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SANDUSKY, OH-Kyklos Bearing International Inc. has completed a sale-leaseback of its 1.3-million-sf manufacturing and office facility here for $25.5 million. Lombard, IL-based Avgeris & Associates Inc. bought the property at 2509 Hayes Ave.

Kyklos is a wholly-owned subsidiary of forged-parts maker Hephaestus Holdings Inc., a portfolio company of private equity firm KPS Capital Partners LP. Glen Kunofsky, an SVP in the New York City office of Marcus & Millichap, represented KPS in the sale. “This frees up cash to put back into the business,” Kunofsky tells GlobeSt.com. “The equity fund is not a big believer of holding real estate, 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. The facility has seven loading bays, almost one million sf of industrial space and 324,037 sf of office, all on a 128-acre lot. The lease is for 20 years. Kunofsky would not divulge the lease rate. The average lease rate for the west Cleveland market is $3.93 per 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 a building, so this worked out well. Plus, the industrial market, especially in Ohio and Michigan, is very hurting. But this shows that when there’s a good corporate story and a good tenant, that there’s still an active market for quality companies.” Michael Glass assisted Kunofsky in the sale.

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