Description

Property Price: €4.8 million Investment Volume: €7.5 – 11.0 million Location: City center, close to the central train station Description: For sale is a land plot of 3,700 m² with two existing buildings totaling 5,500 m². One of the buildings is a palace architecture landmark, and its exterior facades must be preserved. Acquiring and restoring architectural landmarks provides the buyer with significant tax benefits. The second building can be partially or fully redeveloped based on the chosen project. Redeveloping the building seems rational. It is a solid brick structure with concrete floors. The total area can be increased during redevelopment. The project could consider constructing student dormitories or a high-class hotel with 100-150 rooms, featuring a cozy restaurant in the basement with vaulted ceilings. A separate block could be allocated for additional student housing or long-term rental rooms, which are currently in high demand in Germany. It could also be a stylish residential complex. On the available land, depending on the chosen concept, an additional building of 6-8 stories could be constructed. Given the high demand, it is likely to be student dormitories. Investment Volume: The price of the undeveloped land is €4.8 million. The total project cost for the buyer will depend on the chosen concept and will be approximately between €7.5 million and €11.0 million. The price of new housing in the area is around €3,200-3,800/m². Equity participation with the current property owner and/or construction company and/or architectural firm is possible. There are potential tenants ready to lease any completed property long-term, for 15-20 years with options for extension. Estimated Project Timeline: Project design and preparation of working drawings, project approval, and obtaining building permits: 6-8 months. All construction work until the object is completed ranges from 1 year to 1 year and 7 months, depending on the chosen project and general contractor. Management and oversight of the work will be handled by a property management company. Municipal Support: The acute shortage of student dormitories, residential, and commercial spaces highlights the importance of this project. A neighboring plot has recently seen a new building with student apartments sold within 2 months. As the city is interested in building reconstruction and modern development of vacant land, the owner/developer will receive support from local authorities at all levels for project implementation.