These two spectacular multifamily apartment buildings resides on approximately 3 acres.
The portfolio “Beverly Terrace” offers 81 units with a blend of 1 bedroom and 2 bedroom units, with multiple opportunities for revenue growth through rental rate increases, tenant paid parking, and potential to add storage lockers.
Current owners will complete renovations, then increase the rent by offering a percentage of units to Section 8 and Eden (similar program as Section 8). These two entities pay more than a standard tenant.
A few existing tenants are paying $400-$475 and when they decide to move, property managers will replace with Section 8 and Eden to receive market rent.
Similar nearby housing units are earning $600-$650 per month for a standard tenant, Section 8 just approved these units and will pay $600 – $700 per unit. To be conservative we are running the numbers at an average of $600 per month.
Placing Section 8 and Eden tenants always pays the first of the month, plus the agency will inspect the property to insure the units are up to code. Section 8 and Eden are streamlined… unit inspection, tenant screening and placement, receive checks on the 1st of the month.
Suggestion… You may want to keep one unit for onsite day to day management/maintenance and give the worker a place to live for free.
There are 31 units vacant due to the foreclosure (prior to the purchase), eviction of pre-existing tenants and renovations; the property now has approximately 20 units vacant and under repairs. Once completely occupied the income is expected to increase to approximately $17,000 more per month.
$600 x 81 = $48,600 Monthly Gross (averaging rents for 1 & 2 beds)
$583,200 = Annual Gross
This is truly a special property at a phenomenal price. Where else are you going to find a property this size generating this much cash surrounded by huge anchors?
$16,100 Property Insurance
$46,656 Management @ 8%
$3,600 Lawn Care/Snow Removal
$58,320 Vacancy @ 10%
$40,824 Maintenance @ 7%
$61,471 Property Taxes
$583,200 Annual Gross
($312,471) Annual Expense
$270,729 Annual Net Income ($22,560 per month)
10.82% Cap Rate)
Purchase Price: $2,500,000
14100 Superior Rd, Cleveland, OH 44118 · 90 Units
Just down the street from the Beverly Terrace is 44% occupied and needs work
Sold August 2017 for $2.8M
Buyer can purchase the LLC to avoid closing costs and to keep the property from being reassessed. Currently it is assessed at approx. 1.3M
In addition to the spreadsheet and numbers above, these items and repairs will be included in the sale:
• Security Cameras
• Repair iron fence and automatic fence
• Plumbing repairs in common areas
• Lighting repairs in common areas
• Doors needed in common areas
• Paint in common areas and basement
• Repairs in both indoor parking garage
Use this link to see the new Cleveland Clinic Facility recently built and the housing next door. These buildings are on the same block as the apartments.
Here is a link of the corner of Terrace and Forest. The apts. Are called the Beverly Terrace.
Follow the streets to see the area. There are other apartment buildings around but this one is the largest.
If you go East on Terrace and wrap around the block you will run into the new Cleveland clinic.
Check out the sky view, its gorgeous! Euclid Ave is a major highway that the Cleveland Clinic keeps expanding on. They are buying almost everything they can get their hands on. They recently just spent $30MM on Euclid Blvd.
Be sure to click the link and drag around to see what I see.
This is the CLE Clinic Health Center that is diagonal from the apts.
These is truly a special property at a phenomenal price. Where else are you going to find a property this size generating this much cash surrounded by huge anchors?