We’re always on the look out for the best investment opportunities, and Berlin still continues to thrive.
Schöneberg, one of Berlin’s most eclectic and liberal districts is home to quirky galleries, delicious food stores and Turkish eateries for gourmet foodies. It’s also excellent for families of all ages, with Schöneberger Südgelände Park being a popular attraction for all.
It’s really not difficult to find good coffee in Schöneberg – the best cafes are along Akazienstraße and neighboring Gotzstraße. For chocolate lovers there’s the wonderful Winterfeldt Schokoladen aka “The Chocolate Pharmacy”, with 1000 tempting chocolate products to tempt you. This quaint looking establishment also doubles as a café indoors and outdoors.
The town hall, Rathaus Schöneberg, is where President Kennedy delivered his famous anti-communist speech, featuring the quote Ich bin ein Berliner, which translates as I am a Berliner. There was however a misconception that the phrase was used incorrectly and actually means “I am a doughnut”!
Schöneberg is well known as the birthplace of Marlene Dietrich, and for it’s resident geniuses include Albert Einstein and David Bowie to name a few.
The quickest and easiest way to get there is by train which is just 7 minutes away from Berlin Hauptbahnhof station. It’s just a short distance away from the station that you’ll find Hohenfriedbergstrasse a mid-size Altbau-style apartment building managed by Phillips and Southern. Built in 1914, these apartments are conveniently located next to the shops, cafes and green space.
Executive Summary
What we did
When the new owners purchased the property they recognised the potential that could be reached with a complete refurbishment. We arranged everything, from renovating the façade to replacing the electrics and heating system for the building. The lift shaft was replaced, the apartments were remodelled to make them more user friendly and the roof was replaced.
How we did it
We arranged finance and exchanged contacts in December 2017. We appointed an architect who negotiated for us with the city council to confirm permission for works that the new owners wanted to carry out. We then set to work on giving the vacant properties a makeover, modernising the apartments throughout.
With improved weather conditions in the spring of 2018 we could get to work on replacing the roof. We moved onto replastering the façade, including restoring the intricate external details of the renaissance architecture. The new heating system one of the most efficient and eco friendly on the market, and was installed in time for winter. The lift shaft received rigorous testing during the installation process and is also highly efficient.
The finishing touches were put in place in June 2019.
Results
The building now looks stunning, and based on actual rental income achieved after letting the flats, post modernisation, we have had an informed valuation by a third party, valuing the property at €9,000,000. In just 2 years we’ve increased the value by 2 million euros. The refurb coupled with Berlin’s strong rent culture should ensure comfortable future yields for our client.
We intend to refurbish the remaining flats as and when they become available, which will of course further increase capital value.