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

Summary:

- Sale price: €1.99 million

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

- Annual net cold rent (actual): €157,640 p.a. => Sale price corresponds to a multiple of 12.6 and a gross initial yield of 7.9%

- Annual net cold rent (target): approx. €162,740 p.a. => Sale price corresponds to a multiple of 12.2 and a gross initial yield of 8.2%

- Potential for conversion and expansion within the building (7 apartments) is available and already approved by planning authorities; rent can be increased to approx. €200,000 p.a.

- Additional potential for conversion and rent increases through vacant former practice space as well as a former swimming pool in the basement

- No commission – directly from the owner

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

The former sanatorium was built in 1961 (main building) and in 1970 and 1989 (each an extension), renovated in 1989, and finally converted into a student residence in 2011.

The 49 residential units in the property (all with a private bathroom) are currently fully let and yield an annual net cold rent of €157,640. As part of the acquisition, the net cold rent can be increased to approx. €162,740. The ancillary costs are passed on to the tenants via a flat rate service charge.

By converting previously unused spaces (including the entrance hall and former dining hall), an additional 7 apartments can be created within the building. In addition, further parking spaces can be added in the previously unused garden area. A building permit for this is already in place. Through the conversion of these apartments and the construction of the parking spaces, the annual net cold rent can be increased to almost €200,000.

In the long term, a former practice area and a former swimming pool in the basement offer further potential for expansion and/or rent increases.

The property is located in a central and quiet residential area in the spa town of Bad Mergentheim, immediately adjacent to the town center, which features all important local supply options (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 further shopping opportunities can be easily reached. In the immediate vicinity are also the Residenzschloss with the Baden-Württemberg Cooperative State University and the beautiful spa park.

- Spacious common kitchen and laundry room (with coin-operated rental machines) in the basement

- Fiber optic connection available

- Currently 8 parking spaces available, including 1 covered

- Elevator available, but out of service