Friedrichstrasse is the most important north-south axis in Berlin and runs through the Mitte and Kreuzberg districts. Just a few meters from the property along Friedrichstrasse, there are a wide range of cultural offerings including Friedrichstadt-Palast, Quatsch Comedy Club, Admiralspalast, Komische Oper, as well as many shopping opportunities such as Galeries Lafayette and, at the other end, the world-famous Checkpoint Charlie and much more.…

The location is of course also impressive due to its proximity to the famous Boulevard Unter den Linden with its many sights such as the Brandenburg Gate, Humboldt University, State Opera, Kronprinzessinnenpalais, Museum Island, Berlin Cathedral and City Palace.

The corner property is located at the former Oranienburger Tor at the intersection of Torstraße and Oranienburger Straße, which branches off diagonally opposite, with its many nearby restaurants and cultural establishments, promenades and sights (the "Am Tacheles" quarter, the "Forum on the Museum Island", and many more) as well as the Oranienburger Tor underground station and tram station and the S-Bahn station on Oranienburger Straße.

In addition, Friedrichstraße has a regional train station around 500 meters away in addition to another underground and S-Bahn station, and just one stop further on is Berlin Central Station, which is located on the Spree and near the Chancellery and the Reichstag building and offers various long-distance connections via ICE. Since the transport connections for car traffic are also very good for a central location and there are many facilities of the Charité and Humboldt University as well as federal authorities at the rear, the property is characterized by a more than exceptional micro-location.

RENTAL RANGES
- Residential €9.37 - €20.00/sqm
- Commercial €32.00 - €35.00/sqm
- Parking spaces €80.00 - €154.70/unit

ACTUAL RENT AND TARGET RENT 2025…

The difference between the stated annual actual rent of €416,468.16 and the stated annual target rent of €530,000.00 is made up of the former rent for the right-hand shop unit, which has been in the follow-up rental since January 1, 2025, and the additional rent achieved by the interim tenant, which can of course be realized by the buyer after the sale, since the rental contracts with the interim tenant for the 7 apartments are canceled in the course of the sale and the buyer can then freely dispose of these completely renovated and furnished apartments.

LINKAGE TO THE VPI INDEX
Currently, 7 of the 13 rented residential and commercial units are value-protected by linking them to the development of the VPI index, which already corresponds to more than 50.00% of the current annual actual rent.

SALES TAX OPTION AND INPUT TAX DEDUCTION
As all commercial tenants provide services subject to sales tax and the landlord has waived the tax exemption pursuant to Section 4 No. 9a of the VAT Act and has opted to be subject to sales tax, all commercial leases provide for a separate calculation of the statutory sales tax by the landlord. This means that the acquisition, production and other costs directly attributable to these commercial units are fully deductible from input tax.

For acquisition, production and other costs that are not directly attributable, input tax can be deducted proportionately in accordance with the existing ratio between the areas rented subject to sales tax and the total usable area of ​​the property. Without taking into account the basement and storage areas as well as parking spaces, this currently amounts to 674.84 sqm of 1,963.67 sqm, so 34.36% of the input tax amounts shown in the respective invoices are deductible.

HOUSEHOLD FEES AND ADVANCE PAYMENTS ON ADDITIONAL COSTS
The house fee to be paid to the WEG based on the approved house fee statement for 2023 and the business plan for 2024 is €6,744.10 per month from January 1, 2024.
The tenants' advance payments on the additional costs amount to around €8,257.96 per month after full occupancy.

MAINTENANCE RESERVE
The pro rata amount to be paid to the WEG in addition to the house money for the maintenance reserve is €1,855.90 per month from January 1, 2024, so together with the house money, a total of €8,600.00 must be paid to the WEG per month.
The amount of the WEG's maintenance reserve has changed since the last billing for 2023. We would be happy to obtain current information from the WEG administrator on this upon request.

TRANSFERABLE ADDITIONAL COSTS
Regulations in the commercial leases which, in particular, significantly reduce the additional, maintenance, repair and renewal costs that cannot be passed on to the tenant compared to comparable properties;
- broad definition of additional costs (administrative costs)
- Installation costs on the rental property are borne by the tenant
- Installation costs outside the rental property are borne by the tenant on a pro rata basis of up to a maximum of 10% of the annual net rent

REPAIR AND MAINTENANCE MEASURES
The plaster surfaces of the stairwell walls were repaired at the turn of the year 2023/2024 and all wall and ceiling surfaces were given a new coat of paint. Furthermore, all balcony floors on the courtyard side and wall connections were renewed in 2023/2024 and provided with a surrounding gutter and a seal, and the visible parts of the metal structure were given a new coat of paint.

FURTHER DISTRIBUTION OF THE RENTAL PROPERTY SHARE
In accordance with the powers of attorney contained in the notarial deeds for the declaration of division and supplements, a further division of the co-ownership share No. 4 registered on a mixed land register sheet on the basis of newly created floor plans with the subsequently added balconies is already possible with regard to the rooms not used for residential purposes, as these do not fall under the provisions of the Federal Building Land Mobilization Act applicable to residential space until the end of 2025 and thus also the corresponding conversion regulation according to Section 250 of the Building Code of the State of Berlin.

Obtaining the correspondingly amended certificates of completion is the responsibility of the buyer. As soon as these are available, the corresponding applications for writing off and creating the new land register sheets for the partial ownership units can be submitted to the responsible land registry office and, on the basis of the newly created floor plans, also with regard to the rooms used for residential purposes, the further division can be prepared by obtaining a correspondingly amended certificate of completion so that this can be issued in good time before the foreseeable run on the approval authorities in 2025 and the applications for writing off and creating the new land register sheets for the condominium units can be submitted to the responsible land registry office after the expiry of the Building Land Mobilization Act and thus also the Conversion Ordinance shortly after the next federal election towards the end of 2025 and the new land register sheets can be created.

FORM OF SALE AND VAT
The sale can take place as part of an asset or share deal.

In the event of a sale, a corresponding clause on sales tax would be included in the purchase agreement for the purchase price, which assumes a non-sales taxable sale of the business as a whole according to Section 1 Paragraph 1a of the VAT Act and the seller would, as a precaution, waive the sales tax exemption in accordance with Section 4 No. 9a of the VAT Act with regard to the part of the purchase price that is attributable to the parts of the purchase object rented out subject to sales tax at the time of handover and to those parts of the purchase object for which a sales taxable rental is intended, and opt for sales tax in this respect.

If, contrary to expectations, it is not a sale of the business as a whole, the buyer would owe sales tax in accordance with Section 13b of the VAT Act on the part of the purchase object covered by the option, which the buyer could, however, offset against this as deductible input tax amounts in the same amount if the use was continued accordingly, so that the buyer would not be charged.

Of the input tax amounts included in the additional acquisition costs (broker, notary, etc.), 34.36% are deductible for the buyer based on the current area ratio.