Deal · Wholesaling Real Estate

Deal

Wanted to put a new off-market opportunity in front of you that I think could be a strong fit — a 21-unit multifamily asset at 20000 Van Aken Boulevard in Shaker Heights, Ohio (Farnsleigh Crossing).

Quick background on how we work these multifamily opportunities: we source and operate value-add multifamily in Northeast Ohio, and on deals like this, we partner with a capital partner who funds the acquisition while our team handles everything else — the purchase, the management transition, the business plan, and all ongoing operations. It is a hands-off way to own a piece of a value-add deal in a strong submarket with an experienced operator running the day-to-day.

Here is why I like this one:

The property sits one block from the Van Aken District, a $110M+ mixed-use redevelopment that anchors one of Cleveland's strongest rental submarkets. It is 21 units — 5 one-bedrooms and 16 two-bedrooms — currently around 90% occupied and producing about $163K in trailing 12-month NOI. The current owner is self-managing with no professional management in place, which is the primary operational opportunity from day one.

The seller is between $85,000 and $90,000 per door (roughly $1.785M to $1.89M). For context, the broker wants to start marketing it at $102,231 a door if they were to take this to the market but for now we have this opportunity off-market, and the most comparable trade in the broker's own data set came in around $80K a door — so we are entering at a reasonable, well-supported basis with real room to create value. At these prices, the going-in cap rate on in-place income is between 8.6% and 9.1%, which is a strong yield before we do anything.

The business plan is straightforward and conservative — reduce expenses first, then grow rents gradually:

— Eliminate the ~$17,500 bulk cable expense in year one

— Phase in a RUBS program to recover toward 50% of the ~$67,000 in owner-paid utilities over time

— Bring vacancy down from ~10% toward 5–6% through professional management

— Grow rents conservatively as leases turn — about $250/unit blended, with 1BRs to ~$1,200 and 2BRs to ~$1,450

All in, that is roughly $114K of NOI improvement, taking stabilized NOI to about $277K. Underwritten at a conservative 8.5% exit cap, that supports a stabilized value north of $3.2M. Even stress-testing the exit at a 9% cap, the property still values around $3.08M against our entry — so there is real downside protection built in.

I have attached a full proposal with the property details, business plan, cash flow projections across the price range, and exit sensitivity. Partnership terms are open for discussion and I am happy to walk through how the structure would work for you.

I also have an OM from the broker, with photos and more details. If you would like to gain more info, please inquire within!

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