296 Triskett, LLC

Investment Description

Asset Details

Marcus & Millichap Capital Corporation
Executive Summary
Stuart House Apartments
Cleveland, OH
Address: 14411 Triskett Road Cleveland, OH 44111
# of Buildings: 25 (24 3-story garden-style buildings and 1 duplex)
Year Built: 1962
Property Type: Three-Story, Garden-Style Apartments
Number of Units: 296
Acreage: 9.22 +/-

Unit Mix:

Type Count Avg. SF Avg. Monthly Rent Avg. Monthly Rent PSF
1×1 83 608 $582 $0.96
2×1 213 875 $691 $0.79
Total / Average 296 800 $660 $0.82

Property Description: The Subject Property, known as Stuart House Apartments, is located at 14411 Triskett Rd, just 6.7 miles southwest of Downtown Cleveland. Built-in 1962, the collateral includes 296 units situated on 9.22 acres. The property is currently 87% occupied with an average rent of $660. Stuart House features a healthy mix of 1-bed and 2-bed floorplans that average 800 square feet. Community Amenities include a party room with a full kitchen, courtyard, gazebo, playground, laundry facilities, locker storage, as well as 376 parking spaces.

Location: The Subject is located on the southwest side of Triskett Road in the West Park neighborhood of Cleveland. Within a two-mile radius of the Subject are several grocery-anchored retail centers that feature tenants such as Giant Eagle,

Target, Home Depot, Marc’s, and Staples. In addition to existing retail centers, an ALDI and Starbucks are being constructed one mile south of the Subject. The RTA – West Park Rapid Station/Park and Ride, is approximately one mile south of the Subject, which offers tenants a direct public transportation route to Downtown and the rest of Greater Cleveland. The Subject has excellent access to I-90 and I-71, both of which have on/off ramps located within two miles. Two miles west of Stuart House is Cleveland Clinic – Fairview Hospital, a 488-bed faith-based community hospital. Cleveland Clinic – Fairview Hospital features birthing services, cancer center, emergency, and level II trauma, heart center, and surgery. Cleveland Hopkins International Airport is also in close proximity to Subject being only 4.5 miles SW.
Demographics: Range (Miles): 1 3 5
Population: 20,361 154,052 284,740
Current Ave. HH Income: $62,822 $66,085 $66,973

Transaction Description: The Borrower is seeking long-term acquisition and renovation financing for the purchase price of $16.3 million ($55,100/unit) and a renovation budget of $2.925 million ($9,900/unit). The requested loan structure is 80% LTC, a 10-year term with maximum interest only, followed by a 25-year amortization, at the best available rate.

Borrower Description: The Borrower is a to-be-formed entity owned and controlled by Josh Cantwell, Glenn Lytle, and Tyler Brummett. Local to the Cleveland market, the three sponsors form the executive team of Freeland Ventures, a premier real estate investment and lending firm with a focus on multifamily and single-family assets. Since its inception, Freeland Ventures has acquired, renovated, manages, and holds more than 2,400 apartment units. The Borrower possesses a significant net worth and liquidity, and personal financials will be available upon request.

Loan Structure: Stabilized Net Operating Income: $ 1,656,477
Total Cost: $ 20,510,000
LTC: 60%
Loan Amount: $ 15,150,000
Loan Amount/Unit: $ 51,200
Funding: Immediate
Term: 2
Amortization: IO
Interest Rate: Best Available
Annual Debt Service: $ 489,000
DSC Ratio: 1.76
Debt Yield: 7.05%

Investment Description

10.00%
PREFERRED RETURN

Investment Description

296 Triskett, LLC
14411 Triskett Rd, Cleveland, OH 44111 Map
ASSET TYPE PROPERTY CLASS UNITS SQUARE FEET STORIES PARKING SPACES YEAR BUILT ACQUIRED
Multi-Family B 296 236,940 3 376 1962 04/28/22