Blue-chip investment opportunities in Adelaide continue to receive strong interest from local and overseas buyers, as recently highlighted by the off-market sale of a heritage building for $3.53 million.
An overseas investor purchased the leased investment at 72-74 The Parade, Norwood, with the final sale price returning a sharp yield of 4.2%. The building, which was built circa 1884 and comprises retail and residential, has a land area of 428sqm and an NLA of 620sqm.
CBRE Capital Markets’ Rhyce Scott and Harry Einarson negotiated the transaction, with Mr Scott noting the off-market play by the purchaser highlighted the strength of buyer appetite for opportunities in premier Adelaide locations.
“As blue-chip investments seldom come to the market, we are witnessing an increase in off-market activity from both local and overseas investors who are quick to snap up sites in key locations such as The Parade,” Mr Scott said.
Mr Einarson added: “This transaction represents a growing trend in the market whereby investors are shifting away from pure returns and placing more importance on a property’s underlying land value. Ultimately, buyers are willing to pay premium prices for properties in quality precincts.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.