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Property for sale information
€900,000 Mixed-use building fully let at 6.4% yield, Frankfurt.
Fully let whole mixed-use building containing 7 apartments and two retail units. Extends to 455 sq m (4,897 sq ft) over 5 floors. Total rent €57,648 a net yield of 6.4%.
The building was recently renovated and is in very good condition. Includes off-street parking and modern individual gas heating. Apartments are let to mix of long-term professionals and students.
Both retail units have strong tenants: a seafood delicatessen, which has been a tenant since 1999, and a betting shop that has been in operation two years.
The building is on the edge of the city centre close to the trade fair grounds of Messe and the new European Quarter (Europaviertel), which is currently one of the biggest redevelopment projects in Europe on the 90 hectare site of the former freight train station creating whole new inner city distirct and designed to be the Silicon Valley of Europe. Under five minutes walk from both the tram and S-Bahn train.
The Frankfurt metropolitan area has a population of 5m; the second largest in Germany. Frankfurt is one of the wealthiest cities in Europe, and is considered the most affluent, with the highest earnings per head of any city. It is the financial centre of not only Germany but also Europe: the location of European Central Bank headquarters and 300 other banks, it also has more lawyers per head than any other city in Europe. There is, therefore, a very strong rental market from young professionals and students. Buying in Frankfurt is like buying in London ten years ago; the city has the same characteristics and offers excellent value.
The west of Germany is a mature affluent market, which allows investors the ability to sell their property on to the local population. Germany is the third largest economy in the world and the main driver of the Eurozone economy. Property here is at the bottom of the property cycle and offers the best opportunity to secure very good value - effectively at mid-nineties prices.