Boutique Brisbane office building changes hands for $27 million

Arcana Capital has acquired a Brisbane CBD office asset from ADIG for $27.43 million.

Located at 126 Margaret Street, the asset is situated close to some of the city’s significant and transformative infrastructure projects including the Cross River Rail Albert Street Station, Queens Wharf, Kangaroo Point Green Bridge and the Dexus Waterfront Precinct.

CBRE’s Jack Morrison and Nick Wedge managed the transaction of the building which has a 5,544sqm NLA including parking for 48 cars.

The transaction reflects a yield of 8.96 per cent, and a rate per sqm of $4,948, with income derived from education users given the towers 9B classification.

Arcana Capital’s Managing Director Campbell Newman said, “Arcana’s investors were excited by the inherent value of this acquisition and the opportunity to invest in a part of the Brisbane CBD that is going through a rapid transformation with Meriton’s residential towers, the latest stage of Queens Wharf, student accommodation and the new rail station.”

Mr Morrison noted the buyer had plans to refurbish and release the building.

“126 Margaret Street presented an excellent opportunity for incoming purchasers to reset the building and cater to the strong performing Brisbane office leasing market,” Mr Morrison said.

“The near completion of the Cross River Rail Albert Street Train Station will further bolster occupier demand in this evolving precinct,” Mr Wedge added.