4755 Pearl Rd, Cleveland, OH 44109

The Finley on Pearl is a vacant property that 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 property is currently vacant and offline. The project benefits from full 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.

Total projected redevelopment costs are 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 high-6% range, and broader metro averages reported near 8.8%.

A fully redeveloped, market-rate multifamily property achieving a pro forma 10.1% cap rate at the end of first-year lease-up would be positioned to outperform typical stabilized yields while benefiting from both local policy support and macro demand for additional urban housing stock.