The well-maintained residential complex on Dortustraße, consisting of nine buildings with 53 residential units, is located in the Dortmund district of Westerfilde, northwest of the city center, close to the Rahmer Wald nature reserve and with good transport connections to the city center. MÄHREN AG acquired the residential complex in early 2021.
What makes such a property attractive to a real estate company, and why did MÄHREN AG win the bid?
Case Study: Achieving Success through Transparent Business Transactions and Equal Standing
Acquisition of a Residential Complex as a Long-Term Investment Strategy
Case Study: Achieving Success through Transparent Business Transactions and Equal Standing
Dortmund: Largest City in the Ruhr Area
Dortmund is one of the most interesting cities in Germany. The urban center is part of the Rhine-Ruhr metropolitan region, with around eleven million inhabitants. It is the largest city in the Ruhr area by both area and population and serves as the administrative, commercial, and cultural center of eastern Ruhr.
Previously known mainly for steel, coal, and beer, Dortmund has undergone a long-term structural transformation and is now a hub for services and technology, as well as a center for the insurance industry and retail. The city boasts Europe’s largest canal port, providing access to major North Sea seaports.
What is the business case for MÄHREN AG when acquiring such a residential property?
We view the acquisition of such residential properties as a long-term investment strategy. As property holders, we focus on preserving the structural integrity and ensuring proper management of the properties.
Tobias Förster, Head of Transaction at MÄHREN AG, says: “We plan to manage the property in the long term and look forward to retaining tenants for the long term as well. Luxury renovations or sales of individual units are not planned.” The previous owner had personally managed the property for over twenty years.
For example, there was no janitor or winter service. The previous owner wanted to entrust the property to professional management. Area Immobilienmanagement GmbH, a business unit of MÄHREN AG, has taken over this task. Here, we benefit from the synergies within our corporate group.
We often also create additional living space, such as by expanding attics or adding extensions, or enhance the property by creating tenant gardens. Again, we benefit from the synergies of our own business unit, MÄHREN Development GmbH, which handles all construction-related matters for our projects. Regular income is generated through rental payments, the rent increases already stipulated in the rental contracts, and the leasing of additional rental space created by us.
Förster: “We regularly encounter such cases: A private owner wants to transfer their residential property to a reputable buyer because the maintenance, upkeep, and management of the property is demanding and resource-intensive. We are very pleased to cooperate with private owners and have carried out numerous trustworthy business transactions. Often, these involve classic multi-family houses or residential complexes.”
Business Philosophy: Easy-to-Deal-With Partner
We update numerous documents for almost every property we acquire. Often, after many decades, structural evidence is missing, lease agreements are incomplete or outdated, and documents are not retrievable.
Förster: “We purchase residential properties even if the necessary documents are not complete. These can always be obtained later. Not for nothing are we considered one of the most straightforward business partners in the industry. We take some pride in that.”
Our Success Factor: Transactions Conducted on Equal Terms
Real estate business is people business. Of course, it always involves location, building conditions, development opportunities, rental levels, and purchase prices—but properties are primarily transferred from person to person. And with whom do you prefer to do business? With likable, honest partners who are on equal terms.
That’s why our investment team places a high value on transparent, direct, and honest business dealings. In the case of the residential complex on Dortusstraße, the initial contact was made through a real estate agent. Subsequently, direct contact with the owner was established, leading to concrete sales negotiations.
“We were on site fairly quickly, were able to get a detailed view of the property, and within a few days were in a position to make a concrete offer. What sets us apart is that we usually act and decide swiftly and straightforwardly.”
Tobias Förster, Head of Transaction
Förster: “In the case of the Dortustraße, we were fortunate to encounter a very personable and constructive owner. We value such business partners, as that’s important to us.”
Our goal: Expanding business relationships in the Rhine-Ruhr metropolitan region
We are pleased with the acquisition of the residential complex in Dortmund and consider it one of our most significant purchases in recent times. We look forward to establishing further successful business relationships throughout the entire Rhine-Ruhr metropolitan region in the future. After all, we appreciate the region, its people – and we love residential real estate.
What Our Business Partners Say
