Just Closed: Cleveland Industrial Center
LA JOLLA, CA, April 15, 2025 - Legacy West Partners is pleased to announce the acquisition of Cleveland Industrial Center, an 81,000 square foot, two-building industrial asset situated on approximately 9.22 acres in Cleveland, Tennessee. This strategic addition expands our footprint in the city to over 400,000 square feet and brings our East Coast portfolio to more than 900,000 square feet.
The property is currently occupied on short-term leases, providing immediate in-place income while allowing us the flexibility to enhance the space and reposition the asset to meet evolving tenant demand. This aligns with our broader strategy of value creation through thoughtful, proactive asset management.
Cleveland Industrial Center builds upon the success of our nearby Michigan Avenue Industrial Park—which includes five single-tenant, 40,000 square foot buildings in Cleveland that are 100% occupied. The newly acquired site complements the industrial park with added flexibility with the addition of the two 40,000 square foot buildings including functional layouts that support potential multi-tenant subdivision. Additionally, the site provides significant yard area well-suited for development of new Industrial Outdoor Storage (IOS) space and enhanced truck and trailer parking—two high-demand features in today’s industrial landscape.
Located just 30 minutes northeast of Chattanooga, one of the Southeast’s premier logistics and manufacturing hubs, Cleveland offers direct access to I-75 and key freight corridors that serve regional and national distribution networks. The city continues to attract industrial users seeking proximity to the Chattanooga MSA while capitalizing on lower costs and a strong labor pool. The Cleveland industrial market comprises more than 15 million square feet and has exhibited exceptional resilience, with average vacancy rates of 1.8% over the past five years and average annual rent growth of 7.5% over the past decade. These strong fundamentals align with our continued focus on acquiring industrial assets with upside potential in high-growth submarkets.
This off-market acquisition was sourced directly by our team by leveraging deep market knowledge and a targeted acquisition approach; our team was able to secure this asset in a competitive environment. This further demonstrating our ability to uncover and capitalize on compelling investment opportunities ahead of the broader market.
Legacy West Partners remains bullish in the current market, having closed six acquisitions in the last eight months, and remains on pace to achieve our goal of expanding to a 5 million square foot portfolio within the next 24 months. Our disciplined approach and market conviction continue to guide our acquisition strategy in the Southeast and nationally.
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