Cleveland Industrial Investment
For Sale
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6707 Bessemer Ave, Cleveland, OH 44127
Industrial property with a 7-year leaseback in Cleveland.
Property Size23,722 SF
Price / SF$67.45
Days on Market688
Property Features for 6707 Bessemer Ave
General Information
Standard status
Active
Size
23,722 SF
Property subtype
Industrial
Zoning
General Industry
Investment Type
Sale/Leaseback
Building Details
Year Built
1972
Buildings
3
Listing Agency:
Trinity Commercial Realty
(216) 402-8000
Listed By:
Gary Pescatrice · License #OH 0000241394
Source:
Crexi
Added: Oct 4, 2024
Changed: Aug 21
Last Checked: Aug 22 at 7:52AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Trinity Commercial Realty
Investment Insights
Based on property information with market context.
This industrial property, located in the southeastern part of the Cleveland Industrial District, presents an investment opportunity with a 7-year leaseback. The property offers convenient access to Highways 490, I-77, and I-90. The building has a size of 23,722 square feet.
Key Highlights
- Investment Opportunity with 7‑Year Leaseback
- Located in Cleveland Industrial District
- Close Proximity to Highways 490, I‑77 & I‑90
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$97,458
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.09%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,949,160
$1.9M
Cap Rate 7%
$1,392,257
$1.4M
Cap Rate 9%
$1,082,867
$1.1M
Market Conditions
NOI Build-Up for 23,722 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$145.2K $6.12/SF
− Vacancy
−$6.0K −$0.25/SF
EGI
$139.2K $5.87/SF
− OpEx
−$41.8K −$1.76/SF
NOI
$97.5K $4.11/SF
Area
Cleveland, OH
Vacancy
4.10%
Lease Rate
$6.12 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,949,160
Cap Rate 7%
$1,392,257
Cap Rate 9%
$1,082,867
Alternative Uses
Best Use
Industrial
$1.39M
$1.22M – $1.62M
NOI $97,458 @ 7.0% cap · market cap 6.09%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.79M
$5.07M – $6.75M
NOI $405,225 @ 7.0% cap · market cap 25.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
475
Businesses Nearby
Explore this area
Business Placement
Demographics for 44127, OH
4,179
Population
2,182
Households
1.9
Avg Household Size
37
Median Age
10%
College-Educated
67%
High-School Grad
1.8 sq mi
ZIP Area
2,322
Density / Sq Mi
$32,955
Median Household Income
$29,000
Median Earnings
$657
Median Rent
$50,600
Median Home Value
Market
Vacancy Rate% for Industrial in Cleveland, OH
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Industrial property - Industrial property with a 7-year leaseback in Cleveland.
Where is this industrial property located?
The property is located at 6707 Bessemer Ave Cleveland, OH.
What is the asking price?
The asking price for this property is $1,600,000.
What are key features of this property?
This property features: Investment Opportunity with 7‑Year Leaseback; Located in Cleveland Industrial District; Close Proximity to Highways 490, I‑77 & I‑90
