Prime location in Bochum-Hamme - 7.6% high-yield commercial investment

Key facts

Purchase price & costs

About this investment property

Solid commercial property with attractive yield and versatile usage potential

This commercial property is aimed at both investors and owner-occupiers who value an ongoing source of income, good suitability for alternative uses and manageable investment risk. The property was originally built in 1967 as a bank branch, later modernized and is now used as an office, practice and training location.
The ground-floor areas comprise a spacious reception and administration area, a central meeting and lounge room, two large training or treatment rooms, a separate office for management and a staff room. The existing layout is marketable, flexible and can be adapted if required with manageable effort. (210m²)

There are also around 130 m² of storage/usable space and 60 m² of staff facilities available in the basement. These areas offer additional benefits for archiving, storage, technical equipment or internal operations.

A particular advantage is the extensive technical infrastructure, with electrical and data cabling installed in the floor. The approximately 22-metre-wide window frontage ensures excellent visibility from the street, high advertising impact and pleasant lighting conditions within the rental areas.

The convenient location on Dorstener Straße, with direct connections to public transport, short routes to Bochum city centre and quick access to the A40, makes the location equally attractive for employees, customers and patients. Numerous public parking facilities are located in the immediate vicinity.

Investor perspective

With an annual net cold rent of €30,000 and a purchase price of €395,000, this results in an attractive gross initial yield of around 7.6% p.a. The purchase price corresponds to 13.17 times the annual net rent and is therefore positioned in an attractive market segment for commercial properties.

For example, financing of €300,000 at 4.0% interest and 2.0% repayment results in annual debt service of around €18,000. This is offset by rental income of €30,000 per year, meaning that a surplus of around €12,000 per year can already be generated before maintenance and management costs.

Particularly interesting for investors: The seller is generally prepared to continue renting the premises after the sale. This means that, at the buyer’s request, the purchaser can immediatelyA current rental income without an initial vacancy risk is provided.

The combination of a good visible location, flexible spaces, solid technical equipment, long-term rental potential and attractive returns makes this property an interesting investment opportunity for investors, family offices, long-term holders and owner-occupiers alike.

The property also offers considerable development potential. Pursuant to Section 34 of the German Building Code (BauGB), adding an additional storey to the building appears generally possible. This could presumably create approximately 180 m² of additional living space in the form of three apartments of around 60 m² each. The existing surrounding development and the inner-city location support economically attractive densification. This gives investors, in addition to ongoing commercial rental income, the opportunity to generate additional residential rental income and sustainably increase the overall value of the property. Due to the existing building structure, implementation should be comparatively cost-effective and feasible with manageable effort. A final assessment will of course be carried out as part of a preliminary building inquiry.

Location