A local private investor has paid $4.7 million for an office/warehouse complex in Murrarie – seizing the opportunity to secure a Gateway Estate asset occupied by two ASX-listed tenants.
CBRE Senior Manager Ben Lyons negotiated the sale of the 1/49 Borthwick Avenue property on behalf of the private owner.
It was a case of second time lucky for the vendor, who had the property on the market for several months via another agency.
“CBRE secured the exclusive agency once that mandate expired,” Mr Lyons said.
“Through our relationships, we found a locally based private investor who saw value in the site and was quick to secure the asset. During the negotiations we were also able to renegotiate the lease with one of the sitting tenants, BSA limited, which assisted in the sale negotiations.”
The building has a total gross floor area of 2,920sqm and is currently divided into two tenancies – one occupied by engineering, and contracting company BSA and the other leased to engineering and property services company UGL Limited on a new three year lease with a three year option.
Based on the current income, the sale price translates to an initial yield of just over 8.25%.
Mr Lyons said the property’s location in the tightly held Gateway Estate had been one of the draw cards for the purchaser, with the asset positioned to capitalise on the amenity of the Australia Trade Coast precinct.
“The estate, which enjoys primary access to major arterial routes through the Gateway Motorway interchange, currently houses some of Australia’s largest and most successful companies,” Mr Lyons said.
The Borthwick Avenue asset is a modern tilt panel building with a 40/60% split between office and warehouse.
The warehouse for both tenancies is circa 1,734sqm in size with two-level corporate offices at either end of the building totalling 1,186sqm.
“While the building was originally designed for a single occupier, a solid partition wall has been installed to create two tenancies,” Mr Lyons said, noting that this could easily to converted back to a single occupancy in the future if required.
The property also provides 41 car spaces.
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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 (based on 2015 revenue). The company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 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.