Newmark has successfully completed the sale of a two-building industrial portfolio, located at 12850 and 13000 Darice Parkway in Strongsville, Ohio, to VEREIT ID Strongsville OH, LLC for $40 million. Newmark Vice Chairman Terry Coyne, SIOR, CCIM, and Managing Director Kristy Hull, SIOR, CCIM, both of the Cleveland office, represented the seller AIC Ventures in the transaction, along with Executive Managing Director Bret Hardy of Newmark Capital Markets in Los Angeles.
The 554,037-square-foot portfolio features two single-tenant Class A distribution buildings that are 100 percent leased. The properties are home to the Lamrite West, Inc. headquarters (DBA Darice Company and Pat Catan’s). Lamrite West was acquired by The Michaels Companies (NASDAQ: MIK) in 2016. The Michaels Companies, Inc. is North America’s largest specialty provider of arts, crafts, framing, floral, wall décor and seasonal merchandise for the hobbyist and do-it-yourself home decorator. As of April 29, 2017, the company owned and operated 1,364 stores in 49 states and Canada under the brands Michaels, Aaron Brothers and Pat Catan’s.
“This was an excellent investment opportunity for the buyer in the Northeast Ohio market, which is known for its low vacancy rates,” said Coyne. “Combine that with the long-term absolute net lease in place, this transaction made for a strong investment for the buyer as well as produced excellent returns for our client, AIC Ventures. It was a win-win for both sides.”
“Bret, Terry and Kristy executed this sale seamlessly and we greatly benefited from their local expertise and institutional rolodex,” said Michael J. Baucus, managing partner of AIC Ventures.
12850 and 13000 Darice Parkway support all Pat Catan’s retail locations, as well as feature office space, distribution facilities and data center operations. At 382,795 square feet, 13000 Darice Parkway houses the headquarters’ offices, distribution facilities and data center operations. The 1999-built property features precast tilt-wall construction and boasts 36’ clear ceiling heights, ESFR sprinklers, 52 docks and four drive-in-doors, all of which support approximately 3,000 orders that are shipped on a daily basis. 12850 Darice Parkway is 171,242 square feet of distribution space and offices. Darice Company was the recipient of the 2014 Smart Business Evolution of Manufacturing Award, boasting a 99.7 percent accuracy rate for its distribution. The facility features two pods of offices (was formerly a two-tenant building) that total approximately 18,800 square feet. The pre-cast tilt wall construction building was built in 2000 with 24’ ceilings, 31 docks, four drive-in-doors and ESFR sprinklers. The properties are adjacent to each other at the end of Darice Parkway, in Park 82, the Duke-built industrial park. They are located in Cleveland’s thriving Southwest submarket, with superior access to the east/west distribution corridors via the Ohio Turnpike (I-80), and to the north/south distribution corridors via I-71.
Newmark is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents.
With roots dating back to 1929, Newmark’s strong foundation makes it one of the most trusted names in commercial real estate. Newmark’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; Newmark Capital Markets services, including investment sales, debt placement, valuation and advisory services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
Newmark is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit www.bgcpartners.com.