The investment market in Cleveland had only one major transaction in August 2010, totaling $46.5 million and comprising the entire sales volume for the month. This single transaction was the sale of the 575,000 square foot Penton Media office building for $82 per square foot. Despite hopes of recovery, the investment market is still weak with capital remaining impatient as bargain deals have yet to materialize in larger numbers.

1. Cleveland
Investment Report | August 2010
Market Statistics
OVERVIEW: Month % Change YTD
The investment market in August 2010 is a perfect illustration Sales Volume (All) $46.5m 285.9% $185.9m
of the pitfalls of just focusing on overall sales volume. The # Properties (All) 1 -50.0% 18
Sales Volume ($5m+) $46.5m 342.8% $169.0m
volume of $46.5 million would lead one to believe that the # Properties ($5m+) 1 no change 10
market had a good month. However, a quick peek behind 10-yr Treasury 2.907% -1.46% -
the numbers shows otherwise, as this volume is comprised of Average Sale Price PSF
just a single transaction. That’s right, there was only a single $90
$81
$1
$80 $1
investment transaction that closed in August. This tells me two $70
$1
things – first, despite much hope, the investment market is still $60
$1
a long way from recovery. And second, capital is becoming
$1
Price Per Unit
Price Per SF
$50
$1
increasingly impatient. Investors continue to amass their war
$40
$0
$30
chest of equity, waiting for an onrush of bargains that have yet
$0
$20
$0
to materialize. $10 $0
$- $- $- $-
TRANSACTIONS:
$- $-
Office Retail Industrial STNL Apartment
Penton Media Building – This 575,000 square foot CBD
office tower transferred for $46.5 million or $82 psf. The Sales by Sector
building was 93 percent occupied at sale and tenants include
Industrial
its namesake Penton Media. The property also includes a 0%
630-car parking garage. The buyer was Miami-based Optima STNL Office
100%
Ventures and seller was California-based KBS Realty 0%
Advisors. This represents Optima’s fourth CBD office Retail
0%
acquisition in the past 3 years. Apartment
0%
Other
0%
Rolling 18 Month Volume
$100,000,000 10
$90,000,000 9
$80,000,000 8
$70,000,000 7
Number of Deals
$60,000,000 6
Sales Volume
$50,000,000 5
$40,000,000 4
$30,000,000 3
$20,000,000 2
$10,000,000 1
$- 0
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Volume < $5m Volume > $5m # Deals < $5m # Deals > $5m
23240 Chagrin Blvd., Suite 250 | Cleveland, Ohio | 216 831 3310 | www.naidaus.com