Cleveland A area cap rate

8 Replies

Hi Cleveland investors! I'm underwriting two deals in Cleveland, Ohio on in 44115 right by Cleveland State University and one in Shaker Heights by the Shaker Heights Country club. Since they are A areas I know the market cap rate should likely be fairly low but is it a 6, 7, 8? Thanks in advance for your guidance! 

@James Wise

Originally posted by @Lee Ripma :

Hi Cleveland investors! I'm underwriting two deals in Cleveland, Ohio on in 44115 right by Cleveland State University and one in Shaker Heights by the Shaker Heights Country club. Since they are A areas I know the market cap rate should likely be fairly low but is it a 6, 7, 8? Thanks in advance for your guidance! 

@James Wise

 Probably lower. Really depends on what your buying also. Are you buying houses, duplexes, commercial, apartments? 6 unit apartment? 50 unit apartment? Distressed? Turnkey?

James Wise, Real Estate Agent in OH (#2015001161)
216-661-6633

@Lee Ripma  

Define Multi family. I sold a 2 unit. You will not see double digits on a larger building unless it is a turnaround project. 

Define class A. Everyone has a different opinion of class. I do not consider any MF in Shaker "A" class. But there are very respectable properties that have clean POS and perform.

Originally posted by @Lee Ripma :

Thanks very much @James Wise ! 

They are both fully renovated and operating very close to GPR MF, one is 80 units (Cleveland State) the other 38 (Shaker Heights). 

With the extreme demand right now I'd imagine there will be several buyers lined up to bid on those. From the limited info you gave I would expect them to close with CAP around 4-6.

James Wise, Real Estate Agent in OH (#2015001161)
216-661-6633

Join the Largest Real Estate Investing Community

Basic membership is free, forever.