Armand Călinescu 7
Property Description
A completed value-add investment in central Bucharest: a 39.65 sqm studio on the 6th floor of Armand Calinescu 7, bought in poor condition in June 2016 for EUR 37,000, fully renovated and furnished for a combined EUR 15,600 in renovation and closing costs, then rented continuously from 2017 to 2024 before being sold in April 2024 for EUR 71,000. Over a 7.8-year hold the investment returned EUR 29,371 on EUR 52,600 of cash deployed, combining EUR 14,216 of net rental income distributed to the owner with EUR 15,155 of price appreciation, for a total ROI of 55.8% and an annualised return of roughly 5.8%.
The Story
55.8% total ROI (~5.8%/yr) over 7.8 years. Studio bought, renovated, rented and sold.
Challenge
A 39.65 sqm studio on the 6th floor at Armand Calinescu 7, Bucharest, acquired in June 2016 in poor condition. Walls were stripped, plaster was falling away and the unit had extensive moisture damage, making it unrentable and unattractive to owner-occupier buyers. The challenge was to buy the asset at a discount reflecting its condition, execute a full renovation on a controlled budget, and reposition it as a fully furnished, immediately rentable studio in a central Bucharest location.
Approach
Adel Invest ran a full value-add cycle: buy, renovate, rent, sell. The studio was acquired in June 2016 for EUR 37,000, with a further EUR 15,600 in renovation and closing costs, for a total cash investment of EUR 52,600. The renovation was completed in 2017 and the apartment was delivered fully furnished and immediately let. Adel Invest then managed the asset for more than seven years, distributing EUR 14,216 in net rental income to the owner after all property-related expenses. The exit was executed in April 2024 at EUR 71,000, with EUR 710 in tax and EUR 2,534.70 in commission, producing net sale income of EUR 67,755.30. Combined with rental distributions, the investment returned EUR 29,371 on EUR 52,600 deployed, a total ROI of 55.8% and an annualised return of roughly 5.8% per year over a 7.8-year hold.
Results
Value Creator
Opportunities where value is created through renovation, repositioning, or development, potentially generating higher returns through active involvement and strategic improvements.
Property Identification
- Property Type
- Studio
- Layout
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- Street
- Bucharest, Armand Călinescu Street No. 7
- City
- Bucharest
- Sector
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- Year of Construction
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- Floors in Building
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- Floor
- 6
- Seismic Risk Grade
- —
- Transportation Distance
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- Elevators
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Size & Technical
- Usable Apartment
- 39.65 m²
- Constructed Apartment
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- Total Usable Area
- 39.65 m²
- Condition
- Newly Renovated
- Central Heating
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- Gas
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- Electricity
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- Storage Areas
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- Parking
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Financial Case
- Purchase Price
- €37,000
- Asking Price
- —
- Price per sqm
- €933
- Parking Price
- —
- VAT
- —
- Total Purchase Costs
- €71,000
- Projected Annual Appreciation
- —
Cash
Acquisition Costs
Gallery
Additional Notes
Realised exit all figures are actuals, not projections. Timeline: acquired and renovation started June 2016; renovation complete and first tenancy 2017; rented continuously 2017-2024; sold April 2024. Investment: purchase price EUR 37,000 plus EUR 15,600 of combined renovation and closing costs (the two were reported together and are recorded under renovation costs), for total cash invested of EUR 52,600. Rental performance: EUR 14,216 in net rental income distributed to the owner over the holding period, after all property-related expenses. Exit: sale price EUR 71,000, less EUR 710 tax and EUR 2,534.70 commission, giving net sale income of EUR 67,755.30. Return: price appreciation of EUR 15,155 plus EUR 14,216 of rental distributions equals EUR 29,371 total return on EUR 52,600 deployed 55.8% total ROI, roughly 5.8% per year over 7.8 years. Note on field mapping: because this collection type is built for forward-looking listings, the actual April 2024 sale price is stored in projectedSalePrice5Y, realised total ROI in cumulativeROI5Y and total rental distributions in netRentalIncome5Y.
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