33 Unit Bldg. For Sale, Cleveland Hts, Ohio, 11.22% cap, 100% Occ
THE 33 UNIT YELLOWSTONE PLACE APARTMENTS
SUMMARY
Green Bridge Real Estate is pleased to present the 33 Unit Yellowstone Place Apartments located at 2360-2372 Noble Road, in Cleveland Heights, Ohio 44121. The Property consists of a Three Story, All Brick Building built in 1940 totaling approximately 36,094 sq.ft. on 1.09 Acres, consisting of 9 one bedroom, one bath units approx. 650 Sq.Ft. each and 24 Two Bedroom, 1 Bath Units approx.. 925 Sq.Ft. each. Very well maintained, excellent-stabilized income stream. Currently 100% occupied and has historically been very strong. Upside potential to increase rents to market rents. Owner directs immediate sale at $1,175,000 or $35,606 per unit or an 11.22% Cap rate based on 2015 actual net operating income.
Adjacent to the building is a 28 space covered parking garage currently offered as a free amenity to the tenants but could provide additional income. Landlord paid Heat (Gas), Trash, Water & Sewer utilities. Tenant paid Electric. Heat is supplied by gas-fired steam boiler system with Tekmar control system to improve Heating efficiency. The Flat Rubber Membrane roof is approximately 10 years young, Boiler is approximately 7 years young. Building has been well kept relating to brick tuck pointing, common areas and unit maintenance. Suites feature refinished hardwood floors with a spacious design. The building is owner managed.
Located just five miles away from the Cleveland Clinic’s main campus and four miles from Case Western University. The area is highly served by the RTA Bus lines.
Income
The Yellowstone Place Apartments are currently 100% Occupied (33/33). The 2013 Net Annual Operating Income was $126,098 or a 10.73% Capitalization rate at the asking price of $1,175,000 ($35,606 per unit). The 2014 Net Annual Income was $120,714 or an 10.27% Cap Rate and the 2015 Net Annual Income was $131,877 or an 11.22% Cap Rate. Pro-Forma Capitalization Rate at 100% Occupancy with units rented at Market rents is 14.16%.
Currently, the majority (24 of the 33 units, 73%) 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 56% of the Gross Annual Income.
