Euclid Apartments

www.euclidapartments.com

Euclid Apartments, the largest affordable housing property in its area, marked Nord Group’s first and most significant acquisition in Ohio. Secured with an 80% LTC bridge loan capped at a 6% interest rate—an arrangement that paid out three times the rate cap cost during the two-year holding period—Euclid presented a high-yield investment opportunity. The property was acquired at a relatively high cap rate with strong initial occupancy at 94%, offering an excellent entry into the Ohio market with favorable debt structure.

Nord Group implemented a $1.5 million capital improvement plan, renovating 250 units with upgrades such as stainless steel appliances, new cabinets, fresh paint, updated flooring, and modern lighting. These improvements resulted in an average rent increase of $500 per upgraded unit. Additionally, the introduction of RUBS (Ratio Utility Billing System) and other ancillary charges increased other income by $370,000. Non-renovated units were also renewed at an 8% rent increase, supported by the city of Cuyahoga.

Given Euclid’s status as the largest affordable housing property in the area, the property enjoys constant traffic from city referrals. Nord Group’s strategy was to build a robust management system with competent staff to ensure consistent success in passing annual city inspections. This allowed for smooth renewals of existing residents, reduced delinquency, improved collections, and facilitated the renovation of an additional 250 units, capturing the same $500 rent uplift.

In 2024, Nord Group refinanced Euclid with a CMBS loan, returning all invested capital to its investors. The asset is now stabilized and generating high cash flow, with plans to hold the property for another 4-5 years. During this period, Nord Group will gradually renovate an additional 400 units, positioning the property for an exit once the Low-Income Housing Tax Credit (LIHTC) restriction expires, maximizing value for investors.