June 2011 Investment Report for Cleveland, OH

1. Cleveland
Investment Report | June 2011
OVERVIEW: February Market Satistics
The sleeping giant has awoken. After nearly three years of erratic Month % Change YTD
S Volume (All) $225.5m NA $268.2m
activity and sluggish sales volume, Cleveland’s investment market # Properties (All) 14 NA 26
exploded in June. While the blockbuster $4.5 billion retail transaction S Volume ($5m+) $214.7m NA $227.6
# Properties ($5m+) 11 NA 12
between Centro Properties and Blackstone had a large impact locally,
10-yr Treasury 3.158% 3.5% -
the region also saw some market transactions as well as the continued
Average Sale Price PSF
influx of distressed sales. In total, over $225 million of investment sales
$350 $11,419 $12,000
closed during the month. Not only does this figure easily outpace the
$300 $286
total volume achieved in 2010, but it breaks a 3 ½ year streak - the last $10,000
time the monthly sales volume exceeded $200 million was December
$250
$8,000
2007. And while I certainly don’t think this signifies that the good times
Price Per Unit
Price Per SF
$200
$6,000
are back, hopefully the giant really is awakening, not just rolling over. $150
TRANSACTIONS: $100
$97 $4,000
Rite Aid portfolio – This two-property STNL portfolio sold for $8.3 $65
$2,000
million or $290 psf. The properties were located in Euclid and North
$50
$-
Canton, with the former being built in 2008 and the latter earlier this $- $-
year. The seller was the original developer while the buyer was a Office Retail Industrial STNL Apartment
private investor who used around 50 percent debt. The cap rate was
Sales by Sector
9.4 percent.
515 Euclid Avenue – Built in 2008, this 542-space garage was sold
out of bankruptcy court in the continued wake of the AmTrust failure. Office
4% Retail
The property is strategically located adjacent to the East 4th Street Other
86%
4%
entertainment district and within walking distance to both the new STNL
4%
Horseshoe Casino and the Medical Mart. Harbor Group, which owns Apartment
2%
the neighboring 200 Public Square, was the winning bidder with an Industrial
0%
offer of $8.15 million.
Rolling 18 Month Volume
$250,000,000
14
$200,000,000 12
10
Number of Deals
$150,000,000
Sales Volume
8
$100,000,000 6
4
$50,000,000
2
$- 0
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Volume < $5m Volume > $5m # Deals < $5m # Deals > $5m
Business Property Specialists Inc. Broker | 23240 Chagrin Blvd., Suite 250 | Cleveland, Ohio | 216 831 3310 | www.naidaus.com