Borrower to redevelop office buildings in Springdale, Ohio into 129 multifamily units, 97 rental townhomes

CINCINNATI, Ohio – Trez Capital, a private real estate lender helping to build better communities across North America, funded a $37,344,445 construction loan for the Merchant Street project in Springdale– a suburb of Cincinnati, Ohio. The borrower is using the financing to redevelop two recently acquired office buildings into a multifamily project with 129 apartments and 97 rental townhomes.  

Trez Capital Executive Managing Director, Eastern U.S., Brett Forman and Vice President, Origination, Scott Mehlman originated the loan for the borrower, Trinity Square Holdings, LLC. The transaction closed on December 14, 2021.

The office buildings were constructed on the 10.85-acre site during the early 1980s. They were vacant at the time of the borrower’s acquisition.

“Demand for multi-family in suburban Cincinnati is strong, while the office market has been sluggish,” Forman said. “This redevelopment will add much-needed multi-family product to the area and enhance the broader community and tax base.”

The Warren County Port Authority is investing approximately $8,000,000 into the project.

“Expect to see more office-to-multi-family conversions in the year ahead, as older office buildings become obsolete,” Forman said. “We are seeing it with aging and poorly located retail properties, so there is precedent for these multi-family redevelopment plays.” 

Trez Capital provides short-term debt and equity financing typically between six and 36 months in term, up to $100 million in loan value. Trez Capital is on pace to originate about $2 billion in loans by the end of 2021, with approximately $650 million in value being produced from the Eastern U.S. division, which includes offices in Palm Beach and Atlanta.