Adelaide, 03 February 2016- A fully leased investment property has sold in an off-market deal for $2.275 million.
979 North East Road, Modbury, comprises approximately 420sqm of custom designed medical office space with onsite car parking for 16 vehicles.
The well positioned property had been refurbished by Hummingbird Homes and has a brand new 10 year lease to Adelaide Cardiology, a highly desirable medical tenant who are part of the Genesis Care group, the nation’s largest provider of cardiology, radiation oncology and sleep services.
Ben Heritage and Will Brown from CBRE sold the property on behalf of a local developer, Daniel McOmish of DJM Holdings, on a yield of 6.4%. The purchaser is a private Adelaide syndicate managed by Lauren Price of Stevens Partners.
Mr Heritage said that given the price point, strength of tenant and the return on offer, the off-market transaction was sold in a matter of weeks.
“This transaction shows the strength of the Adelaide market given this particular asset attracted not only local interest, but interest from around the country. It’s a matter of introducing the right products to our investors and facilitating the deal,” Mr Heritage said.
“Investors just aren’t getting the returns they would like by having their money sit in termed deposits or by playing the share market, and we haven’t seen record low interest rates like this ever before, and may never see it again in our life time, therefore buyers are continuing to take advantage of the current opportunities.”
Mr Brown said the developer purchased the site with an end tenant in mind and did a complete refurbishment of the existing premises.
“It’s a testament to the developer of the quality of work and his ability to deliver on the end product,” Mr Brown said.
“We have already seen in the first few weeks of 2016 that the Adelaide commercial property market is going to experience some continued growth and strong results, especially with leased investments that meet the key fundamentals of long term leases, blue ribbon locations and premium tenants,” he added.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
