An industrial property at 27853 Chardon Road in Willoughby Hills has changed hands for more than $14 million, with a group of Arizona investors stepping in as the new owners in a sizable out-of-state bet on Cleveland-area industrial real estate. The former Sam’s Club has been converted into a food-processing and distribution complex and serves as the headquarters for Produce Packaging Inc., which relocated there in 2019. The deal highlights ongoing demand for ready-to-go industrial properties that already have cold-chain systems and dock infrastructure in place.
According to Crain's Cleveland Business, the Arizona buyers paid north of $14 million for the property in a transaction reported on July 21, in a piece credited to Dan Shingler.
Property background
The 155,916-square-foot building sits on roughly 9.44 acres and has been transformed from a Sam’s Club into a specialized food-processing facility, according to Newmark Research. Newmark’s figures show that MAG Capital Partners acquired the property in late 2024, and industry coverage reports that Produce Packaging put roughly $15 million into building out the facility and continues to operate there, per REJournals.
City and local impact
Municipal records place the site inside a designated Community Reinvestment Area, and Willoughby Hills officials previously approved redevelopment agreements tied to the property’s conversion. City of Willoughby Hills materials reference 27853 Chardon Road and the accompanying CRA agreement, while Produce Packaging lists its headquarters at the same address. Any change in ownership can trigger local reviews of how incentives are assigned or how certain services are structured under city rules.
What it means for the market
The price jump from roughly $10.25 million in the prior sale to more than $14 million in this latest deal shows how active investment capital and a short supply of fully outfitted industrial facilities are lifting values in the Cleveland market. Newmark Research has pointed to sale-leasebacks and rising asking rents as key forces behind recent transaction activity, which helps explain why investors are willing to pay premiums for turnkey logistics and food-manufacturing space. Properties that come with cold-storage capacity, ample dock doors and high clear heights remain especially competitive.
At the time of reporting, there were no public details about the new owners’ long-term plans for the site, and the facility remains occupied by Produce Packaging. This story will be updated if city officials or the parties involved release additional information.
