House for sale • 1773 m² without real estate, Baden-Württemberg

Summary:

- Sale price: €1.99 million

- Rentable living space: 1,102 m² => Sale price corresponds to approx. €1,800 per m² of living space

- Annual net cold rent (current): €152,340 per annum => Sale price corresponds to a multiple of 13.1 or a gross initial yield of 7.7%

- Annual net cold rent (after tenant changes): approx. €162,660 per annum => Sale price corresponds to a multiple of 12.2 or a gross initial yield of 8.2%

- Possibility for internal expansion and conversion within the building (7 apartments) available and already approved by planning authorities; rent can be increased to over €195,000 per annum

- Further potential for expansion and rent increase through vacant former practice space and an old swimming pool in the basement

- Commission-free, directly from the owner

The offered property is an established and popular student residence in a very central yet quiet location in Bad Mergentheim. The property is located immediately adjacent to the city center and only about 500 meters from the Cooperative State University of Baden-Württemberg (DHBW). The train station is also in close proximity.

The former sanatorium was built in 1961 (main building) as well as in 1970 and 1989 (extensions, respectively), renovated in 1989, and finally converted into a student residence in 2011.

The 49 residential units in the property (all with their own bathroom) are currently fully let and generate an annual net cold rent of €152,340. Through tenant changes combined with rent increases, the rent will increase to approximately €162,660 from October 1, 2026. The ancillary costs are passed on to the tenants via a flat-rate service charge.

By converting currently unused areas (including the entrance hall and former dining room), 7 additional apartments can be created within the building. In addition, further parking spaces can be developed in the previously unused garden area. A building permit for this is already available. With the conversion of these apartments and the construction of the parking spaces, the annual net cold rent can be increased to over €195,000.

Looking ahead, a former practice area and an old swimming pool in the basement offer further potential for expansion and/or rent increase.

The property is located in a central and quiet residential area in the spa town of Bad Mergentheim, immediately adjacent to the city center, which offers all important local amenities (including a shopping center, LIDL, ALDI, Norma, EDEKA).

Within walking distance of the property, the train station as well as doctors, restaurants, cafés, bakeries, and other shopping opportunities can be easily reached. In the surrounding area, one can also find the Residenzschloss with the Cooperative State University of Baden-Württemberg and the beautiful spa park.

- Spacious shared kitchen and laundry room (with fee-based rental machines) in the basement

- Fiber-optic connection available

- Currently 8 parking spaces available, including 1 covered

- Elevator available, but currently out of service