Historic 39 Unit Near Downtown Cleveland

[Marc Ramsay]

I have a 3 story, 39 unit residential apartment building near downtown Cleveland, OH, that I am considering to sell if the price is right (1 unit is commercial/retail). This building is on the National Historic Registry and was completely gutted and rebuilt in 1998. 

All units feature in-unit forced air gas furnaces and hot water tanks, and ground floor units have central A/C. Tenant pays all utilities except water/sewer. Most of the units have been rehabbed since we bought the building and are in very good shape. All of the windows, except for some newer ground floor units, were replaced 2 years ago, and the ground floor common areas have all been rehabbed. 

Prior to purchasing the building 3 years ago it was LIHTC building and the rents were all sub-market. We have since brought most of the rents to market, but we still have a few that need to be increased.

Current rent roll is $18,500 per month and is almost always over 95% occupied. There is some room for improvement and I have been getting rent increases this last year at my other Cleveland building so this one is due as well. The rent roll could easily be $20K per month. 

The issues... Our property manager has made some major mistakes over the years that have cost me a lot of money in lost rent and failed receivables. The expenses have been higher than they should be and I have not had the time to hold their hands while they address them. We also have an ongoing dispute with Cleveland Water over the accuracy of the water meter as our water/sewer costs have been higher than other units in the area.

We have decided to pursue 2 options. The first is see if there is interest in someone buying the property, and the 2nd is replacing the property management company with a PM that I have on another property which is doing very well.

Price is $20K per door ($780,000) and I'll throw in dinner with a verifiable rock star (after all, Cleveland Rocks!).

I'll be in Cleveland in early March for week if anyone would like a personal tour.

Thank you for your time!