First Interstate Properties Sells Cleveland Industrial Campus

First Interstate Properties has sold Shoreway Commerce Park, a 445,682-square-foot industrial campus in Cleveland. Caspian Group acquired the asset for $9 million, public records show.

Northmarq arranged the $13 million acquisition loan through Standard Insurance Co. The permanent fixed-rate note carries a 3-year term with 2 years interest only and a 30-year amortization schedule.

The property previously traded in 2001 for $3.7 million, according to CommercialEdge data. Built in two phases, in 1912 and 1942, Shoreway Commerce Park underwent a rehabilitation process in 2010, which turned a partially occupied truck manufacturing site into a logistics and distribution hub.

The 27-acre complex comprises two buildings featuring sky lights, climate control, 85- to 105-foot truck courts, rail doors and 22 parking spaces. Located at 799 E. 73rd St., in an Opportunity Zone within Cuyahoga County, the property is near Interstate 95, which allows easy access across the Cleveland metropolitan area.

Northmarq Managing Director Andy Finn from the Minneapolis Debt + Equity office, in collaboration with Vice President Mark Jeffries of the Denver office, secured the financing for the borrower.

The demand for industrial space remained high in the Cleveland market in the fourth quarter of last year due to low vacancy and a lack of speculative construction, according to a recent Cushman & Wakefield report. Investment sales totaled 2.2 million square feet across 27 deals, up 340 percent over the quarter.