The Waller Group presents the rare Clifton Court Mixed-Use Complex, a 133-Unit property with 128 Multifamily units and five ground-level commercial units in Cleveland, Ohio. Built in 1914 with renovations most recently completed in 2012, the property consists of 28 studio units at 300 SF, 17 studio units at 500 SF, 49 1-bedroom units at 500 SF, 22 1-bedroom units at 700 SF, 12 2-bedroom units at 700 SF, and five commercial units averaging 800 SF. The new owner will significantly benefit from the recent renovations, including a $125,000 new Columbia MPH-150 boiler, and minimize capital expenditures related to plumbing.
The property’s new owner will have multiple options to increase both NOI and property value. Option one is to leverage capital expenditures undertaken by current ownership and complete the remaining value-add needs. Most of the plumbing stacks have been replaced. The main structure renovations will be finishing the remaining plumbing stacks and updating the current electrical breakers along with any unit renovations. With option two the new owner can focus their attention on filling the 2 remaining commercial spaces and attaining upwards of $1.00 / SF monthly in market rents to generate $19,200 in additional annual revenue.
Finally, and perhaps the easiest option to implement is increasing and optimizing reimbursements. Currently, tenants reimburse less than 14% of total utility expenses. With a slight increase to each unit, achieving another 20% of reimbursements can increase income by an additional $31,000 annually. The mix of multiple revenue growth opportunities in an increasingly desirable location creates an excellent investment opportunity with various avenues to increase income and value. The property has on-site management, a maintenance tech, and a part time cleaner who are willing to stay on for new ownership. Their compensation is roughly $62,400 / year, and are accounted for within Payroll on the P&L. Additionally, proforma financials were underwritten with a 4.0% management fee.