CANTON, OH-STAG Capital Partners has purchased the 448,000-sf warehouse and office facility at 818 Mulberry St. here. Groffre Investments sold the property for an undisclosed sum, though sources say similar facilities in this Akron/Cleveland submarket have sold for $30 to $45 per sf in the past year.
The building is fully occupied by two tenants. Diebold, a delivery and security services firm, leases 123,000 sf of office and warehouse space. Fitness Quest, a manufacturer of exercise equipment such as Ab Lounge, Easy Shaper and Total Gym, occupies 325,000 sf of warehouse space. David Pizzotti, a STAG VP, says he could not reveal the exact terms of the leases, but that the average market rate is $2 to $3.50 per sf.
He tells GlobeSt.com that the building is about 100 years old, but still worth attention. "The area is an industrial section of Canton, well located next to a major highway system. The building fit our investment criteria as a functional industrial facility with solid credit on the longer term lease with Diebold, and strong regional credit on the short-term Fitness Quest lease, which is likely to be renewed," he says. Lou Young with CB Richard Ellis represented the buyer, while Bill Rearick with Cutler Commercial Investment Group represented the seller.
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