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Listed by:

Transworld Business Advisors

NNN Bar And Lounge Building $156K Annual Income For Sale

Cuyahoga County, Ohio, US
Asking Price:
$1,350,000
Sales Revenue:
On request
Cash Flow:
On request

Rare opportunity to acquire a fully leased, income-producing commercial building in one of downtown Cleveland's most active and historically significant entertainment corridors. This two-story brick bar and lounge building offers 10,226 square feet of fully built-out hospitality space across two separate tenant floors, plus a full basement — all within a vibrant mixed-use urban district anchored by restaurants, bars, live entertainment venues, and a growing residential population.

 

Both floors are leased under separate five-year NNN agreements, generating $156,000 in combined gross rental income in Year 1, with built-in annual escalations through 2029. Under the net lease structure, tenants are responsible for real estate taxes, insurance, utilities, and routine maintenance — creating a low-management, passive income profile for the buyer.

 

The seller is currently completing renovations on the first floor, with the ground-floor bar and lounge concept on track to reopen within approximately 60 days. Renovation planning for the second-floor tenant space is also underway, with an opening timeline to be determined.

Real estate included is listed and represented by Realty Professionals, a licensed Ohio real estate brokerage. Cooperation with qualified brokers will be considered.  Realty Professionals serves as our designated real estate brokerage partner for business sale transactions involving real estate. The same strict confidentiality and private marketing standards applicable to the business sale will also apply to the real estate component of the transaction.

This offering is listed through business brokerage channels with full confidentiality protections in place. Prospective buyers are required to execute a Non-Disclosure Agreement, complete a buyer profile, and engage directly with the listing broker before receiving detailed financial disclosures, tenant information, or specific property identification. The listing price reflects primarily the real estate value.

Property Information

Real Estate:

Real Property Included

Business Operation

Expansion Potential:

This property offers several concrete avenues for a new owner to grow income and build value over time:

Built-In Rent Escalations. Both NNN leases include annual rent increases of $1,200 per tenant per year, stepping from $78,000 per tenant in Year 1 to $82,800 per tenant in Year 5. Combined, the leases are structured to reach $165,600 in annual gross income by 2029 — a built-in 6.2% cumulative rent increase with no additional effort required from ownership.

Second-Floor Activation. The second-floor tenant space is still in the pre-opening renovation phase. A buyer with the resources to accelerate that buildout would unlock the full combined income potential of both levels operating simultaneously — a scenario not yet reflected in current financials.

Exterior Signage Revenue. Both leases reserve the landlord's right to lease exterior building walls for billboard advertising. In a high-traffic urban entertainment corridor, this right could generate meaningful supplemental income at the landlord's discretion.

Basement Utilization. The full unfinished basement — not included in either current lease — offers additional square footage that could be used for storage leasing, mechanical purposes, or future buildout at a buyer's election.

Market Appreciation. The surrounding district continues to attract new residential, hospitality, and mixed-use development. Vacancy rates in the immediate submarket are exceptionally tight, reflecting strong demand for limited supply. As the district's density and entertainment profile continue to grow, the underlying value of a well-located historic brick asset is expected to appreciate accordingly.

Competition / Market:

The subject property is situated within one of northeast Ohio's most competitive and sought-after commercial entertainment corridors. The district draws a consistently high-volume, high-spending customer base — downtown residents, office workers, sports fans, tourists, and event attendees — supported by proximity to major professional sports venues, Playhouse Square (the second-largest performing arts center in the United States), and a steadily growing urban residential population.

In this environment, barriers to entry are high. Authentic historic brick buildings of the character and scale found at this property are increasingly scarce. Available retail and hospitality space within the immediate submarket carries asking rents of approximately $21 per square foot NNN, with vacancy running at just 1.2% within a half-mile radius — reflecting extraordinarily tight supply. These dynamics support both the existing in-place lease rates and the long-term appreciation story for the asset.

From a real estate standpoint, the subject property is differentiated by its historic construction, two-floor layout with independently leased tenant spaces, full basement, and second-floor outdoor deck — physical features that are difficult to replicate in new construction and that add operational flexibility for tenants in the hospitality segment.

Comparable building sales within the broader submarket have ranged from approximately $75 to $215 per square foot, and the current asking price reflects the property's location premium, in-place lease income, and physical distinctiveness within a supply-constrained market.

Reasons for selling:

Other Business Interests