1309 E 85 St

Multi-Family for Sale
Catylist Listing ID: 30528861
Number of Units: See Agent
Building Size (RSF): 37,724 SF
Gross Land Area: 0.75 Acres
Sale Price: $1,125,000
Property Use Type: Vacant/Owner-User
Sale Terms: Undisclosed
Cap Rate: Undisclosed
Last Updated: 3/18/2020

Overview / Comments

Green Bridge Real Estate is pleased to present the HAP contracted, 35 Unit Park 85 Apartments located at 8500 Superior Avenue in Cleveland, Ohio 44106. The Park 85 Apartments are under the U.S. Department of Housing and Urban Development Project-based Section 8 program, section 524(b) of MAHRA, entering year 7 of a 20 year contract which provides a consistent tenant base (consistent waiting list of over a 100 prospective tenants), vacancy / turnover payments, unit damage reimbursement and fixed rental amounts per unit. The Property consists of a Four Story, All Brick, Elevator served, Building built in 1925 totaling approximately 37,724 sq.ft. on 0.75 Acres, consisting of 6 one bedroom, one bath units rent fixed at $714.00 and totaling 623 Sq.Ft. each; 20 two bedroom, one bath units rent fixed at $888.00 and totaling 820 Sq.Ft. each and 9 Three Bedroom, 1 Bath Units rent fixed at $1,034.00 and totaling 1,128 Sq.Ft. each. Excellent Value Added Opportunity by Improving the Management (Very High Expense) and to increase rents annually by applying for a rental increase. Very well maintained, excellent-stabilized income stream. New owner must have HUD experience or employ a manager with experience per guidelines. Consistently 100% occupied. Owner directs immediate sale at $1,125,000 or $32,142 per unit. Current Management Costs exceeding $60,000 annually and could be improved. The 2018 Actual Cap Rate with the removal of management costs was 12.82%. The property has approx. 38 surface parking spaces. Landlord paid Utilities. Heat is supplied by a brand new boiler system. The Flat Rubber Membrane roof is a year old. Building has been well kept relating to brick tuck pointing, common areas and unit maintenance. Most units cosmetically renovated in the last two years. Professional HUD experienced management in place and could be available to a new owner. Landlord owned Coin Operated Laundry units (2 sets) provide additional income. Located just three miles away from Downtown Cleveland, two miles from the Cleveland Clinic’s main campus and Case Western University. The area is highly served by the RTA Bus lines. A no further action letter has been received from The Bureau of Underground Storage Tank Regulations (Bustr). All past environmental concerns (former gas station on the parking lot portion of the property) have been remediated to the State of Ohio’s high standards.IncomeThe Park 85 Apartments are consistently 100% Occupied under the HAP contract. The Average Actual Net Annual Operating Income over the previous four years was $82,934 or a 7.37% Capitalization rate at the asking price of $1,125,000 ($32,142 per unit). This includes Management costs exceeding $60,000 annually. Opportunity to improve the performance by reducing the Management costs. The property is eligible for annual rental rate adjustments in which approx. every 1% rental rate increase will raise the Cap Rate .25%. Currently, “guaranteed” rent payments from HUD accounts for 84% of the Gross Annual Income. This will fluctuate slightly based on each tenants gross annual income. The contract also allows for a Vacancy and Repair allowance allowing the owner to receive additional income for the amount of time to make a unit rent ready along with the reimbursement of any damages a unit may occur above and beyond normal wear and tear.EXCELLENT OPPORTUNITY TO OWN A RARE HAP CONTRACTED PROPERTY WITH STABILIZED INCOME, WELL MAINTAINED, RECENTLY IMPROVED, APARTMENT COMPLEX!

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Additional Details

Nearest MSA: Cleveland-Elyria
County: Cuyahoga
Tax ID/APN: 10714017
Zoning: MF-1
Total Number of Buildings: 1
Number of Stories: 5

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 27,545 142,600 355,831
Median Age: 37.48 35.39 36.95
Households: 11,676 60,687 151,762
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