I am thinking of buying a 203 sqm conference room in a serviced apartment complex and six storage rooms and one car park. The current return is 12 per cent (net) but the lease runs out in September 2015. I suppose that is why the price is low. Do people have thoughts. It's a long time since I've purchased anything commercial. I thought that perhaps when the lease for serviced apartments run out, I could either refurbish the conference room and turn it into an apartment or two or lease it to a business, and rent out the six storage rooms. I have no idea how much you pay for storage though. Any thoughts from anyone?
Conference room in apartment complex, six storage rooms and one carpark
- Thread starter property_girl
- Start date
thanks Sanj, they were my thoughts too--too much of an outlay to turn a large empty room into two apartments. I suppose it depends on what the units will be valued at once they are done and what the rent would be. That's if I were allowed to do it.
PG, who leases the conference room? Is there a market? (Where is it located - near transport/parking/other businesses)? What does the DA say about the conference room ie must it remain as a conference room or can it be used as offices. Does it have its own amenities (tearoom, loos, disabled access)? What is the air conditioning capacity (is it suitable as a conference room as they have a high heat load and fresh air requirement)? Is it on separate power?
Scott, at the moment there is a lease in place until Sept 2015. The lessor is a large hotel group, which pays rent on all the units in the complex as well as the conference room, the car space and the storage rooms. There is a kitchenette, toilet and shower in the conference room.
At 9 am I will call the body corp and find out the answers to your other questions re. air con. and ask them more questions.
The rates are relatively high--$5,500 per annum. I am thinking that come Sept 2015, when the current lease expires--if the current lessor decides not to extend the lease (which is highly likely), I might be left with a white elephant eg. I am stuck with about 10 spaces, which perhaps cannot be split up for sale and might be a headache to lease individually.
At 9 am I will call the body corp and find out the answers to your other questions re. air con. and ask them more questions.
The rates are relatively high--$5,500 per annum. I am thinking that come Sept 2015, when the current lease expires--if the current lessor decides not to extend the lease (which is highly likely), I might be left with a white elephant eg. I am stuck with about 10 spaces, which perhaps cannot be split up for sale and might be a headache to lease individually.
