Lyon, France: commercial recording studio (leasehold) for sale

£289,000

About the Property

This is a leasehold commercial property converted to a professional recording studio at great expense. The sale includes the installation, lease & business title. Equipment not included but available by separate negotiation.

MJQ has not visited this property yet – all the info below is given to us by the vendor:


“Company started 2010

1 year of design & business planning 
1 year of hard labour to build Studio A

Opened 2012

Originally a big industrial warehouse of 500m2 with a building within the warehouse.

– 35 m2 Control Room (3m height)
– 90 m2 Live Room (4.5m height)
– 20 m2 Iso Booth (3m height)
– 5 m2 Tech Room
– 250 m2 empty space remaining (vaulted ceiling) included in lease currently empty

The construction of the studio consists of a decoupled box within the box that is isolated from the internal company offices and the apartment next to the studio (separate and private property not associated with the studio). The apartment shares access via the main gate from the street.

The studio build was co-designed by Jean Pierre Lafont (famous french acoustician), Bryan Pape (from Gik Acoustics in NYC) and the leaseholder.

The internal build is state of the art with noble/ quality materials, fully floated rooms, oak flooring etc…

Acoustics are calculated to work by their own with variable positioning by way of movable and non obstructive acoustic treatment.

The sound effect is quite wild and rough (which clients LOVE) but everything can be tamed down easily when needed. 

In 2013, the need of a second Control Room was urgent so the adjacent office was transformed into the iso booth in Studio B using the same building method and added air conditioning throughout the whole studios.

This is a total of over 160 m2 (inside usable measurements) ready to go studio complex + 3 offices (or small living spaces) over 40m2 immediately adjacent to the studios.

This is only 200m2, this means there is 300 m2 remaining in the building:

– 150m2 of Plateau, 7 meters hight Big day lite room often used as recording space and can also be used as a photo/video studio, echo chamber, exhibition space…
– 100m2 of garage, currently used for storage
– 30 m2 of lobby
– 20 m2 basic bathroom

Financials 

INITIAL INVESTMENT: 

– Lease was bought in 2010 for 10k€ (including alarm system and other installation things)
– Office + Lobby + Big Room refreshing in 2010: 5k€
– First studio batch construction in 2010 was: 120k€ materials + 100k€ work
– B studio + air conditioning in 2013 was: 20k€ studio B + 10k€ air conditioning
– Cabling (ethernet/audio/vga etc…) was 8k€
– Acoustic treatments was 15k€
– €288k total investment outlay 

RUNNING COSTS:

– Lease is €18k/year, less thant 40€/m2 per year which is half the current market
– Local tax is €1700/year
Utility bills:
– Gas, electric depends on the usage of course, but currently is around €250 per month for the whole place including heating
– Internet + tel is €30 per month
– Alarm system is €50 per month
– Insurance €190 per month

REGULAR USUAL FEES TOTAL = €23k per year

BUSINESS
– Annual turnover €80k to €140k of only studio business
– Estimated that at least half of it will stay with the lease, €50 to €60k / year
– Renting the other spaces (big room, garage) can double this for very few investments 

EXPECTATIONS
– From the time agree with another owner need a notice to release the space and move our equipment, which can be pretty fast
– asking for €230k for installations and lease. This price includes the direct benefit from a guaranteed very low rent, more than half the price of the actual market which can be seen as €20k discount/year over a regular rent in the same area. Building it from scratch now with course of materials etc… would be a +€350k construction bill. 
– The next team will highly benefit from our local network clients and will have directly a €50/60k/year – asking for this €50k
– Cabling €8k (Ethernet, Digilinks, Audio, all Mogami/Klotz) for a ready to go setup stay there. The new team will just need to move in gear, so the first session can be done in less than a few days.
– Acoustic Treatments can stay for €12k

The equipment is not included however may be available as a separate negotiation depending on the offer.

Total asking price is €330k

The lease is fully secured and totally clear of any procedure.

City of Villeurbanne is acquiring the whole block because they need one portion of it on the other street for a school and they have to buy the whole property to access to it.

There’s no impact on the current business.

The rest is well covered by a regular ongoing commercial lease automatically renewed every 3 years; the lease offers great juridical protection for the tenant – more details available.”