Investment Overview

Marcus & Millichap is pleased to present the sale offering of 3425 Service Road, a 15-year sale-leaseback industrial investment opportunity in Cleveland, Ohio. The property is located in a robust industrial pocket in southwest Cleveland which boasts minimal vacancy and is less than one mile from Interstate 90 access, less than two miles from Interstate 71 access, and less than five miles from Cleveland Hopkins International Airport. The subject property consists of approximately 70,898 square feet of industrial space situated on 3.48 acres of land complete with four (4) external docks, three (3) drive-in doors, and a clear height of 16’. The tenant, SRC Worldwide Inc. (SRC), is a leading global producer of premium magnesium fluxes and anhydrous magnesium chloride and serves a variety of industries including aerospace, defense, automotives, and plastics among others. The subject property serves as corporate headquarters for SRC. At close of escrow, SRC is offering to sign a 15-year absolute net lease, with 3% annual rental increases and two, five-year options. The purchase of this offering presents an investor with the opportunity to own an industrial asset in a robust pocket of the Cleveland industrial market. At the current list price of $5,317,350 the investment offering will generate an in-place net operating income of $425,388 which equates to a capitalization rate of 8.00 percent.