Building Details

Buildings 2

Units 2

Tenancy Multi

Listing Agency: Goodman Real Estate Services Group LLC

Listed By: Kyle Hartung · License #OH SAL.2003016343 Show Phone

Source: Crexi

Added: Jul 13, 2023 Changed: Sep 2 Last Checked: Sep 2 at 10:37PM

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Investment Insights

Based on property information with market context.

This property features two freestanding buildings in Warrensville Heights, Ohio, leased to Georgio’s Oven Fresh Pizza and Starr Automotive. The asset offers an attractive cap rate of 8.5%. Georgio’s Pizza faces Emery Road, and Starr Automotive has been a tenant since 1995. Georgio’s is responsible for their own daily property maintenance, leaving minimal landscaping and snowplowing as the landlord responsibility for the Starr Automotive parcel. The property is located within blocks of the North Randall Amazon Fulfillment Center (900,000 SF), JACK Thistledown Racino, Cuyahoga Community College, and Heinen’s food manufacturing. The surrounding area includes national retailers such as ALDI, Wendy’s, KFC, Taco Bell, Popeyes, CVS, Burger King, Sherwin-Williams, Planet Fitness, and Save-A-Lot.

Key Highlights

• High 8.5% Cap Rate
• Two Freestanding Buildings with Existing Tenants
• Tenants Include Georgio’s Oven Fresh Pizza and Starr Automotive

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

$60,674

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

8.73%

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%

$1,213,480 $1.2M

Cap Rate 7%

$866,771 $866.8K

Cap Rate 9%

$674,156 $674.2K

Market Conditions

NOI Build-Up for 6,350 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

$95.3K $15.00/SF

− Vacancy

−$8.6K −$1.35/SF

EGI

$86.7K $13.65/SF

− OpEx

−$26.0K −$4.10/SF

NOI

$60.7K $9.56/SF

Area

Cuyahoga County, OH

Vacancy

9.00%

Lease Rate

$15.00 /SF/Yr

Expense Ratio

30.00%

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%

$1,213,480

Cap Rate 7%

$866,771

Cap Rate 9%

$674,156

Alternative Uses

Best Use

Industrial

$4.19M

$3.67M – $4.89M (±1% cap)

NOI $293,302 @ 7.0% cap · market cap 42.20%

Second Best

Specialty Retail

$992.4K

$868.3K – $1.16M (±1% cap)

NOI $69,466 @ 7.0% cap · market cap 10.00%

Theoretical Best

Warehouse

$5.09M

$4.45M – $5.94M (±1% cap)

NOI $356,153 @ 7.0% cap · market cap 51.25%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Conventional restaurants

Suggested Use

Top Pick Real Estate Agency Law Firm Dental Office Spa & Massage Center Hair Salon (Bike/Boat/Book/etc) Store

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

Location Intelligence

Trade Area within ½ mile

375

Businesses Nearby

Under-served

Demand for This Use

Explore this area Business Placement

Demographics for 44128, OH

28,146

Population

14,184

Households

2

Avg Household Size

41

Median Age

18%

College-Educated

90%

High-School Grad

8.8 sq mi

ZIP Area

3,198

Density / Sq Mi

$44,615

Median Household Income

$32,719

Median Earnings

$957

Median Rent

$90,200

Median Home Value

Market

Vacancy Rate% for Retail in Midwest region

8% 2020

7.3% 2021

6.5% 2022

6% 2023

5.7% 2024

6.3% 2025

Questions? Ask Rey

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What type of property is this? Where is this conventional restaurants located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Conventional restaurant - Two-building asset leased to Georgio’s Pizza and Starr Automotive.

Where is this conventional restaurant located?

The property is located at 22019 Emery Rd Warrensville Heights, OH.

What is the asking price?

The asking price for this property is $695,000.

What are key features of this property?

This property features: High 8.5% Cap Rate; Two Freestanding Buildings with Existing Tenants; Tenants Include Georgio’s Oven Fresh Pizza and Starr Automotive