The Finley on Pearl

Investment Overview

The Finley on Pearl represents a relatively low-risk redevelopment opportunity in a high-demand Cleveland neighborhood, supported by city initiatives that target infill and mixed-use investment in areas just outside growth corridors. The project benefits from city approvals for zoning and plans, along with a 15-year tax abatement, aligning with Cleveland’s broader goal to produce 23,000 new or substantially rehabilitated housing units through targeted incentives and streamlined approvals. The property is currently vacant with a projected redevelopment costs estimated at $1,450,000, positioning the asset as a value-add play relative to prevailing multifamily pricing and cap rates in the metro. Based on the current underwriting, a stabilized Year 1 net operating income that supports a 10.1% capitalization rate implies a yield premium to both typical Cleveland value-add multifamily cap rates, which are quoted around the 6% - 7%, and broader metro averages reported near 9%. An exceptional opportunity is available for a new investor to redevelop a market-rate multifamily property, offering returns that significantly exceed market performance by the conclusion of the first-year lease-up.

Investment Highlights

• Appraised Value at Completion of $3,860,000
• Immediate Above Market Cash Flow Upon Lease up
• 15 Year Property Tax Abatement
• Plans Completed
• Total Estimated Cost to Redevelop of $1,450,000