Feasibility Study Property Löjtnanten 1

Abstract:

The property "Löjtnanten 1" is situated in Västra Skogen, Solna, and is owned by the

Solna municipality. The question at issue answered in this study is "Is it profitable to convert the multistory car park "Löjtnanten 1" to a dwelling-­‐house?". Several matters are addressed to answer that question, amongst other things the demand for condominiums in the area, the effect of competing supply, the acceptable price per square meter from a market point of view, and how the issue of parking may be

resolved. The study has been made with support from JM AB, a developer of housing and

residential areas in the Nordic region. 

As described in the vision, the project will increase the attractiveness of the area by the refurbishment of the nearby centre and commercial premises. The area is one of the development areas in the Master Plan for Solna, "ÖP 2006".

The market analysis performed shows that the project is feasible if the turnover of residents in the applicable areas exceeds 5 percent. The project is also economically viable at a price level of SEK 38 000 – 42 000 per square meter. The project calculation shows a limited profit and presumes that the municipality price the land at a break-­‐even level factoring in the long term positive effects provided by a refurbishment of the

nearby centre.