Stockbridge Apartments

Stockbridge Apartments consist of 77-unit, stunning suites.  Located on the RTA's Health Line, a walking distance to Cleveland State University, and minutes from downtown Cleveland, this 1912 vintage building is on its full-swing renovation.  

Click on the next tabs on how you can be part of this iconic investment! 

Stockbridge Apartments sits on just under an acre in the Midtown neighborhood of Cleveland, Ohio - minutes from the city’s Central Business District. Here, you can find world-class hospitals putting down roots next to legacy manufacturers, historic concert venues near leading architectural firms, and residential housing built to accommodate the talent driving the region’s economy. Cleveland State University lies directly north of Stockbridge and has more than 18,000 students enrolled.

PROPERTY FINANCIALS

1. Acquisition/Purchase Price:  $ 4,700,
2. Capital Improvements: $ 939,500
3. Closing Fees and Carrying Costs: $ 276,348
4. All-In Costs: $ 5,915,848

STABILIZED PROJECTIONS* IN 48 MONTHS (*not guaranteed)

1. Net Operating Income: $ 503,496
2. Stabilized Cap Rate: 8.1%
3. Stabilized Value @ 6.15 Cap: $ 8,055,942.97
4. New Loan Amount @ 77.5% LTV: $ 6,041,957.23 @ 5% Refi Cap Rate 
5. Equity Created: $ 2,013,985.74
6. Cash-Out Refi Proceed: $ 120,839.14
7. Annual Cash Flow After Debt Service: $ 392,296.81

Investment Details:

• Price per Share: $ 100,000
• Shares Available: 25
• Term: 48 Months Projected
  1. Exit Strategy: Projected Refinance within 48 months to pay back Investors and disburse Refi proceeds.
  2. Then Hold for 10+ years for Cash Flow and to build long term Equity. 

Each Unit of $ 100,000 will yield the following approximate projections.  (Note: If an Investor brings in $300,000, they will simply receive 3 Units and 3 times the amount below:

• 1. Earns $10,000 in interest per year. 
  • 10k (year 1) + 10k (year 2) + 10k (year 3) + 10l (year 4)
  • Taxed at sale at long-term capital gains rates.

Expected Return On Investment

• $40,000 Preferred Return (10% Annualized Interest)
• $x,xxxx Cash Flow in Year 4 (above pref & costs)
• $2,289.20 Cash Out Refi Proceeds 
• $34,539.20 Total ROI in 48 months. 
• 10.21% Annualized ROI (Tax Advantaged) 
• $34,237.76 Equity Retained
• Total + $60,009.20 Total Return in 48 months
  • 18.77% Annualized ROI including Equity
  • Principal returned in approximately 48 months
  • Cash Flow + Principal Pay Down + Appreciation + Depreciation 
  • Highlly Taxed Advantaged 

Earns 80% of Refi Proceeds

• $2,289.20 Projected Cash-Out Refi Proceeds
• Non-Taxable Loan Proceeds

Earns $1,920 per year in Cash Flow

• * ($3,429.59 after Refi-IF-Interest Only Loan)
• Taxed at earned Income rate offset by depreciation

Holds $25,470 in Equity at Refi

• Increases annually with principal pay down appreciation
• Taxed at Sale at Long-Term Capital Gain rate