- Not-for-profit Playhouse Square (NYSE:SQ) 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.
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