MILLENNIA'S PRESS RELEASE
The Millennia Companies® Close on Key Center
CLEVELAND – The Millennia Companies®, led by principal and Chief Executive Officer, Frank T. Sinito, announced it has completed the acquisition of Key Center, a mixed use commercial property comprised of a 57‐story tower which has 1.3 million square feet of class A+ office space, a 400‐key, full service Marriott hotel, a 10‐story historic bank building and a 982 stall attached parking garage. The Millennia Companies® purchased Key Center from Columbia Property Trust (NYSE:CXP), a publicly‐traded real estate investment trust, headquartered in Atlanta, GA.
Seeking a new corporate headquarters to accommodate The Millennia Companies’® growth is what led Sinito to Key Center. While at one time he simply intended to be a tenant in the building, he realized that the opportunity was there for him to acquire the entire asset. “This would be an amazing headquarters for Millennia.” Sinito said.
“It took a collaborative effort to complete this transaction. My heartfelt thanks go out to everyone involved on both sides of this deal. Columbia’s team worked side by side with me to get this deal done and I thank them for their efforts. The brilliant law firms and accounting firm of Baker Hostetler, Benesch and RSM were integral to a successful closing.” said Sinito. Larry Lindberg, Partner at Baker Hostetler comments, “It is great to see this asset, originally developed by Dick and Dave Jacobs, back in the hands of a Clevelander. Baker Hostetleris honored to have been part of a team of very talented people involved in the successful completion of this complex legal and financial transaction.” Sinito continues by saying, “Thank you to the lenders and partners who shared and trusted my vision for this project.” Mark J. Vogel, senior managing director of Berkadia Capital Mortgage, LLC, secured the necessary debt for the transaction. A consortium of Banksled by Citibank, and which includes Bank of America, Deutsche Bank and Apollo Capital, provided senior mortgage and mezzanine debt financing. "The institutions involved in this transaction acted extremely aggressively. They provided a substantial portion of the required capital and worked diligently with Sinito's entire team" said Vogel. The lending group offered a loan to facilitate the acquisition, future improvements and immediate costs used to take the building's occupancy to over 95%. Vogel, the local head of the Berkadia Cleveland office worked with Sinito and attorney Albert Adams of Baker Hostetler in structuring the financing. "This was a team effort, where local advisors played instrumental roles." Vogel said.
“I am honored to be a part of such an iconic asset and one with such a rich history of excellence. I believe everyone is excited to see this trophy property back in the hands of a local owner.” Sinito said. “We look forward to working with The Jacobs Real Estate Group and the Marriott team. We will work together to exceed client and guest expectations.”
Millennia intends on building on that history of excellence and is already in the design phase of a $24 million dollar renovation to the tower lobby, the plaza and the hotel. The distinguished team of architects, designers, project manager and construction team are all local to Cleveland. “Vocon, K2M Design, Project Management Consultants, LLC and The Albert M. Higley Company are all local and have already started on an amazing set of plans.” says Sinito.
About The Millennia Companies®:
The Millennia Companies® is a vertically integrated real estate company headquartered in Cleveland Ohio. The family of companies is comprised of Millennia Housing Management, Millennia Housing Development, Millennia Housing Capital, Millennia Hospitality Group, and American Preservation Builders. The Millennia Companies® specializes in the acquisition, rehabilitation and management of affordable and market rate multifamily communities. Millennia Hospitality Group specializes in fine dining establishments and is expanding into lodging with the acquisition of the Marriott hotel.