Is a building undervalued because higher rents can be realised in the future? In the case of Fifty Avon in Frankfurt, we were able to answer this question in the affirmative after a detailed market analysis of the micro location. This demonstrates once again that our Investment Advisory service, combined with our in-depth knowledge of the rental markets, allows us to consider not only the fabric of a building but also to identify important trends in the market.
Achieving the right valuation for Fifty Avon
Fifty Avon FrankfurtThe property
Located at Mainzer Landstrasse 50 in Frankfurt's Banking District, Fifty Avon offers 20,842 sqm of office space on eight floors. A key feature of Fifty Avon is the size of a standard floor, with units of up to 2,640 sqm available on a single floor. Following an extensive repositioning effort by our client in the period 2015-2017, the property formerly known as Alkmene was repositioned under the new name Fifty Avon. The building offers a clear architectural structure and an attractive atrium that encompasses all of the eight standard floors. The steel and glass façade gives the building a timeless yet modern appearance. Tenants and visitors approach the bright and friendly office space through the prestigious entrance area with its manned reception and lift access.
Facts & figures
| Property name | Fifty Avon |
|---|---|
| Address | Mainzer Landstrasse 50 in 60325 Frankfurt/Main |
| Submarket | CBD |
| Asset class | Office |
| Year of construction | 1996 |
| Lettable area | 20,800 sqm |
| Risk category | Core-Plus |
| Seller | Blue Colibri |
| Buyer | Starwood/Cells |
| Activities | Sell-side mandate (in combination with AM) |
| Mandate period | 2018 |
The challenge
Fifty Avon was in danger of being undervalued due to its age, excessive room depths and extremely large floor plates. This could have had an impact on its value, especially if potential investors had opted to apply lower anticipated rental factors to the extant vacancy.
The conclusive reappraisal of the existing and improving rental market in the micro location was one of our most important tasks during the sales process. This reappraisal together with an elaboration of some of the distinctive advantages of the property improved market perceptions.
The tools
Map, macro location
Map, micro location
Investment Memorandum
The result
Building Value: The positive results from Investment Advisory for Fifty Avon
- <ul><li>Conclusive examination of the rental market, the micro location and elaboration of the underrent situation</li></ul>
- <ul><li dir="ltr"><p dir="ltr">Convincing argumentation that the building is excellently suited for futher lettings and has many USPs to offer </p></li></ul>
- <ul><li dir="ltr"><p dir="ltr">Property as an attractive long-term asset with a corresponding capital value</p></li></ul>
- Successful sale of the property within the given time frame
We were able to substantiate our positive forecast of the future development of the micro location and Fifty Avon during the sales process. The long-term perspective of a significantly more attractive capital value led to a successful sale of the property.