Property Type: Retail
Status: In Contract
Address: 1227 Prospect Avenue
Cleveland, OH 44115
|CAP Rate: 6.5%|
Square Feet: 73
Tenancy Type: Regional
The Cooper Commercial Investment Group has been exclusively retained by ownership to sell the 100% fee simple interest in the single-tenant, NN Prospect Avenue Parking Lot located in Downtown Cleveland, Ohio, ideally located in the theatre district, next to the Gateway District and the Cleveland State University campus. The property is being offered for $1,427,500, representing a 6.50% CAP Rate. The tenant, USA Parking, is the largest private company in terms of number of locations and surface area and the largest in both the gateway and theater districts. USA Parking operates 31 lots in Downtown Cleveland totaling approximately 3,000 spaces. USA Parking just executed a brand-new 10-year lease extension set to commence on July 1, 2017 with rental increases throughout the term. The asset offers an investor minimal management responsibilities with the tenant handling all maintenance and repairs to the parking lot. Since USA Parking’s presence to the lot in 2000, they have invested considerable capital in the property to maintain high visual aesthetic, including newer light posts and new fencing around the perimeter for additional security, and plans to repave and restripe prior to October 31, 2017.
The property’s greatest asset is its optimal Downtown Cleveland location, with close proximity (short 5 minute walk) to Downtown’s most prominent and crowd-seeking venues, including: Quicken Loans Arena (home to the Cleveland Cavaliers and Monsters), Progressive Field (home to the Cleveland Indians), Playhouse Square Theatre District (2nd largest theatre district in the U.S.), Cleveland State University (CSU) Campus & Wolstein Convocation Center (home to the CSU Vikings and public venue for Cleveland’s concerts/events). The closest venue being the Playhouse Square Theatre District which is the country’s largest performing arts center outside of New York and attracts more than one million guests per year to its 1,000+ annual events. These audiences act as the catalyst for economic growth and vitality within the region. In fact, the district recently developed the $40 million Renaissance Office Building and a Wyndham Hotel at Playhouse Square creating even more traffic to the area. It has also just been reported that the Playhouse Square Foundation will be constructing a 34-story apartment tower in the district and the $135 million project will consist of 319 units.
The featured parking lot is ideally situated in the center of all such venues with easy highway access off I-90, which converges with I-77 and I-71 (north/south interstates) in the heart of Downtown that brings traffic into the city. The property has been decreed by the City as historic domain to aid in the preservation of its neighboring historical building, The Tremaine Building, and is deed restricted to remain a private surface lot serving the downtown community.
Furthermore, employment density within immediate proximity of the featured lot shows counts of 99,543 employees within a 1-mile radius, approximately 160,000 employees within a 3-mile radius, along with a high population density of nearly 255,000 people within 5-miles. Cleveland’s downtown's residential population has recently experienced an unprecedented growth boom; a 97.6% occupancy rate with apartment-complex waiting lists that extend for "years" in some cases. The growth is a social and economic behemoth unlike anything the city has seen in a long time and has created demand on nearby parking options. It's a new Cleveland identity entirely. It's upscale. As of "Downtown" is closing in on nearly 14,000 residents, up 70% since 2000 and 32% since 2012. Additionally, there are about 7 times as many workers in the Downtown area since 2012. As of 2016, the Downtown Cleveland Alliance stated that, "275 apartments are currently under construction and another 4,000 are in various stages of planning." With the high growth expectancy, the employees and residents of downtown have a high demand for parking.
Full Offering Memorandum