Park 85 Apartments

Multi-Family for Sale
Catylist Listing ID: 30352527
Property Subtypes: Government Subsidized, Low-Rise/Garden
Number of Units: 35 Units
Building Size (RSF): 37,724 SF
Gross Building Area: See Agent
Gross Land Area: 0.75 Acres
Sale Price: $1,299,000
Unit Price: $37,114.29 Per Unit
Property Use Type: Investment, Business
Building Name: Park 85 Apartments
Sale Terms: Cash to Seller
Cap Rate: 10.4%
Average Occupancy Rate: 100
Last Updated: 12/11/2018

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 5 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 $698.00 and totaling 623 Sq.Ft. each; 20 two bedroom, one bath units rent fixed at $868.00 and totaling 820 Sq.Ft. each and 9 Three Bedroom, 1 Bath Units rent fixed at $1,011.00 and totaling 1,128 Sq.Ft. each. Opportunity to increase rents annually by applying for an adjustment. 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 $1,299,000 or $37,114 per unit or an 10.40% Cap rate based on the previous three years actual average net operating income.

The property has approx. 38 surface parking spaces. Landlord paid Utilities. Heat is supplied by a Dunkirk boiler system. The Flat Rubber Membrane roof is less than a year old. Building has been well kept relating to brick tuck pointing, common areas and unit maintenance. Most units 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.

Income
The Park 85 Apartments are consistently 100% Occupied under the HAP contract. The Average Net Annual Operating Income over the previous three years was $135,071 or a 10.40% Capitalization rate at the asking price of $1,299,000 ($37,114 per unit). The property is eligible in November 2019 for a 5 year rate adjustment in which approx. every 1% rental rate increase will raise the Cap Rate .25%.

Currently, “guaranteed” rent payments from HUD accounts for 82% 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!

Additional Details

Nearest MSA: Cleveland-Elyria
County: Cuyahoga
Taxing Authority: Cuyahoga County
Tax ID/APN: 107-14-017
Percent Occupied: 100%
Total Number of Buildings: 1
Property Condition: Good
Number of Stories: 4
Year Built: 1925
Roof Type: Flat
Construction/Siding: Brick
Parking Type: Surface
Total Parking Spaces: 38
Passenger Elevators: 1
Laundry: Shared
Heat Type: Natural Gas

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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
The information presented herein is provided as is, without warranty of any kind. Neither Catylist nor Catylist Real Estate Software, Inc. assume any liability for errors or omissions.