The total space occupied by Medical Mutual is 592,000 sf, and is being offered by Bentley either as a portfolio or separate parcels. This includes the Rose Building at East Ninth (for $69.5 million) and a 51,000-sf building in Beachwood, a suburb of Cleveland (for $9.7 million). The insurer has about 13 years left on the leases in these two buildings.
The third building is 160,000 sf in Toledo, and is being offered for $28.2 million. The company has 20 years remaining on its building in Toledo, says CB Richard Ellis, which is representing Bentley in the sale. "Bentley has decided that these buildings no longer fit their desired portfolio," says Jeffrey Thomas with CBRE. He tells GlobeSt.com that he can't discuss the lease rate. The average office lease rate for the Cleveland area is $23.83 per sf in the central business district, and $21.89 per sf in the suburbs. Thomas says the cap rate for the buildings is at 7.25%.
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