Southgate Manor Apartments

Multi-Family for Sale
Catylist Listing ID: 29969144
Property Subtypes: High-Rise
Number of Units: 152 Units
Building Size (RSF): 131,264 SF
Gross Land Area: 2.85 Acres
Sale Price: $6,765,000
Unit Price: $44,506.58 Per Unit
Property Use Type: Investment, Business
Building Name: Southgate Manor Apartments
Sale Terms: Cash to Seller
Cap Rate: 11.32%
Last Updated: 11/11/2018

Overview / Comments

Green Bridge Real Estate is pleased to present the 152 Unit Southgate Manor Apartments located at 5327 Northfield Road, in Bedford Heights, Ohio 44146. Located a block away from the brand new 1 million Sq.Ft. Amazon Fulfillment Center. The Property consists of an Seven Story, Elevator served, All Brick Building totaling 131,264 Total Sq.Ft. on 2.85 Acres, consisting of 111 one bedroom, one bath units approx. 600 Sq.Ft. each, 39 Two Bedroom, 1 Bath Units and 2 Two Bedroom, 1 Bath Units approx. 850 Sq.Ft. each. Very well maintained, owner managed building. 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 $6,765,000 or $44,506 per unit or a 11.32% Projected Cap rate based on 100% Occupancy and Rental Rate Stabilization.

Approximately 200 surface parking spaces. Landlord paid Water/Sewer, Trash and Gas and Tenant paid Electric. Heat is supplied by gas-fired steam boiler system with Tekmar control system to improve Heating efficiency. The building has two passenger elevators servicing the 7 floors. Building is equipped with a buzzer entry system and security camera secured entrance.
Hallways, common areas and suites have been recently updated with paint, flooring, carpet, and light fixtures. Over the last 3 years, over $250k invested in new suite paint, carpeting, blinds, fans, countertops, new windows and sliding patio doors, landscaping, renovated common areas and appliances.

Southgate Manor was built in 1967 by Zaremba development as a high-end residence and its construction is Block foundation with Brick exterior. Roof is a flat rubberized membrane. Located just one block away from the brand new Amazon Fulfillment center creating more than 1,500 jobs. Located just one mile away from Interstates 271 and 480. Within walking distance to the Southgate shopping district and a short 5 minute commute to major hospitals, retail and office areas.

Income
The Southgate Manor Apartments are currently 88% Occupied (134/152). The 2016 Net Annual Operating Income was $524,092 or a 7.75% Capitalization rate at the asking price of $6,765,000 ($44,506 per unit). The building underwent significant renovations in 2017 causing several units to be offline and management suffered resulting in an atypical year, not suitable to be used in determining typical building performance. 10.41% Projected Cap rate based on 95% Occupancy, 5% Management Cost and Rental Rate Stabilization.

Currently, 11 (8.5%) 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 4.73% of the Gross Annual Income. There is an opportunity to increase this area if a new owner desires.

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Additional Details

Nearest MSA: Cleveland-Elyria
County: Cuyahoga
Taxing Authority: Cuyahoga County
Tax ID/APN: 791-18-016
Percent Occupied: 88%
Community Amenities: Recreation Room, On-Site Maintenance
Highway Access: I-271 and I-480
Total Number of Buildings: 1
Property Condition: Good
Number of Stories: 7
Year Built: 1967
Roof Type: Flat
Construction/Siding: Brick
Parking Type: Surface
Total Parking Spaces: 200
Passenger Elevators: 2
Laundry: Shared
Sprinklers: None
Heat Type: Natural Gas
Heat Source: Radiant
Air Conditioning: Window Unit

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 11,612 86,900 237,278
Median Age: 40.17 41.69 41.7
Households: 5,032 37,759 99,545
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