“I’m really excited. And not just me. People actually come to take photos of the apartment buildings because the street has changed in such a positive way and has turned into a place to relax.” reports Mario Lamberti. The 50-year-old has lived at Zurmainer Straße 126-142 in Trier not far from the Moselle for over twenty years. As a caretaker, he has a special optic when it comes to the properties and is at the same time the heart of a building. Lamberti makes sure that everything is in good working order, co-ordinates necessary repairs, but is also happy to change a defective lightbulb.
It was not always a place where you could feel good here. When Noratis acquired the properties in 2016, car tires were piled up on the lawn. Plaster was peeling off houses, the stairwells clearly showed their age and one apartment was frequented by different customers each night. The list of shortcomings was long and the vacancy rate was correspondingly high at around 10 percent.
But an extensive analysis of the location and the properties indicated a different picture. The location was full of potential that needed leveraging. The basic idea was to carefully upgrade the buildings using the right measures, to preserve valuable living space while at the same time making a contribution to urban development. After all, the city on the Moselle grew by approximately 110,000 inhabitants and had therefore, just included the property and surrounding properties in the “Trier-Nord” urban development concept.
Based on the property analysis, Noratis put together an extensive renovation plan, which was then presented to the city. The measures included, for example, upgrading the surrounding area and successively renovating vacant apartments. Existing tenants were able to remain in their apartments and experience how their quality of life improved. The external impression also changed significantly. Facades, basements, and the top floor ceilings were insulated with the aim being to increase the sustainability of the building and reduce ancillary costs. Existing balconies were repaired or apartments with no balconies now had one added. In addition, a lighter color concept reinforced the building’s new feel-good image.
Success did not take long. The location became significantly more attractive and therefore attracted new tenants, resulting in an increase in rental income. This also made the properties more interesting to other property investors. Around 2.5 years later, Noratis sold the 80 residential units to the asset manager Fundamenta at the beginning of 2019. “As an international asset manager, we are constantly looking for attractive properties. Real estate without any renovation backlog, without social tensions. Simply put, solid properties that work and generate regular income for our investors, ”says Christian Paul, Chairman of the Board of Directors of Fundamenta Group Germany, explaining the goal of his company. “We have enjoyed good experiences with Noratis properties in the past. And the sustainable overall concept also convinced us this to be the case with the portfolio in Trier ”.
With the block sale, Noratis realized a developer return for an extremely successful real estate project. A win for Noratis, but also a win for the tenants and for the city of Trier. Completely in line with the multi-stakeholder approach of Noratis, which is geared towards long-term sustainability.
|Address||Zurmaiener Straße 126-142|
|Object||Housing complex with 80 units and 39 outdoor parking spaces|
|Rental space||7,200 m²
|Sales completion||January 2019
|Project duration||20 months|