CLEVELAND INVESTMENT PROPERTY MARKET IS ON FIRE
Global Investments Incorporated are coming into their 8th year of business in 2019.
The Manchester based firm have been selling investment properties in the US to overseas buyers for the past 7 years and have sold in excess of 4,500 homes in this short period.
This time last year CEO Mike Moodie predicted that the Cleveland market would challenge Detroit in terms of sales and enquiries in 2018 and it looks like his prediction has come to fruition with Cleveland surpassing Detroit by producing more than double in both sales and general enquiries and is now officially the companies best selling product.
We asked Mike what his thoughts are on the change, why the Cleveland market is on fire and why there is such a high demand for these types of turn key homes in the city.
Mike commented. “ This time last year we were seeing a rise in the prices in the Detroit market and also a decline in the number of properties available at the prices that our investors wanted.
As a company we always have to be on the lookout for the next big thing and like to be the first to venture into these new markets giving our investors the best opportunities and at the right time.
At this time we had heard a-lot of positive things coming out of Cleveland so we started working with a number of suppliers and management companies in the area. Well the rest is kind of history and right now we are selling more homes in Cleveland than any other overseas company.
As we get properties listed they are literally selling within hours. It is already becoming increasingly difficult for me to find the properties and my days are literally spent on the phone with my brokers hunting down the best deals for our investors. Making sure we have homes in the right locations and then negotiating with the Sellers and driving the price down to deliver great priced homes in excellent locations to our buyers with the highest possible returns. “
See below just 5 reasons why so many investors are getting involved in the Cleveland property boom:
PNC Financial Services Group will move 500 employees to downtown Cleveland by the end of the year.
The move was first announced by regional president Paul Clark at a Downtown Cleveland Alliance event on Sept. 26, as reported by Cleveland.com. PNC Centre will be full for the first time in years. PNC Bank is the third-largest bank in Northeast Ohio and the fourth-largest bank in the state by deposit market share. It’s also among commercial banks that raised prime lending rates to 5.25% in reaction to the Federal Reserve’s latest interest rate hike on Sept. 26.
Cleveland and Akron metros beat Midwest averages in some key areas
Cleveland and Akron are defying some stereotypes and doing pretty well — and better than their Midwestern peers, in some respects.Those are among the findings of the Brookings Metropolitan Policy Program’s Oct. 18 report, “The State of the Heartland: Fact Book 2018,” which looked at data across 26 socioeconomic indicators in 19 states to gauge and rank the current condition and trajectory of cities and states. The geography in the report runs from Minnesota in the north to Georgia in the south, and east to west from Ohio to Nebraska. Cleveland and Akron are both cities with their own data sets within the report — and the data’s encouraging, Brookings says.
Both cities scored above regional and national averages in terms of important indicators, including their poverty rates, median income levels, and the percentage of local residents between 20 and 64 with jobs — the employment rate, as opposed to an unemployment rate.
The region also is less expensive than the coasts, while still having strong entrepreneurial environments around major universities like those in Akron and Cleveland, Muro said. That’s likely to cause money from the coasts to seek a home in Midwest investments, he added — something that local entrepreneurs say they’re already beginning to see in terms of where their capital comes from.
There’s been evidence of that in Cleveland as of late, with money from the East Coast making substantial investments in downtown real estate, most recently with the purchase of the 1111 Superior Building by New York City investors.
Another downtown Cleveland skyscraper is sold
Following a formula rarely executed successfully in downtown Cleveland, Skokie Ill.-based American Landmark Properties bought, remodeled, boosted occupancy and sold the 1111 Superior office building in the Nine Twelve District.
The building’s new owner is Baruch Superior LLC, an affiliate of Zamir Equities of New York City, which on Oct. 10 assumed a long-term lease that controls the building from an affiliate of American Landmark called 1111 Superior, according to Cuyahoga County land records.
Control of the building, which is named after its street address, hinges on a lease because it was constructed on a site leased from the Catholic Diocese of Cleveland that adjoins church offices and St. John Cathedral.
A spokesman for Zamir Equities who declined to be identified by name said the purchase is the company’s first in the Midwest. Most of its properties are in New York City and New Jersey. The company had a portfolio of 1.4 million square feet, consisting of six office buildings and a shopping center in Cedar Hill, Texas, before buying 1111 Superior, according to the firm’s website.
Ohio Moves up 24 Spots in Forbes Annual Ranking of Best States for Business
In its annual ranking of Best States for Business, Forbes placed Ohio at #14 on its list, a jump of more than 20 spots from 2016. Forbes cited Ohio’s low business costs and improved economy. In addition, Forbes ranked Ohio #2 in its quality of life metric thanks to the state’s low cost of living, short commutes and a plethora of top-rate colleges and cultural and recreational opportunities.
Centrally located between New York City, Chicago and Toronto, Ohio affords quick market access to more than half of North America, including Canada. Nearly 50% of the U.S. population is within 500 miles/805 km of Northeast Ohio and approximately 60% of all U.S. Fortune 500 headquarters are within a day’s drive of the region. These are just some of the reasons why so many businesses choose to call Northeast Ohio home.
New $2 Million Business Investment & Attraction Fund—Cleveland’s Health-Tech Corridor
The Cleveland Health-Tech Corridor (“HTC”) recently launched a $2 million investment and attraction fund in partnership with JumpStart to provide financial capital for businesses willing to relocate to the HTC.
The HTC Fund is a unique public-private-nonprofit partnership, with investments from the City of Cleveland, Cleveland Foundation, Ohio Third Frontier, and several private investors. It is available to entrepreneurs seeking capital to get their businesses off the ground and restricted to businesses currently outside of the HTC who are willing to relocate their business within its boundaries. Companies seeking investment from the fund must have a unique or breakthrough idea, have a large ($1 billion+) addressable market, have exit potential, and demonstrate excellence in their field.
The Health-Tech Corridor, a rapidly growing 1,600 acre district linking downtown and University Circle, is a prime location for growing health-tech and high-tech businesses, providing access to world class medical and academic institutions, affordable and flexible office and lab space, a talented workforce, and the opportunity to collaborate with a vibrant and growing entrepreneurial community.
We also asked Mike how long he feels this boom will last and how long he feels investors have before we see prices being raised like in the Detroit market.
Mike added. “ I don’t think that we can compare the two as we are seeing incredible demand for these properties which is happening at a much faster rate than we seen in Detroit all those years ago.
I think at the prices and the returns that we have now we might see another 12 months if we are lucky. Like I said earlier we are already finding it much harder to find the right houses at the right prices so we are already looking at other locations like Akron and Youngstown so when the Cleveland market dries up or out prices itself we have other options for our investors.
Ohio is a huge state so we are exploring other options at the moment and hope to release our new Akron opportunities in the coming weeks. Saying that we are incredibly excited at what is going on in Cleveland and think that sales and enquiries will be even bigger in 2019” Mike Moodie CEO Global Investments Incorporated.
If you would like to learn more about the Cleveland property market or see any of the available properties that Global Investments Incorporated have to offer please email Mike or any of the team at Global at email@example.com