Premier Development Partners Sells 2.9 Million Square Feet Across 15 Properties
The portfolio included the global headquarters of Arhaus Inc. in Hudson. (CoStar)
By Chelsea Ward
December 15, 2021 | 11:03 P.M.
A platform company that is looking to acquire $1 billion in industrial real estate across the Midwest over the next three years has closed on a 2.9 million-square-foot portfolio in the Cleveland area.
Aurora Industrial, launched earlier this year by BTG Pactual Strategic Capital, Grupo Patio and Morning Calm Management, finalized a deal to acquire 15 properties across the market. Though the sale price was not disclosed, public records show the company obtained nearly $151 million through Wells Fargo Bank for the purchase.
The seller was Premier Development Partners, a local firm that amassed the properties over the last 15 years. Spencer Pisczak, president of Premier, said in a release that despite the sale, the firm plans to maintain a strong local presence in the market.
The portfolio includes several prominent area facilities including the global headquarters and largest distribution and warehousing hub of Arhaus Inc. in Hudson, as well as the 602,910-square-foot headquarters of adhesive and glue supplier Mactac in Stow.
With the acquisition, Aurora Industrial expands its reach in the Midwest. The newly obtained, diversely occupied assets add to the company’s 25 properties owned, following its purchase of a 10-property portfolio in the Detroit area in June that kicked off the platform.
The transaction also accelerates what could be another record-breaking year for industrial sales in the Cleveland area. Deal volume sits around $343 million, according to CoStar data. Annual sales volume in Cleveland set a record in 2020, with more than $436 million trading hands, representing a 34% increase from the previous record in 2017.
For the Record
The seller was advised by CBRE National Partners in the disposition of the Cleveland portfolio.