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 tellsGlobeSt.com. "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.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.