Building Details

Year Built 1972

Buildings 2

Listing Agency: Russell Real Estate Services t**@premierclevelandinvesting.com Show Phone

Listed By: Tal Tamir · License #2018001908 Show Phone

Source: Exprealty

Added: Jun 2 Changed: Aug 2 Last Checked: Aug 10 at 9:12AM

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Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Russell Real Estate Services

Investment Insights

Based on property information with market context.

This 48-unit apartment property comprises two side-by-side buildings totaling 33,400 square feet. Built in 1972, the buildings have been fully renovated with shaker cabinets, granite countertops, stainless steel appliances, and updated flooring. The property is 100% occupied and includes on-site laundry facilities. Residents pay their own electric, while ownership provides heat, water, sewer, and trash service.

Located at 5216 E Lake Rd in Sheffield Lake, the property sits along Lake Erie, approximately 17 miles west of downtown Cleveland and on the same shoreline as Avon Lake. The Ford Ohio Assembly Plant is partly within the town, with an expansion expected to add 1,800 jobs.

The unit count, completed renovations, and operating setup provide a clearly defined multifamily configuration, with laundry contributing an additional revenue stream beyond apartment rents.

Key Highlights

• 48 units across two side‑by‑side apartment buildings
• 33,400 square feet across buildings constructed in 1972
• 100% occupied multifamily property

Financial Insights

Estimated NOI and Cap Rate

NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).

NOI / Yr

$285,690

Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.

Cap Rate

7.19%

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$5,713,800 $5.7M

Cap Rate 7%

$4,081,286 $4.1M

Cap Rate 9%

$3,174,333 $3.2M

Market Conditions

NOI Build-Up for 33,400 SF Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent. EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs. OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements. NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.

Gross rent

$541.1K $16.20/SF

− Vacancy

−$21.6K −$0.65/SF

EGI

$519.4K $15.55/SF

− OpEx

−$233.7K −$7.00/SF

NOI

$285.7K $8.55/SF

Area

Lorain County, OH

Vacancy

4.00%

Lease Rate

$16.20 /SF/Yr

Expense Ratio

45.00%

Simulate Cap Rate and NOI

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$5,713,800

Cap Rate 7%

$4,081,286

Cap Rate 9%

$3,174,333

Alternative Uses

Best Use

Apartment 5plus

$4.08M

$3.57M – $4.76M (±1% cap)

NOI $285,690 @ 7.0% cap · market cap 7.19%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$8.42M

$7.36M – $9.82M (±1% cap)

NOI $589,176 @ 7.0% cap · market cap 14.82%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

GoGo Mobile Wash ... Car Wash

Suggested Use

Top Pick Electrical Service Restaurant Spa & Massage Center Pharmacy Plumbing Service Hair Salon

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

48

Residential units

100%

Occupancy

Location Intelligence

Trade Area within ½ mile

66

Businesses Nearby

Explore this area Business Placement

Demographics for 44054, OH

12,484

Population

6,059

Households

2.1

Avg Household Size

44

Median Age

25%

College-Educated

96%

High-School Grad

12.5 sq mi

ZIP Area

999

Density / Sq Mi

$73,151

Median Household Income

$47,207

Median Earnings

$1,059

Median Rent

$177,600

Median Home Value

Market

Vacancy Rate% for Multifamily in Midwest region

6.5% 2022

7.5% 2023

7.8% 2024

8% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Apartment building - Two adjacent buildings offer renovated interiors, resident-paid electric, and shared owner-provided heat, water, sewer, and trash services.

Where is this apartment building located?

The property is located at 5216 E Lake Rd Sheffield Lk, OH.

What is the asking price?

The asking price for this property is $3,975,000.

What are key features of this property?

This property features: 48 units across two side‑by‑side apartment buildings; 33,400 square feet across buildings constructed in 1972; 100% occupied multifamily property