The former Macy's department store and data center that Acorn Stairlifts, the U.S. unit of a British company, is converting to a national distribution center in Sheffield Township was purchased for $1.7 million.

That is the sale price according to Lorain County land records as of Monday, Dec. 19. Hydraulic Table Lift

That is a discount worthy of a retailer. The 200,000-square-foot complex on a parcel the size of a small farm went on the market in 2020 with an asking price of $4.9 million that was later reduced to $2.9 million, according to Dyann Davison, a senior vice president at Hanna Commercial's Cleveland office and part of a three-person team that handled the marketing and sale of the site for Macy's.

The final asking price also equals the market value that Lorain County assigns the complex for property tax purposes.

A Hanna marketing brochure noted that the data center portion of the property had received $12 million in investments by Macy's over the five years before the department store chain shut it down in 2020. The adjoining store dated from 1954 and was closed in 1993.

Shawn Herbst, vice president of operations for Acorn, commented in a Dec. 13 interview on the site that the price was what it took for the company to make the property work and that the prospect of additional jobs there added to the appeal of its bid for Macy's. Acorn plans to hire 125 for the location, which will be the center of a U.S. "hub-and-spoke" logistics network for the maker and distributor of stair lifts.

Davison noted the property sold for more than other closed department stores over the past few years. However, she declined to directly comment on the sale price.

George Pofok, a principal at Cushman & Wakefield Cresco in Independence, said in a phone interview the sale price was "a good price for people who can use it." He noted the Lorain County site is not in as much demand as the southeast side of Cleveland. Moreover, the building had elements, such as varying ceiling heights, which limited its appeal to potential buyers.

Commercial property values, as a general rule, plummet when properties are empty and climb when they are restored for use.

By contrast, Plymouth Industrial REIT (NYSE: PLYM) of Boston paid $16.5 million in July 2022 for the former 200,000-square-foot Walmart supercenter in Bedford. However, that building is in the high-demand southeast suburban industrial corridor and is a single story, which is prized by businesses as a general rule. The pair of former Sheffield Macy's buildings was a similar size but is spread over three floors.

The Acorn facility is located at 219 Sheffield Center Drive. However, it is accessed by O'Neill Boulevard. The name is the only relic of the original name of the store as an O'Neill's department store, later acquired by May Co. and eventually Macy's.

Sign up for free email news alerts and stay connected to important business news straight to your inbox. Click below to see everything we have to offer.

Don't miss the chance to get the biggest news first! Stay connected to Northeast Ohio business news in print and online

For 40 years, Crain’s Cleveland Business has been the trusted source for business news and information for Northeast Ohio’s top executives and business owners.

Four Rails Lift Platform 700 W. St. Clair Suite 310 Cleveland, OH 44113 216-522-1383