Full title building for sale in Pretoria under R10m! 35 x Apartments!

EXECUTIVE SUMMARY

Full title building in Pretoria CBD on the Arcadia border, which consist of 35 apartments and 5 parkings.

Currently let to working tenants, mostly single or couples.

High potential for Student Accommodation with a very close proximity to Universities like TUT, UP, TVET and Steve Biko Hospital for SMU Students. Building is in good condition and in a safe area close to amenities like schools, shopping centres, place of religion and transport nodes.

PRICE

Asking price is R6 950 000,00.

Estimated replacement cost: R12 000 000.00

CURRENT ANNUAL GROSS INCOME: +-R1 140 000.00.

CURRENT ANNUAL NET INCOME: +-R775 000.00.

Landlord recovers water from tenants. (R150.00 per tenant)

Electricity is on prepaid with Protea Metering.

Very low maintenance as the building is face brick.

LOCATION

Located in Pretoria Central very close to the Union Buildings, on the border of Arcadia.

Close to the following amenities:

Medical facilities – walking distance to hospitals, clinics and medical facilities.

Educational facilities – primary and secondary schools, Universities and Colleges

Shopping facilities – walking distance and in abundance.

Religious facilities – Many churches surrounding the building.

Transport facilities – Gautrain, taxi ranks, Bus Rapid Transit station

ENTITY

Property is registered in a PTY Company.

The company is transferrable as a Share Transfer (Existing shareholders step down, buyer appointed as new Shareholder)

One Bond to be settled and 3 loan accounts before shares are transferred to buyer.

The company is NOT registered for VAT.

If a Deeds Office Transfer is done, the transfer costs would be +-R640 000.00.

This excludes Bond Registration Costs.

SPECIFICATIONS

AGE OF THE BUILDING: +-30 Years

CONDITION: Building is well maintained. Apartment interior upgraded and renovated before any new tenants move in.

Needs minor cosmetic attention.

NET LETTABLE AREA: +-628m2

ERF SIZE: 528m2

APARTMENT MIX:

35 x Bachelor Apartments

- 18 Units: 11 - 16m2

- 9 Units: 18 - 20m2

- 8 Units: 23m2 - 32m2

Each apartment has a kitchenette, geyser, open plan bedroom/s with built (no cupboards),

bathroom with toilet, basin and shower.

LEVELS: 3 Residential floors

PARKING: 5 secure x Open parkings - gated

TENANT MIX: Currently leased to normal working-class tenants, mostly families.

ZONING: Business 1. Zoning certificate available.

Apply at Tshwane for General Residential, and receive a reduction in rates.

HERITAGE: Not subject to PHRA-G as the building age is below 60 years.

If a property is older than 60 years, it is subject to Section 34 of the National Heritage Resources Act. A permit from the relevant provincial heritage authority must be obtained for any renovations, demolition and alterations. The municipality will not approve plans without the PHRA-G consent.

VACANCIES: Fully occupied with no vacancies and waiting list of tenants. When a tenant relocates, the owner first clean upgrade the apartment.

Tenant waiting list secured for this building. High rental demand.

FEATURES AND FACILITIES:

- Caretaker stays in one of the apartments. He does not pay rent. (R2500.00)It is part of his salary perk/package.

- Double gate to building for security.

- 5 secure parkings inside building for small vehicles.

- Washing line area in courtyard.

- 1 x Vehicle Entrance and 1 Pedestrian Entrance

- Secure area with no incidents at this building.

- Protea Electricity prepaid meters for each apartment.

FINANCES

An income and expenses statement will be provided to successful buyers during their due diligence after successful offer acceptance.

General Monthly Expenses

- Cleaning/Maintenance R1 266.00

- Caretaker/Cleaner salary R3 905.00

- Property Management by Huurkor - 6% R5 600.00

- Municipal costs

Rates: R5 370.00

Waste Removal: R1 341.00

Sanitation: R3 730.00

Water: R6 710.00

- Landlord recovers R150.00 per tenant for meter reading and water.

CAPITAL EXPENDITURE ITEMS (CGT deductible)

- Solar, Hot-water Boiler and Borehole Installation

- Building extensions

- Major refurbishments

- New security system

UPSIDE

1. Student Accommodation (Private and NSFAS)

The location of this building allows for a Student Accommodation Opportunity.

Conservatively calculated, 35 student beds will fit as Single rooms.

To optimize, you would be able to sleep 52 x Students.

18 x Single and 34 x Sharing based on the sizes of the apartments.

Estimated cost for conversion, amount to max R10 000.00 per bed.

For a full analysis and scope on Student Accommodation, please request from us.

This building would easily be approved as a 35 x Bed Student Accommodation Facility, due to the close proximity to TUT, TVET, UP and Steve Biko Academic.

POTENTIAL STUDENT ACCOMMODATION INCOME:

35 X R50 000,00 = R1 750 000.00 Gross income per annum.

or

52 X R50 000,00 = R1 300 000.00 Gross income per annum.

Expenses are normally +-50%.

BROKER BACKGROUND

Started in the industry in 2004, we are a niche brokerage that assist entrepreneurs to start successful and steadily build their income generating property portfolios.

We specialize in inner-city investment stock consisting mainly of blocks of residential apartments, development land, student accommodation and mixed-use buildings in Sunnyside, Arcadia, Pretoria CBD, Silverton, Pretoria West and Hatfield.

We assist entrepreneurs and existing investors not only to acquire buildings, but also to obtain finance, an effective due diligence support, preparation for NSFAS/University accreditation, BOQ, Conversion into student accommodation and sourcing property management.

DISCLAIMER:

We made every effort to ensure the accuracy of the information on this property at the time of listing. It is advised that the purchaser does a thorough due diligence to verify the information.

Should any cost or detail change, the broker cannot be held liable for any omissions, errors or differences.