Office Property in Odessa Historical Center on Lanzheronovskaya St., 200 meters from the Opera House

Two Story Building on Lanzheronovskaya St., 200 meters from the Opera House ($5,460/m2)

• Total Area: 150m2
• Total price: $819,000

Business Plan Example for Renovating this Property to Office Units:

Typical renovation costs range from $400 to $600 square meter.

• Purchase 150m2 of property for $5,460/m2 (Total cost of $819,000)
• Renovation of the property at a cost of approximately $500/m2 (Total cost of $75,000)
• Conservative estimate on renovation completion time is 1 year
• Total property value after completion: $1,072,800 (Including 1st year equity.)
• Creation of 3 separate luxury rental units. (Each one approximately 50m2 in size.)
• Estimated occupancy rate of 200 days per year at a price of $150/night
• Estimated yearly income from rentals: $90,000/year
• Conservatively the average increase in property equity ranges from 20% to 30%
• Taking the lower rate, the return on equity will be at least $163,800 per year
• Return on Investment (ROI) the first year: $163,800
• Total Return on Investment (ROI) the second year should be greater than: $253,800
• By this estimate the property will pays for itself within 4 years.
  
• Please consider that there are no property taxes in Ukraine.
• Please consider that the income tax rate is extremely low.
• Please note this property is also suitable for office space which could be rented year around.
• Please note the above business plan is only an estimate, actual returns may be greater or lower.

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