CLEVELAND — The Kroger Co. (NYSE: KR) has unveiled plans to open a new customer fulfillment center in the Cleveland area for grocery delivery services. Technology company Ocado Group will operate the facility, which will span 270,000 square feet. The facility will utilize robotics for automated production, but it also expected to create up to 400 new jobs in the area. Completion of the project is slated for 24 months after construction begins. The warehouse, which will service Northeast Ohio and Pennsylvania, marks the second customer fulfillment center in the state of Ohio for Kroger and Ocado. A specific location for the project was not released.
TOLEDO, OHIO — Welltower Inc. (NYSE: WELL), a Toledo-based healthcare REIT, has agreed to acquire 33 seniors housing communities totaling 2,787 units in Michigan, Ohio and Tennessee. The purchase price is $548 million. The communities will be acquired as three separate portfolios from undisclosed sellers. The communities were available for purchase because the lease-up process was heavily damaged by the onset of the COVID-19 pandemic. With occupancy at only 63 percent, Welltower expects the communities will greatly improve their performance in 2023 and beyond. Welltower will install Michigan-based senior living operator StoryPoint to manage the communities under a RIDEA agreement. The acquisition is expected to be funded through the issuance of partnership units, assumed debt and cash on-hand. Simultaneously with the acquisition announcement, Welltower unveiled a development partnership with a joint venture between Related Cos. and Atria Senior Living to develop two seniors housing communities in Silicon Valley. One will be located in Santa Clara and the other in Cupertino. Welltower suggests these developments are just the first projects of many for the partnership. The Santa Clara development will consist of 191 units next to a fully entitled, 9.2 million-square-foot urban development that Related began building in 2015. The larger project, …
DALLAS — Dallas-based SRS Real Estate Partners has negotiated the sale of a portfolio of eight single-tenant properties occupied by Fresenius Medical Care for $56.5 million. The properties, which total more than 94,000 square feet, are located in Virginia, New York, Ohio, Texas, Georgia and Missouri. Matthew Mousavi, Patrick Luther and Stephen Sullivan of SRS represented the seller, Kingsbarn Realty Capital. The buyer was undisclosed. Fresenius provides products and services for individuals with renal diseases.
COLUMBUS, OHIO — Mid-America Real Estate Corp. has brokered the sale of Market at Stelzer in Columbus for an undisclosed price. Giant Eagle anchors the 116,707-square-foot shopping center. Other tenants include Subway, Wingstop, WellNow Hometown Urgent Care, El Rodeo Mexican restaurant, The UPS Store and Marco’s Pizza. Joe Girardi and Emily Gadomski of Mid-America, along with Andrew Montooth of Newmark, represented the seller, Continental Real Estate Cos. The asset sold to a private buyer.
COLUMBUS, OHIO — First National Realty Partners (FNRP) has acquired Consumer Square West in Columbus for an undisclosed price. The 218,000-square-foot shopping center is situated on 25 acres along Soldano Boulevard. A nearly 65,000-square-foot Kroger store anchors the center. Other tenants include Planet Fitness, Rainbow Apparel, Dollar Tree, Shoe Show, Bargain Hunt, Pet Supplies Plus and Sally Beauty. Scott Wiles, Erin Patton and Craig Fuller of Marcus & Millichap represented the seller, a New Jersey-based private investor. The transaction marks the fifth purchase in Ohio for New Jersey-based FNRP.
ZANESVILLE, OHIO — Marcus & Millichap has arranged the sale of Premier Storage of Zanesville for an undisclosed price. The self-storage facility consists of 102 non-climate-controlled units totaling 14,400 net rentable square feet. Nathan Coe, Brett Hatcher and Gabriel Coe of Marcus & Millichap represented the seller. Zanesville is located about 50 miles east of Columbus. Buyer and seller information was not provided.
GROVE CITY, OHIO — In a joint venture with Trident Capital Group, Invesco Real Estate Income Trust Inc. (INREIT) has purchased a 95 percent interest in an industrial building in the Columbus suburb of Grove City. Built in 2000, the fully leased property spans 378,283 square feet. The transaction marks INREIT’s fourth industrial investment. INREIT acquired the property in conjunction with the purchase of a shopping center in New York for a combined price of $94 million. The seller was undisclosed.
By Cecilia Hyun, Siegel Jennings Co. Since early 2020, the COVID-19 pandemic has upended lives and disrupted the normal course of businesses, including those in the commercial real estate market. As in many other sectors, however, this public health crisis has not affected all commercial properties equally. Real estate occupied by essential businesses such as grocery stores, sellers of household goods and warehouse clubs, for example, have weathered the pandemic well. A few have even increased their market share. By contrast, many office buildings, hospitality and non-essential retail properties have suffered severely. Taxing jurisdictions and assessors have responded to the crisis with varying degrees of success. The Ohio Legislature passed special legislation (spearheaded by Siegel Jennings Managing Partner Kieran Jennings) to allow a onetime, 2020 tax year valuation complaint for a valuation date of Oct. 1, 2020, since the usual tax lien date of Jan. 1 would not have shown the effects of COVID. Other assessors applied limited reduction factors to account for the sudden pandemic-induced decrease in property values. As values recover, it is important for taxpayers to monitor still unfolding consequences as they review their property tax assessments. Initially, hotels and experiential property uses suffered the steepest losses …
BEDFORD HEIGHTS, OHIO — Industrial Commercial Properties (ICP), in a joint venture with Jade-Sterling Steel Co. Inc., has purchased a 200,000-square-foot manufacturing facility in Bedford Heights, a southeast suburb of Cleveland. The purchase price was undisclosed. Jade-Sterling plans to consolidate several locations into a new corporate headquarters at the property, which is located at 26400 Richmond Road. The company employs approximately 100 people, with 50 moving from Twinsburg to Bedford Heights. The facility will undergo an interior and exterior renovation to improve crane capacity and truck access and add office space. Jeffrey Calig and David Hexter of NAI Pleasant Valley represented Jade-Sterling and the seller. Denise Hahn of Weber Wood Medinger represented ICP.
CLEVELAND — IWG, a provider of flexible workspaces, has opened Spaces Cleveland in the city’s historic Warehouse District. The 27,000-square-foot flexible workspace is situated within the Western Reserve Building and features 48 offices and three meeting rooms. IWG says it added 2 million new customers globally in 2021, reflecting the largest growth in its 30-year history.