A joint venture led by private, Los Angeles-based investor Hackman Capital Partners L.L.C. purchased 28 industrial buildings and two land parcels located in the state of Ohio. The transaction, which included 2.6 million square feet, closed on June 14. Hackman Capital Partners did not disclose the purchase price.
Sixteen of the 28 properties are located in Cleveland. They total 1.6 million square feet and make up 61 percent of the portfolio. According to the Cleveland Plain Dealer, the properties include six buildings on Darice Parkway and Mohawk Drive in Strongsville, seven buildings in Solon, two buildings on Enterprise Parkway in Twinsburg and one building on Avion Park Drive in Highland Heights. CBRE Group Inc. reported that the overall availability rate for industrial properties in the Cleveland area decreased in the first quarter of 2013 from 7.8 to 7.6 percent, with overall vacancy rates dropping from 7 to 6.9 percent. Average asking rates have also increased, to $4.56 per square foot.
The remaining buildings include seven in Cincinnati totaling 394,072 square feet and five in Columbus totaling 611,578 square feet. Hackman Capital also acquired two land parcels in Columbus that total 23.5 acres.
The multi-tenant buildings comprise 108 tenant spaces ranging from 2,400 to 219,600 square feet. As of the closing date, the portfolio was 73 percent occupied. The Los Angeles-based company owns more than 20.6 million square feet of real estate across the United States, including 5.6 million square feet in Ohio.
Michael Hackman, the company’s founder & CEO, and other company executives were born and raised in Columbus. Hackman said the company will manage the properties from its regional office in Columbus, adding that “we’re thrilled with the acquisition and excited to be expanding our footprint in Ohio.”
Hackman Capital has hired Colliers International to manage the portfolio. It will be leased by an internal team, along with agents from Jones Lang LaSalle Inc., CBRE, Newmark Grubb Knight Frank, RG Boll and Colliers International. Deutsche Bank provided first mortgage financing, while New York-based Square Mile Capital Management L.L.C. supplied an additional $25 million of capital.
Charts courtesy of CBRE.