Requesting 10 million for apartment building right in Skien – OBI Online

For almost a year ago, we discussed the sale of Norway’s cheapest apartment building, “Grand farm” in Skien.

The property of nearly 4,000 square meters was sold for 11.5 million on the day after the first viewing.

Thus, the land price of 2880 crowns per square meter.

– upside big buyer

the same broker out with the neighboring property – TA-house colloquially. And the message is the same.

– 2332 crowns per square meter must be new Norwegian record for a downtown property. I have certainly not sold anything at these levels before and have not heard of properties under this, says CEO Rune Allerød Eiendomsmegler 1 Næringsmegling Vestfold Hegnar.no.

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He has priced the 4288 square meters gross area in Telemarksgata 11 million to 10 million kroner. That is: The property consists of two buildings, where Telemarksgata 11 and Lund Gata 4c are connected by a footbridge.

– We’ve got fight response Finn.no ad we posted yesterday, and expects that sales go reasonably quickly. This is a lot of property for money, and the upside is huge for a buyer, the broker said.

Stands 70 percent free

The upside, or development potential, located primarily in the property stands 70 percent free.

Gross rental income will in 2016 come at just over 1.1 million, and will besides Telemarksavisa from Norwegian Nurses Association and a fitness center.

– Telemarksavisa hired former whole Telemarksgata 11, but using for massive restructuring over the past five years now just a few hundred square meters. And in August, they move out. We are talking about a lot of old premises. Will the new owner continue with office rent, it requires a lot of customization, says Allerød.

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Broker does not deny that the upgrade will be required.

– Telemarksgata 11 must either be significantly upgraded, or demolished. Lund Gata 4 is partly restored, and appear more modern. This building is located right at the corner in the quarter, and will not affect a possible. Development of the rest of the quarter, he said further.

Demolition and housing?

The Executive Director tells about ” much serious interest, “and many entries to display March 1.

– Although the premises are not temporal, they are in good technical condition, considering his age. It’s not like a leak here. You can actually defend the price only by renting out on the 250 kroner per square meter. That demand has yet come from players who want to build on for your own use, but to the greatest extent property developers – one from Grenland and three from out of town, ie Oslo, says Allerød.

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Historically, property according to broker generated three million kroner in rental income.

– the current cash flow finance the part of the purchase, but to get to three million have a possible. new owner take part grip. Two goals in the center, we are almost down on land value here, so it may well be that Telemarksgata 11 described. Experience of similar construction dictates that demolition often conclusion.

– In addition, we are talking about an unregulated property, then the chances of that part of the development of housing is good, he said.

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– not too far from Oslo

in the ad highlights Allerød that location at Lund top right in center provides good sun and the corresponding views of the city and inner harbor.

– the current owner – Entra – has a strategy to divest non-strategic, remote properties, and the sale must be seen in this context. Yet not Skien so far from Oslo, Norway cheapest downtown property should then awaken an interest among those who will develop and build cash flow, says Real Estate 1 broker facing Hegnar.no.