Cleveland development company buys Kmart Distribution Center
A company called Industrial Commercial Properties has acquired the 1.4-million-square-Foot Former Kmart Distribution Center at 541 Perkins Jones Road.
The Cleveland-based commercial real estate development company announced the acquisition Wednesday evening.
This is ICP’s fifth acquisition of a Sears/Kmart facility and the second in the last week, following the company’s purchase of the former Sears distribution center in Groveport, Ohio, according to a news release.
“We are fortunate to enjoy such a strong relationship with Sears. The Warren transaction is our fifth acquisition from them since 2014. In the last month alone, we have added nearly 2.5 million square feet of Sears/Kmart properties to our portfolio,” said Chris Semarjian, owner of ICP.
The acquisition will increase ICP’s total holdings in the Warren/Youngstown/Austintown market to nearly 3.5 million square feet.
“With the excitement surrounding the redevelopment of General Motors’ plant in Lordstown, our portfolio in this area is well-positioned,” said Chris Salata, chief operating officer of ICP. “The Warren facility is attracting a tremendous amount of attention because of the top-flight nature of the building, the significant amount of high bay space and the full automation package and racking. The space sets up extremely well for a multi-tenant complex and we are currently working with three tenants to take a portion of the building,” explained Salata.
Kmart is a subsidiary of Sears Holdings Corp. Sears recently filed for bankruptcy, and many Sears and Kmart stores have closed around the country, including the local warehouse in February.
From a high of about 900 employees at its peak, the Kmart Distribution Center on Perkins Jones went down to a “handful” of union employees after about 55 worked their last day.
State Rep. Michael O’Brien of Warren, D-64th, said he’s pleased to hear the old site is going to be repurposed.
“It was an excellent site for decades,” he said. “I’m sure this company (ICP) will be able to reap the same benefits Kmart has [had] for a number of years.”
He said the state is going to reach out to ICP to offer any assistance to ensure “a smooth transition.”
Frank Fuda, Trumbull County Commissioner, said it’s a good piece of property.
“Hopefully something nice will be going in there,” he said. “It’s great. We have a lot happening there — you’ve got the Walmart and all of those stores. It’s a good situation on Elm Road.”
Commissioner Dan Polivka agreed.
“We’re trying to get as many businesses to locate here as possible [so] it’s great news,” Polivka said. “It adds to the local economy.”