Mixed-use investments seem to be very much back in vogue. We had a strong run on shops with residential uppers in late 2021 - early 2022, but interest dropped off a little as lenders seemed to inexplicably lose their appetite. More recently though, and despite the rise in interest rates, competition amongst investors for unbroken, mixed-use buildings from £500,000 -£2M has improved notably.
Given the cost of debt currently, most buyers are using cash. Returns therefore must be sensible to attract interest, but slightly lower yields are tolerated if a property offers active management angles.
This building at the top end of Bromley's busy High Street comprises an E class unit let to an estate agency chain and a vacant office to the rear with potential for re-letting, or residential conversion.
The upper parts were extended and converted 10 years or so ago to provide one studio apartment, two 1 bedroom and two 2 bedroom flats. Part-let on ASTs and in need of some cosmetic improvement, the building offered plenty of opportunities for a new owner to both make their mark and improve the income stream. Interest was strong and resulted in several offers. A sale was ultimately concluded to local investors who plan to get the building up to scratch, and retain it long term.
PROJECT ADDRESS: 219 High Street, Bromley, Kent BR1 1NY
