Benderson buys majority of Sherwin-Williams HQ tower in Cleveland
By Kevin Smith
Tampa Bay Business Journal
Published: Dec 22, 2022

The Sherwin-Williams Co. has sold the majority of its under-construction headquarters tower to a Florida-based developer.

Benderson Development Co., a company located in University Park in the Manatee/Sarasota area, acquired the stake for $210 million, according to Cuyahoga County records.

"We are long-term investors, so this strategy provided a great opportunity for us to grow our national portfolio while providing Sherwin-Williams with additional liquidity to invest in its business and community," Benderson said in a statement.

Sherwin-Williams (NYSE: SHW) said the sale to Benderson was part of the paint giant's plans to sign a long-term lease at the tower, which is expected to be completed by 2024.

"The strategy, which is customary with corporate headquarters, includes a long-term lease, and Sherwin-Williams intends to maintain full control of the building including facility management and maintenance as a long-term tenant," Sherwin-Williams said in a statement.

County records show that the paint company has retained a 10% stake in the 1.1 million-square-foot property.

"This transaction provides Sherwin-Williams with additional liquidity to invest in its planned business growth, its employees and the surrounding community, all of which will greatly benefit the entire region," Sherwin-Williams said in a statement.

Real estate brokers in Cleveland aren't surprised to see Sherwin-Williams commit to a leaseback.

"I'm not surprised they did a sale leaseback," said Terry Coyne, vice chairman at commercial real estate firm at Newmark. "With it, they free up capital to use in their core business. They figure they'd make more money by putting that money back into paint."

The sale comes about a year after Sherwin-Williams broke ground on the 600-foot tower in Cleveland's Public Square and just months after the company signed one of the city's largest office leases at the nearby Higbee Building.