Sydney, April 22, 2016 –Strong demand for boarding houses has underpinned the sale of a Greenwich guesthouse on Sydney’s lower North Shore within just four days of going to market.
A private Sydney based investor secured the 12-room Shore Inn Guesthouse at 314a Pacific Highway for $1.82 million, with the sale reflecting a net yield of circa 5%.
Located on a 411sqm landholding, the Shore Inn Guesthouse provides short, medium and long term stay options over two levels, with four of the rooms including ensuites.
The property also offers significant development potential, with a draft scheme in place to add an additional level with a further four rooms, balcony and city, harbor and river views. The proposal is expected to enhance the generated income by up to 50%.
The property, which had been previously listed with four agents for four months, was sold by CBRE’s Toby Silk within four days. Aloan facility was procured by the purchaser through Byblos Finance to facilitate the transaction.
Mr Silk said the strong sale result was evidence of the pent up demand for guesthouses in the current market.
“The poor performance of the share market, coupled with the low cost of capital with interest rates at record lows and increasing emergency of self-managed funds, is seeing more investors chase opportunities within the real estate market,” Mr Silk said.
“Investors are drawn to boarding houses due to the flexibility and control they offer on investment. By running the operation’s side, they have control over the property and can maximise the income generated. “
The private family vendor sold the property to concentrate on their Brookvale flooring business.
The Shore Inn Guesthouse benefits from a central position on Sydney’s lower North Shore, located just six minutes from the St Leonards Train Station, and offering high profile signage exposure to six lanes of traffic on Pacific Highway.
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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 2015 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.