Downtown Cleveland’s residential market has proven resilient in the face of recent crises. Now it is on course to break through the 30,000 population ceiling by the end of the 2020s which should attract more employers and neighborhood-style retailers, perhaps even some regional retailers as well.
If you spend too much time on social media, you might encounter a few folks who are under the false impression that parts of downtown Cleveland burned to the ground during the nationwide racial unrest last year. But while downtown’s commercial market is still recovering from the ongoing pandemic, the residential market is hot. You might even say it’s on fire.
Three data sets confirm this. One is downtown’s population, which is now above 20,000 people using the only resource that matters — the U.S. Census. Another is a recent CoStar report that says downtown apartment demand is on pace for a record-breaking year. The third data set comes from a unique source.
Select investors recently received an offering memorandum regarding the off-market sale of two adjoining downtown apartment buildings — The Bingham and The Archer, 1220 and 1278 W. 9th St. in the Warehouse District. Both buildings are owned by Zeisler Morgan Properties Ltd. of Beachwood and are reportedly for sale for $110 million total.
The data shows an average occupancy for 15 comparable apartment buildings, including the subject properties, is just below 94 percent. Those buildings are also commanding rents that average $1.80 per square foot. The offering memorandum used data compiled by real estate firm Marcus & Millichap which is handling the sale of the Bingham and Archer.
Data for those buildings encompasses a total of 3,449 housing units, or just over one-third of downtown’s roughly 9,000 homes. It’s a sizeable sample, but not a complete sample. Many other significant apartment buildings like the 21-story Residences at 1717, 16-story The Athlon, 15-story Residences at Leader and others were not included. Meanwhile two buildings just across the Cuyahoga River valley from downtown, The Quarter and Church+State, were included in the memorandum.
More details at NEO-trans.blog