1117 125Th St Cleveland, OH 44112

Property Details for 1117 125Th St

Year built

1924

Lot size

0.67 lot acres

Property size

24,000 SF

Property type

Commercial real estate

Description

This 24-unit apartment building, located at 1117 E 125th St, Cleveland, OH 44112, presents a compelling value-add investment opportunity. The property, a three-story, all-brick structure built in 1924, encompasses approximately 24,000 square feet on a 0.67-acre lot. Currently boasting 91% occupancy (22 of 24 units), the building offers a mix of one-bedroom, one-bathroom units ranging from approximately 617 to 922 square feet. Recent capital improvements include a new roof (2024) and upgraded electrical service via FirstEnergy. Furthermore, 100% of the units have undergone recent updates, including fresh paint, appliance and toilet replacements, and general maintenance. New front balconies and vinyl replacement windows were installed in 2018. A significant portion (55%) of the gross income stems from subsidy-based tenants, ensuring a stable rental base. On-site management is currently in place, offering potential cost savings. Each basement side features laundry hookups, presenting an opportunity for additional income generation. The property includes 24 surface parking spaces and provides dishwashers in every unit. Tenant-paid electric furnace heat and landlord-paid trash, water, and sewer services are in place. The projected net annual operating income at 90% occupancy, factoring in real estate taxes and an 8% management fee, is $106,459, resulting in a 9.46% capitalization rate at the asking price of $1,125,000 ($46,875 per unit). The property is conveniently located near Forest Hills Park, Pattison Park, I-90, Mayfield Road, Little Italy, Case Western Reserve University, Cleveland Clinic, and the Coventry Shopping district, with easy access to public transportation. The building has been converted into condos (all units deeded separately), facilitating individual unit sales. This presents a significant opportunity to increase income by leasing vacant units and utilizing the subsidy voucher program, as well as developing the laundry facilities.