Ground Lease for Suburban Cleveland Walmart Sells for $17.1M
- Nov 25, 2015
Marcus & Millichap has brokered the $17.1 million sale of a triple-net Walmart ground lease in Mayfield Heights, Ohio. The sales price equates to a 5.79 percent cap rate on Walmart’s current rent.
Scott Wiles and Craig Fuller, both vice presidents of investments in Marcus & Millichap’s Cleveland office, and Erin Patton, vice president of investments in the firm’s Columbus office, represented the seller, a Cleveland-based investor. Wiles, Fuller and Patton also procured the buyer, a Midwest-based investor, in a 1031 exchange.
The property is located off the Interstate 271 exit ramps at a heavily trafficked, signalized intersection in Mayfield Heights. Nearby retailers include Target, Marc’s, Giant Eagle, Costco and Best Buy, as well as two regional shopping centers, Eastgate Shopping Center and Golden Gate Plaza. Hillcrest Hospital, a 496-bed Cleveland Clinic hospital, is also located nearby.
“Walmart constructed a building on the property in 2002 and has been a tenant at the site ever since,” Wiles said in prepared remarks. “The original 20-year lease has approximately seven years remaining on it—prior to its renewal options—and each renewal option has a 10 percent rent increase.”
Image courtesy of Marcus & Millichap