657 S Belvoir South Euclid, OH Mark Khuri

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1 657 S Belvoir South Euclid, OH 44121

2 Overview Property Type: Multi-Family Size: 6,612 sq ft Sale Price: $499,000 # of Units: 8 Year Built: 1972 # of Stories: 2 Construction: Brick Parking Type: Covered Garage 657 S Belvoir apartments are centrally located only 12 miles from downtown Cleveland, less than 3 miles from the growing Notre Dame college, less than 5 miles from University Circle and Case Western Reserve University and less than 20 minutes to the new 650,000 square foot Amazon fulfillment center in Euclid scheduled to open in 2019! The Property consists of a 2 story, all brick, walk up apartment building built in 1972 totaling approximately 6,612 sq.ft. Consisting of 8 two bedroom, 1 ½ bath units and each unit has its own furnace and central air, truly making the property unique and easy to rent! Current cash cow with many upgrades completed including new roof on garage 2017, rebuilt retaining wall, upgraded fire alarm system and units remodeled including kitchens, baths, flooring and paint. City required repairs all completed 6/2018 including driveway repairs. Many long term tenants with value add opportunity to upgrade further, increase rents, laundry income, bill back a flat rate for water/sewer and charge for garage parking. All tenants are private-pay. The owner offers the property for sale at $499,000 which is a 8.22% cap rate based on current occupancy and a 9.45% cap rate based on potential market rate rental amounts, utility and parking bill back to tenants. The property has 8 covered garage parking spaces which the owner is not currently charging for. Landlord paid water/sewer, trash, and landscape/snow plow utilities. Tenant paid electric and gas. The building is currently owner managed and coin operated laundry units provide income.

3 Location 657 S Belvoir apartments are centrally located only 12 miles from downtown Cleveland, less than 3 miles from the growing Notre Dame college, less than 5 miles from University Circle and Case Western Reserve University. South Euclid, OH is highly sought after suburb with a median household income of $59,734 and growing. The property is only a minute drive to the new 650,000 square foot Amazon fulfillment center reported to bring more than 1,000 jobs to the local area. The fulfillment center is scheduled to open in 2019, cash in on this rare multi-family opportunity before demand surges!

4 657 S Belvoir - Maps

5 Current Rent Roll & All Cash Pro-Forma Price $ 499,000 Unit Current Potential Rent Market Rent Bed/Bath Count Moved In Lease Expires Status 1 $700 $775 2 bed 1.5 bath Long Term MTM Occupied 2 $700 $775 2 bed 1.5 bath Long Term MTM Occupied 3 $750 $775 2 bed 1.5 bath 9/1/2017 8/31/19 Occupied 4 $725 $775 2 bed 1.5 bath 11/1/2017 4/30/19 Occupied 5 $750 $775 2 bed 1.5 bath 8/1/2017 7/31/19 Occupied 6 $775 $775 2 bed 1.5 bath 8/1/2017 7/31/19 Occupied 7 $740 $775 2 bed 1.5 bath 2/1/2017 3/31/19 Occupied 8 $725 $775 2 bed 1.5 bath 1/1/2018 3/31/19 Occupied $5,865 $6,200 Laundry $100 $300* *Laundry + Estimated $25/mth/unit water utility & Gross Monthly parking bill back to tenants $ 5,965 $ 6,500 Income Gross Annual $ 71,580 Income $ 78,000 Current Potential Gross Rent $ 5,865 $ 70,380 $ 74,400 Laundry Income $ 100 $ 1,200 $ 3,600 Adjusted Gross Income $ 71,580 $ 78,000 Property Taxes $ 1,120 $ (13,438) $ (13,438) Property Insurance $ 184 $ (2,205) $ (2,205) Gas $ 108 $ (1,296) $ (1,296) Electric $ 106 $ (1,270) $ (1,270) Water & Sewer $ 486 $ (5,833) $ (5,833) Trash $ 75 $ (900) $ (900) Landscape/Snowplow $ 58 $ (700) $ (700) Misc Expenses* 7.00% $ (4,927) $ (5,208) Total Operating Expenses $ (30,569) $ (30,850) Net Operating Income (NOI) $ 41,011 $ 47,150 * Estimated Capitalization Rate 8.22% 9.45%

6 Financed Purchase Analysis Current Potential Gross Rent $ 5,865 $ 70,380 $ 74,400 Laundry Income $ 100 $ 1,200 $ 3,600 Adjusted Gross Income $ 71,580 $ 78,000 Property Taxes $ 1,120 $ (13,438) $ (13,438) Property Insurance* $ 184 $ (2,205) $ (2,205) Loan Payment $ 2, 243 $ (26,912) $ (26,912) Gas $ 108 $ (1,296) $ (1,296) Electric $ 106 $ (1,270) $ (1,270) Water & Sewer $ 486 $ (5,833) $ (5,833) Trash $ 75 $ (900) $ (900) Landscape/Snowplow $ 58 $ (700) $ (700) Misc Expenses* 7.00% $ (4,927) $ (5,208) Total Operating Expenses $ (57,481) $ (54,466) * Estimated Purchase & Loan Summary Purchase Price $ 499,000 75% Loan Amount $ 374,250 25% Down Payment $ 124,750 Estimated 25-Year Loan Terms Loan Amount $ 374,250 Interest Rate 5.25% Mthly Loan Payment ($2,243) Net Operating Income (NOI) $ 14,099 $ 20,238 Return On Investment (ROI) 11.30% 16.22%

7 657 S Belvoir Utility Summary Water Sewer Electric Trash Gas Jan-17 $ $ $96.84 $75.00 $ Feb-17 $ $ $ $75.00 $ Mar-17 $ $ $ $75.00 $ Apr-17 $ $ $95.94 $75.00 $95.26 May-17 $ $ $93.49 $75.00 $87.89 Jun-17 $ $ $95.45 $75.00 $71.04 Jul-17 $ $ $ $75.00 $81.12 Aug-17 $ $ $96.92 $75.00 $91.01 Sep-17 $ $ $92.40 $75.00 $84.57 Oct-17 $ $ $99.80 $75.00 $ Nov-17 $ $ $99.73 $75.00 $ Dec-17 $ $ $ $75.00 $ Annual Landscape $ 400 Snow Plow $ 300 $ 700 TOTAL $2, $3, $1, $ $1, $9,299.17

8 657 S Belvoir - Photos

9 657 S Belvoir - Photos

10 657 S Belvoir South Euclid, OH 44121