Flats East Bank Project
Tax Increment Revenue and Refunding Bonds
|Client & Transactional Partners||
Cleveland-Cuyahoga County Port Authority
Flats East Bank Development LLC
|Our Role||Sole Manager|
On September 16, 2021, KeyBanc Capital Markets ("KBCM") closed $52.5 Million of tax increment financing revenue bonds to re-finance outstanding TIF debt on the Flats East Bank Project in Cleveland, Ohio. KBCM acted as the Sole Manager on the transaction. The bonds are secured by tax increment financing revenues and, for the Series 2021B Bonds, minimum service payments.
Situated in the center of Cleveland, Ohio adjacent to the Cuyahoga River and Lake Erie, Flats East Bank is one of the nation’s leading master-planned mixed-use lifestyle, entertainment and workspace developments. The Development sits on 24 acres and includes 500,000 square feet square feet of office, 18 restaurants, a 150-room Aloft hotel, 241 luxury residential units, and amenities including a 1,200 foot boardwalk along the Cuyahoga River. The Development is owned by affiliates of the Cleveland-based Wolstein Group.
The Bonds were structured in a senior and subordinate series. The Senior, 2021A Bonds received a BB rating from S&P based on over 2.00x debt service coverage on available TIF revenues. The Subordinate series was non-rated but was further secured by minimum service payments, which will be levied if tax increment revenues are insufficient to pay debt service. Interest on both series of bonds is exempt from federal and state income taxes.