Tivoli House Paragon Street, Hull, North Humberside, HU1 3PE

Description

An excellent opportunity to acquire a substantial mixed commercial investment occupying a prominent city centre position on busy high Street. The property comprises the leasehold title to the ground floor of Tivoli House, which is divided into four self-contained commercial units, offering an attractive combination of established rental income together with further asset management and income growth potential. The current rental income is generated from two occupied units, with Unit 1 let at £15,000 per annum and Unit 4 producing £514 per calendar month (approximately £6,168 per annum), providing a combined passing rent of £21,168 per annum. Units 2 and 3 are currently vacant and are being marketed at £14,000 per annum and £10,000 per annum respectively. If both units are let at the current asking rents, the property has the potential to generate a total gross annual rental income of approximately £45,168 per annum. The two vacant units provide contrasting and versatile commercial accommodation. One comprises a substantial open-plan retail unit with extensive glazed frontage onto South Street, together with ancillary storage areas, W.C. facilities and rear access, extending to approximately 220 sq m. (16-20 South Street). The second vacant unit extends to approximately 65 sq m and provides a more compact commercial space with prominent frontage, ancillary accommodation, W.C. facilities and emergency exit. The existing fit-out reflects its previous food/retail use and includes serving counters and preparation areas, offering an incoming occupier the opportunity to adapt the accommodation to suit their requirements. (71 Paragon Street) Both vacant units offer scope for a range of retail, commercial, café or food-related uses, subject to any necessary consents. Occupying a highly visible position within Hull city centre, the property benefits from extensive frontage onto Paragon Street and is surrounded by a mix of established retailers, restaurants and other commercial occupiers, providing strong levels of passing pedestrian and vehicular traffic. Please note: The marketing photographs and two floor plans provided relate to the two currently vacant units only. Units 1 and 4 are occupied and internal photographs of these units have therefore not been provided. Offering a combination of immediate rental income, two vacant commercial units and clear scope to increase the overall rental return, Tivoli House represents an attractive city centre commercial investment and asset management opportunity. Tenure: Leasehold

Accommodation

A full room schedule was not reliably extracted from the supplied scrape. Confirm accommodation and floor areas from the auctioneer particulars and inspection.

Location

Located in Hull, North Humberside. Investor due diligence should test local transport, employment, amenities and tenant demand at the exact micro-location. Cross-check the postcode and legal title before bidding.

Investment Analysis

The figures below separate auctioneer/source facts from HB indicative estimates. HB figures are screening assumptions only and are not a RICS valuation, contractor quotation or lending decision.

Investment Snapshot

Strategy Recommendation

The initial strategy should be tested against condition, legal structure, works, rental evidence and comparable values before setting a maximum bid. The screening case depends on achieving a sufficient margin or sustainable income after all acquisition and holding costs.

Works Required

• Review complete building/property condition

• Electrical and heating inspection

• Allow for decoration and repairs where required

• Commercial compliance and fit-out/re-letting review

Rental & Market Context

HB screening rent is approximately £2,050–£2,750 pcm (£24,600–£33,000 pa). Replace this with current local letting evidence. The source also indicates published income of about £45,168 pa, which should be verified against tenancy documents.

Sold within approximately 5 miles

Reliable sold-property comparables were not collected from the supplied scrape. Check recent Land Registry evidence and closely comparable sold listings within approximately five miles, prioritising the same property type, size, tenure and condition.

Potential BRRR Position

Illustrative 75% refinance on the HB indicative value range is about £283,500–£328,500 against purchase + works of approximately £378,000–£420,000. Actual refinance depends on valuation, works, finance costs, rental stress testing and lender criteria.

Flip Analysis

The initial gross value spread is approximately £-42,000–£60,000 before acquisition/disposal costs. This is not profit and excludes SDLT, auction/admin fees, legal costs, finance, holding costs, insurance, utilities, professional fees, selling fees, contingency and tax.

Investor Risks & Due Diligence

• Review legal pack, title and special conditions

• Confirm auction fees and completion period

• Obtain survey and works quotations

• Verify finance before bidding

• Check rental and sold comparable evidence

• Review commercial lease/covenant, use class and rates/VAT position

Recommendation

Initial recommendation: Commercial Re-Let / Investment. Proceed only if the legal pack, condition, costs and local evidence support the required margin/yield. Treat the guide as a starting point rather than a valuation and set a disciplined maximum bid after due diligence.

Strategy Rating

• Income Investment: ★★★★☆

• Value-Add / Re-Let: ★★★★☆

• Residential BRRR: ★★☆☆☆