16 & 16A Stephenson Place & 15 Cavendish Street, Chesterfield, Derbyshire S40 1XL

Description

Auctioneer: Freehold multi-let commercial investment producing gross rent of approximately £40,260 pa. 16 Stephenson Place is a snooker centre at £17,260 pa with the tenant holding over and reportedly wishing to agree a new seven-year lease. 16A Stephenson Place is a hot-food takeaway at £10,000 pa with two years remaining and a stated desire to renew. 15 Cavendish Street is a hot-food takeaway on a recently signed seven-year lease at £15,000 pa.

Accommodation

Three commercial interests comprising a snooker hall and two hot-food takeaway units within Chesterfield town centre.

Location

The property is in central Chesterfield close to the town's retail, bus and railway infrastructure. Town-centre footfall and established trading uses are positive, while the investment value is primarily driven by lease terms, tenant covenant, rent sustainability and building condition rather than residential comparable values.

Investment Analysis

Investment Snapshot

Strategy Recommendation

Initial strategy: Multi-Let Commercial Investment. The guide price should be treated as the starting point only. A maximum bid should be based on verified legal-pack liabilities, property condition, finance terms and local market evidence rather than the guide alone.

Works Required

• Commission a commercial building survey

• Inspect roofs, structure, fire systems and common parts

• Review each unit's repairing obligations under the leases

• Allow for compliance/capital expenditure not recoverable from tenants

• Check extraction/ventilation and use-class compliance for takeaway units

Rental & Market Context

Current published gross income is approximately £40,260 pa, equivalent to about 16.1% gross on the £250,000 guide. For commercial valuation, sustainable net income, lease length, repairing obligations, tenant covenant and any holding-over risk are more important than a simple residential-style yield.

Sold within approximately 5 miles

Reliable recent sold-comparable evidence has not been inserted without property-level verification. Land Registry and closely matched local comparables should be checked for type, condition, tenure and accommodation before setting a maximum bid.

Potential BRRR Position

Not applicable in standard residential form. Any refinance should be assessed using commercial lender criteria, sustainable rent, tenant covenant and commercial valuation methodology.

Flip Analysis

A resale case should be based on investment yield and covenant strength rather than residential GDV. HB's indicative value range is an appraisal only and not a RICS valuation.

Investor Risks & Due Diligence

• Verify every lease, rent, term, review clause and tenant covenant

• Holding-over lease at 16 Stephenson Place requires careful legal review

• Do not rely on proposed renewals until documented

• Check service/repair liabilities and VAT position

• Commercial finance and valuation will depend on sustainable net income and covenant strength

Recommendation

Initial recommendation: Multi-Let Commercial Investment. The opportunity is strongest where the source facts can be verified and the total project cost remains comfortably below a conservatively evidenced end value. Do not bid solely on the headline yield or guide price.

Strategy Rating

Commercial Investment: ★★★★★ | Income Hold: ★★★★★ | Redevelopment: ★★☆☆☆