This article is from the Australian Property Journal archive
BRISBANE-based developer Forrester Properties Pty Ltd has bought an office and warehouse property in the Fortitude Valley for $2.7 million, in deal negotiated by Colliers International.
Colliers associate director of investment services Hunter Higgins said there are plans to develop the site located at 398 St Pauls Terrace into a residential apartment project.
The 373 sqm building sits on a prime 772 sqm corner site with three street frontages. It is currently occupied by Salvation Army on a net passing income of $88,684 p.a. The three-year term expires in August next year.
“There was a lot of interest for the property as an investment, but due to its MP2 zoning, prominent corner position and expiring lease the 772 sqm site has high mixed-use development potential and has mostly attracted the local developers.
“Fortitude Valley is Brisbane’s highly sought after fringe precinct that is experiencing strong economic growth and a development boom with a number of urban renewal and mixed-use projects currently in progress,” Higgins said. “The availability of sub $5 million commercial assets is becoming increasingly scarce in this region as many older and smaller properties are being amalgamated and redeveloped,”
Forrester Properties project manager Scott Forrester said the group is looking at the Fortitude Valley as the next area to develop.
“This site gives us an opportunity to build a 10 storey boutique apartment development at the doorstep of the massive RNA Regeneration Project. We are currently in the process of preparing plans for Council and will lodge an application for approximately 56 one and two bedroom apartments with about 100 sqm of ground floor retail.
“Considering the site is only a block away from the Green Square, Brunswick St and Fortitude Valley train station it is ideally positioned for professionals who work in the area or the CBD and are looking for convenience of an inner city lifestyle,” he concluded.
Colliers sold the property on behalf of Range Holdings, which is also selling a portfolio of assets comprising mostly industrial properties across Brisbane. The portfolio is being marketed by Colliers director of industrial David Seale.
Australian Property Journal
