Investment Grade Penthouse with Two Terraces - Downtown
Print this page BackArea: Downtown - Sales
- Usable Internal Surface (sqm): 236
- Bedrooms: 4
- Kitchen: Closed
- Outdoor area: Yes (terrace)
- Security: Yes
- Bathrooms: 5
- Reserved parking: Yes
Property Description: Investment grade is not a descriptor we banter about indiscriminitly as is often the case here in Romania. We use data to evaluate this and this property has three data points to explain the special value. Firstly; the property is being valued by the Landlord at 1,500 euro per sqm on the inside usable space with NO value given for the extensive and very usable outdoor spaces (which is nuts frankly). 1,500 per sqm is sometimes the price paid for apartments (not penthouses) in a poor state of readiness and this penthouse has been completely and lovingly renovated. Secondly; The Landlord has been renting on Airbnb for three years and has AirBNB data to demontrate that NET (not Gross) income yield is an average of 11%. If this is done on the gross (which most people talk about) it would be 14%. You`ll be hard to find that yield on residential properties. Thirdly; we are one of the top agencies in Bucharest in the business of renting high quality properties, mostly to expatriates who have certain preferences in design and are willing to pay more for the right property. We believe this property has a rental value of 4,000 Euro per month on a longterm lease. That represents a 13.7% yield. Again, very good. So, what`s the catch, why so cheap? The reason is because the building has been identified by city hall as a special building and with EU funding is going to go through a building consolidation process that will take about three years to complete. Nobody will be allowed to live in the building during this process and consequently income on the investment will be on pause until the process is done. Once done however, the building is a much stronger structure, better insulated against cold (again conforming with EU requiremnts) and will be worth, we believe, at least double the current price being asked (at todays prices, not the market prices in three years forward). The owner is not patient to wait because he must sell up and return to Germany for personal family reaons. The renovations include siemic consolidation, better insulation, new pipes and electronics and wiring throughout the building.
This building was built and completed in the early 1950`s and the penthouse was owned by the original architect). Special features of this penthouse include the two massive terraces (one has an original fire-pit built into the wall!), the big open living room with fire-place, the beautiful large dining space and the original ceiling in the living room. The penthouse has a lot of light. The original space for the first owner was purposely designed as a sprawling one-bedroom penthouse and the parties they must have had should be legendary. The communists converted the common laundry rooms above the penthouse into three apartments, which this owner promptly bought and converted into small apartments with bedrooms, so four bedrooms in total are possible. All included in the offer. Parking space can be rented in the basement.
Neighborhood Description: In the absolute heart of the city, between Piata University and Piata Romana. A lot of options on restaurants, cafes, terraces, theatres, art exhibitions, museums, etc. You have a choice of two metro stations as well as Icoanei or Cismigiu parks. Vibrant area, for people who want to be in the buzz. Property is high enough of the ground however that it is very quiet. Just a lovely property in a great location.
Property Description: Investment grade is not a descriptor we banter about indiscriminitly as is often the case here in Romania. We use data to evaluate this and this property has three data points to explain the special value. Firstly; the property is being valued by the Landlord at 1,500 euro per sqm on the inside usable space with NO value given for the extensive and very usable outdoor spaces (which is nuts frankly). 1,500 per sqm is sometimes the price paid for apartments (not penthouses) in a poor state of readiness and this penthouse has been completely and lovingly renovated. Secondly; The Landlord has been renting on Airbnb for three years and has AirBNB data to demontrate that NET (not Gross) income yield is an average of 11%. If this is done on the gross (which most people talk about) it would be 14%. You`ll be hard to find that yield on residential properties. Thirdly; we are one of the top agencies in Bucharest in the business of renting high quality properties, mostly to expatriates who have certain preferences in design and are willing to pay more for the right property. We believe this property has a rental value of 4,000 Euro per month on a longterm lease. That represents a 13.7% yield. Again, very good. So, what`s the catch, why so cheap? The reason is because the building has been identified by city hall as a special building and with EU funding is going to go through a building consolidation process that will take about three years to complete. Nobody will be allowed to live in the building during this process and consequently income on the investment will be on pause until the process is done. Once done however, the building is a much stronger structure, better insulated against cold (again conforming with EU requiremnts) and will be worth, we believe, at least double the current price being asked (at todays prices, not the market prices in three years forward). The owner is not patient to wait because he must sell up and return to Germany for personal family reaons. The renovations include siemic consolidation, better insulation, new pipes and electronics and wiring throughout the building.
This building was built and completed in the early 1950`s and the penthouse was owned by the original architect). Special features of this penthouse include the two massive terraces (one has an original fire-pit built into the wall!), the big open living room with fire-place, the beautiful large dining space and the original ceiling in the living room. The penthouse has a lot of light. The original space for the first owner was purposely designed as a sprawling one-bedroom penthouse and the parties they must have had should be legendary. The communists converted the common laundry rooms above the penthouse into three apartments, which this owner promptly bought and converted into small apartments with bedrooms, so four bedrooms in total are possible. All included in the offer. Parking space can be rented in the basement.
Neighborhood Description: In the absolute heart of the city, between Piata University and Piata Romana. A lot of options on restaurants, cafes, terraces, theatres, art exhibitions, museums, etc. You have a choice of two metro stations as well as Icoanei or Cismigiu parks. Vibrant area, for people who want to be in the buzz. Property is high enough of the ground however that it is very quiet. Just a lovely property in a great location.
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