T
he Cleveland Clinic has sold 24 of its Ohio and Florida medical properties to Minneapolis‑based MedCraft in a sale‑leaseback transaction. Under the deal the Clinic will continue to occupy the buildings while paying taxes, insurance and maintenance as part of the lease, freeing up cash for upgrades and long‑term cost savings.

    Ohio’s Department of Taxation reported that in 2024 the state’s real‑property value was $470 billion, with about 17 % ($89 billion) exempt from property taxes. Exemptions cover nonprofit hospitals, government facilities, churches, charities, cemeteries and other nonprofits, as well as locally‑approved tax abatements that spur economic development. In 2004 the exempt share was 14 %; if it had remained at that level, Ohio would have collected roughly $15 billion more in taxes today.

    The largest exempt categories are local tax abatements ($27 billion), government and public‑school properties ($12 billion and $11 billion, respectively) and nonprofits, including hospitals ($10.21 billion). These breaks remove billions of dollars from local tax rolls, but they also support social, cultural and charitable activities.

    Because the Clinic’s properties were previously exempt, the sale‑leaseback will bring them onto the tax rolls. The Clinic has not disclosed the exact amount of new property‑tax revenue, but the transaction is expected to generate additional funds for the health system and for local communities that rely on property‑tax income.

    A mortgage filing of nearly $351 million tied to the sale was recorded in early September in each affected Northeast Ohio county. Individual sale prices have not yet been posted for all properties. The Ohio sites include two facilities each in Willoughby Hills and Westlake, and single buildings in Akron, Canton, Solon, Chagrin Falls, Garfield Heights, Lakewood, Lorain, Twinsburg, Broadview Heights, Fairlawn, Mansfield, Massillon, North Olmsted, Sandusky, Sheffield and Wooster. Florida sites were also part of the deal. For example, 768 Columbia Road in Westlake sold for $36 million, while 2001 Royalton Road in Broadview Heights changed hands at an undisclosed price.

    The Clinic described the arrangement as a long‑term leasing model that represents only a small portion of its overall real‑estate footprint. The proceeds will be used to modernize facilities, improve patient care and reduce long‑term maintenance costs.