Fairmount Properties Builds Opportunity in Cleveland’s “Eds and Meds Corridor”

Although East Cleveland, Ohio, is home to the Cleveland Clinic, one of the world’s leading medical institutions, real estate development in the surrounding Fairfax neighborhood had been a challenge. 

But that’s changing, thanks to a transformative collaboration between the Cleveland Clinic, Fairfax Community Development Corporation, City of Cleveland, Cuyahoga County and the private sector. Their joint effort brings employment, cultural opportunities, housing and small business development opportunities to the neighborhood through the Innovation Square strategic investment project. 

Fairmount Properties was selected to develop a vital piece of that vision: a small-format Meijer called Fairfax Market — the company’s first urban store in Ohio — topped by 199 apartments called Medley that will house many incoming medical and nursing residents who work at the Cleveland Clinic and surrounding businesses. 

To make it happen, Fairmount turned to Western Alliance Bank’s Public Finance group to provide a funding package that includes PACE financing. PACE financing can fund a project’s energy-efficient or renewable energy elements with capital repaid through a property tax assessment attached as a lien.

“We were looking at several financing groups, including one of the biggest PACE lenders and public finance groups in the country, but when I got the terms from Western Alliance Bank, it was substantially better,” said Adam Fishman, Fairmount’s principal. “It was a very fluid, easy approval process, which is rare in this world. The process between the bank, city and county can make it arduous to get approved, but I really liked the process with Western Alliance. I’ve never had a group fund as quickly and efficiently as they did.”

Fairmount required a quick close at year-end to meet the project’s timeline. “Our bankers did a very good job of walking us through what was needed. It’s quite a process for PACE, and they worked in conjunction with our legal team to get the tax assessment done,” Fishman added. “No one wants to close a deal between Christmas and New Years, but Western Alliance was able to step up and get it done, which was phenomenal.”

The efficient, convenient living and neighborhood shopping concept is a quick walk from three hospitals and Case Western University in what’s known as the “eds and meds corridor.” The Meijer market location eases the lack of grocery options in the area. Once construction began, the team felt even greater urgency — and Western Alliance came through.

“From our perspective, the most important thing with the contractor is making sure our people are getting paid timely — without it, the project shuts down. Western Alliance is the quickest group to ever fund a deal for me to keep that draw process going,” Fishman said. “Our Western Alliance bankers have been there to support the transaction after the deal closed. We feel them there as a partner rather than just a third-party capital source.”