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 have completed renovations to satisfy Section 8 and Eden (similar program as Section 8) requirements.
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 $580 per month.
A few units are currently vacant in waiting for Section 8 approval, tenant is in waiting as well.
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.
$580 x 81 = $47,265 Monthly Gross (averaging rents for 1 & 2 beds)
$567,178 = Annual Gross
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?
$16,100 Property Insurance
$46,656 Management @ 8%
$6,600 Lawn Care/Snow Removal
$28,359 Vacancy @ 5%
$28,359 Maintenance @ 5%
$61,471 Property Taxes
PLEASE KEEP IN MIND THAT THESE ARE VERY CONSERVATIVE NUMBERS
$567,180 Annual Gross
($276,045) Annual Expense
$291,480 Annual Net Income ($24,290 per month)
9.71% Cap Rate
Purchase Price: $3,000,000
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.