Three retail units in Berlin-Mitte.
Description
The total floor area is 379 m², of which:
- the first unit is 179 m²;
- the second unit is 62 m²;
- the third unit is 138 m².
The properties are situated on the ground floors of two neighboring buildings.
Each unit has a storage room in the basement.
All areas are leased out to three tenants.
Financial performance
Absolute annual income is 125,469 €.
The current yield of 4%.
Tenants
Tenants are cafe, bicycle shop and children goods shop.
The lease agreement with cafe is signed 5 years until 2023 with extension option for 5 years.
The lease agreement with a bicycle shop is signed for 5 years until May 2024 with the extension option for 5 years. The shop has been leasing the property since 2014 and has already used the first extension option.
The lease agreement with children goods shop is signed for 5 years until 2021 with extension option 5 years. The shop also rents two parking lots.
Transaction costs
Notary (state registration) is 1.5 – 2%.
Acquisition tax is 6%.
The brokerage fee is 6% + 19% VAT (in total 7.14%).
Location
The property is situated in the retail corridor in the center of Berlin. Public transportation and metro stations are in the neighborhood.
Berlin is the capital of Germany with the population more than 3.7 million people.
Within EU Berlin is one of the cities with the highest business activity. About 80% of companies in Berlin work in the services sector. Several large corporations, such as Siemens, Volkswagen, Pfizer and SAP, have headquarters in Berlin.
2 airports of Berlin — Tegel and Schönefeld — serve more than 40 million passengers a year.
Today Berlin is a world cultural center and one of the most visited cities on the continent. The annual number of tourists exceeds 30 million people.
