Industrial Realty JV Acquires 340 KSF Cleveland Portfolio

A joint venture of Industrial Realty Group, PREP Funds and CG Real Estate Capital has acquired a three-property industrial portfolio in Cleveland, Ohio, spanning 339,449 square feet. The deal is a sale-leaseback transaction with Anchor Manufacturing, which signed a long-term master lease.

The company will continue to use the space as its headquarters and manufacturing facilities. Anchor acquired them in two separate transactions, in 1981 and 1992, according to Yardi Matrix information.

The collection includes:

• Anchor Metal Processing, a 153,814-square-foot facility at 12200 Brookpark Road used as headquarters and for stamping;

• Anchor Tool & Die, a 159,459-square-foot facility at 11840 Brookpark Road, used for stamping and fabrication;

• Anchor Die Technologies, a 26,176-square-foot shallow-bay industrial facility at 4541 Industrial Park, used for metal processing.

The three properties sit on more than 18 acres and have a total of 17 dock-high loading doors and 19 drive-in doors with dock levelers and bumpers. The facilities were built between 1962 and 1979.

Sale-leaseback deals are drawing more attention as owner-occupiers look for capital outside traditional lending channels. With borrowing costs still elevated and lenders selective, the structure allows companies to raise cash while continuing to occupy their properties. Investor demand remains strongest for assets backed by solid tenant credit, durable lease terms and sustainable rent levels.

Cleveland industrial sales keep steady

Cleveland’s industrial sales activity shifted toward larger transactions in the second quarter of this year, according to a Cushman & Wakefield report. While the number of deals declined from 118 in the first quarter to 107 in the second one, the square footage transacted increased to 4.3 million. The quarter included 11 sales above 100,000 square feet. The Southeast submarket led by sale volume, while Akron posted the highest number of transactions.

Notable activities in the area include Stonemont Financial Group’s sale of Westfield Commerce Park. Glen Una Management paid $48.2 million for the asset, using funds from a $26.2 million acquisition loan.