Sorrento · Value-Add
Belle Époque Apartment — Value-Add
Executive summary
The opportunity
A tired but structurally sound apartment minutes from Piazza Tasso, with a terrace that is currently unusable and a layout that wastes a third of the floor area.
Investment thesis
- Sorrento's season runs longer than the Amalfi Coast's, supported by airport access and ferry links.
- Reconfiguring the plan adds a third bedroom without extending the building envelope.
- Restoring terrace access materially changes the nightly rate the asset can command.
Project cost
- Acquisition price
- €620,000
- Purchase costs
- €46,000
- Renovation budget
- €180,000
- Furnishing / setup
- €40,000
- Total project cost
- €886,000
Renovation timeline
Nine to eleven months from deed to first booking, permits included.
Scenarios
Three sets of assumptions.
Conservative
- Projected ADR
- €420
- Projected occupancy
- 52%
- Projected revenue
- €79,700
- Operating costs
- €27,900
- Projected NOI
- €51,800
- Gross yield
- 9.0%*
- Net yield
- 5.8%*
Base
- Projected ADR
- €480
- Projected occupancy
- 60%
- Projected revenue
- €105,000
- Operating costs
- €34,600
- Projected NOI
- €70,400
- Gross yield
- 11.9%*
- Net yield
- 7.9%*
Optimistic
- Projected ADR
- €540
- Projected occupancy
- 68%
- Projected revenue
- €134,000
- Operating costs
- €41,500
- Projected NOI
- €92,500
- Gross yield
- 15.1%*
- Net yield
- 10.4%*
*Illustrative projections based on assumptions. Returns are not guaranteed and do not constitute financial advice.
Risks
- Condominium consent is required for terrace works.
- Construction cost inflation on coastal sites has been material in recent years.
- Short-let regulation in Campania continues to evolve.
Exit considerations
A renovated, income-producing town apartment appeals to both lifestyle buyers and investors, keeping resale liquidity high.
Included in the memorandum
- Photo gallery
- Floorplan
- Map
- Cost breakdown
- Scenario model
- Timeline
Related opportunities
The market
The strongest risk-adjusted rental market in the area: longer season, better logistics, lower management cost and a deeper pool of tenants.
Property in SorrentoInvestment advisory
Discuss this opportunity.
We will walk you through the assumptions line by line, including the ones we are least confident about.