A new development opportunity has arisen in Sheffield and is up for auction with Mark Jenkinson & Son on 21 July 2015.
On Malinda Street in S3, the development is situated close by the Kelham Island area which is being developed more year upon year so will be likely to attract many developers from across the UK.
There are pre application plans prepared in place to convert the current Grade 2 listed building, which is commercial space at present, to 10 residential units with a ground floor café.
In and around the centre of Sheffield, apartment blocks are becoming more and more prominent so they need to have something more about them in order for them to have that little something different to make them a success. A Grade 2 listed building can often offer this as they retain character during conversion and this is often favoured by purchasers.
With a total building size of 425 metres squared, this can be spread fairly generously over 10 individual apartments and still offer a good sized café so the apartments, if developed, will certainly attract interest to size alone.
Whilst this possible development opportunity is situated in a built up residential area, I do think that developers would be better suited to look at any available opportunities on the other side of Penistone Road and into Kelham Island. There are some council properties around Malinda Street and the surrounding area is seen as less desirable than some of the other already well established and more popular areas nearby, namely Kelham Island and towards Upper Allen Street, where there are both residential and student blocks being developed every year.
If you were to look at this site and look to develop say three studio apartments, four 1 bedroom apartments and three 2 bedroom apartments (I am unsure of current plans), you would be looking at an average rent per annum of £64,800 with my rough calculations of a high spec studio achieving £450pcm, a 1 bedroom apartment achieving £525pcm and a monthly rental income of £650 for a 2 bedroom property. There would also be the additional income available from the café on site.
The reserve price is £275,000 and a substantial amount is required to develop the building so there is certainly a lot to consider for any developers thinking of having a look at this new opportunity but with the expertise and good advice, someone could do well from this project.