INDEPENDENCE, OH-Griffin Capital has purchased the 630,000-sf, mixed-use headquarters building here for L.D. Kichler, a lighting designer and distributor, for $35.7 million. Griffin bought the site at 7711 East Pleasant Valley Rd., in a suburb of Cleveland, on behalf of 22 individual tenant-in-common investors who were completing a 1031 tax-deferred exchange.
Minoff Industrial Park Co. is the seller of the property, and was represented by the Cleveland office of NAI Daus. The deal was arranged with a $26.4-million, non-recourse, 10-year fixed rate first mortgage loan, provided by Barclays Capital Real Estate.
Minoff took control of the company in the 1950s, and moved it to this building in the early 1990s, says Kevin Shields, president of Griffin. The property has 100,000 sf of office space for the headquarters operation, and then the rest of the space is used for design and distribution, Shields tells GlobeSt.com. The company is leasing the property from Griffin for 15 years for slightly more than $4 per sf, he says.
The property, the company's second purchase in Ohio, was a perfect combination for investors, Griffin says. "The investors are mostly retirees, with a primary investment paradigm of preservation of capital and a secondary goal of competitive cash-on-cash return," he says. "It's good to have a property that's integral to the operations of the company, leased on a long-term basis and at a market rate with contract increases in rental rates."
Griffin, based in Los Angeles, manages about eight million sf across the country. About 40% of the company's holdings are in California, about 20% are in the Chicago area and the rest are scattered throughout 10 other states.
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