Fabric Aparthotel Near Universities
in Bradford, England
Leaseback Program Guarantees Rental Income for First 10 Years
October 12, 2017
Hello. Joel Greene here from Condo Hotel Center.
Last week I told you about University Bridge Residences Miami, a condominium development next to the campus of Florida International University. The condos were being sold primarily to investors who would rent the units to students and faculty through a managed rental program
There’s no question that proximity to a major university, especially one with limited housing, makes finding renters a piece of cake. So along those same lines, this week I have a similar situation. And this one even comes with guaranteed rent revenue for the first 10 years. Read on for details.
Fabric is a to-be-built condo hotel, called an aparthotel in the UK, located in Bradford, England. It will have 11 stories above a ground-floor lobby, and each floor will have nine studio units. In total, Fabric will have 99 units, but the developer will retain 25. Thus, 74 are available for sale to investors seeking to own a rental property.
Fabric’s location is adjacent to Bradford’s Learning Quarter, which encompasses the University of Bradford and Bradford College (just granted university status), as well as the city center.
The condo hotel will cater to a diverse market that includes business travellers, visiting academics and visiting parents of students. The University of Bradford has also expressed a strong interest in a large number of these units for long-term rentals.
With over 36,000 students attending higher education institutions across Bradford each year, demand for all types of accommodations has rapidly outpaced supply.
Simplicity & Practicality
Fabric will be of three-star caliber, combining technology with comfort for the modern-day traveller. With proximity to the wealth of bars, restaurants and night life in the city center, the hotel will not contain any of its own dining or bar facilities.
Fabric’s condo hotel units will come fully furnished, complete with all modern conveniences including a kitchenette containing sink, oven, cooktop and microwave. They will also be equipped with functional workstations and high-speed internet connection.
An Interesting History
The city of Bradford was once an industrial powerhouse known for wool and textile manufacturing. The original Fabric building was a Victorian weaving mill in the 19th century. For most of the early part of the 20th century, it processed wool and dyes for the weaving industry before eventually shutting down.
That building, vacant for decades, will be demolished, and a new property will be built in its place. The name Fabric, a hat tip to the building’s history, will remain the same.
A Bustling Location
With its deep history, stunning architecture, cobbled streets and array of modern galleries, museums, restaurants and entertainment, Bradford is an up and coming city. It is located in the heart of Yorkshire with easy access to major highways.
Because of its many cultural offerings, Bradford has been designated the world’s first UNESCO City of Film, and its renowned National Media Museum is among the most visited museums outside of London.
Fabric is located in the city’s Learning Quarter. It’s just one minute from the University of Bradford and 12 minutes from Bradford College. It’s also close to numerous shopping and dining venues. Bradford is one hour from Manchester and 2.5 hours from London.
Generous Leaseback Program
Fabric is an off-plan development with a two-year build program. The developer is Northern Powerhouse Developments and Giant Hospitality, two well-respected companies that have partnered in 11 other UK hotel developments.
They are offering a generous leaseback program. Owners at Fabric will have their condo hotel units rented for them, and will receive a 10% NET return for 10 years, with the first two years’ returns paid by deduction. That means buyers will only have an 80% cash input at purchase.
An exit strategy offers an attractive option to owners to sell their unit back to the developer after 10 years. But, of course, they may sell their unit on their own at any time.
Priced at $85,500
The demolishment of the existing structure is planned for the end of 2017. The construction of Fabric should take approximately two years, putting estimated completion at the end of 2019, but with the “by deduction” payment method, your 10% return begins immediately upon purchase.
The condo hotel units are priced at £65,000, which is about $85,500 (might vary slightly due to conversion rates at time of purchase) and can be reserved now with a deposit of £500, or about $650.
Want to know more about this unique opportunity? Request my Fabric data sheet below.
The Appeal of Leaseback Programs
I hope you found it interesting to learn about Fabric. The appeal of properties like this and the property I profiled last week, University Bridge Residences Miami, is the buyer receives guaranteed rent revenue for a set number of years and never has to contend with the hassles of being a landlord. Everything is handled for the owner by the onsite management company.
Presumably, when the owner is ready to sell, the property will have appreciated and can be sold for a profit.
With interest rates at banks and money markets well below 1%, you can see how properties with a leaseback program can be extremely attractive.
Again, if you’d like more information on Fabric, request the Fabric data sheet here. Or if there’s something else you’re looking for in a second home, Florida condo or investment opportunity, I hope you’ll give me a call.
Have a sunny day!
Want to know more about me? Click below://www.condohotelcenter.com/joel-greene.html
© Condo Hotel Center. All rights reserved. No portion of this Property Alert newsletter may be reproduced, exhibited or distributed without the express written permission of Condo Hotel Center. Condo Hotel Center takes copyright infringement seriously. Violators will be prosecuted to the fullest extent of the law.Although Condo Hotel Center believes the information contained in this Property Alert newsletter to be accurate and complete, Condo Hotel Center can make no such guarantee. All features and descriptions are subject to change.Please speak with your personal legal and financial advisors to determine whether this property is suitable for your objectives.