CLEVELAND-The Herrick Group LLC, based in Cedarhurst, NY, has purchased a 300,000-sf industrial property here called Shoreview Industrial Center. The facility is in the up-and-coming neighborhood of Detroit Shoreway, which has been created over the past 150 years along Lake Erie, originating from the city's annexations of Ohio City, Brooklyn Township and the Village of West Cleveland.
The industrial property on six acres is now leased on a net basis to five companies, including Harco, says Bruce Graeber, an SVP with Herrick. He would not confirm the cost of acquisition or lease rates. Similar size properties have sold in Cleveland from $7 to $22 per sf in the city this year. The average asking rent for industrial in the city is $3.52 per sf, according to a third-quarter market report by Grubb & Ellis.
Graeber tells GlobeSt.com that the property could one day be converted into a residential or retail. "We bought it as an industrial property and will continue to operate it that way. But we hope with time, I would guess five to six years, we could consider redeveloping the property into multifamily use. That wasn't our goal, but the area is turning slowly residential," he says. The city is undertaking a massive redevelopment project for the Shoreway neighborhood, including a new, residential-heavy master plan that opens up the lakefront.
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