Newstead revitalisation underpins $13.25m Commercial sale
| 1 July 2016
The revitalisation of Brisbane’s inner north suburb, Newstead, has underpinned the sale of an A-grade asset on Commercial Road for $13.25 million.
Positioned on a 760sqm site, the near-new five-storey asset was originally marketed as part of Heathley Limited’s property portfolio, before being offered to the market as a standalone asset.
With a net lettable area of 2,195sqm, the building benefits from a diverse tenancy mix comprising Blue Commercial, Symposium Café, 20Cube, Emerchants Limited, White Retail Group and Gray Puksand.
CBRE’s Peter Court and Darren Collins negotiated the sale of 26 Commercial Road on behalf of Heathley Limited to a Melbourne based investor.
Mr Court said the sales campaign attracted strong buyer interest from the private sector.
“The property’s location in Newstead’s Urban Renewal Precinct was a key drawcard attracting interest from a vast spread of investors, with the area now regarded as one of Brisbane’s most revered office hubs,” Mr Court explained.
“The precinct has experienced significant leasing success over the past 12 months, with vacancy decreasing from 16% to 10%. This gave great confidence for the incoming purchaser to overcome the challenges surrounding the short 1.9 year WALE of this property.”
Mr Collins said Newstead was regarded as one of Australia’s best performing office precincts, with surrounding best-in-class amenity including premium retail, dining and entertainment venues, as well as close proximity to public transport networks.
“Newstead is a tightly held precinct, which is recognised nationally by our investor base as a secure long term area in which to invest,” Mr Collins said.
“As such, when commercial assets do become available they are hotly contested. With continuing stock withdrawal for residential development, we expect yields to continue to tighten in the area.”
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