The large 1,745sqm site has significant improvements, including a large bar, restaurant, gaming room, on-site liquor barn and micro-brewery.
It provides significant future development upside given its location in an area befitting from ongoing rejuvenation, including developments such as The Johnson art themed hotel.
Silverstone Developments has a diversified portfolio of commercial, retail and residential projects, as well as a growing book of managed development investments.
The International Hotel site acquisition adds to its pipeline of near-city Brisbane projects and follows the group’s recent sale of a retail development at Rochedale.
Silverstone’s Managing Director Troy Daffy said the property’s emerging location had been a key attraction.
“The site is located opposite the St Andrews War Memorial Hospital in a strong education precinct, which is also benefitting from a growing residential population,” Mr Daffy said.
“Given the property has substantial built improvements and a large on grade car park, it is likely that the building will be repositioned in the near term with retail or medical users, with a long-term play of a larger medical or commercial development given the hospital use directly adjacent.”
Mr Daffy noted that the existing planning code allowed for a development of up to 10 storeys, with flexible design parameters for retail, commercial, medical and residential/aged care.
CBRE’s Mr Collins said the sale campaign had generated over 67 enquiries, predominantly from active investors looking to reposition the property, as well as developers and land bankers interested in the counter cyclical opportunity to acquire a near city site.
“Astute groups are capitalising on opportunities to acquire future development sites in the near city market while the high-density residential market recalibrates,” Mr Collins said.
“These parties are acquiring sites with a view to repositioning them for alternate uses that generate an income in the short to medium term while Brisbane’s infrastructure transformation continues.”
CBRE’s Mr Fraser noted that the recent activation of the long-awaited Spring Hill Neighborhood Plan had been a major draw card for prospective purchasers of 525 Boundary Street given the property’s significant street frontage.
“It became very obvious from the campaign launch that the highest and best use for the asset was not as a hotel, but as a development site,” Mr Fraser said.
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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 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 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.