offering memorandum | investment property bernard … · services, property and facilities...

BERNARD APARTMENTSO F F E R I N G M E M O R A N D U M | I N V E S T M E N T P R O P E R T Y

10917 BERNARD AVENUECLEVELAND, OH

8 U N I T A P A R T M E N T B U I L D I N G | F O R S A L E

BERNARD APARTMENTS | OFFERING MEMORANDUM 2

AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT

CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation

of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

© 2020 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.

Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.


04 EXECUTIVE SUMMARY

950 Main AveSuite 200

Cleveland, OH 44113www.cbre.com/cleveland

FOR ADDITIONAL INFORMATION:TABLE OF CONTENTS:

FRED HERRERASenior Vice President

+1 216 363 6408 [email protected]

JENNA GAUNTNERAssociate

+1 216 363 6450 [email protected]

05 PROPERT Y OVERVIEW

08 WEST BLVD NEIGHBORHOOD

07

11

2020 PRO FORMA

CLEVEL AND OVERVIEW


Bernard Apartments, located in Cleveland’s West Boulevard neighborhood, is an 8-unit building apartment building originally constructed in 1927 and heavily renovated in 2019. Renovations include a new roof, windows, doors, electrical, hot water tanks, and furnaces. Of the 8 units, there are two 1-bedroom, four 2-bedroom, and two 3-bedroom units. The property is situated on the corner of Bernard and West 110th, one block south of Lorain Avenue and three blocks east of West 117th. Located just 6 miles from downtown Cleveland, West Boulevard is in the heart of Cleveland’s dense suburban neighborhoods, including Lakewood, West Park, Birdtown, and Kamms Corner. Popular among people of all ages, these neighborhoods offer a plethora of nightlife, music, arts, and entertainment and are located in close proximity to I-71, I-90, I-480, the Detroit Shoreway, and SR-2.

EXECUTIVE SUMMARY

THE OFFERING

PROJECTED TOTAL INCOME $65,420.60

PROJECTED TOTAL EXPENSES $27,859.66

PROJECTED TOTAL NOI $37,560.94

CAP RATE9.75%

ASKING PRICE$385,204

PRICE PER UNIT $48,155 PER UNIT


PROPERTY OVERVIEW

ADDRESS 10917 BERNARD AVE, CLEVELAND, OH

PARCEL NUMBER 018-10-080

ZONING 2F-B1 (Two Family)

BUILDING / STORIES 1 / 2

SITE SIZE 0.16 AC

TOTAL RENTABLE AREA 7,420 SF

AVERAGE UNIT SIZE 927.5 SF

AVERAGE MONTHLY RENT $700.00

CURRENT LEASED OCCUPANCY 88%

STRENGTHS• New roof, windows, doors, electrical, furnaces• Value-add opportunity• Close proximity to Lakewood and downtown Cleveland

2.1 Miles1.0 Mile

11.2 Miles 3.2 Miles

6.0 Miles

4.8 Miles

7190

80SR 2 480


PROPERTY PHOTOS

7

2020 PROFORMAPO

TEN

TIAL

G

ROSS

TYPE SF QTY. $/MO MONTHLY TOTAL ANNUAL TOTAL1-Bed 710 2 $600 $1,200 $14,4002-Bed 950 4 $700 $2,800 $33,6003-Bed 1,100 2 $800 $1,600 $19,200Totals 7,420 8 $700 $5,600 $67,200

2020

PRO

FORM

AIN

COM

E

INCOME MONTHLY ANNUAL PER UNIT PER SF % OF PGRPotential Gross Rental Income $5,600.00 $ 67,200.00 $8,400.00 $9.06 100.00%Vacancy/Concession Loss (5%) $280.00 $3,360.00 $420.00 $0.45 5.00%

Projected Net Rental Income $5,320.00 $63,840.00 $7,980.00 $8.60 95.00%Application Fees $ 12.37 $148.40 $18.55 $0.02 0.22%Damages $ 68.02 $816.20 $102.03 $0.11 1.21%Late Charge $ 51.33 $616.00 $77.00 $0.08 0.92%

Projected Total Income $ 5,451.72 $65,420.60 $8,177.58 $8.82 97.35%

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

2020

PRO

FORM

AEX

PEN

SES

EXPENSES MONTHLY ANNUAL PER UNIT PER SF % OF PGRReal Estate Taxes $616.09 $7,393.04 $924.13 $1.00 11.00%Property Insurance $184.67 $2,216.00 $277.00 $0.30 3.30%Gas - - - - 0.00%Electric $30.00 $360.00 $45.00 $0.05 0.54%Water & Sewer $450.00 $5,400.00 $675.00 $0.73 8.04%Dumpster / Trash Services $160.00 $1,920.00 $240.00 $0.26 2.86%Snow Removal - - - - 0.00%Landscaping $66.67 $800.00 $100.00 $0.11 1.19%

Maintenance & Repairs $247.33 $2,968.00 $371.00 $0.40 4.42%

Decorating & Turnover (30% TO @ $700) $140.00 $1,680.00 $210.00 $0.23 2.50%Legal / Accounting $66.67 $800.00 $100.00 $0.11 1.19%Advertising & Promotion $46.67 $560.00 $70.00 $0.08 0.83%Management (3% of PTI) $163.55 $1,962.62 $245.33 $0.26 2.92%Reserves for Replacements $150.00 $1,800.00 $225.00 $0.24 2.68%

Total Expense of Operation $2,321.64 $27,859.66 $3,482.46 $3.75 41.46%NOI Before Debt Service $ 3,130.08 $ 37,560.94 $ 4,695.12 $5.06 55.89%

8

WEST BOULEVARD NEIGHBORHOOD OVERVIEW

Annexed to the City of Cleveland in both 1873 and 1903, the West Boulevard neighborhood is named after the thoroughfare running north to south, originally designed to connect Edgewater Park (North) to Brookside Park (South). Known for their historic appeal and generous tree lawns, most of the homes in the West Boulevard neighborhood were built prior to 1939, however, there was an influx in homes built between the 1940’s and late 1960’s.

The historic feel of the neighborhood greatly compliments the diverse and dense suburban culture and bustling nightlife as the area is surrounded by numerous amenities including 50+ bars and restaurants, 3 markets, and numerous shops. The neighborhood boasts a healthy mix of households with 50% of the population being homeowners and 50% renting their homes.

While West Boulevard is highly walkable, downtown Cleveland offers numerous job opportunities and is easily accessible via personal car, bus or the rapid. The city is home to numerous top-ranking universities, including Baldwin Wallace, Case Western Reserve, and Cleveland State. Healthcare is also covered as Cleveland is home to the #1 concentrated area of hospitals and medical research centers in the nation. Source: The Plain Dealer. August 4, 1909

Source: Statistical Atlas

Source: Niche.com

HISTORY

#1 OF 35 - DIVERSE NEIGHBORHOODS IN CLEVELAND

#13 OF 33 - NEIGHBORHOODS WITH THE LOWEST COST OF LIVING IN CLEVELAND

#17 OF 35 - BEST NEIGHBORHOODS FOR YOUNG PROFESSIONALS IN CLEVELAND

CULTURE & NIGHTLIFE

CONNECITVITY TO JOBS, EDUCATION, & HEALTHCARE

$11,062AVERAGE HOUSING

VALUE

$63,705AVERAGE HH

INCOME

316,457POPULATION

193,189EMPLOYEES

140,922HOUSEHOLDS

38.7MEDIAN AGE


WEST BOULEVARD TRADE MAP

90

10

LORAIN AVE

LORAIN AVE

W 117

W 117

THTH ST ST

71

LAKEWOODLAKEWOOD

WEST BOULEVARDWEST BOULEVARD

MADISON AVEMADISON AVE

W 105

W 105

THTH ST ST

Opening soon

BirdtownBirdtown

BEREA RD

BEREA RD9,9249,924

W 110

W 110

THTH ST ST

126,177126,177

TRISKETT RDTRISKETT RD

•20,812•20,812

135,376135,376

WES

T BL

VDW

EST

BLVD

WESTERN AVEWESTERN AVE

WESTOWN SQUARE


LOCAL CLEVELAND NEIGHBORHOODS

DetroitShoreway

Source: Cleveland State University, NODIS

EdgewaterLakewood

CLEVELAND MARKET OVERVIEW

2,073,482 861,491 31POPULATION HOUSEHOLDS NUMBER OF COLLEGES/

UNIVERSITIES

31 .5% 10,040,817 4,763WORKFORCE WITH

BACHELOR'S DEGREE OR HIGHER

CLE ANNUAL PASSENGERS

NUMBER OF RESTAURANTS/BARS

5NUMBER OF

FORTUNE 500 HEADQUARTERS

$119 B I L L I O NANNUAL GROSS

DOMESTIC PRODUCT

$45 M I L L I O NANNUAL CULTURAL

DISTRICT ECONOMIC IMPACT

$54,092MEDIAN HOUSEHOLD

INCOME

5MAJOR HEALTH

SYSTEMS

35,700NUMBER OF HIGH-

TECH WORKERS

$25.03AVERAGE HOURLY WAGE3

$1,019AVERAGE WEEKLY WAGE3

5.1%UNEMPLOYMENT RATE3

1,061,100CIVILIAN LABOR FORCE3

29%

BELOW NATIONAL AVERAGE $47,150/YEAR2

CLEVELANDERS ONLY NEED TO MAKE

TO BUY A HOME WITH A MEDIAN VALUE OF $165,805

COST OF LIVING INDEX – 72.61

ACCESS TO YOUNG TALENT WITH +25 MAJOR COLLEGES AND UNIVERSITIES WITHIN THE NORTHEAST OHIO REGION, AND 400 MORE SCHOOLS WITHIN A 200-MILE AREA AROUND THE REGION.

CULTURETRENDS

MAJOR ATTRACTIONS

PLAYHOUSE SQUAREIS THE SECOND LARGEST THEATER DISTRICT OUTSIDE OF NYC

DOWNTOWN POPULATIONINCREASED 102% SINCE 2000 POPULATION ESTIMATED TO BE OVER 20,000 RESIDENTS BY THE END OF 2020

CAPITAL DEVELOPMENTS$8 BILLION INVESTED IN DOWNTOWN OVER 10 YEARS $535 MILLION COMPLETED IN 2019

CLEVELAND ORCHESTRA"THE FINEST IN AMERICA"–THE NEW YORK TIMES, 2015

RECREATION & ENTERTAINMENT

CLEVELAND METROPARKS18 RESERVATIONS SPANNING MORE THAN 23,000 ACRES WITH MORE THAN 300 MILES OF TRAILS, 8 GOLF COURSES, 8 LAKEFRONT PARKS AND THE CLEVELAND METROPARKS ZOO.

2016 “NATIONAL GOLD MEDAL AWARD FOR EXCELLENCE” – AMERICAN ACADEMY FOR PARKS AND RECREATION ADMINISTRATION

CLEVELAND AQUARIUMCLEVELAND METROPARKS ZOOCHRISTMAS STORY HOUSECUYAHOGA VALLEY NATIONAL PARKGREAT LAKES SCIENCE CENTERJACK CLEVELAND CASINOLAKE METRO PARKSMGM NORTHFIELD PARKNORTH COAST HARBORPLAYHOUSE SQUAREPUBLIC SQUAREROCK AND ROLL HALL OF FAMEUNIVERSITY CIRCLEWEST SIDE MARKET

CLEVELAND MUSEUM OF ARTSECOND BEST MUSEUM IN AMERICA BUSINESS INSIDER, 2016


10917 BERNARD AVENUE, CLEVELAND, OH

FRED HERRERASenior Vice President+1 216 363 6408 [email protected]

JENNA GAUNTNERAssociate+1 216 363 6450 [email protected]

BERNARD APARTMENTSU.S. Cities that are Easy to Explore on FootMatador Network, 2019

Top 50 Meeting Destinations in the U.S.Cvent, 2019

10 Best Places to Get a Fresh Start in 2019Livability

10 Great Stops Along the Great LakesUSA Today, 2018

Best of the World ListNational Geographic Traveler’s, 2018

Coolest Place You've Never Thought to Visit Travel +Leisure, 2018

#12 of the 14 High Tech Cities to Live in Dice.com, 2017

#9 of the 25 Best Cities for JobsGlassdoor, 2017

Most Affordable Winter DestinationsSmarterTravel, 2017

15 best places to live in the U.S.Timeout.com 2016

#4 of the 25 Cities Where Pay Goes FurthestGlassdoor, 2015 & 2016

#1 of the Best Cities to Go Car-FreeUSA Today, 2016

Cleveland is one of the “Top Student Travel Destinations for 2019.”Teach & Travel

Cuyahoga Valley Scenic Railroad ranked #5 of the 10 Most Beautiful Vintage Train Routes in AmericaHouseBeautiful, 2016

10 Forward-Thinking American Cities Huffington Post, 2016

14 Places in America You Have to Visit SmarterTravel, 2016

#14 of the 2016 Best Food Cities in AmericaTime, 2016

America’s 20 Most Cultured CitiesTravel + Leisure, 2016

#12 of the America’s 20 Most Cultured Cities Travel +Leisure, 2015

#7 of Trulia’s Most Affordable CitiesTrulia, 2015

CLEVELAND RANKINGS

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