Multi-tenanted Kenmore commercial asset sells for $3.37M

A FULLY-TENANTED commercial investment in one of Brisbane’s most desirable metropolitan suburbs has sold to an investor for $3,370,000 at 2053-2059 Moggill Road in Kenmore.

The property comprised two adjoining, refurbished buildings and was targeted at a new owner wanting a ‘set and forget’ investment. It sold via an expressions of interest campaign.

The asset was marketed and sold by Ray White Commercial Queensland Retail Sales father and son duo Stephen and Elliot Kidd, alongside Investment Sales Michael Feltoe.

Mr Stephen Kidd, who previously sold the asset back in 2014, said they received 94 enquiries and that multiple offers were fielded throughout the five-week high-profile marketing campaign.

“We’re continuing to witness a high level of enquiry and engagement from investors for inner-city multi-tenanted assets” he said.

“Both the vendor and purchaser were investors from Queensland and the buyer acquired the property on a 6.97 per cent yield, at a building sale rate of $6,431psqm.

Mr Elliot Kidd said what particularly appealed to buyers was the fact the property provided a strong, multi-source income stream.

“The tenants in-place were Brisbane West Real Estate (BWRE), Spicy Affair Restaurant, Melrose-Keys Lawyers, Masala Café and Australian Pet Welfare Foundation,” he said.

“All tenancies at the site, except for BWRE, have been extensively refurbished in recent times and the precinct underwent a major council upgrade of footpath and landscaping.

“It was a great opportunity for an astute investor to secure an income underpinned by security bonds and directors guarantees.”

Mr Feltoe said Kenmore was an affluent suburb of Brisbane and was within the highly sought-after ‘middle ring’ and was only 9km* south-west of the CBD.

“Fundamentally, the investment ticked the right boxes, a corner location in a relatively high traffic area and offered landlord friendly leases to good quality local tenants.

“Investors were drawn to the WALE of 3.5 years and the complementary tenancy mix with some of the long-term retail/office tenants occupying for up to 18 years.”

*Approximately.