6% yield property in Eisgarn – 7 units & expansion potential

Existing income combined with further development potential

A versatile residential and commercial building with seven units is for sale at Wienerstraße 53 in Eisgarn. Five units are already rented, while two further areas on the ground floor are still in shell condition and offer the opportunity to further expand the existing income base.

The building has a long history. The original part of the building dates from around 1900 and was used as an inn for many years. In 1987, the existing building was extended to include the current upper floor. The ground floor also had a commercial character for a long time: the part that is now rented as a photo studio formerly housed the local Raiffeisen bank.

Since the current owner took over at the end of 2018, continuous investment has been made in the property and the existing building stock has been developed step by step.

Four modern and rented apartments on the upper floor

Four independent apartments were created on the upper floor:

• Top 1: approx. 75 m²
• Top 2: approx. 25 m²
• Top 3: approx. 48 m²
• Top 4: approx. 54 m²

All four apartments are currently rented.

The units are modern and well maintained. Light-colored wall surfaces, contemporary kitchens and easy-care vinyl floors in a wood look create a pleasant living atmosphere. The sanitary areas have also been designed in a contemporary style and feature modern tiles, well-maintained sanitary fittings and showers with glass partitions.

Due to the different apartment sizes, the offering ranges from a compact apartment to a more spacious multi-room apartment and therefore appeals to different tenant groups.

Rented commercial unit on the ground floor

The ground floor also contains a commercial unit measuring around 91 m², which is currently used and rented as a photo studio.

Historically, the former Raiffeisen bank was located in precisely this part of the building.

The existing income is therefore not derived exclusively from residential use, but is supplemented by an additional commercial unit.

Approximately 151 m² of additional space on the ground floor

Two further units are located on the ground floor with Top 5 and Top 6:

• Top 5: approx. 81 m²
• Top 6: approx. 70 m²

Both units are currently unfinished and not rented.

The existing plans provide for conversion into two additional apartments. The new owner can therefore still adapt the further design of the areas to their own usage concept.

Depending on the future strategy, it may also be examined whether office, commercial or service use would be appropriate for individual areas. Any use deviating from the existing plans or any possible change of use must be clarified with the responsible building authority and the relevant bodies before implementation.

Upon completion of Top 5 and Top 6, approximately 151 m² of additional rentable space can thereby be created and the existing income base expanded accordingly.

Investments and modernizations since 2018

Since the end of 2018, numerous measures have been implemented to enhance the property and ensure its sustainable use.

The main works include, among others:

• Conversion of the upper floor into four modern apartments
• Modernization of kitchens, bathrooms, floors and surfaces
• Triple-glazed windows
• Modernization of the heating supply with gas condensing technology
• Central hot-water production
• Approximately 35 cm thick EPS/polystyrene loose-fill insulation on the top-floor ceiling according to the current energy certificate
• New façade paint and visual refurbishment of the building
• Attractive design of the protected inner courtyard
• Creation of additional storage and utility areas for the tenants

A substantial part of the historic building stock has therefore already been modernized and adapted to current usage requirements.

Return perspective

The four apartments on the upper floor and the commercial unit on the ground floor are already rented. Top 5 and Top 6 have not yet been taken into account in the current income situation.

Based on the available non-binding model calculation, a net rental yield of around 6 % can be achieved after completion and successful letting of the two ground-floor units.

This is a development scenario and not the yield currently already achieved. The actual result depends in particular on the final construction costs, future use, achievable rents and ongoing expenses.

The combination of rental income already being generated and the two units still to be completed makes the property's further development particularly easy to understand.

Additional usable and ancillary areas

The seven units are supplemented by further areas that provide genuine practical added value for a multi-unit property.

The property includes around 84 m² of storage and basement areas, a double garage of approx. 50 m², several parking spaces and a protected inner courtyard.

The available storage and utility areas are available to the tenants and increase the practicality and attractiveness of the property as a whole.

Key details

• Property type: Residential and commercial building / investment property
• Plot area: approx. 1,690 m²
• Total units: 7
• Currently rented: 4 apartments and 1 commercial unit
• Still to be completed: Top 5 and Top 6
• Residential/main usable area of the seven units: approx. 444 m²
• Top 1: approx. 75.44 m² – rented
• Top 2: approx. 24.76 m² – rented
• Top 3: approx. 47.96 m² – rented
• Top 4: approx. 53.70 m² – rented
• Top 5: approx. 81.00 m² – still to be completed
• Top 6: approx. 69.89 m² – still to be completed
• Commercial unit: approx. 91.34 m² – rented
• Storage/basement areas: approx. 84 m²
• Double garage: approx. 50 m²
• Parking spaces: approx. 10

Location description

The property is located in 3862 Eisgarn in the Gmünd district, directly on Wienerstraße and therefore easily accessible within the local area.

The Eisgarn Vorstadt bus stop is located directly at the property. For the existing commercial unit, the location on Wienerstraße also offers good visibility and accessibility.

Eisgarn is located in the northern Waldviertel and offers quiet, rural living with an attractive rent level compared with larger cities.

The approximately 1,690 m² plot offers sufficient space for the protected inner courtyard, parking spaces, storage areas and the double garage in addition to the actual building stock.

Solid existing property with a clearly defined next development step

Wienerstraße 53 combines already modernized and rented areas with a clearly definable further development step.

Four rented apartments and one rented commercial unit form the existing income base. With Top 5 and Top 6, approximately 151 m² are additionally available for completion and subsequent letting.

Together with the storage areas, double garage, parking spaces and inner courtyard, this creates a versatile residential and commercial building in which substantial investment has already been made while further income potential remains available.

We point out that a family or economic close relationship exists between the broker and the third party to be brokered.

The broker acts as a dual broker.