The Finley on Pearl 4755 Pearl Rd 35 Unit Apartment Building $950,000 ($27,143/Unit) 10.10% Cap Rate Cleveland, OH 44109

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 estimated redevelopment cost of $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.