News

Smithfield Property pays $3.9M for New Farm value add gem

SMITHFIELD PROPERTY has purchased a mixed-use gem with multiple value add options for $3,900,000 in Brisbane’s prestigious New Farm at 599 Brunswick Street.

The asset offered a diversified income stream with a complimentary mix of retail, office and 16-room boarding house.

The property was partially tenanted with half of the ground floor retail vacant and a short WALE of 1.05, which also represented an opportunity to value add.

The property was marketed and sold by Ray White Commercial (QLD) Retail Investment Sales Michael Feltoe.

“The property had some unique features that really divided buyers into two camps. There were three easements and council requirements that significantly restricted development upside of the car parking land,” Mr Feltoe said.

“The buyer acquired the asset on an eight per cent yield that reflected the long-term vacancy, overall short-term income security, and the amount of work required to bring the property up to standard.

“In the last two years, the asset had been formally on the market for sale twice with two other agencies, and had been under contract and fallen over a few times in some off-market processes by other agencies.

“Instead of doing the same thing again and expecting a different result, we recommended marketing the asset for sale via auction which generated a huge amount of enquiry (147).

“We took the asset to auction, where we had three bidders, and the bidding reached $3.55M.

“Over the next few days the highest bidder went as far as $3,650,000 and then tapped out.

“We were then instructed to advertise the property for sub-$4,000,000 which generated 3-4 enquiries per day.

“Smithfield Property were the perfect buyer due to both their track record with properties that need creative solutions and their requirement to relocate their office into the vacancy.

“The end of 2019 we saw a really limited supply of both passive and value add investments offered to the market.

“Into 2020, we’re witnessing more landlords seriously consider the idea of capitalising on very high levels of investor demand.”

*Approximately.

Up to Date

Latest News

  • Coffs Harbour Motel on Massive Land Parcel For Sale

    Insolvency and restructuring expert, Bill Karageozis of McLeod and Partners has appointed leading specialist brokerage firms Ray White Commercial Queensland and HTL Property to sell Coffs Motel and Villas, located at 209 Pacific Highway, Coffs Harbour. Bill Karageozis of McLeod and Partners was appointed as the Liquidator to the asset … Read more

    Read Full Post

  • 4 Reasons to Sell at the Summer Auction Day

    Take Advantage of the Strong Selling Conditions 10 of our most recent on market campaigns averaged 143.6 buyer enquiries, 8.3 registered bidders/offers, with yields as tight as 3.81% and some prices 20% above owners price expectations. These results continue to defy media headlines and market speculation. All of our Ray … Read more

    Read Full Post