Monday, July 8, 2013

City to release mortgage on Mercer's second phase

Cincinnati has amended its funding agreement with Cincinnati Center City Development Corp. (3CDC) subsidiary Gateway II, LLC to release one of two mortgages it holds on the Mercer Commons project in Over-the-Rhine.

The mortgage, in the principal amount of $5.5 million, was to provide security for completion of the project's second phase. Because two independent entities are developing the residential and commercial components, two mortgages were executed and delivered to the City.

The private lenders financing the commercial component are requiring that the City release its mortgage on that property as a condition of providing funding.

The City will maintain a mortgage on the residential units, which will be owned and managed by McCormack Baron Ragan Property Management Services upon completion.

The $22.3 million second phase, located along Walnut Street between E 13th and E 14th streets, will include 67 rental apartments – 21 of which are new construction – and approximately 12,592 square feet of commercial space.

Construction began in April and is scheduled for completion in June 2014.

When completed, the three-phased, $63 million Mercer Commons will include the redevelopment of 19 historic buildings and 26 vacant parcels bounded by Vine, E 14th, Walnut, and E 13th streets into 126 apartment units, 28 for-sale units, and 17,600 square feet of commercial space.

Previous reading on BC:
Second phase of Mercer Commons breaks ground (6/3/13)
Construction photos: Mercer Commons, 4/12/13 (5/16/13)
More than $14M approved for Gateway's fifth phase (10/30/12)
The payoff: $59M Mercer Commons breaks ground in OTR (6/27/12)
Four ordinances approved for Mercer Commons (6/8/12)