52 Lake, LLC

Investment Description

Property 

  • Apartment Buildings consisting of 52 units
  • Located in Lakewood, Ohio
  • Value Add Project

Property Financials 

1. AcquisitionPurchase Price $3,000,000
2. Capital Improvements $156,000
3. Closing Fees & Carrying Costs  $157,500
4. All In Costs $3,300,000
1. Stabilized Projections in 21 monthsNet Operating Income $298,246
2. Stabilized Cap Rate 6%
3. Stabilized Value @ 6.25 Cap  $4,987,000 **(Lender Believes we can get a Value at $100k a door = $5.2M)
4. New Loan Amount @ 70% LTV $3,490,900
5. Equity Created  $1,503,000
6. Cash-Out Refi Proceeds  $150,000
7. Annual Cash Flow After Debt Service $101,000

Investment

  • Price Per Share: $100,000
  • Shares Available 11
  • Term 21 Months
  1. Exit Strategy:Refinance within 21 months to pay back investors & disburse refi proceeds
  2. Then Hold for 10+ years for cash flow and to build long term equity

Return On Investment

Each Unit of $100,000 will yield the following approximate projections
Note: If an investor brings in $300,000, they would simply receive 3 units and 3 times the amounts below)
  • 1. Fixed Preferred Return of 10%
  1. Earns $10,000 in interest per year 
  2. 10k (year 1) + 7500k (year 2, *only 9 months)
  3. 21 month hold projected
  • This is paid while the investor’s principal is invested. For each Unit owned, the investor will earn $10,000 per yearTaxed at long term capital gains rates.
  • 2. 1% Kicker at Refi 
  1. Ex: 100,000 X’s 1% = $1,000 Kicker Bonus at Refi
  2. All Equity Returned

Expected Return on Investment 

  • $17,500 Preferred return (10% annualized interest)
  • $1,000 Kicker @ Refi
  • = $18,500  Total Return On Investment in 21 months10.48% Annualized Return

Asset Details

52 Lake, LLC
10903 – 10911 Lake Ave, Cleveland, OH 44102 Map
ASSET TYPE PROPERTY CLASS UNITS
Multi-Family B 52

Property Details:

  • 52 Units
  • A Class Location
  • 2 Miles from Downtown CLE
  • Already 94% Occupied
  • 15-year history over 90% occupied
  • 4 Story Low Rise Building
  • Amenities:
  1. On-site management
  2. On-site leasing
  3. On-site maintenance
  4. Garages
  • Shopping in Walking Distance
  • Lake Erie in Walking Distance