Southgate Gardens Apartments

Multi-Family for Sale
Catylist Listing ID: 30347575
Property Subtypes: Low-Rise/Garden
Number of Units: 110 Units
Building Size (RSF): 118,590 SF
Gross Building Area: See Agent
Gross Land Area: 5.30 Acres
Sale Price: $4,895,000
Unit Price: $44,500 Per Unit
Property Use Type: Investment, Business
Building Name: Southgate Gardens Apartments
Sale Terms: Cash to Seller
Cap Rate: 10.06%
Last Updated: 11/13/2018

Overview / Comments

Green Bridge Real Estate is pleased to present the 110 Unit Southgate Gardens Apartments located at 21981-22071 Libby Road, in Bedford Heights, Ohio 44146. Located blocks away from the brand new 1 million Sq.Ft. Amazon Fulfillment Center. The Property consists of Ten (10) three story, all brick, Eleven Unit Apartment Buildings built in 1959, totaling 118,590 Sq.Ft. on 5.298 Acres, consisting of 50 One Bedroom, One bath units approx. 750 Sq.Ft. each; 55 Two Bedroom, 1 Bath Units approx. 902 Sq.Ft. each and 5 Three Bedroom, One and ½ Bathroom units approx. 1,046+/- units each. Very well maintained, owner managed property. Value Added Opportunity to improve performance by raising rental rates to market rates, and/or suite renovations. Owner directs immediate sales of their entire portfolio of assets (310 units, 3 properties) in order to exit the multi-family market. Offered For Sale at $4,895,000 or $44,500 per unit or a 10.06% Projected Cap rate based on 95% Occupancy, 5% Management Cost and Rental Rate Stabilization. Currently 81% Occupied (90/110).

The Property boasts a one story detached garage with a capacity of 95 parking spaces and 50 surface spaces. Tenant paid Heat (Gas Forced Air Furnace), Cooking Gas, Electric. Landlord paid Water/Sewer, Trash, Hot Water (Gas). Each unit features a thru the wall electric A/C unit. Each Building is equipped with a buzzer entry system, one Laundry Room per building (10 total) and tenant storage lockers. Gabled roofs consist of asphalt shingles. Roofs on Buildings 2, 3, 4 and 5 were replaced in 2011 and Building 10 in 2015. The garage roof was replaced in 2013.

Located just blocks away from the brand new Amazon Fulfillment center creating more than 1,500 jobs. One mile away from Interstates 271 and 480 and approx. 25 miles Southeast of Downtown Cleveland, Ohio. Within walking distance to the Southgate shopping district and a short 5 minute commute to major hospitals, retail and office areas.

Income
The Southgate Gardens Apartments are currently 81% Occupied (90/110). The 2017 Net Annual Operating Income was $213,601 or a 6.14% Capitalization rate at the asking price of $4,895,000 ($44,500 per unit). 10.06% Projected Cap rate based on 95% Occupancy, 5% Management Cost and Rental Rate Stabilization.

Currently, 34 (37%) of the units are subsidized with “guaranteed” rent payments provided by Federal and State Funding for assistance to low income individuals. This arrangement provides a stable, consistent tenant base with “guaranteed” rent payments accounting for 23% of the Gross Annual Income. The potential exists to operate this complex as a “market” (no-subsidy) type of property or to continue to accept Voucher based subsidies.

Attachments & Media

Additional Details

Nearest MSA: Cleveland-Elyria
County: Cuyahoga
Taxing Authority: Cuyahoga County
Tax ID/APN: 791-18-033, 791-18-037, 791-18-038
Percent Occupied: 81%
Total Number of Buildings: 10
Property Condition: Good
Number of Stories: 3
Year Built: 1959
Roof Type: Gable
Construction/Siding: Brick
Parking Type: Structure, Surface
Total Parking Spaces: 145
Laundry: Shared
Heat Type: Natural Gas
Heat Source: Central
Air Conditioning: Window Unit

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 11,935 93,931 245,436
Median Age: 39.38 41.67 41.44
Households: 5,164 40,596 102,209
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