Hanover House Apartments

Multi-Family for Sale
Catylist Listing ID: 30317684
Property Subtypes: Mid-Rise
Number of Units: 71 Units
Building Size (RSF): 54,500 SF
Gross Building Area: See Agent
Gross Land Area: 1.50 Acres
Sale Price: $2,499,000
Unit Price: $35,197.18 Per Unit
Property Use Type: Investment, Business
Building Name: Hanover House Apartments
Sale Terms: Cash to Seller
Cap Rate: 6.46%
Average Occupancy Rate: 87
Last Updated: 12/11/2018

Overview / Comments

Green Bridge Real Estate is pleased to present the 71 Unit Hanover House Apartments located at 16015 Euclid Avenue in East Cleveland, Ohio 44112. The property consists of a four story, all brick, elevator served building built in 1965 totaling approximately 54,500 sq.ft. on an 1.5 acre lot, consisting of 47 one bedroom, one bath units; 8 large one Bedroom, one Bathroom units; and 16 two bedroom, 1 bath units. Very well maintained, excellent-stabilized income stream. Currently 87% occupied (61/71) and has historically been very strong. Owner directs immediate sale at $2,499,000 or $35,197 per unit or an 6.46% Cap rate based on today’s actual net operating income. Excellent turn key investment offering little deferred maintenance or capital improvements with upside to improve income with rental rate Increases (below market lease rates).

Behind the building is a large, secure, surface parking lot which is an amenity for the property. Tenant paid heat (electric baseboard) and A/C, Landlord paid trash, water & sewer utilities. Recent capital improvements include updated in suite breakers, common area carpet replacement, new LED common area lighting, newer hot water tank (1 of 2) and repairs to gates, fencing, exterior doors and exterior concrete repair. Building has been well kept relating to brick tuck pointing, common areas and unit maintenance. The building is third party managed. Leased coin operated laundry rooms (2) provide additional income.

Located just four miles away from the Cleveland Clinic’s main campus, University Hospital and Case Western Reserve University. The area is highly served by the RTA Bus lines and trains and is located in the historic Shaker Square district and the new Van Aken shopping development.

The Hampton Apartments are currently 87% occupied (61/71). The 2017 net annual operating income was $143,028 or a 5.72% capitalization rate at the asking price of $2,499,000 ($35,197 per unit). Pro-forma capitalization rate at 100% Occupancy with units rented at market rents is 13.75%.

Currently, 2 of the 61 occupied units (3.28%) are subsidized with “guaranteed” rent payments provided by Federal and State Funding for assistance to low income individuals. The potential exists to operate this complex as a “market” (no-subsidy) type of property or to continue to accept Voucher based subsidies, this provides a stable, consistent tenant base with “guaranteed” rent payments.

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Additional Details

Nearest MSA: Cleveland-Elyria
County: Cuyahoga
Taxing Authority: Cuyahoga County
Tax ID/APN: 673-03-047 and 673-03-048
Percent Occupied: 87%
Total Number of Buildings: 1
Property Condition: Good
Number of Stories: 4
Year Built: 1965
Roof Type: Flat
Construction/Siding: Brick
Parking Type: Surface
Passenger Elevators: 1
Laundry: Shared
Heat Type: Electricity
Heat Source: Baseboard
Air Conditioning: Window Unit

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 24,129 159,279 326,560
Median Age: 39.11 38.52 39.11
Households: 10,455 69,660 140,839
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