What's new

15. June 2021

Practical Example «Isola»: Living in a fresh new space

Residential properties around Lake Zurich are highly coveted. As a result, the spaces between buildings are being filled in, factories are being repurposed and properties that are outdated are giving way to new buildings. However, there are also properties that are worth carefully renovating. Property One found one such property in Richterswil. The nearly 60-year-old property was made fit for the next several decades.

It all started with an offer that doesn’t come along every day. The sellers discreetly approached Property One with an off-market offer. A project involving two older apartment buildings and rental apartments. The location was especially attractive. Not more than 100 meters to the lake, with most units providing lake views. It is only a few hundred meters to the village centre and the train station.

Market Analysis as the Basis
Property One Investment Management and the Development, Planning & Building team take a closer look at the floor plans.

It quickly becomes clear that they should expand the exteriors, upgrade the attic apartments and convert the apartment kitchens into an open layout. There is additional space in the side rooms that can be added to the rentable space. Speaking of renting, any serious analysis must include an assessment of the market conditions. What are the possible rents in this micro-location ? Will there be sufficient demand from tenants ? The assessment of future income is included in the calculation of the property’s value.

All of this information is now used to make an initial cost estimate of the necessary renovations to sketch out the expansion options. Due diligence, an analysis lead to two basic conclusions: the property has potential and it can be renovated on a sustainable basis.

Fair Solutions for All Participants
Now, the detailed work can begin. This includes proactive and open communication right from the beginning and a human and professional approach to the current tenants. Most residents were aware of the status oft he bulidings. All oft he participants know that a renovation in the narrowly defined time frame – with a scheduled construction time of nine months – can only be carried out if the building is vacant. Simple move-out options and relatively generous deadlines are arranged for the tenants.

The renovations, which are carried out by expert regional companies, are done in two stages. A 3D digital rendering of the exact spaces and dimensions of all 45 units makes planning easier. The floor plans of the apartments, which have 2.5 to 4.5 rooms each, are made more modern and spacious through minor interventions. The envisaged fitout standard is higher quality, but no luxurious.

An open kitchen, new oak parquet flooring and a washing machine and dryer in each apartment makes the offer attractive. There is also a renovated underground car park and ample outdoor parking.

High-return jewel
Precise planning and timely completion of the work makes it possible to keep the rent-free period to a minimum. It takes just one quarter to rent out the apartments again, thanks in part to moderate rents. Most apartments are still in the lower to middle price segment of the local rental market.

Clear planning and the ability to respond flexibly in the event of unforeseen events are essential for successful projects. This allows clients and investors to maintain cost security and avoid unpleasant surprises. Property one met the need for discretion during all phases of the project. The renewed property in Richterswil provides the participants with a profitable jewel in their portfolio.