Adelaide, 24 June 2015 – A local investor has acquired a main road retail precinct in Somerton Park for $2,225,000.
The 2,897sqm site, located at 67-87 Oaklands Road, features seven well established tenants, including major supermarket chain IGA Fresh Supermarkets which is committed to a 10 year term with up to 15 years of extensions, beginning December 2010. The multiple tenancies provide secure earning potential, which when fully leased has an approximate net income of $195,000 per annum.
CBRE’s William Brown and Ben Heritage negotiated the sale on behalf of a private vendor, in the days after the auction. The final sale price represents a return of 7.65% on the actual net income.
Mr Brown said the competitive sales campaign demonstrates the increasing confidence investors are placing in the commercial property market.
“The property was sold to a first time commercial buyer who was attracted to the higher returns the commercial market offered over the residential market.”
“The properties established tenancies, long-term trading history, and reputable positioning in the local community with an established customer base, made the site particularly appealing to the purchaser as a secure commercial investment,” Mr Brown said.
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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 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 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.
