten done.”
NYO Property Group is a real estate development group launched in 2012 by Marchionda and Pan-Brothers Associates, a New York City company established in 1972 by the Pantelidis brothers. Pan-Brothers’ investment portfolio includes retail and residential developments in New York, New Jersey, Florida, California, and Ohio.
Brown Gibbons Lang & Co. is an independent investment bank serving the middle market. The company maintains offices in Cleveland, Chicago, California and Texas and says it works with partner offices in more than 50 countries across five continents.
Copyright 2018 The Business Journal, Youngstown, Ohio.
Published by The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our print edition and sign up to our free daily headlines.