Renovation of historical apartment building on Miera Street

 Renovation Loan
Riga, Latvia
Status
Done
749 745 € (99.97%)
750 000 €
1384 investor(s)
Term: 9 months
Interest payment schedule: Biannually
19.5%
Annual yield
174%
LTV
No
EVOEstate skin in the game

EVOEstate DD:

In Crowdestor description there's no underwriting of LTV value, but if the property will be acquired for 430,000 EUR and the loan amount is 750,000 EUR it means that the LTV is 174%. This is the classified to the property. 

The money will be used to invest capital for the initial renovation and later this project will be exited via bank loan. The duration of this project could be shorter, but Crowdestor is adding additional safety buffer in case the bank loan would take longer to obtain.

 

 

Summary

The current investment opportunity offers CROWDESTOR investors to make a secured loan to Developer of project Miera Residence.
Funds will be used to acquire the building and completely renovate the Property which consists of 3 buildings in a historical and artistic district of Riga city – Miera street 21. The renovation will apply to both inside and outside of the building – building’s facade, roof, modern planning and interior.
Based on increasing demand for small and mid size apartments, the Developer plans to construct apartments in a range from 22 m2 to 61 m2 with total number of 27 apartments in the Project. The concept of Miera Residence consists of offering a part of building to short-term rent on Airbnb, and other part of the building – available for acquisition of apartments.
CROWDESTOR loan will be repaid from the pre-bookings and sales of the apartments or refinancing by a long-term bank loan.
Current investment opportunity offers CROWDESTOR investors to make a loan with 19.5% annual interest rate.
Minimum target to be raised in CROWDESTOR platform is EUR 400 000,00 and the maximum target is EUR 750 000.00.
Project is developed by SIA “CR 1”, an SPV registered for investment management, a sister company of CROWDESTOR OU.

 

Loan

Minimum target: EUR 400 000,00.

Maximum target: EUR 750 000,00.

Loan term: 9 months.

Interest rate: 19.5 % per annum.

Interest payments: paid monthly after the first 6 months (For first 6 months interest payments are capitalized and paid in one payment).

Loan repayment: In full at the end of the Loan Term.

Crowdestor BuyBack fund: Yes.

Collateral: The loan is secured by a guarantee of the borrower company and pledge on real estate (Miera street 21, Riga).

 

Remember – interest rate payments start calculating from the day you make your investment!

 

The Project

Project: Miera Residence
Object: Historical 27 apartment building in Miera street 21
Funds raised in fundraising phase 1: 400 000 EUR to 750 000 EUR
Total investments: 1 272 000 EUR which consists of:
430 000 EUR – real estate acquisition
752 000 EUR – renovation costs
90 000 EUR – fee of Land Register, reserve, other expenses

Address of the property: Riga, Miera iela 21
Cadaster No. of the property: 0100 023 0071
Land Registry Folio No. of the property: 31231
Land plot: 1374 m2
Building, total area:
Residential building (0100 023 0071 001) with total area of 245,1 m2;
Residential building (0100 023 0071 002) with total area of 497,7 m2;
Residential building (0100 023 0071 003) with total area of 611,77 m2.

Current status and type of use:
Object consists of three residential buildings on a medium area land plot. The property is empty and not used now. The apartments are not usable without additional investments in the restoration and replacement of the utility equipment.

Best type of use:
The concept of Miera Residence consists of offering a part of building to short-term rent on Airbnb, and other part of the building – available for acquisition of apartments.

 

 

Renovation specification

 

Specification of apartment building renovation

External walls – New wooden boards and painting.
Partitions – Masonry and plasterboard partitions plastered and painted.
Building windows – PVC construction frames, triple glazing
Steepers – New risers.
Wiring – New wiring.
Heating – The heat supply of the buildings is going to be provided from the individual gas heating boiler. New heating unit with multiple counters built. Each apartment has a separate heat consumption meter.
Electricity – Each apartment has its own electricity meter.
Water supply – Centralized city water supply. Water consumption meters are provided for cold and hot water in each apartment.
Ventilation – The ventilation project is intended to provide a microclimate appropriate to the use of the premises. Kitchen, bathroom and WC design mechanical and forced ventilation exhaust systems.

 

Apartment finish

Floor – “Boen” oak lacquered parquet or analog.
Floor: bathroom, WC – Concrete floor, electric heating, stone tiles.
Sills – MDF or PVC sills.
Ceilings – Plasterboard, filled and painted.
Walls – plastered masonry and plasterboard walls, filled and painted.
Walls: bathroom, WC -. stone mass tiles.
Plumbing – “Hansgrohe” or Analog.
Kitchen – built-in kitchen with technical units.
Telephone, Internet, TV – possibility to connect phone, internet (high-speed optical) and TV.
Electricity – New power supply installation.
Ventilation – exhaust ventilation in kitchens, bathrooms and WC. The hood is supposed to.
Apartment exterior – MDF door.
The interior of the apartment – Prodex or analogue.

 

Valuation of Miera Street 21

The whole real estate consists of a land plot with an area of 1374 m2, 3 (three) residential building (cadaster designation No. 0100 023 0071 001,002,003) and 3 (three) utility building (cadaster designation No. 0100 023 0071 004,005,006).

The aim of the valuation is to determine the market value of each apartment in an assuming that renovation work has been carried out in the building and land betterment work has been conducted in accordance with the submitted documents (building floor plans, visualizations of the building’s façade and apartment interior, and the specification of renovation works and materials to be used). The valuation is intended for the needs of the client – for determining the future selling price of the apartments. The valuation report may not be used for the needs of other legal or natural persons without the written consent of the valuers.

Hereby please be informed that the market value in assumed technical and legal state of each apartment located at Riga, Miera iela 21, as established on 03 July 2019 is:

 

Selection of Valuation Approach and Calculation Procedure

In this method cases of sales/offers of comparable real estates are used, noting the differences between these objects and the valuation subject. Adjusted selling prices give direct indications for the establishment of the market value of the valuation subject. The sold real estates are compared based on factors influencing selling price. Valuers are aware of sales/offer cases of apartments.

In the method used the valuers view cases of recent sales of similar real estate and market offers, noting the differences between these objects and the valuation subject. The selected properties are compared with the valuation subject, their sales/offer prices are adjusted based on factors influencing the market price of the real estate. The adjusted sales prices give direct indications regarding obtaining the market value of the valuation subject.

The value is determined based on the adjusted average selling price of 1 m2 of the total area of the premises, which is obtained the adjusted prices of the comparable objects. Initially the valuers determined the base value of a selected 1-room apartment (apartment No.13), 2-room apartment (apartment No.13a), 3-room apartment (apartment No.16a). These apartments are the most typical in this real estate. For comparison the valuers have chosen apartments in renovated buildings in the Far Center part of Riga that have been sold during the last year.

Base value calculation for 1-room apartment:

Base value calculation for 2-room apartment:

Base value calculation for 3-room apartment:

The obtained 1 m2 apartment base value is used to determine the selling price of the rest of the apartments, making adjustments depending on apartment premise area, layout, location in the building and other factors.

The calculation of the selling price of the apartments has been carried out based on special assumtions. If the legal status and actual technical condition of the apartments will be different from what has been assumed, the selling price is subject to change.

 

Miera Street 21 Neighbourhood

The assessment facility is located in the city part of Riga – the distant Centre, a block consisting of Miera, Annas, Aristida Briāna and PalÄ«dzÄ«bas streets. The surroundings consist of multi apartment buildings and local infrastructure facilities built at the end of 19th century and at the beginning of 20th century. In this block there are buildings of both residential and public nature, with small commercial spaces on the first floor of the building. Exactly over the street of the valuation facility is located the Latvia’s famous chocolate factory ”Laima”. In the near distance there are important buildings like LU Faculty of Chemistry, recently renovated Riga 1st Hospital, Dailes Theatre, Vidzeme Farmers’ Market, the office and shop quarter ‘Aloja’.

Over the past years, Miera Street has bloomed into this artsy, full of cozy, atmospheric places to go to. You will be able to find several cafe shops, little shops full of individuality. For example the cafe ”Taka” offers a wide range of Latvian beer, cafe ”Mierā” will leave you addicted to their baked cakes. You can find many Latvian design shops on Miera Street including music bars and art, book shops. Further on Miera Street is located the New Riga Theatre.

This street is full of culture and many events connecting the subject – festivals, concerts, smaller gigs etc.  Miera Street atmosphere helps to socialise and meet many people to connect with. In A. Briāna street quarter are found many clubs and bars as ”Piens”, ”One One” and ”Nemiers” but beer brewery ”Labietis” will surprise you with different tastes of beer.

Public transport is travelling by BrÄ«vÄ«bas street (only 3 minutes by walking) which is one of the main streets if not the Main Street of the Riga Centre, with a very high flow of transport. The movement of public transport to the Centre of Riga is provided by a route tram 11 – it drives by many times during the day which allows to connect with the rest of Riga in just few seconds because the tram stop is just 100 meters away from the apartment building. The driveways are covered with asphalt and are in a good condition. The flow of pedestrians is relatively small, mostly calm – it consists of the surrounding population of many young ones, artists and of those working in the surrounding blocks. Public transport security is good. In general, the location of the building in the city of Riga is considered to be very good, one of the top places for young, alternative people to wish to live in.

Project provided by:
Status
Done
749 745 € (99.97%)
750 000 €
1384 investor(s)
Term: 9 months
Interest payment schedule: Biannually
19.5%
Annual yield
174%
LTV
No
EVOEstate skin in the game