Nadlan Invest- 12383 - 12395 Cedar Road Mixed-Use Investment

The investment opportunity at 12383-12395 Cedar Road in Cleveland Heights, Ohio, offers a robust, mixed-use property that has undergone significant renovation and holds substantial financial promise. The portfolio includes two adjacent buildings, with the first previously occupied by Nighttown restaurant and now leased to Red Steakhouse under a stable 10-year contract. This ensures a consistent cash flow from a well-established tenant in the upscale dining market. The second building includes 16 luxury one-bedroom apartments, each fully remodeled to meet modern living standards. These units are designed with efficient layouts, stone countertops, high-end bathroom fixtures, mini-split HVAC systems for optimal energy efficiency, and new plumbing and mechanical systems. These enhancements make the apartments highly attractive for prospective tenants, with leasing already in progress. This newly updated residential offering is expected to drive high occupancy rates and rental income. The property benefits from its location in the Cedar Fairmount neighborhood, a vibrant area known for its mix of residential, retail, and cultural offerings. Cedar Fairmount is not only a commercial hub but also a cultural gateway to Cleveland's major attractions, such as the Cleveland Museum of Art and Severance Hall, positioning it as an appealing neighborhood for both residents and businesses. The neighborhood sees a daily traffic volume of 19,847 vehicles, adding to the attractiveness of the retail spaces for tenants. Additionally, the neighboring property offers partially leased retail spaces, with ongoing interest in the remaining units, providing potential for either new leasing activity or complete redevelopment. The entire site, sitting on 0.298 acres of land, can be reimagined or further optimized depending on the investor's vision, allowing flexibility for value-add strategies. Financially, the property delivers strong metrics, with a Net Operating Income (NOI) of $401,581 projected for 2023. This income, derived from the restaurant lease and potential rental income from the fully remodeled apartments, makes this an appealing prospect for investors seeking stable, long-term returns. Furthermore, the Cleveland Heights area is experiencing growth, with an improving office market, rising rental rates, and increased leasing activity, particularly in nearby commercial spaces. This positions the investment for future appreciation as market conditions continue to strengthen. In summary, the 12383-12395 Cedar Road property combines modernized residential units, a prime retail tenant, and significant upside potential in a high-traffic, culturally rich neighborhood, making it an excellent mixed-use investment in a thriving Cleveland market.