Citizens Delivers $30M Loan for Refresh of Ohio Office Tower
Hearn and CrossHarbor Capital Partners, co-owners of One Columbus Center in Columbus, Ohio, have secured a $30 million loan from Citizens Bank to finance future upgrades to the building, according to an announcement from the lender.
The partnership of Chicago-based Hearn and Boston-headquartered CrossHarbor purchased the property in March, and has already begun enhancing the building’s common spaces and fitness center.
The 25-story, 407,472 square-foot office tower stands at 10 West Broad Street near the banks of the Scioto River, on a block that overlooks both the Ohio Statehouse and the Columbus City Hall. Ground-floor retail space currently houses a U.S. Bank branch, and aerial walkways connect the skyscraper to the neighboring Hotel Leveque. (The hotel’s ownership recently sued Hearn for the right to prevent One Columbus staff from using the aerial walkways at night.)
“We greatly value our partnership with Citizens Bank and appreciate the commercial real estate team’s excellent ideas and seamless deal execution,” Patrick O’Sullivan, CrossHarbor’s chief financial officer, said in prepared remarks.
The loan marks the second collaboration between Citizens and the Hearn-CrossHarbor partnership, who previously came together to finance a project in Indianapolis in 2015.
“This deal highlights Citizens’ strong commitment to Ohio and to helping commercial clients reach their potential,” Gary Magnuson, Citizens Bank’s head of commercial real estate, said in a statement.
One Columbus Center serves as real estate lender Red Capital Group’s headquarters. Other tenants include high-profile law firms and the National Federation of Independent Business.
Two Ohio government agencies, the Casino Control Commission and the Ohio Consumers’ Counsel, also lease space in the building, but are expected to vacate their combined 32,000 square feet by the end of the year in response to a “substantial rent increase,” according to a Casino Control Commission spokeswoman.
A news article cited on Hearn’s website shows that the partnership acquired the property for $31 million in March, although the official purchase price has not been disclosed.
Representatives from Hearn weren’t immediately available for comment.