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Pinnacle Financial Group, Inc. Recently Arranged Financing For A $13.35 Million Apartment Community Owned By Tenants In Common

November 10th, 2015

Cleveland, OH – Pinnacle Financial Group, Inc. (“Pinnacle”) is pleased to announce it recently arranged financing for a $13.35 million, Class-A apartment community consisting of 304 units in 17 two-story buildings in Yuma, AZ.

Pinnacle worked exclusively on behalf of the tenants in common to secure the 10-year, fixed rate, full-leverage, cash-out, non-recourse loan through one of their exclusive correspondent relationships.

Pinnacle was able to overcome considerable challenges on this transaction relating to the ownership structure, property performance and overall market conditions that many lenders considered to be non-starters.

• Ownership Challenges: Typically, long-term, fixed rate, permanent lenders require a tenant-in-common borrower structure to be consolidated into one limited liability company. Pinnacle was sensitive to the tenant in common owners’ desire to maintain the current ownership and was proactive in sourcing only loan proposals in which the lender and lender’s council were confident that the in-place ownership structure was acceptable as-is. In addition to keeping the current organizational structure in place, Pinnacle was able to ensure that numerous borrower controlled non-recourse carve-outs were guaranteed severally, as opposed to joint and several, a major benefit for the passive investors.

• Declining Performance Metrics: Pinnacle began initial underwriting and due diligence immediately…

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Construction Financing Arranged for Arhaus Furniture Headquarters

October 29th, 2015

Cleveland, Ohio- Pinnacle Financial Group is pleased to announce the arranging of a $31 Million construction loan for the Arhaus Furniture new headquarters. The new headquarters will be four football fields long, and two fields wide. With 650,000 square feet of warehouse space and 120,000 square feet of two-story office space, the building is a sprawling brick, concrete and glass structure spacious enough to support 100 stores. A Cleveland-based retailer known for its exclusive items from global craftsman, Arhaus has 57 stores nationwide and 13 more planned by the end of 2016. This new facility will allow the corporation to grow into a nationally coveted brand.

Pinnacle was able to arrange an a fully leveraged, interest only construction loan for the project at 75% LTV. During the time, we were able to properly understand the value Arhaus brings to the community, and their overall strength as a company.