Clearly presented scenarios for the sale of the Estrella property

Estrella Frankfurt
Demolition or re-utilisation of the existing building? As part of our Investment Advisory service, we created various scenarios to assist the seller in its search for investors. The challenge here was a very specific type of building.

The property

Estrella is centrally located at Theodor-Heuss-Allee 44 in City West. This submarket comprises a mix of modern office and residential buildings that have been built in the last 20 years. Completed in 2001 by Dresdner Bank and designed by JSK Architekten, the building is unique due to its transparent style of construction with extensive open-plan space designed as trading floors, and ceiling heights of up to 6.30 metres.

Facts & figures

Property name Estrella
Address Theodor-Heuss-Allee 44 in 60486 Frankfurt/Main
Submarket City West
Lettable area 30,300 sqm
Asset class Office
Year of construction 2001
Risk category Opportunistic
Seller Fortress
Buyer Fosun
Activities Sell-side mandate (in combination with AM)
Mandate period 2016

The challenge

This is a special type of building due to the extensive open-plan layouts, the restrictions on the divisibility of the space in its original condition and the 100% vacancy rate, and the seller’s base scenario anticipated its demolition. Therefore, solutions had to be found that would show an investor a realistic way of re-utilising the existing building fabric to increase the potential sales value.

Scenarios for a potential buyer and investor must be credible and realistic. This happens if you can determine very precisely the market position and potential of the building in its environment - factually based on numbers; visionary based on current and future possibilities.

The tools

Map, micro location

Feasibility study

Map, macro location

Investment Memorandum

The result

Building Value: The positive results from Investment Advisory for Estrella

Oceans and company estrella titelbild
  • Structured and broad sales process
  • Assumption of most investors was the demolition and new construction of the building
  • Identification of investor group with the scenario “repositioning of existing building”
  • Optimal scenario led to higher purchase price, which exceeded the sellers expectations
Clearly created scenarios for Estrella opened up a wide range of potential investors. The group of investors that prevailed preferred a re-utilisation of the existing building. The sale noticeably exceeded the seller's price expectations and was on schedule.