Kyklos is a wholly-owned subsidiary of forged-parts makerHephaestus Holdings Inc., a portfolio company of private equityfirm KPS Capital Partners LP. Glen Kunofsky, an SVP in the New YorkCity office of Marcus & Millichap, represented KPS in the sale."This frees up cash to put back into the business," Kunofsky "The equity fund is not a big believer of holding realestate, they're more into operating the company."


The building is the largest in this entertainment-themed city,home to the Cedar Point amusement center and other parks. Thefacility has seven loading bays, almost one million sf ofindustrial space and 324,037 sf of office, all on a 128-acre lot.The lease is for 20 years. Kunofsky would not divulge the leaserate. The average lease rate for the west Cleveland market is $3.93per sf for flex properties, according to a second quarter Grubb& Ellis market report.


"This is the largest SLB we've done all year," Kunofsky says."It's very difficult for a tenant to put such a large loan on abuilding, so this worked out well. Plus, the industrial market,especially in Ohio and Michigan, is very hurting. But this showsthat when there's a good corporate story and a good tenant, thatthere's still an active market for quality companies." MichaelGlass assisted Kunofsky in the sale.

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