Deutsche Investment just acquired two mixed residential/commercial buildings with a combined lettable area of around 3,700 square metres in the Friedrichshain and Neukölln districts of Berlin. The acquisition was undertaken for one of the investment manager’s individual mandates.
The mixed residential/commercial building in Friedrichshain is located on Müggelstrasse in a vibrant residential area, and consists of two front buildings and one side building. Its total floor area of 2,600 square metres is divided among 39 residential units and two commercial units. The property is fully occupied at the moment, which is not least attributable to the excellent neighbourhood location, with many restaurants, shopping venues and educational facilities in the immediate vicinity. “Completed in 1910, the building has been continuously maintained and is therefore in excellent repair. Its Belle Époque charm blends seamlessly with the other façades of the same style that are found throughout the popular district of Berlin-Friedrichshain. Despite the liveliness of this neighbourhood, the building structure creates a quiet sanctuary and offers potential for further development: For the time being, the attic storey remains unfinished, and its potential for development into residential units will be reviewed as we assume operation of the building,” said Nina Sobotta, Senior Transactions Manager at Deutsche Investment Kapitalverwaltung AG.
The other property is located on Kienitzer Strasse in the trendy neighbourhood between Schillerpromenade and the former Tempelhof airport grounds. The building’s 16 residential units, whose sizes vary between 30 and 100 square metres, have a combined lettable area of around 1,000 square metres and are currently tenant-occupied. The urban setting creates a great living environment for singles, couples but also families, with day-to-day amenities, such as green areas including playgrounds, bus stops and mass transit stations as well as gastronomic venues, available within walking distance.
Directly after the acquisition of the two properties, Deutsche Investment cleared the way for their long-term portfolio ownership. It will be based on a sustainable management approach and include well-considered refurbishment and modernisation measures. The goal is to optimise the life cycle of period buildings like these in environmentally and economically sound ways, and thereby to align the residential units with the needs of their current tenants.
During the transactions, Deutsche Investment was advised on legal aspects by the law firms of SNP Schlawien Partnerschaft and GÖRG Partnerschaft von Rechtsanwälten, and in regard to the technical due diligences by CBRE and by Drees & Sommer.