Entering text into the input field will update the search result below

Tax-free junk bonds to finance luxury tower in Cleveland: Bloomberg

May 29, 2018 3:04 PM ETCXE, CMU, EVO-OLD, MAV, MHI, NMZ, MHF, NZF, EIO, HYD, HYMB, SHYDBy: Liz Kiesche, SA News Editor
  • Not-for-profit Playhouse Square Foundation in Cleveland, OH, is using a tax-exempt $80M junk-bond offering to finance a $139M, 34-story apartment tower with yoga studio, pool, and fire pits, Bloomberg reports. Tax-exempt bonds are more often used for affordable housing projects, than luxury apartment buildings.
  • When it opens in 2020, the Lumen will have 318 apartment units, including 12 penthouse units, and a parking garage as well as a fitness center, and concierge entrance.
  • The bonds will be sold through a local authority and the proceeds will be loaned to Playhouse Square, which will be responsible for repaying the debt.
  • The foundation's CEO, Art Falco, told Bloomberg he sees the project as a "working endowment" that will provide the foundation with a small return on its investment.
  • ETFs: HYD, NMZ, MAV, MHI, HYMB, CXE, CMU, SHYD, MHF, NUO, EVO, EIO

Recommended For You

More Trending News