A LOCAL private investor has purchased a two-level commercial building, originally purpose-built by Commonwealth Bank of Australia, for $1.925M at 230 Waterworks Road, Ashgrove, following a successful expressions of interest campaign.
The property was sold fully leased with two tenants, The State of Queensland (leased to 2020) and The Produce Wholefood Pantry (leased to 2020), with options to extend to 2025.
The property was marketed and sold by Ray White Commercial Queensland’s Investment Sales Michael Feltoe.
Mr Feltoe said the five-week expressions of interest campaign was hotly contested with the majority of interest originating from local investors who already knew the precinct.
“We fielded 72 enquiries throughout the campaign, resulting in six formal offers,” he said.
“After an extensive round of negotiations, the sale price of $1.925M was achieved, which reflected a very tight yield of 5.56 per cent.
“Investors were drawn to the rental reversion opportunities and the ability to undertake more intensive management to reduce the outgoings.
“The net lettable area was 448sq m* with a passing net income of $106,973* p.a.
“The 584sq m* land parcel is in an affluent precinct neighbouring Highpoint Plaza and a health/medical centre with complementary offerings.
“To go with that, the asset has high profile exposure with around 34,700** cars passing every day.”