Prime Investment Opportunity – Fully Tenanted 4-Storey Residential Block in Arcadia
Asking Price: R12,900,000 | Gross Yield: 11% | Net Yield: 9% | Ideal Student Housing Conversion
Located in the heart of Arcadia, this well-maintained, full-title residential building presents a rare opportunity for savvy investors seeking high-yield income potential and strong capital growth. The building is fully tenanted, primarily by professionals, government staff, and hospital employees, and is ideally situated for student accommodation—just 2km from TUT and TVET Colleges, with bus routes directly accessible.
Property Highlights:
20 Oversized Bachelor Units – Each approx. 50m2, with private kitchens, bathrooms, and enclosed balconies (often larger than modern bedrooms).
Zoned Special Residential with Office Rights – Adds flexibility for future use or rezoning.
Fully Tenanted with Stable Income – Current gross rental income of ±R123,000/month, with scope to increase significantly.
Gross Yield: 11% | Net Yield: 9% – Solid return from day one, with excellent growth potential.
Potential for Student Housing – Subdivision could allow 80 student beds. Estimated student income: R400,000/month, netting approx. R200,000/month after expenses.
Well-Maintained Building – Professionally managed, with minimal capital outlay required for current operations.
Lift Access – Fitted with a Schindler lift under maintenance contract.
Prepaid Electricity – Each unit is separately metered, allowing for streamlined utility management.
Secure Parking – 7 undercover bays generating additional income (currently leased at R600–R660/month).
Property Specs:
Erf Size: 910m2 | GLA: ±1,000m2
Servant’s Quarter + Storeroom
Building Age: ±65 years – solid, spacious construction typical of the era.
Operating Costs (±R25,000/month avg.):
Includes caretaker, night guard, lift maintenance, insurance, and municipal utilities.
Location Advantage:
700m to UP Basic Medical Sciences Campus (Steve Biko)
2km to TUT & TVET Colleges
3.8km to UNISA Campus
Close to major transport routes and hospitals
Investor Upside:
Minimal conversion costs (±R800,000) for student housing yield high returns. With growing demand for centrally located, affordable student accommodation, this property offers the rare combination of stable current income and scalable future upside.
For experienced investors or developers looking to unlock Arcadia's booming student rental market, this asset offers solid fundamentals with significant growth potential.
