Ohio investors may be watching with envy as the ownership of Quay 55 changes hands again. Once a warehouse for receiving cars shipped from auto manufacturers, the building situated on the shores of Lake Erie underwent a $28 million renovation project to convert it into apartments in 2002. For years following, the real estate was labeled distressed because of mortgage defaults and many vacancies. However, now boasting a 94 percent occupancy, the purchase may be considered a wise investment.
Currently the only privately owned lakeshore property in Cleveland, the building was recently purchased for an undisclosed amount of money. The new owner — a local property developer — plans to invest another $400,000 in renovations. Among those upgrades includes the addition of 29 new units and replacing the old and leaky roof.
While the new owner is eager to begin the project, he must wait for approval from the state of Ohio because of the building’s proximity to Lake Erie. The lake presented another issue when scuba divers were required to inspect the building’s foundation. However, all must have seemed satisfactory to the inspectors because the building sale, including a $20 million mortgage, went through.
Commercial real estate purchases have their risks, but finding the right property at the right price can change the outlook of an investor’s future. Property with potential for profitable income can become the basis of future investments, so undertaking such projects requires appropriate experience and resources. Many investors rely on the advice and guidance of an attorney to see them through the process.
Source: crainscleveland.com, “Landmark lands Quay 55 apartments on lakeshore“, Stan Bullard, July 13, 2017
