Did you know that a Cleveland DJ by the name of Alan Freed was the first person to coin the term rock and roll? It should come as no surprise then that this city, located on the southern shore of Lake Erie, about 60 miles west of the Pennsylvania border, is the home to the famous Rock & Roll Hall of Fame. It’s also home to the world-renowned Cleveland Clinic and Cleveland Orchestra. But it’s Cleveland’s real estate market that is just as interesting as its famous institutions which has our attention.
According to Norada Real Estate in 2018, a forecast for the Cleveland, Ohio housing market suggested that home-price appreciation could begin to slow down, following a year of double-digit gains. Home prices in Cleveland rose steadily and significantly during 2017, and they were expected to continue trending north for the foreseeable future. According to Realtor.com the median list price of homes in Cleveland, OH was $124.9K, trending up 8.6% year-over-year. Downtown Cleveland has also experienced a surge in real estate development over the past 10 years, with an estimated $19 billion in development completed or planned since 2010.
Sharestates made a commitment to funding loans in Cleveland and we have been aggressively forging new relationships there. Here are a few properties that we’ve funded there to date.
This first property is located in a neighborhood called Ohio City. Ohio City is a trendy area with loads of high-end cocktail bars and beer gardens. Though Ohio City is one of the oldest neighborhoods in Cleveland it has some of the most fashionable and chic bistros, shops, and galleries. This neighborhood has a very urban feel made up of young families and your professionals. The property is a multi-family building with 8 units. The borrower previously acquired the property and will begin rehabilitation. The borrower intends to complete the rehab plans and stabilize the investment. Rehab includes demolition and installation of new kitchens, new plumbing/electrically, new insulation, drywall, and more.
- Loan Amount: $530,000
- Rehab Budget: $532,000
- Property Type: Multi-Family
- Loan Type: Refinance
- ARV: 67%
- LTV: 70%
The next property is located in Downtown Cleveland which is known for Q Arena – Home of the Cleveland Cavaliers, Progressive Field – Home of the Cleveland Indians and The Rock and Roll Hall of Fame, which is home to countless famous instruments played by famous bands and musicians. This property is a mixed-use building with 21 residential & 2 commercial units. The property will be leased out after conversion is complete. Rehab will include demolition, new windows, new kitchens in all units, new bathrooms in all units, plumbing/electrical work and a new HVAC system.
- Loan Amount: $788,000
- Rehab Budget: $155,610
- Property Type: Mixed-Use
- Loan Type: Purchase
- LTV: 75%
- ARV: 56%
- LTC: 80%
The final property is located in a neighborhood called Kamm’s Corners. This neighborhood is located on the west side of Cleveland along the Rocky River. This neighborhood is very family friendly with a suburban feel. Kamm’s Corner, also known as West Park, is full of authentic Irish pubs, hobby shops, and seasonal farmer’s markets. The property is a four-story multi-family apartment building featuring 28 residential units. The borrower is acquiring this property with intentions of adding value by rehabilitation. Rehab will consist of cosmetic updates to all units and plumbing/electrical will be updated. When rehab is complete, the units will be leased out to new tenants.
- Loan Amount: $845,000
- Rehab Fund: $166,500
- Property Type: Multi-Family
- Loan Type: Purchase
- LTV: 75%
- ARV: 66%
- LTC: 72%
For more information on loans Sharestates has funded or for more information about our loan programs click below.
