872 m² Apartment Block For Sale in Menlyn

PROPERTY DESCRIPTION:
The complex comprises of 2 Double storey buildings, with a total of 20 units. The buildings are developed as stack simplexes with 5 units on the ground floor and 5 units on the upper-level floor of each building. Each unit has a garage and the upper units have patios on the garage rooftops. There are 9 units for sale, which include 7 x 2 bedroom units and 2 x 3 bedroom units. All units are currently tenanted.

PROPERTY LOCATION:
The subject properties are located in a small township named De Beers, located next to Menlyn and Newlands, in the Eastern Suburbs of Pretoria. The area forms part of the very popular Menlyn Commercial Development node, which includes Menlyn Mall Shopping Centre and larger Menlyn Maine development, which includes hotels, retail shopping centre, casino, entertainment arena, and several large office buildings, which is regarded as the premium address for major companies. The area is located just east of the N1 Highway, with access from Atterbury Road and Garsfontein Drive off-ramps. These 2 roads also then forms the main arterial routes through the area. Residential development surrounds the commercial hub, with a large presence of high and low rise residential flats and residential houses. The subject property is located on Thys Street, just off Garsfontein Drive and directly adjacent to a large office development, the Protea Fire and Ice Hotel and the new Land Rover Dealership.

INVESTMENT PROFILE:
There are 9 stack simplex, sectional title units for sale. There are 7 x 2 bedroom units measuring 90m2 and 2 x 3 bedroom units measuring 121m2. All 9 units are tenanted, with short term leases.
2 Bedrooms are selling for R1 250 000
3 Bedrooms are selling for R1 550 000

INVESTMENT CALCULATION:
Annual Income for 9 Units: R954 000
Annual Expenditure: R142 026
Annual Net Income: R811 974
Selling Price: R11 850 000
Yield: 6.8%

The units are currently renting below the market rate, so there is an opportunity to increase the rental at the date of renewal of the leases.